Food Costs Rising the Fastest in 17 years

[YankeeMom]

http://www.foxnews.com/story/0,2933,351293,00.html

The U.S. is wrestling with the worst food inflation in 17 years, and analysts expect new data due on Wednesday to show it's getting worse. That's putting the squeeze on poor families and forcing bakeries, bagel shops and delis to explain price increases to their customers.
U.S. food prices rose 4 percent in 2007, compared with an average 2.5 percent annual rise for the last 15 years, according to the U.S. Department of Agriculture. And the agency says 2008 could be worse, with a rise of as much as 4.5 percent.

Back to building my stockpile....

[tigo]

I have been holding off on stockpiling myself since we will be moving within the next two months. It is pinching us to buy only what we need for this week. Can't wait to get back to stockpiling myself.

[Holly]

Yes stockpile like crazy girls.
Know I will be plus tripling the size of our garden.
The bear is going to have to fight me for the blackberries too.

I just see so many small places getting ready to close their doors for good.

[nuisance26]

~I'm actually surprised that it has taken so long for the media to pick up on the inflation. We've been at twice the national average of food inflation here for almost 3 years. For me, stockpiling the loss-leaders has been the best way to fight the increases. I'm spending less now than I did 5 years ago because I spend more of my time finding deals, planning shopping trips meticulously, stockpiling, menu planning and cooking more things from scratch instead of buying them. I put in about 4 more hours of my time every week(than I did 5 years ago) to save money on groceries. I really feel for people who work and have less time to plan and save. Did anyone catch this part of the article?
"But for the poorest U.S. families, the higher costs may mean going hungry. A family of four is eligible for a maximum $542 a month in food stamps, which never lasted the whole month before, Food Bank of New Jersey's DiChiara said.

"Now food stamps go fewer and fewer days of the month," she said."

I average $225 a month. But like I said, I spend 16 hours a month of my time(not counting the actual shopping) to do this. I'd love to have a budget of $500 a month, wow.~

[mmy2grls]

I get food assistance of 299 a month for 3. It's a huge help but I can't get it to cover everything so i'm spending 50-100 out of my pocket for food items also.

I can't get my food budget lower without buying over processed food and such.

[peanut]

This worries me. What you guys in the States have to deal with, eventually comes to Canada. I've noticed weird variations in flour prices here. I buy organic. There were two bags side by side the last time I shopped, from different companies. The same type of flour. $2.29/lb. for one and $4.19/lb. for the other. I'm thinking we're just beginning to see the increase in prices of wheat products.

Jean

[i.m.cheap]

The price of wheat is supposed to increase dramatically. Buy your flour now! You can freeze flour just fine.

Many people don't know how to fight the increasing prices. I have tried to "educate" many of my friends/acquintances, but they almost always have excuses why coupons/stockpiling sale items, etc. "Just won't work for them..." So I will even show them my closet full of free toilet paper, but then they respond with "Oh, I only buy the DOUBLE rolls of toilet paper!" Well, that is what I prefer too, if I don't have a coupon, or catch a sale, but when it is FREE after a coupon, you bet I don't mind changing the roll more often!

[ukbb]

I saw this on another board and thought it was interesting and it ties into this thread.

--------------------
There are Biblical references to the idea that there will be 7 years of feast and 7 years of famine. Hence, the idea of a 14 year ag cycle.

Historical (Average Prices Received by US Farmers) corn prices look like this (from NY Times Almanac p 138, 2004 edition with additional data from the USDA website)--

1940 0.67
1950 1.52 x
1960 1.00
1970 1.33
1975 2.54
1980 3.11 x
1985 2.23
1986 1.50
1987 1.94
1988 2.54 x
1989 2.36
1990 2.26
1991 2.37 x
1992 2.07
1993 2.50
1994 2.26
1995 3.24 x
1996 2.71
1997 2.43
1998 1.90
1999 1.82
2000 1.85
2001 1.97
2002 2.35
2003 2.42 x
2004 2.06
2005 2.00
2006 3.04
2007 4.00

The "x" marks the max figures for the series.

If you use 1995 as the base year, then 14 yr cycle would give max pricing in 2009. 1980 would be 15 years before. There should be one in 1965, but those data are missing. But the 1950 max fits.

The peaks seem to last about 4 years. Then prices fade again. So this would suggest perhaps two more good years of farm prices.

Tendency to ship breeding animals when grain prices spike should mean a brief period of low beef prices while those older animals come to market--and maybe specials in the stores--especially ground beef and stew beef. Then a spike in prices, and a three year delay while breeders rebuild their herds. Hence, beef prices are expected to lag grain prices by 4 or 5 years.

http://boards.fool.com/Message.asp?mid=26563137

UKBB

[Luv2BeFrugal]

I would LOVE to have $542/month...for FREE!!! That's more than twice our budget...and we have HIGH grocery costs up here!

I'm bettin' things will get worse than they are now before they get any better. Where does it end?

[CYork]

I think it's terrible people would complain about "only" receiving $500/month in food stamps. I spend $300/month for a large family, without governmental assistance programs of course. Perhaps a mandatory wise food shopping/couponing class should accompany food stamp distribution.

[i.m.cheap]

Not everyone who receives food stamps gets $542 a month, that is the maximum for a family of four. About a year ago, we got some food stamp assitance for six months. We were both working, my DH was working two part-time jobs, and attending college full-time, and I was homeschooling AND working part-time, but we only made about $1,400 a month. Our rent and utilities alone took over half of that. We received $88 a month in food stamps. Using coupons, and shopping sales, I stretched them farther than you can imagine, but we still spent around $200 of our take home pay each month on groceries. The food stamps just helped us to purchase more meat and fresh produce than we would have had otherwise.

[Frugal Cook]

Many people don't know how to fight the increasing prices. I have tried to "educate" many of my friends/acquintances, but they almost always have excuses.....

Reminds me of the story of the squirrel that procrastinated about gathering his nuts for the winter, so he never did, and soon it was too late. People are no different and its going to be a big problem in the near future.

but when it is FREE after a coupon, you bet I don't mind changing the roll more often!

And you might find you can SELL it for a premium price when everyone else (who didn't save) runs out. Like water, people cannot live happily without toilet paper. And to think the Sears Catalog used to be the 'choice' of discriminating households.

[champagnium]

I think it's terrible people would complain about "only" receiving $500/month in food stamps. I spend $300/month for a large family, without governmental assistance programs of course. Perhaps a mandatory wise food shopping/couponing class should accompany food stamp distribution.

I agree..we spend $200 a month, no assistance of any kind, we just make due. I can't imagine having that much to spend on groceries!! I'd have a WICKED amaxing stockpile if I did have itthat's for sure! But it doesn't matter really here as Canada doesn't have food stamps.