More Crop Production Means Lower Food Costs
Consumers have seen high food prices because of crop shortages and dry weather across the country for the past few years. But that’s expected to change in 2014.
Indiana farmers produced a record amount of corn in 2013. Along with high soybean yields, that will likely mean cheaper food prices this year.
Chris Hurt is an agricultural economist at Purdue University. He says that food supply is finally catching up to demand, and that’s good news for consumers.
“We’ve already seen major decreases in those prices for crops, so that is very encouraging" Hurt says. "Some things like cereal products that use those crops pretty directly, soybean oil, vegetable oil base probably already seen some decreases at the wholesale level.”
Lower prices for grains means lower prices for feed, and eventually lower prices for meat, especially chicken, turkey, and pork.
Unfortunately, Hurt says, he expects beef prices to remain near record highs for the next few years.