I went grocery shopping yesterday and I was shocked at high the food prices had gone up in one week! Chicken alone was $1.77 a pound when just a couple of weeks ago I was paying $1.17 a pound. You don't even want to know how much the best cut of steaks were going for! ($8.78 a pound if you were wondering.) Why is this happening?
If you have been watching CNN or anything not to do with the Olympics you might have noticed news casters talking about how farmers have been growing increased amounts of corn. Even those who didn't usually grow large amounts of corn were starting to grow it since it was supposed to be more profitable. Now as of yesterday it was announced that about 50% of our nations farm land (mainly growing corn) is now considered a disaster area and the government is now trying to assist them. Not all the crops in that area are failing but a good portion of them are.
The drought has been so bad that the crops have failed since many of the farmers didn't have water reserves or towers for their crops. What does that mean for us? Supply and demand. Less supply, higher demand means higher prices. Yesterday on CNN it was even projected that food prices will take another leap up. Everything from vegetables to meat and to make matters worse the full effect of the drought is expected to be fully felt until 2013. So start gardening now! As you may know I am a pessimist at heart and I don't like to give up luxury food items so I am taking this seriously since I am on a fixed budget with three growing kids.
CNN: How the drought could hit your wallet.