Food Prices Expected to Increase in Next Decade

Food prices worldwide are expected to increase over the next decade, a United Nations report indicates, potentially increasing the threat of global famine and food insecurity.
The recent experiences of farmers in the United States have been replicated worldwide. Severe weather has hurt farmers in major agricultural nations around the globe, driving up the cost of commodities and raising food prices. The United States and the Commonwealth of Independent States have both experienced severe, punishing droughts within the last several years.
In addition, a recent report by the UN’s Food and Agriculture Organization suggests that other cost increases will further the upcoming strain on the farm community. “Rising oil prices are an important and uncertain assumption underlying agricultural price projections,” the report notes, and “a depreciating U.S. dollar is expected to reduce the relative competitiveness of other exporters, while increasing the purchasing power of many importers.”
Additionally, “Some inputs such as water are becoming increasingly constrained in availability to agriculture and more costly to procure” and “higher production and supply costs will reduce the profitability of capital- and input-intensive agriculture, which can be expected to further slow the growth in production.”
Increased food prices will heighten the risk of famine and food insecurity worldwide, potentially increasing political insecurity in many parts of the world.
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Written by: Justin Ellison / Farm Plus Staff Writer