Corn Prices Surging Due to Unexpected Northern Flooding

Flooding in the upper Midwest has caused a surge in the price of corn recently, some reports topping at around $8/bushel according to ABC News. Experts have previously estimated record highs for corn and soybean production this year due to mostly favorable weather and promising condition scores throughout the season. This week we’re seeing what the news has to say about this flooding, if it’s expected to threaten overall yields or prices, and what to expect from the market moving forward.

Impact of Floods in Midwest

Parts of Wisconsin, Michigan, and Minnesota experienced major flooding, causing destruction to homes, roads, and yes, fields. High rainfall even caused the destruction of a dam in Northwestern Wisconsin according to Agri-View. Panic about the availability of corn in upcoming months has led to an unprecedented spike in prices. So, should consumers be worried?

Despite Damage, Corn Production Remains Above Average

An article from The Progressive Farmer reports numbers which should be putting consumers at ease. As of the second to last Sunday in September, corn was being harvested 6 points ahead of last year’s pace and 19% more corn had reached maturity by that date than the average 5 years prior. Condition ratings remain high as well, so it seems that the impact of these floods is unlikely to affect the market. The Midwest Crop Tour revealed a few promising outcomes this year as well. This update from day 3 of the tour suggests good news is to be anticipated through the rest of the season.

Final Thoughts

Although the flooding caused tremendous initial damage, farmers in affected areas should be covered if they’ve got flood insurance for their fields. Crop insurance is one of the most important factors in keeping your operation’s bottom line safe, especially in the case of natural disasters. Fortunately, those with insurance can rely on that to help them through the slump, and farmers whose yields weren’t affected can sell their crops for a higher price tag!

If you’re in need of reliable, quality crop insurance, call Crop Insurance Solutions today. We’d love to help put your mind at ease.