Sunday, July 31, 2011

EP - Will There Be A Food Crisis?

Will There Be A Food Crisis?
Article published at

Our debt ceiling is looking to rise again.   Our stock market is acting like an emotional 6 year old.  The people are not willing to spend their hard earned money in the stock market.  Food prices and inflation is going up like a hot air balloon.  In short the world is starting to face what could turn into one of the worst food crises in decades.

While America has typically been the land of plenty, we’ll start to feel the burden along with others all over the world.   The increases in food prices have already taken affect and are not likely to improve in the near future.  In 2011, the United States Department of Agriculture expects food price to rise between 2 and 3 percent.  As of February 2011, the price of wheat has increased 83% and the price of corn has doubled since one year earlier.

Dairy and cattle farmers are concerned for the industry.  Land values are dropping. Fuel, fertilizer, and seed costs are going up. The cost of beef products is expected to increase by almost 40%, leading to much higher prices for any meat eaters.   Grocery shoppers can expect to pay higher prices on items like eggs, fruits and vegetables, since they’re more vulnerable to changes in farm prices than processed foods.

The prices of our commodities such as oil, cotton, wheat and corn are on the rise and no sign of stopping.  In a time of a bad economy when a lot of people don’t have jobs, it’s going to be really tough for them.  Americans cannot afford higher prices on food and clothing when their incomes are not moving up.

Anyone remember when a can of coffee was actually 48 oz.?  Or when a can of tuna was 7.25 oz.?  A can of vegetables used to weigh 16oz, a pack of gum contained 20 sticks, and salad dressing was a quart, and so on and so on.  Suppliers have been able to sneak in a reduction of product with every change in packaging.  It tricks the people because the prices haven’t been changed.  But we have been paying more for quite some time. The food crisis may seem very depressing, but it is not the end of the world.  There are some things we can do to offset the rising cost of food, and events.

Grow your own food.  Even if you live in the city or the suburbs, you can still benefit from a small home garden.  If you live in an area where you can grow your own food or raise small game, you may consider doing so.  This will not only save you money, but will also contribute to a healthier diet.

Stock up on dry foods and emergency foods.  It is a good idea to purchase a lot of nonperishable foods now.  You will want to look into instant milk, freeze dried eggs, meats, fruits and veggies.

Build up your emergency fund.  Start saving more now so that if you ever need to dig deeper into your savings, you won’t have to take on any debt. The last think you want is to have to make major sacrifices that will hurt the quality of life for you and your family.

Increases in food prices will continue to have a huge impact on our economy and our lives.  While it is impossible to project just how long these increases will last and how deep of an effect they will have on the economy, we need to be prepared to protect ourselves against these heightened price levels.

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