FOX 21 News, KQDS-DT

DULUTH - Right now, prices are sitting at a pretty good spot at Old World Meats.

However, the store's owner said a drought across the Midwest will eventually mean products like beef will take a hit.

"We expect 30 to 40% in the next nine months but it'll be a very slow swing for us," owner Paul Wrazidlo said.

The United States Department of Agriculture reports that the drought hitting the Midwest is the most severe in at least 25 years and is currently increasing the price of field corn right, but will trickle down to affect the price of other food items, like beef, that depend on that corn for feed.

It means farmers could put more meat into the market, which would bring prices down for short period.

However, that trend would most likely reverse in the long term, and the shrinking supply would force prices up for businesses, and finally the customer bringing it to the dinner table.

"We always take a cut on our own at the beginning and then sneak away at it because we don't want out customers to come in here and get sticker shock," Wrazidlo said.

The story is different for bakeries, since the drought has the ability to affect them more quickly.

"In using raw ingredients like we do, we sometimes see it sooner," Johnson's Bakery owner Scott Johnson said.

Johnson said they were lucky that wheat crops are mostly in the clear, but because most of the raw product they need is in the Midwest drought area, it eventually means prices will go up for other big items like shortening from soybeans.

"We can only raise our prices so high to really cover it and some of it we have to kind of just not offer some products," Johnson said.

The drought may force businesses and consumers to start avoiding pricier items.

However, many of the changes are not expected to be seen until late 2012 and into 2013.