I was at Hy-Vee the other day, picking up some groceries, when I realized I'd had enough. Nearly $4 for a gallon of milk ? Give me a break. Something was going on. I decided I would no longer pay a small fortune on such essentials without knowing why.
It turns out I'm not merely one of those whiny old-timers who remember the days of $1/gallon gas and milk. In fact, prices are higher by all measurable accounts. The USDA has the most authoritative take on the topic.
After a bit of calculating, the USDA Economic Research Service estimated that food prices are to increase 3-4 percent this year. Compared to January 2007, beef costs are up 4.7 percent. Milk is up 17.7 percent from last year. Eggs have jumped 34.7 percent. Tomatoes are up 25.4 percent.
Isn't that absurd? I'm slightly distressed. Looks like egg frittatas are off the menu. As are deviled eggs. In fact, Easter in general is probably a no-go. No cascarones this year.
Yet thankfully, not all is bad news — ice cream is only up a mere 2.1 percent, and oranges are actually cheaper, 10.1 percent so. But still. No painted easter eggs stuffed with confetti, primed to crack on an unsuspecting friend's head?!? What kind of an Easter will this be?
The New York Times attributes the rising prices to ethanol, that conflicted Iowa babe. According to many critics, government-subsidized ethanol raises corn prices, which raises the prices of producing dairy and meat. And that, in turn, encourages farmers to edge other crops out of their fields to make way for corn. Hence pricey eggs and milk? Well, nobody said economics is simple.
All I know is that we folk in the Heartland are suffering. I guess I'll go eat an orange.
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We Americans spend a smaller percentage of every dollar on food than ever before. The closer we pay to the real cost of our food, the better.
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