AG SECRETARY: Drought should not have immediate impact on food prices

For the second straight month, the U.S. AG Department slashed expectations for corn and soybean production.

Because of the drought the corn yield is expected to be lowest in 17 years.

Right now more than 40 percent of corn will be used for ethanol, driving up meat and gas prices.

Farmers want the EPA to suspend the mandate that requires nine percent of gas be made with ethanol.

"The EPA is working closely with the Agriculture Department," Jay Carney, White House Press Secretary, said. "No question that the drought is very serious and we're taking every step."

Despite the bad crop forecast, the AG Secretary says we should not see an immediate increase in food prices.