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Huron County Press Local News PUBLISHED:
According to the Department of Agriculture, retail food prices are expected to be up 2.5-percent to 3.5-percent this year. The strong demand for corn is also creating higher pricing for beef, pork and chicken. One year ago corn prices were $1.93 a bushel; this year corn weighed in at $3.84 a bushel the middle of June. The demand for its many uses keep the price elevated. "The demand for corn has been great over the last year," said Cooperative Elevator Co. President and CEO Pat Anderson. "There are more reasons people are using corn." While most of us are paying more for corn products, local corn growers are seeing a pay-off with their crop. "The price of corn helped out come spring," said corn grower and farmer Mike Wildner of Unionville. "I did have more money but most of my crop wasn't being paid for during the higher market price." Wildner farms 150 acres of corn and he admits he's added 20 more acres this year to meet the demand. He didn't plant soybeans this year and he stopped planting sugar beets. "I haven't seen any downfalls to this yet," he said. "But then again I haven't checked the prices of fertilizers." Wildner fears the cost of fertilizer will go up because some of the corn the United States produces goes to South America. "When we send corn down there the same barge would bring back the fertilizer...but with corn not going down there as much it may cause fertilizer prices to go up." Wildner agrees the demand for corn is growing. "And this is what's driving the costs up for all the other products made from corn," he adds. Agriculture economy is the second largest industry in Michigan and the Cooperative Elevator Co. saw its profits grow. Last year the Bean and Grain Division netted $20-million and this year it's expected to be over $30-million. "That includes wheat, corn, soybeans and some oats," said Vice President of the Bean and Grain Division Mike Janowicz. "We do very little oats anymore; the demand just isn't there." "This impact goes right back in to the community," said Anderson. "It's figured times seven what the actual cost is of the product." Anderson and Janowicz said the amount spent in the area is almost a half-million dollars. "You figured the farmer buys his seeds here, he harvests it and sells it to us, then he goes and buys more equipment and those people at the equipment stores take their paycheck and go to the grocery store for food," said Janowicz. "It comes full circle...this is a great boost for our economy." Anderson reports last year $67-million in commodities went back to the farmers. "This is a good sign," she said. |
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