Saturday, January 16, 2010

FLASHBACK: U.S. Grain Supply is Being Strained by Demand (Food Prices to Increase?)

Personally, I love writing on this blog, because it forces me to research issues that I may otherwise miss and to focus on what I feel is important in the overall scheme of things. In 2009, the main theme of this blog was the H1N1 "swine flu" hype and vaccination program followed by cybersecurity issues.

As 2010 rolls along, food is an early leader for the 2010 theme of the year followed by global resource wars. Only time will tell, but here is an article from
Farm Futures in 2008 that shows this country may be headed for a food crisis in the middle of an economic crisis.

U.S. Grain Supply is Being Strained by Demand

According to Chris Hurt, a Purdue University agricultural economist, with
global demand for grain and oilseeds at record levels and a weak U.S. dollar, foreign buyers are outbidding domestic buyers for American grain. While the higher commodity prices are good for crop agriculture, there are some worrisome downsides.

"
Food consumers worldwide are going to have to pay more," Hurt says. "We ended 2007 with our monthly inflation rate on food nearly 5% higher. I think we'll see times in 2008 where the food inflation rate might be as much as 6% (note: the food index rate rose 5.9% in 2008 according to the U.S. Bureau of Labor Statistics).

This same BLS report says the food index rate decreased in 2009, so perhaps things are not so dire, but I am not so confident as the government.

For More Information:


1. Is the United States Headed for a Major Food and Crop Crisis in 2010? (Over 50% of Midwest Counties are Primary Disaster Areas)

2. Record Numbers Go Hungry in the United States of America!

3. Illinois Corn and Soybean Harvests at Record Low Levels

4. HR 2749 - The Food Safety Enhancement Act of 2009 (Totalitarian Control of the Food Supply?)

5. The Federal Government Turns Off Water to Fresno and San Joaquin Valley Farmers (No Food for the Masses?)

6. (Internationally too) - Britain Warns of Shrinking Food Supply in Next 20 Years

7. Is America's Grain Being Purposely Off Loaded Overseas to Trigger Massive Food Shortage Due to No Strategic Grain Reserves?

8. US Farmers Plant Fewest Wheat Crop Acres in Nearly a Century


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