Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Food is directly tied to petroleum. All that farm equipment runs on diesel. It is distributed for the most part on trucks that run on diesel.
As the price of petroleum rises, so will food. It will keep pace quickly when rising but fall slower, because why not -- a few extra nickels out of each consumer that way. Just how it works.
Wait until fresh water becomes scarce. THEN we'll see how high food can go.
As far as food "directly" tied to petro.........no it is not, not even close. It is supply and DEMAND. Farmers/farms are very efficient, as are the equipment that we use. Fuel is the least of my worries, as far as expenses are concerned. Labor, equipment, land purchased, land rented are at the top. But the biggest issue, for us, has always been wx.
Now, fresh water........oh he!! yes. That is the biggest worry.
___________
funny how people buy water now, and didn't 15-20 yrs ago. I'm shocked how people "overlook" what the media/peers show as a need/status. But I do have good drinking water at my house, from my well, from land I bought. I am not the norm, never lived in the city.......cept for 4 yrs of college that we didn't drink much water anyway.
Yes, prices for food are going higher. There are several drivers for this... the price for fuel continues to rise... we've had serious drought conditions... corn is being diverted to ethanol production... fruit and nut pollination is down due to bee colony collapse... etc.
On the other hand, Americans still pay a far smaller percentage of their income for food than most of the world does. I just read that in India the average spent for food is about 25% of income, whereas Americans only spend 11-12% of theirs.
Last year, here in apple country, apples priced high. When we moved here, we couldn't believe the cost of apples! And, apple cider, a quart was like 4 bucks. Muffins 1.29/muffin, bagels .69/bagel. A box of cookies 3.50 and they're not that good. You can go on and on, a box of brand name cereal 4 bucks, even at Walmart.To me, it's more about taking advantage of the public, which makes me angry so I don't buy stuff if I feel it's overpriced. I miss Trader Joe's. Reasonable prices for healthy food.
As far as food "directly" tied to petro.........no it is not, not even close. It is supply and DEMAND. Farmers/farms are very efficient, as are the equipment that we use. Fuel is the least of my worries, as far as expenses are concerned. Labor, equipment, land purchased, land rented are at the top. But the biggest issue, for us, has always been wx.
Now, fresh water........oh he!! yes. That is the biggest worry.
But you're just one farmer in the chain. That food still needs to be warehoused (often cold) and then distributed (often cold) all over the country. How's it going to get from you to me? Diesel. Furthermore, your biggest expense may be land. But an agricorp giant doesn't care about that. The land is paid for in cash, goes onto the balance sheet as an asset and then they start working it. They don't pay squat, so labor isn't a big deal. Water and energy are the biggies.
The price of food is directly affected by the price of petroleum. And it's not going to get any better. Not in our lifetimes. Or the next generation, or the next, or the next after that.
But you're just one farmer in the chain. That food still needs to be warehoused (often cold) and then distributed (often cold) all over the country. How's it going to get from you to me? Diesel. Furthermore, your biggest expense may be land. But an agricorp giant doesn't care about that. The land is paid for in cash, goes onto the balance sheet as an asset and then they start working it. They don't pay squat, so labor isn't a big deal. Water and energy are the biggies.
The price of food is directly affected by the price of petroleum. And it's not going to get any better. Not in our lifetimes. Or the next generation, or the next, or the next after that.
That is true, this is a small area compared to all that is included. I could get into other things but it will get a bit off subject....and it's boring to most.
Freight does include costs, diesel included. I'm probably wrong about what I said........but just don't tell anyone, please!
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I'm shocked how people "overlook" what the media/peers show as a need/status. But I do have good drinking water at my house, from my well, from land I bought. I am not the norm, never lived in the city.......cept for 4 yrs of college that we didn't drink much water anyway.
