The USDA blames the drought in the Midwest for driving up food prices worldwide.
NEW YORK (CNNMoney) -- Corn yields are shriveling up as the drought continues to wreak havoc on crops across the Midwest.
On Friday, the U.S. Department of Agriculture projected a massive slump in the corn harvest, and a subsequent surge in corn prices.
In its monthly World Agricultural Supply and Demand report, the USDA projected the corn harvest would plunge by 2.2 billion bushels, or by 22.6 bushels per acre, resulting in a harvest of 123.4 acres per acre.
That's worse than expected and puts the 2012-2013 yield on track to be the lowest since the 1995-1996 harvest.
Analysts had anticipated a decline of 20 bushels per acre to 126 bushels per acre.
Meanwhile, the USDA also said it now expects farm prices for corn to hit a record high this season of $7.50 to $8.90 per bushel, sharply higher than its July forecast of $5.40 to $6.40 per bushel.
The USDA blamed "extreme and dryness" in the Central Plains and the Corn Belt.
Fewer crops has been translating into higher prices for consumers as well. On Thursday, the United Nations released a report that showed world food prices jumped 6% in July.
Corn was the biggest culprit for the price hike. The global price of corn surged nearly 23% last month. The price of grain also jumped, by 17%.
Rising corn and grain prices are expected to drive up the price of meat, since corn is used to feed cattle.
Although meat prices have recently declined, that's largely due to ranchers culling their herds to deal with rising cost of feed, creating a glut in supply. The price of meat is forecast to rise when the supply thins.
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