Home > A3 > Prepare for the Worse and Hope for Better!

Prepare for the Worse and Hope for Better!

Secretsofthefed.com

Secretsofthefed.com

According to the United States Department of Agriculture in January 2012, a moderate cost food plan to feed a family of 4 weekly expenses were approximately $217.65. In January 2013, the United States Department of Agriculture found that a family would be spending an average of $220.70 a week to support their family now. Last September, the United Nations Food and Agriculture organization announced “on average, [food] prices rose 1.4 percent.”

The price of food has risen because of a shortage of food. The recent droughts have made production of wheat, rice, and corn scarce. Throughout 2012, food prices have fluctuated. Food prices have even started to “level off” now.

blog-imfdirect.imf.org

blog-imfdirect.imf.org

To prevent this shortage from making dramatic hikes in food prices, there is a demand to produce more cereals. They are currently trying to increase the production of wheat, rice, and corn. Last winter, there was a 1% increase in wheat planting and despite those efforts the global droughts have made these crops more expensive to obtain. People are having to think at the margin as prices continue to rise. They need to decide what is necessary to buy with the last of their money to feed their family. The consumers also have to consider the opportunity cost of buying these goods at their high price and which ones to buy. The food prices in 2013 are expected to rise 3.5- 4% increase  with  the help of these droughts.Producers of our goods such as meat have been looking for cheaper sources to feed their livestock  to keep the expenses to a minimum. Even though all these efforts have been made there is no way to stop these hikes First, the Fiscal cliff seemed to be the biggest issue but now it appears that it is food.

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