Corn Harvest To Decrease By 9 Percent Due To Flood, USDA Report Causes Corn Futures To Hit $7.55 A Bushel

Des Moines, IA (AHN) - The U.S. Department of Agriculture said Monday corn harvest will be down by almost 9 percent in 2008 partly due to the midwestern flooding. Only 78.9 million acres of corn is expected to be harvested this year, down by 8.7 percent from last year's 86.5 million harvest. As a result, corn futures went up to $7.5475 a bushel for the July contract on Friday from $6 in early June.

Meanwhile, a visit by Iowa Gov. Chet Culver to residents rebuilding their lives and homes in Oakville showed that at least 174 homes could no longer be fixed. What worsened the situation was that a discovery few homeowners had flood insurance.

All 439 residents of the town had to evacuate their units when the levee at Iowa River broke two weeks ago. Their homes were buried under water, while up to 25,000 acres of farmland were inundated with water rising up to 20 feet.

Aside from the huge cost involved, residents had to contend with dangers posed by rattlesnakes on trees, water snakes in basements and carcass of 2,000to 3,000 dead hogs scattered along with their toxic effluents.

At the end of his visit, the governor promised assistance to residents including funds to rebuild their roads.