Following a recent announcement by the USDA, consumers are expected to see rising food prices throughout 2013 due to the worst drought in U.S. history for the past 50 years. According to Reuters, it is predicting an increase of no less than 2.5 percent in 2012 and between 3-4 percent in 2012. Because of it's early harvest, corn has been the number one crop that has been affected by the drought so far. Results for soybeans are still pending.
It is important to note, that consumers may see a higher price from meat and poultry than from their vegetables since the higher costs of feed corn for animals will also impact the increase of costs for meats. Eggs and milk may also see an increase based on these reports. Check out these articles that discuss the drought and how it may affect food prices in the U.S.:
- Which foods will cost more because of the drought?
- USDA: Food Price Outlook
- Reuters: US drought deepens worries about food supplies, prices
- Drought's impact on consumer food prices to be minor
- NPR: USDA Predicts Food Prices to Rise in Drought's Wake
Tell us in the comments section, have you experienced the drought where you live?