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Financing Food
By Laura Knoy on Friday, March 21, 2008.
High gas prices, a weak dollar, and the biofuel boom are all having an impact on what you pay at the grocery checkout counter, especially for everyday items like milk, bread, and anything made with corn. We’ll look closer at what’s driving food prices and if there’s any relief in sight. Guests
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High food prices will affects us in the US but we probably will not starve. What will happen to people in Latin America? The global food market has led to factory farming everywhere. Corporate farmers will sell their grain to us rather than supply local markets. While it affects me to pay more for bread and pasta - won't there be a much a greater affect on Latin Americans who don't have anywhere near the food security that we do?
I have a unique perspective as I both own a dairy farm and am involved in providing crop needs. One of your guests said the WINNERS HERE ARE THE FARMERS. I strongly disagree!! Just over one year ago dairy producers were losing money on every pound of milk produced, we have enjoyed one good year to help recover some of our losses now milk prices are headed down again. Our input costs have increased considerably, grain fed as a supplement has increased 75% in 18 months, fuel has doubled, electricity is up as well as all crop inputs. From the crop input side fertilizer has doubled, costs for seed and herbicides have increased up to 25%. The new breakeven for milk is between $17 to $18 per hundredweight, two years ago it was in the $12 per cwt range.
The big winners are the big Ag congomlerates as well as the oil companies. Follow the path: 1) increase in oil prices, 2) increase in biofuel demand, 3) increase in corn prices, 4)increase in corn acreage,decrease in soybean acreage, 5) increase in soybean price (decreased production increased price) 6) increased in related feed prices as they are used to substitute for soy therefore priced relative to soy, 7)increase in raw material costs as large conglomerates want higher %'age of increase, 8) decreased margin for farmers longterm. End results: Higher food prices for all. Grain farmers in the Midwest receiving over $4.00 per bushel of corn will have margins similar to or less than those of two years ago when corn was $1.80 per bushel due to higher input costs. These cost cannot be absorbed by the farmers in order to keep food prices low for the consumer. Dairy farm numbers in the U.S are now less than 60,000 several years ago they were over 120,000. Farmers wether they are livestock or crop farmers have as much right as teachers, business people or whoever to make a decent living for the work they do and should not be expected to work for nothing in order to keep food prices low for the general population.
We need to find alternative energy sources in place of oil and corn for biofuels.