Flooding May Cause Gas Prices To Increase 15%

In the adding insult to injury department comes the news that gas prices could go up another 15% but not because of the rising cost of oil per barrel or due to violence in the middle east or because of refinery issues. Nope, this is a problem of the home grown variety.

Farmers are having trouble growing corn because their fields are flooded. I remember that back when I was a kid helping my dad on the farm it was better if things were too dry rather than too wet. If the field is too dry, the crops won’t grow as tall and the yields will be lower. However, if the fields are too wet, the crops don’t grow at all. In some cases, you can’t even get out in the fields to plant because your tractor will simply get bogged down in mud.

And that’s the situation farmers are facing in the Midwest “corn belt” region. (Ohio, Indiana, Illinois, Missouri, Iowa, Wisconsin, Minnesota, Nebraska, and Kansas) This is the part of the country that has been hit the hardest by heavy rains and widespread flooding.

I actually spoke to my mother last night who lives in southeastern Wisconsin and she was telling me how just about every city that was near a lake or river had been declared a state of emergency. Entire cities had had been shut down because every road in and out of the city was flooded.

And the heavy rain has caused Corn prices to skyrocket. In the past two weeks alone, corn has jumped from $6.10 a bushel to $7.50 a bushel. And if this trend continues, gas prices could increase another 61 cents per gallon. That will push gas prices close to $5/gallon, and if we have a bad hurricane season like the one from a few years ago, then $7/gallon gas prices will become a reality before the end of the year.

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Posted: June 13th, 2008
at 9:59pm by Fuel Saver

Categories: Gas Prices

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