Retail food prices are showing a slight increase this year, according to the American Farm Bureau Federation’s annual Marketplace Survey. The price increase is likely the first of many expected over the next few years thanks to severe weather.
In the wake of last year’s major drought, crop production across much of the United States was badly damaged. Overall, major US breadbaskets like the Corn Belt reported the smallest harvests in more than 17 years. In addition to major crop losses, ranchers were forced to sell off big portions of their herds due to lack of water and increased feed costs.
According to the survey, food prices were up about two percent from the end of the last quarter of 2012. Prices are expected to increase about three or four percent over the course of 2013, representing a slightly higher increase than the rate of inflation.
While this doesn’t represent a major increase, it is likely the first of many. With significantly decreased supply, and with the glut of meat finally workings its way through the market, prices are likely to continue their climb.
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Written by: Justin Ellison / Farm Plus Staff Writer