More Rising Food Prices? Grocery Bills to Skyrocket as Drought Crushes Crop Production
Saturday, August 11, 2012
The U.S. Department of Agriculture cut its projected domestic corn and soy production by 17 and 12 percent, respectively, since last month. This breaks the hearts of many farmers expecting record harvests, but could affect ordinary citizens too in the form of rising food prices and larger grocery bills.
Rising Food Prices Worldwide
The U.N. food agency directly correlates rising food prices in grocery store staples and the current drought’s effects on farming regions. Tensions are running high as dry weather in Russia pushes prices up 19 percent, according to the Food and Agriculture Organization. Agriculture Secretary, Tom Vilsack, says that Americans have no need to be concerned about devastating food prices.
Food, unfortunately, is not all that will be affected. Because corn and soy are ever-present—even cosmetics and pet food—we shouldn’t be surprised to see nearly every trip to the grocery store go up a few cents or dollars.
But of course this isn’t the beginning of rising food prices.
Costs have been going up for some time now; you can see a food price index here in an article we covered around just last Thanksgiving. The food index count, which is an overall score reflecting the total price of the top 6 food commodities, rose to 215 in December of 2010 — up from 90 in the year 2000. Sugar spearheaded the spike, hitting only 2 points away from the 400 mark in December of 2010.