"Get Ready For Higher Food Prices" Goes Mainstream

Tyler Durden's picture

While nothing new to Zero Hedge readers, the realization that everyone's purchasing power is about to be yanked from underneath them has gone mainstream. Omaha.com has just come out with a headline that leaves little to the imagination: "Get ready for higher food prices." The issue is that no matter how Chairsatan Rudolf Vissarionovich von Bernankestein spins this to whatever congressional minions he is supposed to be lying to at any given moment, the undisputed truth is that consumers have just gotten that much poorer, as prices of staples surge, and as a result capital available for discretionary trinkets plunges (here's looking at you Guitar Hero which has just been discontinued due to lack of interest... Coming to an Apple store near you in 3-5 years). Because no matter what economic voodoo Bernanke, concocts there is little he can do to change the laws of mathematics. So for those who wish to stock up on staples in advance of a price surge (thereby bringing the price jump forward), and still haven't done so, here is the "mainstream" explanation for why now is a very good time to start doing so.

From Omaha.com

Shoppers could see higher grocery bills as early as three months from now, though most of the impact won't be felt for another six months, said Scott Irwin, an agricultural economics professor at the University of Illinois.

Chicken prices are among the first to rise because the bird's life span is so short that higher feed costs get factored in quickly, he said. Price hikes for hogs take about a year and cattle two years. Prices on packaged foods take six or seven months to rise.

Tyson Foods, the nation's biggest meat company, said chicken, beef and pork prices are expect to rise this year, if only slightly, as producers seek to cover costs.

ConAgra Foods Inc. — the Omaha-based producer of brands including Healthy Choice, Banquet and Chef Boyardee — is raising prices on some of its products because of higher costs for corn and fuel, said Teresa Paulsen, a spokeswoman.

The price rally has bolstered the financial fitness of America's crop and livestock operators over the past eight months. Midwestern cropland is yielding record values. Rural banks and equipment makers report record profits.

“We're seeing record income levels for the ag community and ... wealth accumulation that cannot be denied,” said Bruce Johnson, an agricultural economist at the University of Nebraska-Lincoln. “We've moved into a whole new level.”

Said Bruce Babcock, an agricultural economist at Iowa State University: “Farmers are going to be earning quite a bit more money.”

Jason Henderson, Omaha branch executive for the Federal Reserve Bank of Kansas City, said farmers are buying more tractors, pickup trucks, grain bins and land.

“And they also come to Omaha to shop and go to events,” he said.

But it hasn't been simply a spending spree, Henderson said. Farmers are paying down debt and fewer are seeking loan renewals or extensions.

“It's a good time to be an ag banker,” said Brian Esch, president of McCook National Bank in southwest Nebraska. “But I have concerns over what this means for consumers. If one guy is selling at a record profit, someone is buying at a record level.”

The only benefit: very soon farmers, least they produce something, will be making more than bankers. Which of course means that Wall Street will promptly vacate the skyscrapered corridors of the financial district and start pushing bales of straw for a living. Just as Marc Rogers has been predicting for over a year now.

The agricultural economies of Nebraska and Iowa will continue to grow into greater prominence as global food providers, economists said.

Johnson said rising population numbers globally and greater demand in major developing countries for higher-protein diets have strengthened the Midlands' agricultural market.

Farm cash receipts — led by corn and other crops — doubled in Nebraska from 2000 through 2010. Crop receipts alone ended the decade in the $9 billion range, up from a 2000 total of $3 billion.

Will Ben Bernanke's disastrous monetary policy be the greatest thing to happen to America's labor reallocation since Blythe Masters discovered CDS?

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financeguru500's picture

Just wait till China starts using their reserves to purchase U.S. agriculture. Get rdy for crazy prices. Interestingly, this just makes the situation worse for the U.S. trying to balance the budget with 44 million people on food stamps.

BTW, for any of you who like Hormel Chili. Kroger is doing a sale of buy 10 for 79cents each, then combine that with coupons from hormel.com to get each can for about 25 cents. Cant beat that hehe.

KickIce's picture

They've been buying everything they can get their hands on for months now.

gangland's picture

went to buy iceberg lettuce at the local mom and pop market, usually it's 99c a head, yesterday it was $2.49 each.  16oz Yougurt prices up 30c in the past 2 weeks.  But no worries, uncle Bennie can stop inflation in 15 minutes. 100%.

financeguru500's picture

Jeez. That is ridiculous to have to pay $2.49 for a head of lettuce. Considering the lack of nutrition from lettuce, I'll probably have to cut that food out of my diet lol.

Hephasteus's picture

No inflation it's just out of season. It'll probably be 1.50 next summer.

pods's picture

Actually lettuce is highly nutritional.  It just not high in calories.

pods

Cathartes Aura's picture

the "nutrition" in lettuce is in the dark green varietals - iceberg has the lowest level of nutrients, best to spend your green fiat on romaine. . .

http://nutrition.about.com/od/askyournutritionist/f/lettuce_info.htm

DaveyJones's picture

in general, the darker the color, any color, the more nutitious and with greens, that includes protein. If, I mean when, TSHTF, you can always eat dandellions and stinging nettles, both blow most greens out of the nutritional waters 

ColonelCooper's picture

You hit save, and then editied didn't you?  Cause all I got was "the darker the color, any color, the more nutritious"

I was replying to ask if this held true with a woman's nether regions, when I saw your whole comment.

DaveyJones's picture

we see what we want to see (or what we don't see enough of) :/

duo's picture

Effects of the freeze in Fl two months ago, and a freeze in Northern Mexico last week.  Stock up on fresh veggies, there could be a real shortage for a couple of months.

almost_have_a_name's picture

I flew over a Hormel plant in Beloit Wisconsin in a J3, the fumes nearly killed the engine, and the two drivers. Just say no !

financeguru500's picture

lol. I know the quality of those canned chilis is not that good. The only reason I pointed out the deal was for people who are needing to stock up a bit on some low priced canned food. Though with the amount of sodium in those canned foods you will probably suffer from a heart attack if you relied on them for sustanance.

almost_have_a_name's picture

Cheap vodka has been clinically proven to reduce sodium levels. You can buy it with the money you save on cheap food !

Time to buy corn syrup and stainless steel tubing.

 

SilverRhino's picture

Chili and pinto beans will go a long long way towards filling you up on protein.   The fumes on the other hand .... light a match and go boom in the outhouse.

minus dog's picture

I picked up doxens of cans of that chili for 50 cents a can a week or two ago.   It's really not what it used to be... I can't believe the (non-food) stuff I found in a few cans of it.  I suppose it's better than nothing, though.

pods's picture

So do you heat it up before you throw it against the back of the toilet bowl, or just open it and do it?
Just kidding. I once admitted on a forum that I bought and ate Slim Jims on occasion. 

Most replies were about not feeding those to stray dogs.

pods

Cathartes Aura's picture

cheap canned "meat" products have degraded ingredients over time, particularly with the "meat". . .

"mechanically recovered meat" - aka pet food.

http://news.bbc.co.uk/2/hi/health/1482140.stm

DosZap's picture

No food deals with China.

We do swaps for RARE EARTHS, or you starve.

Those bstds just tightened up the regs, and rules, sales on the RE's, food is a great equalizer.

ColonelCooper's picture

Agree 100%.  Never happen though, it just seems too darn mean.

obg's picture

Big changes in lifestyle coming to America.  Feeling fortunate to have stores put aside and preparing home and 'stead' to be self sufficient.  Good article keep up the good work. Try six free meals of gourmet dehydrated food.  SixFreeMeals.com

SheepDog-One's picture

No worries, the ChairSatan assures us HE sees no inflation, so obviously there is none. Party on Fraudmerica.

sushi's picture

Any truth to the rumour they are going to recast all US government financials in the form of bushels?

QEIII will not be stated as 8.5 billion dollars per day but as 122 bushels of dollars. The actual denomination is not specified.

SheepDog-One's picture

Or wheelbarrows of POMO per day, who knows?

Cognitive Dissonance's picture

Progresso soup on sale 2 for 1 at my local grocery store. Time to stock up (again) before a can of chicken noodle moves above $2.00.

Oops, too late!

Alcoholic Native American's picture

Soup kitchens are going out of business nationwide!

jus_lite_reading's picture

2 for 1 specials at $4.50/can. WOW 2 for 1!... Wait, that's 15% above the normal price.

Cognitive Dissonance's picture

Actually where I shop it's $1.89 per can. You must be using Benbabwe dollars.

 

sushi's picture

He is smiling because he just collected all that loot from selling a 1/4 can of soup which he gets to deliver next Thursday.

DosZap's picture

Nah, he's smiling because his little ragged ass is gonna make a killing on eGay!

downrodeo's picture

http://www.dailymotion.com/video/x2oiu4_big-tymers-feat-lil-wayne-juvenile_music

 

that's some serious cash... oh wait, those zeros don't mean anything

the kids know what the guys on wall street can't seem to grasp: it is worthless paper, it is an empty concept, but it's just fun to hold a big pile of it.

alien-IQ's picture

my hedge on this "news" is to go long SWHC and RGR :-)

jus_lite_reading's picture

CD- Get your soup at $1.89 while you can- my soup is $6 per can!

ColonelCooper's picture

Doesn't anybody know how much soup you can make and can yourself for $10.00?  My canner stays on the stove damn near full time in the winter.  Make a pot of soup, eat supper, pour the rest in pint jars and turn on the burner for an hour.  Done.  And it's a helluva lot better than the shit you get in the store.

 

EDIT***  Sorry, I should have read one post further down before I jumped in.

Lizabth's picture

Can your own homemade soup. Easy and cheap(comparatively).

benb's picture

Yes. And if you care about yourself and your family use organic or at least non-GMO ingredients. It’s still much more economical than canned Frankenfoods.

almost_have_a_name's picture

All you need is a hatchet, tree-stump, two nails and a willing chicken.

------------ | < hatchet (qty 1)
| | |
| | |
----- V

/ \ < nails (qty 2)
/{..}\ < chicken (qty 1)
/ v \
---------------- < tree stump (qty 1)
| |
| |
| |
| |
----------------

tewkatz's picture

Cut a hole in a corner of a burlap feedsack and put the head through that then hang the bag...bruises the meat less.

If people REALLY prepared their own meat...we'd better appreciate the low-low prices we've been paying for years for convenient plastic-wrapped, pre-sliced, skinless/boneless chicken.  Just burning off the pinfeathers is enough to make me retch.

Dude!  Are you really going to cut the head off that chicken???  Yes. I am hungry.

Most Americans have absolutely no clue how good our lives are...

jus_lite_reading's picture

I thought chicken came from the sea...

Sudden Debt's picture

YOU EAT SOUP FROM A CAN??!!

 

HAHAHAHAHAHAH!!!

Cognitive Dissonance's picture

If I tell you then in effect I'm telling you where I live since it is a very small local store chain. And I wish to avoid disclosing my Cheney like secure location. :>)

However I'm sure the CIA/NSA/DIA (and the Egyptian secret service) know exactly where I live. :>(

RockyRacoon's picture

Yep.  No reason to feed the beast by giving exact coordinates.

topcallingtroll's picture

So would consumers be less harmed by tight money right now? Would the unemployment rate be better and the unemployed suffer less if there were no qe and we got a bout of deflation instead? Maybe td you could do an article on what you would do right now if you were elected chairsatan.

kridkrid's picture

AKA WWIII.  If there is anything left of us in 100 years, I'll be curious what historians reference as the start of WWIII.  I think you could make a case for going back to the first Gulf War... though I'm guessing 9/11 / Afghanistan / Iraq would be the easier call.  Of course it all depends on who wins the war, I suppose.