The United Nations stated that world food prices hit a record high in January 2011, suggesting that food is now more costly than it has ever been. Grains are more costly than ever, as corn prices have gone up 53%. Wheat is up 47% and rice is at its highest cost in over 2 years. The global economy is still recovering from the past few years, and the high food prices could really cause many people to struggle even more so than they have.
The cause for the high prices isn’t very clear. Bad weather is a definite contributor. For example, a heat wave in Russia last summer destroyed grain harvests and forced the country to suspend exports, which threw off global markets. Excessive heat in the Midwest affected the corn crop, resulting in a 5% drop in production last year. There is a rising demand for food, and especially for meat, whose production needs a lot of water and grain, and that demand is straining supplies. The production of ethanol sucks up cropland and grain that could be otherwise utilized for food. 40% of the corn crop in the United States is currently used to make fuel for cars, with ...