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"Get Ready For Higher Food Prices" Goes Mainstream
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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Rediscover pressure cookers and save on energy as well...
+1 Love my pressure cookers(one electric, one stove top).
And my big-mama pressure canner!
Martha? Is that you?
learn to drive a tractor!~!~!!!
Go Jim Rogers!!
Who's that in the Brooks Brothers suit on the John Deere ? Lloyd ?
"Fresh air !"
And the comely precious metals trader -- could it be ? Naw, couldn't be...
"Times Square !"
Prepare yourselves accordingly, Fly Over Country, USA...here comes Wall Street.
http://www.youtube.com/watch?v=Mbk81X6WHA4
Ha -- bravo !
+++
Yep, Good luck to Wall Street. You can walk all day at Westroads and see nothing but 13 yo's at 6'5" 210 lb. That's corn fed! Go Big Red!
And little Sir John in the nut-brown bowl
Proved the strongest man at last.
The huntsman cannot hunt the fox
Nor loudly blow his horn
And the tinker cannot mend his pots
Without John Barleycorn.
FYI: Wheat is currently $327.00 per metric ton. 1 metric ton is 1,000 kilos or 1,000,000 grams. So far so good.
A box 0f 100% Whole wheat shreddies is around $4.69 per 620 gram box (Canadian price in Canadian dollars) but USD is pretty much equal to CND. 4.69/620g is about .7565 cents per gram. .7565 x 1,000,000 is
756500 cents per metric ton of wheat. Simply put $327.00 of wheat yields $7565.00 of Shreddies. Good margin!
You omitted the $6,000 for the crude to transport X from A to B and then back to A, the energy to harvest the wood, pulp it into cartons, print it, perform the X to AB A move, the crude to futz the wheat pulp it, print it as shreddies, manhandle it into those cartons, perform the X to AB A move, the crude to move the oxygen to the busybodies working with sliderules and green eyeshades to keep all this co-ordinated and to move their cushy butts from A to B and back to A.
The margin does not just evaporate. It gets burned.
The agricultural economies of Nebraska and Iowa will continue to grow into greater prominence as global food providers, economists said.
Hopefully that will drown New York and California. As I've been saying all along, we don't really need them.
So when does the US disintegrate into several smaller countries that have much more in common than, say New York and Iowa?
Do you have any concept of the amount food produced in CA?
$8 billion in debt for city of detroit. what US city will riot first?
http://nakedempire.wordpress.com/
This may sound trollish but it is the truth. Cities with the most AA people will of course be where the riots are. Except for southern cities like memphis. My guess? Michigan and new jersey.
A trollish comment from the ole top caller. Imagine that. As for your prediction, I'll assume you are not talking about reformed alcoholics. I can remember the Watts Riots so this sort of thing will/can spring up wherever the poorest are. I just hope we don't start hearing about the reconquista movement in earnest.
the one without the contaminated tab water?
Does anyone know of a website that compares prices of grocery items in local zip codes??? Just FYI, in the St. Louis metro we have a chain of grocery stores called Schnucks. As much as I hate Wal Mart I do my grocery shopping there. One day while waiting for a prescription at Schnucks I decided to walk around and check prices compared to my Wal Mart receipt. Each item was between .50 and $1 more expensive than the comparable item at Wal Mart (bag of chips, ice cream sandwiches, loaf of bread, etc)...
Unfortunately until Wal Mart starts getting higher quality beef than the cows that are carried to slaughter by forklifts because they are too sick to stand, I will still go to local groceries for meat.
Ugh, yeah, Walmart meat is disgusting. Kroger's has really gone down hill in the last year or so as well.
We have a small butcher that still provides a pretty nice cut. Even there, though, we've noticed a slight diminution in quality.
All meat has rapidly declined in quality over the past 15 years. It doesn't even taste like it used to. Refer to Mark Bittman for more information.
Also, nutritional value of fruits and vegetables is a percentage of what it was 50 years ago due to soil depletion, and the depletion of minerals in the now blown away topsoil.
good point. If you compared the return on your money based upon nutritional content, organic would win.
Bulk hard white wheat is preferable to hard red for most people. You can buy 50 lbs for about 13 dollars at the internet grocer. It stores forever with some food grade diotamacious earth. And diatomacious earth will deworm you too! It is fun to get a wheat grinder and learn to make homemade bread. Cheap and good for you. A really nice grinder that grinds a super fine wheat powder can be had for under $150. Buy 200 pounds and enjoy fresh baked bread daily. Experiment!
+ 1 Family Grain Mill. A batch of wheat rolls doesn't last a day in this house.
+2 grain mill is the way to go.
bulk wheat is upwards of $60-$70 online everywhere I look. Where do you get it for $13 ?
Not sure about $13, but you can get 50 lb bags of hard white wheat from Honeyville Grain. They offer bulk discounts (1-3 bags at $42.99, 4-9 bags at $40.84, and 10-50 bags at $39.12). They've got the best shipping, too. $4.49 to ship anywhere in the US, no matter how much you order.
If you sign up at their site, they'll send out 10% off coupons on occasion, also.
This whole thread just made me order another 100 pounds of wheat.
Google internet grocer. That is their price list. Maybe its not updated but i bought from them two months ago.
Gordon Food Supply(www.gfs.com) carries bulk rice, flours, sugar, salt, etc. in a 'club' type outlet with no membership. Basically a restaurant supply outlet, they have a lot of named and no-name bulk packaged foods. (For whole grains I use feed stores mostly. They can usually order what you want with their regular shipments.) They're primarily in the central states, NE, and Canada but if one's near you it's worth a visit. I'm lucky to have two near me in Tampa...
##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.
i wonder what planet this professor is ?? mars , venus possible
didn he manage to see PRICE HIKES ARE ALREADY HERE ..?
im so fuckung tired of read/listen/hear next professor..
could we launch all of them into moon or something
alx
The grocery bills will be up over night. 4 markets in the seattle area pulled their flyers this week. Mexico had a catastrophic freeze. Here red yellow peppers are 2.50 celery 2.50 a bunch lettuce 2 bucks a head. Tomatos will be a fortune, cukes and squashes are up there too. That coupled with our chills in the south, produce will be obviously higher.
Food producers will do anything to keep the illusion of a stable price. They ship the same product in the same package, but the "new and improved" label. Coffee went to 13.5 oz (in fine print) instead of the usual 16 oz.
Then, retailers are instructed to get the old 16oz products off the shelf, pronto. I picked up 10 16oz cans of instant coffee (long shelf life) at a discounted price of 3.50 each. They were promptly replaced with 13.5oz cans at 7.99 each.
BTFD coffie bitches, I just saved 37.3 cents per ounce on my morning fix.
Look for name brand items in the bargain bin, that's where they unload the "old and unimproved" items.
Hang on, my pimp is at the door offloading outdated products....
That's the way to do it... take advantage of clearances on "purged" sizes of products. I don't buy tortillas, for example, unless they're 10 cents apiece or less.... regular price around here is 40-80 cents.
Stores around here like to offer discounts for silly-large quantities as well. Buy 10 or 20 and get what used to be a decent price, instead of the new price that is 2-3x as much.
Consumers are starting to realize that we must vote with our consumer food dollars if we want health, justice, and sustainability.
That in itself is the shadow you cast. The war is between the ears.
Boom, bust - smells like the late 70s boom followed by the 80s bust. Farm land is going to get bid up and the crash hard. History will repeat itself - look at this chart.
http://www.extension.iastate.edu/agdm/wholefarm/html/c2-70.html
when the slowest dumbest institution in the country, that'll be Govt then, picks up a trend and starts trumpeting about it, you can bet your kitchen that trend is peaking and almost over...
..deflation's coming boys, deflation
Deflation is already here in the things that you want. Inflation is just getting started in the things that you need.
inflation has been with us 25, arguably 80 years in every part of the economy, a product of historic credit (debt) inflation... it's time for a trend change, the implosion of that credit/debt mega-bubble... deflation baby, deflation
A vegetable garden, Florida sunshine, and 487 cans of white albacore. Now if I can can just figure out what to do about the looters.
Shoot them.
Shoot them.
Then you have meat. Grind the bones for phosphorus and you can load your own primers.
I once auctioned off on eBay a nice collection of USG publications that were issued in the early 1900s. All on home canning, gardening, etc. Shoulda kept them.
There is a source for access to them:
PickYourOwn.orghttp://www.pickyourown.org/canningpubs.htm
Google "free" gov't publications on farming:
http://tinyurl.com/4mwdujw
Google "Appropriate Technology(AT) Library",. If you're familiar with torrents, the "AT Library" should be easy to find. It's a collection of over 1000 documents on just about anything you can think of; farming/agriculture, energy, homesteading, etc.. A must have for anyone serious about being prepared. See: http://www.villageearth.org/Publications/ATLibrary/ATLDVD.html
Sure, but one must calculate the inevitable disarmament of the citizenry. You don't really think they are going to let us keep our guns do you? Hell, I wouldn't be surprised if there's a "guns for gasoline" program hidden somewhere in the health care bill.
"guns for gasoline"
Could work that couple of different ways. Leaded or unleaded.
bring the gold:
http://www.ebaumsworld.com/video/watch/81095147/
The cheapest place for bulk foods is internet-grocer.net. it is a small mom and pop and shipping is slow but they are sincere and good people. I believe the 50 lb bag of wheat is 14 dollars unless they have raised prices. Check it out and spread the word and support them if you like their products and services.
& how are we supposed to pay back our student loans if we don't have jobs & can barely afford to eat ?