Whether it’s gas prices or the grocery bill inching higher, rising prices are inescapable. As summer hits its stride and you plan family picnics, excursions to the grocery store and farmers market may put the hurt on your wallet.
Wonder what’s causing ballooning food costs and what the future has in store? As a senior economist for the Illinois Agricultural Association, I’m here to set the record straight!
What the future holds
First of all, let’s look back and see how we got here. According to the Bureau of Labor, the overall price of food:
- decreased 0.5 percent in 2009 and
- increased 1.5 percent in 2010.
That being said, what are the forecasts for this year? Answer: three to four percent!
Let’s not play the blame game
We’re not going to catch anyone red-handed here. There are multiple factors impacting your grocery bills’ bottom line.
- Energy prices: Due to processing, transportation and cooling for non-seasonal items, meat and dairy products (i.e. almost everything in the grocery store), higher energy costs are getting transferred to the price of food.
- Mother Nature: Unfavorable weather conditions have resulted in inconsistent supplies of fresh fruit and vegetables.
- Feed costs: With the price of corn rising, so is the cost of feed, which is being reflected in poultry and meat prices.
As economists say, “There’s no cure for high prices like high prices.” Meaning, they are a necessary signal to food processers and producers to increase supply and production. Also, consumers will substitute the pricier foods with less expensive alternatives, thereby lowering the price of the most expensive items.
Mix and match
If you’re looking to substitute different kinds of food, farmers markets provide a seasonal grocery store alternative that may save you a buck or two.
Although market produce isn’t immune to escalating energy costs, vendors’ small, local operations keep transportation and processing expenses at a minimum. Also, an abundance of produce can result in bargains. At the height of sweet corn or summer squash season, market vendors will entice shoppers with competitive pricing.
Consumers now have more choices in terms of how and where they shop. While certain items are cheaper at the grocery store, others are discounted at the market. This flexibility allows you to substitute food products, which helps regulate the industry’s prices. It’s time to take control of your food purchasing and find the combination that’s best for you—and your wallet.
Happy shopping!
[Mike Doherty is a senior economist/policy analyst for the Illinois Agricultural Association]
There is someone to blame, the corrupt private federal reserve and their owners, the banking cabal.
Prices only change when they counterfeit money and print it from thin air! (They call it QE so the masses remain ignorant to the fact their wealth is being stollen through and invisible tax)
If a nation has sound money prices should continuously fall as we can produce goods more efficiently at a lower cost. This is the evil deflation the hacks and talking heads on T.V. like to use to scare you. Paying less for things is bad!
Come and read my books, like What Has Government Done To Our Money found here free: http://mises.org/books/whathasgovernmentdone.pdf
Farmers Market is OK — BUT HOME GROWN IS BEST.
Several years ago we started a modest garden 5 X 10 at most and now it is 10 X 20. That is still small compared to some. We are enjoying all the fresh vegetables and the variety we get throughout the summer. Asparagus – as early as May10th – it was late this year. We get so many beans – we share them with friends and neighbors. We have Potatoes, Tomatoes, variety of Peppers, lots of onions and much more. It is amazing how much you can grow in a small garden. — HATE TO WEED??? ME TOO!
I save my grass clippings and use them in the garden. A 3 to 4 inch layer of grass clippings holds down more than 95% of all the weeds.
Enjoy your summer, along with your HOME GROWN fresh vegetables.
It’s cheaper than the Farmers Market.
True, homegrown is best, but as renters my hubby and I don’t have that luxury. Out here in Oregon, though, our communities are rich with Farmers’ Markets which are open from March through Christmas.
Our markets sell not only fresh produce, but free range eggs, beef/lamb/buffalo, home made soaps, locally roasted coffee beans, potted herbs, local bakery, dog treats, natural remedies, clothing, and so much more.
We buy as much as we can, as often as we can, from our community Farmers’ Markets because it keeps our money local and helps to keep the gears grinding away in our local economy. And that makes us feel as good as the hand grown and handmade items that we buy.
You can grow a ton of food in your apartment and if you have a balconey. Look up pallet gardening for one idea. Where there is a will there is a way.
We live on a small farm. We grow every thing possiable. Love it.
People in the US spend a lower percentage of their income on food than any other country in the world. This cheap food chain has spurred on factory farming and all of the health hazards that accompany it such as genetically modified foods. As a people, we have generally ruined our health and driven the cost of medical care through the roof with our cheap food diet. Much of the low price of food can be tied to government subsidies for crops such as corn. When we embrace (and demand) safer and better food and are ready to pay for it, we will cure many of our physical and economic ills.
I realize that since we live out in the country it is increasingly hard to find a bargain anywhere. I do understand how the high prices are being affected by everything. Especially high gas prices. So we have opted to also do our own home growing this year. It has really cut down our spending costs in the grocery budget. And quite honestly, the food taste so much better. And the satifaction of knowing that we grew it ourselves is beyond measure.