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Buckle Up For High Food Prices

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Drought will spike food prices.

Start clipping coupons and watching for deals. Food prices are going to shoot up in upcoming months due to an epic drought that has already reduced a quarter of the projected corn crop, market prognosticators say. In fact, corn prices have jumped by 30% in the last month, and it’s only going to get worse as dry conditions ravage the U.S. Corn Belt.

Consumers don’t realize that corn is a major player in food production, as corn is a main ingredient in many goods commonly purchased in the grocery store. As ranchers are forced to sell their livestock and feed prices rise, purchasing meat will also be hard on the budget.

USDA recently reported that Americans should expect food price hikes of 3-4% next year, with beef prices going even higher. Poultry and egg prices are projected to rise 3% to 4%, while dairy prices could climb as much 4.5%.

”American families already have stretched their budgets because of the tough times, so these price increases will hurt harder than they would have five years ago,” says Ben Senauer, a professor of applied economics at the University of Minnesota, in an interview with the Eureka, CA Times Standard. “Broad areas of this country are drying up as we speak. This is not being exaggerated at all; it's bad out there. And with every day of high temperatures and no rain, it's getting worse.”

”We expect the impact on feed prices to be widespread and significant,” added John Anderson, deputy chief economist at the American Farm Bureau Federation. “We talk about most natural disasters, like a hurricane, at a fixed point in time where you clearly see what's happening. But that's not how a drought works. It's more like a natural disaster in slow motion.”

Read the complete article here.

Are you tightening up your budget in preparation for a rise in food, fuel and livestock feed? Is your operation and your family already feeling the pinch? How are you managing your finances during this drought?

Check out our drought resources page here.

Discuss this Blog Entry 6

Anonymous (not verified)
on Aug 9, 2012

Plant a garden, challenge current zoning restrictions regarding raising and slaughtering small animals for food, rabbit, chicken, goat or pig. Protest you real estate taxes. Try to get Mom to stay home to cook and prepare better meals. Most important. STAY AWAY FROM INK AND CARDBOARD WHEN YOU SHOP.

Anonymous (not verified)
on Aug 9, 2012

Honestly.. plant a garden whereever possible. And like the above said... raise small animals. Get an incubator... layers, and a rooster or two. If you live in town, go in with friends to farmers markets and buy big. Bushels of stuff instead of pints and quarts. Put stuff in the freezer, pickle, and do some canning. Its amazing how your shelves/freezers will fill up.

Anonymous (not verified)
on Aug 9, 2012

A small garden will feed a family of four easily. This drought is not affecting much in the way of food for the table except for meat. Most of the crops are corn/soybeans which is used for feed and processed food fillers. The average farm no longer raises secondary crops, which is a directly related to the subsidies farmers receive for those crops. There is no incentive to plan and conserve for periods of drought.

Anonymous (not verified)
on Aug 9, 2012

I don't agree with the above statement "This drought is not affecting much in the way of food for the table except for meat". Corn makes up ALOT of the foods we eat from your box of cornflakes to gasoline. In fact... farmers are protesting the use of corn in ethanol production in light of this serious drought as feed costs are rising. Soy makes up foods people eat, who are allergic to other foods, as well as a host of other products.

Anonymous (not verified)
on Aug 9, 2012

The last post has got it right. As feed costs soar for livestock, and regulations force the use of our already shortening supply of corn, forcing the continued use of corn for ethanol should be immediately stopped as we are in desperate shortages of our complete 'chain' of food resources. Soy, Corn , Wheat and their derivatives are used for so many things in our daily lives, Farmers should be better understood as to the importance of what they are to any society's existance,

Anonymous (not verified)
on Dec 15, 2012

Eat the meat that is on sale.If you can't find meat on sale..wait until it is on sale.Being a vegetarian never killed anyone.We only need meat a couple of times a week.When we all stop eating so much meat....the price WILL go down..trust me,the meat industry dos'nt want to go broke.We are trained to believe that we need meat everyday,we don't.That's what the meat industry wants you to believe.

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BEEF Daily Blog is produced by rancher Amanda Radke, one of the U.S. beef industry’s top social media “agvocates.”

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Amanda Radke

A fifth-generation rancher from Mitchell, SD, Amanda grew up on a purebred Limousin cattle operation in which she and husband Tyler are active. She graduated with a degree in agriculture journalism...

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