Just left the grocery store where they are talking about the price of milk going up along with meat and bacon doom!

It’s a combination of things all coming together at once, from high feed prices to high fuel prices to uncertainty of the federal farm bill that was temporary extended till September 30, 2013 along with mandated biofuels and crop insurance they are still saying milk prices could double before the end of the year. 
Chicken was 3.79 a pound already, the old lady’s at the deli are making less now even with the raises they got at the start of the year, they are all panicking and don’t know how they will get by.
It was a very strange atmosphere at the grocery store today, that’s for sure.
This is the fears of the farmers below, can’t blame them either. 
Snip; When Congress finally gets around to debating a farm bill, crop insurance and direct payments for commodities will be two key elements at the top of discussion.
But the farm bill is not a high priority for the new congress. Bigger budget issues have priority before Congress will start work on a new farm bill, said K-State Extension Agriculture Economist Troy Dumler.
“The farm bill is in a holding pattern,” Dumler said.
When the debate begins, farmers will keep a close eye on the status of crop insurance.
The entire state is in drought conditions with almost 80 percent of the state in extreme drought conditions and a little over a third of the state in exceptional drought conditions.
After two years of drought, the loss of dry land crops and yield reduction in irrigated crops has made the necessity of crop insurance even more important.
Compound that with the ever-increasing equipment and production costs, a solid crop insurance element in the farm bill is essential for farmers.
Another key element in the farm bill is replacing direct payments for commodities that are no longer offered. It will probably be replaced with something similar to crop insurance or a revenue support program.
About 80 percent of the last farm bill was dedicated to nutrition programs and have nothing to do with agriculture.
http://www.pratttribune.com/article/20130205/BUSINESS/130209641#art-tit

This includes bacon doom! This increase is basicaly set in stone already, 30%+ cost of pork by june.
Snip; Meat and dairy prices make up 52 percent of the FAO Food Price Index and are the primary drivers of the forecast for higher food prices. The Rabobank report projects prices for slaughter cattle will increase by 6 percent and feeder cattle by 8 percent between now and June 30, 2013. The price of pork, demonstrated by lean hog futures, will rise 31 percent during the same period, according to the report.
http://www.dairyherd.com/e-newsletters/dairy-daily/Meat-and-dairy-to-drive-record-food-prices-in-2013-170762516.html?email=yes&cmntid=102545596
More info; http://www.agweb.com/article/2013_price_improvement_still_suggest_red_ink/
Congresses temporary fix is not making the farmers happy who have to plan a year in advance, it will lead to rather large increases by July in preparation for September. Who knows what will happen but either way you’re looking at a rather large increase in food costs across the board in the next 8 months even if congress does act!
Glad to get the info out, the grocery store employees as a whole were rather openly upset preparing for this increase.
The industry as a whole are also talking of a decrease in exports, but not as bad at 2008 when quite a few countries rioted.
The thing is it takes 9 months or more for grain increases to affect the dairy and meat market, So as this increase happens though the 2013 year if grain prices continue to rise steadily as predicted we will see a similar increase going in to 2014.
The cycle looks rather bleak right now with no hope on the horizon.
Biofuels, what a joke, too bad the joke is on us.
Watching someone’s grandmother working the deli in near tears today while she tried to serve customers got to me.

Chrit