Later this year, says the United States Department of Agriculture, American customers will start seeing the price of food increase in reaction to severe droughts in the Midwest.
Droughts really badThe devastating droughts in the Midwest this summer have severely damaged crops of corn, soy beans and other feed grains. That, in turn, will have an excellent impact on the consumer expenses of a variety of food goods.
But the effects definitely won't be noticed right away. John Anderson, deputy chief economist at the American Farm Bureau Federation, said:
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”We expect the impact on feed prices to be widespread and significant. We talk about most natural disasters, like a hurricane, at a fixed point in time where you clearly see what's happening. But that's not how a drought works. It's more like a natural disaster in slow motion.”
According to the federal agency, price increases will start being noticed by consumers on some items in November or December.
Price of groceries increasesAbout 94 percent of those surveyed in a recent Harris poll said they were “somewhat” concerned about the increasing food expenses. American customers know that the drought is affecting them and are concerned over it.
And according to the United States Department of Agriculture, they most likely have reason to be. In spite of federal assistance efforts, the bureau predicts that customers can expect to pay an average of three to four percent more for groceries next year.
Beef costs may rise up to five percent while pork would increase as much as 3.5 percent. Dairy could cost up to 4.5 percent more while poultry and eggs would cost three to four percent more.
Pay more for cordExpenses of meat such as pigs, chickens and cows will increase as the cost of feed corn is increasing with the drought. That means that all dairy products will become more costly.
According to the USDA, in about a year, frozen food and pre-packaged food costs will be seen increasing a ton.
Corn that is produced for human use has not been too affected by the drought, so you do not have to be concerned about that cost increasing.
Disasters in countiesAll farmers and ranchers will have federal aid to help them through the drought, according to Agriculture Secretary Tom Vilsack. Insurance corporations are being nice too by giving ranchers a 30 day grace period to get premiums paid. Over 1,500 counties in over 32 states, or over half of all counties in the country, are dealing with drought bad enough to be declared devastation areas.