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Food Prices To Rise 9 Percent Per Year: Analyst

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posted on May, 30 2008 @ 12:47 AM
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Food Prices To Rise 9 Percent Per Year: Analyst


news.yahoo.com

WASHINGTON (Reuters) - U.S. food prices will rise a stiff 9 percent a year through 2012, the largest increase since 1979 and the result of record-high crop prices, the head of an economic consulting company said on Thursday.

The projections by Bill Lapp of Advanced Economic Solutions are higher than the latest U.S. Agriculture Department forecast of 5 percent for this year. USDA and Lapp have increased their estimates by 1.5 percentage points since February.

During a telephone news conference, Lapp said he was completing a new analysis of food and commodity prices. He foresaw average corn prices of $5.25 a bushel through 2012, with wheat around $6.50 and soybeans near $11.

(visit the link for the full news article)



[edit on 30-5-2008 by DimensionalDetective]




posted on May, 30 2008 @ 12:47 AM
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Fantastic.

As if we didn't already have enough to worry about---Gas tripling, housing nightmares, and food costs that have ALREADY risen exponentially over the past couple of years, now rising at close to 10% a year. Before we know it, we won't be able to drive OR eat.



Lapp was chief economist for ConAgra Foods Inc, one of the largest U.S. foodmakers, before opening his consulting firm which is based in Omaha, Nebraska.

A 9 percent increase would be the largest since 11 percent in 1979. Lapp spoke during a teleconference sponsored by the Environmental Working Group.

Americans spend more than $1 trillion a year on groceries, snacks, carry-out food and meals at restaurants.

Food prices rose by 4 percent during 2007, says USDA, ending a long stretch when food price inflation stayed below the overall U.S. inflation rate. Lapp puts the 2007 increase at 4.9 percent. He initially forecast an increase of 7.5 percent this year and through 2012.

Ephraim Leibtag, the USDA economist who tracks food prices, said separately that grocery prices traditionally reflect a small fraction of upswings in grain prices. "The question ... is how much and how quick" grocery prices are adjusted due to higher prices for raw materials, he said.




news.yahoo.com
(visit the link for the full news article)



posted on May, 30 2008 @ 01:41 AM
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This guesstimate obviously assumes that we're going to continue down the dead end road of ethanol. Unfortunately right now it's a crap shoot as to what will happen to ethanol subsidies after the election. Hopefully John McCain gets elected because his maybe-maybe not flip flopping on ethanol is about as good as it gets right now as far as ending this failed experiment goes. Obama loves the stuff and has stated it is the future of alternative energy, so if he's elected, I can imagine this prediction to very easily come true.

We're being dealt a combination punch right now with diesel prices soaring, which is driving up the price of delivered goods and the ridiculous price of corn and soybeans which is being driven by this ethanol foolishness. If (and this is a big if considering my opinion of both candidates most likely to win in November) our next president truly sets reduction of inflation, reduction of prices back to their natural growth curve, and reduction in the price of gas as primary goals, then the first 3 things they will do are:
1. Sign an executive order opening up ANWAR to oil drilling
2. Shift every cent of ethanol and biodeisel subsidies and research monies over to programs intended to derive the most economical methods to extract oil from the shale deposits in this country and open up whatever areas need opening to obtain that shale.
3. Sign an executive order overriding the handcuffing and tyranical policy preventing the building of more oil refineries in the United States. This one would do several things, such as ramping up US production levels to drive down pump prices and create new jobs for many in the regions where the refineries will be located.

The time has come to put a stop to the existing policies which threaten to cripple our economic growth and prosperity in the name of environmental pseudo-science. Only after we have a president who recognizes the quackery that's been shoved down our throats by the Al Gores of the world will we start to see the level of sustainable and real growth we saw during the Reagan years.



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