Contact Us ·  Advertise With Us ·  Site Map
HOME    WEATHER    NEWS    SPORTS    COMMUNITY    BUSINESS    HEALTH    ENTERTAINMENT        
CarSoup New Year's Guide Submit News Stories Job Board Closings & Delays Desktop Alert TV3 on the Go First Alert Traffic
*** A Winter Weather Advisory has been issued for Highland County in Virginia and Pendleton and Western Grant counties in West Virginia through 1 a.m. Friday. Two to four inches of snow is expected on favored western slopes overnight with more accumulation Thursday. A Wind Advisory has also been issued for Highland, Augusta, Rockingham, Shenandoah, Page and Warren counties in Virginia and Pendleton, Hardy and Grant counties in West Virginia until 5 a.m. Thursday. Winds are expected to be between 15 and 25 mph with gusts up to 50 mph possible, especially in higher terrains. Driving may be difficult under these conditions. ***
Holiday Shopping
E-News
Live Newscast
Corn Prices Force Production Cuts Save Email Print
Posted: 9:30 PM Jul 15, 2008
Last Updated: 3:49 PM Jul 16, 2008
Reporter: Michael Hyland
Email Address: mhyland@whsv.com

A | A | A

The skyrocketing price of corn has poultry businesses scaling back. The Virginia Poultry Growers Cooperative has announced it expects to cut production by 25 percent by the end of the year.

The cooperative is linking the rising price of feed to the nation's policy on ethanol production. Local farmers say the costs are jeopardizing their lifestyle.

Poultry farmer Linwood Vrolijk, a member of the cooperative, owns five buildings that contain about 18,000 turkeys. The cooperative recently announced growers like him will be supplying fewer turkeys to the cooperative's processing plant.

"It's a third of our income," says Vrolijk. "So, we're just trying to do things as a business that keeps us profitable and helps us weather this storm until we can get things turned."

Cooperative President & General Manager James Mason says there's a correlation between the rising price of corn and the nation's ethanol policy.

"It would be a lot less damaging to the growers if we could go back to more normal placements," says Mason.

Late last year, the U.S. Congress passed a bill calling for more corn to be used to produce ethanol. According to the Department of Agriculture, about a third of corn in the country is used to produce ethanol.

"If you take any commodity and take 35 percent of it out of play, it means us guys got to pay a lot more money for what's left," says Mason.

Congressman Bob Goodlatte (R-VA) voted against the bill.

"And, we should let the market determine whether it goes to ethanol based on high gas prices or whether it goes to consumers, or whether it goes as feed for livestock," says Goodlatte.

As part of the bill, the government can lower the ethanol production mandate, and Texas Gov. Rick Perry is calling for the Environmental Protection Agency to do that, possibly bringing some relief to farmers in the cooperative.

"It'll be felt from top to bottom," says Vrolijk. "But, you know, we've been resilient farmers in the Valley here, and we plan on staying that way."

The EPA is expected to respond by next week to the Texas governor's call to lower the ethanol mandate.

The cooperative isn't the only business affected recently. Pilgrim's Pride announced Tuesday it will be cutting more than 600 jobs in Arkansas and Texas. Officials say it's in response to the record-high feed costs.

More Stories
Road Closed to Virginians on Inaguration Day

What's Going Around - January 7, 2009

New, Revealing Details Emerge in Hit and Run Case

Restaurant Linked to Hit and Run Under Investigation

New Leadership Roles in Augusta County

Threat of Radon

Harrisonburg Mayor Meets with Residents

Safely Exercising Outdoors

Post Your Comments
First Name:
Location:
Enter Comments: characters left
Email (optional):
Email will not be displayed on site. For station contact purpose only.
This content requires the latest Adobe Flash Player and a browser with JavaScript enabled. Click here for a free download of the latest Adobe Flash Player.
National AP Video