Speaking of food prices, I'm going to delve into politics here, which is probably a mistake, but who the hell decided that all mistakes were bad? :)
Last week, the U.S. Congress passed a bill increasing its -- our -- obligations to the tune of about $60 billion/year over the next 5 years. The bill has popularly been called a "farm bill," but as the NYT points out, it could more appropriately be called a "food bill." Why? Over 2/3 of the bill's spending is not for the farm subsidies that some complain about. Instead, that 2/3 plus some -- over $40 billion/year -- is in extra money for things like food stamps.
I don't know how you folks feel about food stamps, or U.S. agriculture in general. But in my opinion, the U.S. has been doing almost crazy stuff for 30 years or more to both keep the price of food down and keep U.S. farmers in business. Folks in the U.S. spend much less on food than those in other countries: usually less than 10% of our money goes directly for food. That's pretty cheap.
But it's about to get worse. Hell, it's already getting worse, as any casual trip through a grocery store will tell you. Wheat, which not too long ago was $3/bushel, is actually retreating from highs near $12 to about $11/bushel. Other commodity crops are almost as bad. Why? It's complicated, but it seems (among other things) as if the price of food is responding to other governmental acts over the past year or so influencing the use of agriculture for energy generation: more ethanol from corn, say. But that means less land for growing other crops, including food. (Gas, if you haven't noticed, is flirting with $4/gallon.)
I don't know why Congress waited a year to see what any intelligent person who looked at the right numbers could have seen: food is going to continue to get more expensive. Maybe Congress is doing the right thing, or maybe not. But I do think that agriculture is the linchpin of the American economy: people, both here and abroad, depend on the US for food. Maybe Congress's latest tinkering will be good, or maybe it won't. But I hope it helps.
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