Although it has received only limited attention, the drought currently affecting the Midwest has taken a serious turn for the worse during the past few weeks. In fact, it is now being compared to a similar period in 1988 that cost the agriculture sector and the U.S. government more than $78 billion.
 
The problem: the price of corn has gone up 28 percent since June 15, 2012, due to sparse rainfall.
 
Corn is a very important crop used for a wide range of purposes, from feeding livestock, making food products, producing ethanol, and even as an ingredient in some cleaning products. As the price of corn goes up, the costs for these products are likely to go up as well.
 
"Everyone's worried about this," says David Anderson, an agricultural economist at Texas A&M University. "Stockpiles are low … and it looks like we're going to have highly volatile prices for the rest of the summer."
 
Areas of Indiana, Illinois, Iowa, and Missouri have had less than half their normal rainfall during the past 30 days. While the National Weather Service does predict some showers this week, it is likely to be too little precipitation in too few areas to have a significant impact.
 
According to Klaus Reichardt, CEO and founder of Waterless Co., Inc. and a frequent writer on water conservation issues, stockpiles of corn are declining at the fastest pace in almost 20 years, "and the percentage of U.S. corn considered in ‘good-to-excellent' condition is at 56 percent, down from 63 percent a week ago … mostly because of the drought."
 
Reichardt believes that if the drought lingers, it could have a serious impact on our entire economy. "Almost everything in our economy is interconnected. We have no control over Mother Nature, but taking significant steps to use water more efficiently can help protect our economy and help us through these dry periods."