Corn Price Volatility: Causes, Implications,

and Solutions

Melissa ReichwageINFO 532

December 16, 2012

Corn p

rices a

re

risin

g!

Why are corn prices

rising?

Drought?

Climate Change?

Ethanol Production?

Policies?

• 2008 Farm Act

• Energy Policy Act of 2005

• Energy Independence and Security Act of 2007

Possible Causes ofRising Corn Prices

• Drought

• Climate change

• Ethanol production

• Agriculture, export, and energy policies

Why should we care?

Corn prices affect food prices globally

Health implications ofvolatile food prices

• Hunger• Malnutrition• Migration

• War• Death

Economic implications of climate change in the corn

market

Corn belt shifting north …to Canada

What should we do about

it?

Policy Recommendations• Climate change reduction– Carbon credits– Investments in renewable

energy

• Examine agriculture, export, and energy policies

• Improve food security globally

My Maps• USDA CropScape Raster Data• Map(s) showing location of ethanol

producers and corn production• Map(s) showing drought and/or

climate change and corn production

Leading Corn States

Questions & Comments?