Eye on Ag - Food Prices

We as Americans have and continue to enjoy the cheapest food in the world. On average we spend ...  More »

We as Americans have and continue to enjoy the cheapest food in the world. On average we spend less than 10 percent of our income on food but in recent months we've seen the prices at the supermarket climb higher and higher. (Lori Scharmer, NDSU Family Economics Extension Agent) We know that food prices are rising and rising faster this year than they have in the past. Generally we're looking at a 2 1/2 percent increase in food. And they're telling us in the past year that a family of four in America is now paying about 50 dollars more a month for their food than they have in the past. NDSU Family Economics Agent Lori Scharmer says the increase on the food dollar is being caused by a number of different factors and while one can't be pin pointed as the sole cause, they are all playing a part. (Lori Scharmer, NDSU Family Economics Extension Agent) One of them is there's a stronger demand for food around the world and we have developing nations who's economies are increasing and their people are getting more personal income and so they're able to buy more food. We also have the situation where some of our grains are being diverted to ethanol production. We also have the cost of oil and the cost of oil affects prices of everything including food. Add to that list an increase in grain prices. Market Analysts says the reason behind the ag commodity run-up is world supplies have been depleted to levels not seen since the early 1980's and even with the higher prices farmers take on the food dollar is still only about 20 cents. (Lori Scharmer, NDSU Family Economics Extension Agent) So when you get a combination of those issues and cost of food is going to go up. Scharmer says family's can keep their costs in check at the table by simple watching for sales, using coupons and cutting back on the number of times they eat out a week. She says a positive thing to keep in mind is that we are not short on the supply or variety of food and that our food supply is the safest in the world. (Lori Scharmer, NDSU Family Economics Extension Agent) So even though the price of food is going up and yes it's going to hurt the bottom line for families we need to remember that we have it very good as far as food. With your eye on Agriculture, Shaun Sipma KX News.  « Less