Looming Food Price Increases Hitting Americans This Fall
Aug 23, 2022 21:38:15 #
May 29, 2022, 10:35 AM by 6Park News Desk
In its effort to contain inflation, the Federal Reserve has launched what many expect to be a continuing series of interest rate hikes, which are already hitting the stock and housing markets, with losses likely to come. Job positions. Yet as tired as Americans are of paying record gas and grocery prices, another round of price increases is making its way through the food supply chain and is expected to trickle down to consumers. this autumn.
“People don’t realize what’s happening to them,” said Lynn “Bugsy” Allen, a Texas farmer. “They think it’s hard right now, you give it until October. Food prices are going to double.
The 8.8 percent rise in food prices Americans have already seen doesn’t take into account the dramatic cost increases farmers are now experiencing. This is because farmers pay their costs up front and only get them back at the point of sale, months later.
“Typically, what we see on the farm, the consumer doesn’t see for another 18 months,” said John Chester, a Tennessee corn, wheat and soybean farmer. But with the severity of these cost increases, consumers could feel the effects much sooner, particularly if the weather becomes a factor.
Lorenda Overman, a North Carolina farmer who raises hogs and grows corn, soybeans and sweet potatoes, said rising fuel costs have put her farm in the red this year. “Nothing that consumers pay is going to close the gap for farmers right now,” she said. “The prices haven’t hit the grocery stores yet,” but she expects they will start to do so in late summer.
Much of the cost of food depends on the price of oil.
“They don’t have electric trucks that deliver that food and there are no electric tractors,” Allen said. “Diesel is needed to run all of this.”
Chester said fuel and fertilizer together make up 55 percent of his total costs. The price of diesel fuel has more than doubled, from $2.50 per gallon at the end of 2020 to more than $5 per gallon today. Farmers say the cost of fertilizer, an oil derivative, has tripled and in some cases quadrupled.
“When you look at machinery that uses diesel, it’s farm equipment, railroads and truckers,” said Daniel Turner, executive director of Power the Future, an energy advocacy group. Diesel “moves all our assets, grows our food. From cargo ships that arrive from abroad to trucks or trains that t***sport these goods throughout the country. All of those things now have additional costs that will be sent to the consumer.”
“That increase in food and energy costs is very destructive to demand in American households,” said Joseph Lavorgna, chief economist at Natixis, a European bank. “If you have to pay a lot more money for your food, to heat or cool your house, or to put gas in your car to get to work, there is less money available elsewhere.” Gas and food price hikes will leave Americans with less money to spend on other goods, reducing demand and having a ripple effect on the broader economy.
Economic reports indicate that Americans can no longer keep up with inflation. Household savings fell at the lowest rate in 14 years as people struggle to maintain their standard of living. Credit card debt is reaching record levels, and retailers say they are bracing for more consumers to limit their spending to “basic essentials.”
While Americans’ loss of purchasing power may help reduce inflation, some economists fear a return to the “stagflation” of the 1970s, rising prices along with economic stagnation and rising unemployment. That period of inflation was finally brought under control by the Fed, which raised interest rates to nearly 20 percent.
In contrast to the energy crisis of the Carter era, which was triggered by an embargo on foreign oil producers at a time of declining US oil production, today’s energy shortages are largely the result of domestic politics. of the US government, as the Biden administration attempts to force Americans to switch from f****l f**ls to wind, solar and electric power. This effort has included the closure of pipelines, the suspension of oil and gas leases, and the placement of regulatory controls, all of which have reduced new investment in US oil and gas production.
Last week, Biden declared that the increase in oil prices was “an incredible t***sition that is happening that, God willing, when it is over, we will be stronger and the world will be stronger and less dependent on f****l f**ls.”
Energy Secretary Jennifer Granholm said last week that rising oil prices were “an exclamation point” for the need to t***sition to wind and solar power and “build homegrown clean energy.” Granholm previously stated that “if you drive an electric car, this would not affect you”.
As natural gas prices hit a 14-year high, Biden’s Department of Energy recently released “some tips on how you can prepare your home and office to navigate safely during a blackout.”
Samantha Power, director of Biden’s Agency for International Development, said the solution to rising fertilizer prices is “natural solutions like manure and compost, and this can speed up t***sitions that would have been in the interest of everyone anyway.” the farmers. Never let a crisis go to waste.”
“That’s not the real world,” Overman said. “We have the highest pig production density in the country and there is not enough pig, turkey or chicken manure to fertilize our crops. We tried this fall to lock up some chicken and turkey litter to spread on our crops and none is available. There just aren’t enough animals to produce the amount of fertilizer we need.”
“Energy is a very capital-intensive business and we’ve basically come down to about half the level of capex within energy that we had a couple of years ago,” Lavorgna said. “A lot of that has to do with the fact that oil companies are not deaf to what shareholders want, or more importantly, what regulators and politicians want.”
Gasoline prices are posted at a gas station in Washington on May 26, 2022. (Nicholas Kamm/AFP via Getty Images)
“It is incredibly curious that of all [Biden’s] rhetorically, I have yet to hear anything like ‘we will do everything we can to increase production in the United States,’” Turner said. “They are comfortable with the current state because of their green philosophy, and we are just necessary casualties.”
Along with breaks in global supply chains, oil and food prices are a key reason many economists believe the Fed will struggle to control inflation. “There is a real risk that the price [of gas] it could hit $6 a gallon in August,” Natasha Kaneva, head of global oil and commodities research at JPMorgan Chase, told reporters. “US retail price could rise another 37% in August.”
The higher prices rise, the more aggressive the Fed will have to be to contain inflation.
“We believe risks are skewed towards a much more significant downturn as inflation proves more persistent than generally expected… Fed moves currently anticipated by markets will be too slow to contain inflation,” Deutsche Bank economists said in a study. report titled “Why the Next Recession Will Be Worse Than Expected.”
“A mild recession would be a relatively small increase in the unemployment rate,” Lavorgna said. “However, if the Fed feels like it needs to compress demand further, then we’re looking at a much deeper recession, with the unemployment rate perhaps doubling, if not more.”
One of the unique features of the current economic crisis is the extent to which it is driven by government action, as opposed to market failure. This includes trillions of dollars in federal spending to prop up an economy reeling from draconian government lockdowns that now appear to have had little success in containing the c****av***s. This expense was compounded by the fact that the Federal Reserve held interest rates close to zero while expanding its balance sheet to $9 trillion, flooding the United States with cash. These problems were then exacerbated by the Biden administration’s new regulation of the economy and its antipathy towards the US f****l f**l industry, along with a Western boycott of Russian oil and fertilizer exports following the invasion. Ukrainian Russian.
Inflation is the result of too many dollars chasing too few goods, and in this case, it has been a “perfect storm” on both sides of the equation. As the Fed works to cool demand by raising rates, some economists say the Biden administration needs to reverse policies it has put in place that are undermining productivity and curbing supply.
“If you want to tackle the problem of inflation, do it through painful action from the Federal Reserve and higher interest rates and borrowing costs,” said Jonathan Williams, chief economist at the American Legislative Exchange Council. But simultaneously, “you do it through the supply side, which lowers taxes and brings back productivity across the United States.”
Given the federal government’s reluctance thus far to take the necessary action, some states have stepped forward with their own solutions, Williams said. Since March, four states (Iowa, Mississippi, Georgia and Arizona) have moved from progressive income tax rates of up to 8 percent to flat tax rates in the range of 2 to 4 percent. North Carolina eliminated the business income tax, and nine other states currently have no state income tax at all.
On May 17, Sen. John Barrasso (R-Wy.) and other Republican Republicans introduced the ONSHORE Act, which would give states the power to manage oil and gas production on federal land within their borders. Simultaneously they introduced the Lease Now Act, which would require the Interior Department to resume the sale of oil and gas leases.
When asked what Biden could do to help farmers, Allen said “lower fuel prices. It will save middle class people. It will help them when buying food.”
In its effort to contain inflation, the Federal Reserve has launched what many expect to be a continuing series of interest rate hikes, which are already hitting the stock and housing markets, with losses likely to come. Job positions. Yet as tired as Americans are of paying record gas and grocery prices, another round of price increases is making its way through the food supply chain and is expected to trickle down to consumers. this autumn.
“People don’t realize what’s happening to them,” said Lynn “Bugsy” Allen, a Texas farmer. “They think it’s hard right now, you give it until October. Food prices are going to double.
The 8.8 percent rise in food prices Americans have already seen doesn’t take into account the dramatic cost increases farmers are now experiencing. This is because farmers pay their costs up front and only get them back at the point of sale, months later.
“Typically, what we see on the farm, the consumer doesn’t see for another 18 months,” said John Chester, a Tennessee corn, wheat and soybean farmer. But with the severity of these cost increases, consumers could feel the effects much sooner, particularly if the weather becomes a factor.
Lorenda Overman, a North Carolina farmer who raises hogs and grows corn, soybeans and sweet potatoes, said rising fuel costs have put her farm in the red this year. “Nothing that consumers pay is going to close the gap for farmers right now,” she said. “The prices haven’t hit the grocery stores yet,” but she expects they will start to do so in late summer.
Much of the cost of food depends on the price of oil.
“They don’t have electric trucks that deliver that food and there are no electric tractors,” Allen said. “Diesel is needed to run all of this.”
Chester said fuel and fertilizer together make up 55 percent of his total costs. The price of diesel fuel has more than doubled, from $2.50 per gallon at the end of 2020 to more than $5 per gallon today. Farmers say the cost of fertilizer, an oil derivative, has tripled and in some cases quadrupled.
“When you look at machinery that uses diesel, it’s farm equipment, railroads and truckers,” said Daniel Turner, executive director of Power the Future, an energy advocacy group. Diesel “moves all our assets, grows our food. From cargo ships that arrive from abroad to trucks or trains that t***sport these goods throughout the country. All of those things now have additional costs that will be sent to the consumer.”
“That increase in food and energy costs is very destructive to demand in American households,” said Joseph Lavorgna, chief economist at Natixis, a European bank. “If you have to pay a lot more money for your food, to heat or cool your house, or to put gas in your car to get to work, there is less money available elsewhere.” Gas and food price hikes will leave Americans with less money to spend on other goods, reducing demand and having a ripple effect on the broader economy.
Economic reports indicate that Americans can no longer keep up with inflation. Household savings fell at the lowest rate in 14 years as people struggle to maintain their standard of living. Credit card debt is reaching record levels, and retailers say they are bracing for more consumers to limit their spending to “basic essentials.”
While Americans’ loss of purchasing power may help reduce inflation, some economists fear a return to the “stagflation” of the 1970s, rising prices along with economic stagnation and rising unemployment. That period of inflation was finally brought under control by the Fed, which raised interest rates to nearly 20 percent.
In contrast to the energy crisis of the Carter era, which was triggered by an embargo on foreign oil producers at a time of declining US oil production, today’s energy shortages are largely the result of domestic politics. of the US government, as the Biden administration attempts to force Americans to switch from f****l f**ls to wind, solar and electric power. This effort has included the closure of pipelines, the suspension of oil and gas leases, and the placement of regulatory controls, all of which have reduced new investment in US oil and gas production.
Last week, Biden declared that the increase in oil prices was “an incredible t***sition that is happening that, God willing, when it is over, we will be stronger and the world will be stronger and less dependent on f****l f**ls.”
Energy Secretary Jennifer Granholm said last week that rising oil prices were “an exclamation point” for the need to t***sition to wind and solar power and “build homegrown clean energy.” Granholm previously stated that “if you drive an electric car, this would not affect you”.
As natural gas prices hit a 14-year high, Biden’s Department of Energy recently released “some tips on how you can prepare your home and office to navigate safely during a blackout.”
Samantha Power, director of Biden’s Agency for International Development, said the solution to rising fertilizer prices is “natural solutions like manure and compost, and this can speed up t***sitions that would have been in the interest of everyone anyway.” the farmers. Never let a crisis go to waste.”
“That’s not the real world,” Overman said. “We have the highest pig production density in the country and there is not enough pig, turkey or chicken manure to fertilize our crops. We tried this fall to lock up some chicken and turkey litter to spread on our crops and none is available. There just aren’t enough animals to produce the amount of fertilizer we need.”
“Energy is a very capital-intensive business and we’ve basically come down to about half the level of capex within energy that we had a couple of years ago,” Lavorgna said. “A lot of that has to do with the fact that oil companies are not deaf to what shareholders want, or more importantly, what regulators and politicians want.”
Gasoline prices are posted at a gas station in Washington on May 26, 2022. (Nicholas Kamm/AFP via Getty Images)
“It is incredibly curious that of all [Biden’s] rhetorically, I have yet to hear anything like ‘we will do everything we can to increase production in the United States,’” Turner said. “They are comfortable with the current state because of their green philosophy, and we are just necessary casualties.”
Along with breaks in global supply chains, oil and food prices are a key reason many economists believe the Fed will struggle to control inflation. “There is a real risk that the price [of gas] it could hit $6 a gallon in August,” Natasha Kaneva, head of global oil and commodities research at JPMorgan Chase, told reporters. “US retail price could rise another 37% in August.”
The higher prices rise, the more aggressive the Fed will have to be to contain inflation.
“We believe risks are skewed towards a much more significant downturn as inflation proves more persistent than generally expected… Fed moves currently anticipated by markets will be too slow to contain inflation,” Deutsche Bank economists said in a study. report titled “Why the Next Recession Will Be Worse Than Expected.”
“A mild recession would be a relatively small increase in the unemployment rate,” Lavorgna said. “However, if the Fed feels like it needs to compress demand further, then we’re looking at a much deeper recession, with the unemployment rate perhaps doubling, if not more.”
One of the unique features of the current economic crisis is the extent to which it is driven by government action, as opposed to market failure. This includes trillions of dollars in federal spending to prop up an economy reeling from draconian government lockdowns that now appear to have had little success in containing the c****av***s. This expense was compounded by the fact that the Federal Reserve held interest rates close to zero while expanding its balance sheet to $9 trillion, flooding the United States with cash. These problems were then exacerbated by the Biden administration’s new regulation of the economy and its antipathy towards the US f****l f**l industry, along with a Western boycott of Russian oil and fertilizer exports following the invasion. Ukrainian Russian.
Inflation is the result of too many dollars chasing too few goods, and in this case, it has been a “perfect storm” on both sides of the equation. As the Fed works to cool demand by raising rates, some economists say the Biden administration needs to reverse policies it has put in place that are undermining productivity and curbing supply.
“If you want to tackle the problem of inflation, do it through painful action from the Federal Reserve and higher interest rates and borrowing costs,” said Jonathan Williams, chief economist at the American Legislative Exchange Council. But simultaneously, “you do it through the supply side, which lowers taxes and brings back productivity across the United States.”
Given the federal government’s reluctance thus far to take the necessary action, some states have stepped forward with their own solutions, Williams said. Since March, four states (Iowa, Mississippi, Georgia and Arizona) have moved from progressive income tax rates of up to 8 percent to flat tax rates in the range of 2 to 4 percent. North Carolina eliminated the business income tax, and nine other states currently have no state income tax at all.
On May 17, Sen. John Barrasso (R-Wy.) and other Republican Republicans introduced the ONSHORE Act, which would give states the power to manage oil and gas production on federal land within their borders. Simultaneously they introduced the Lease Now Act, which would require the Interior Department to resume the sale of oil and gas leases.
When asked what Biden could do to help farmers, Allen said “lower fuel prices. It will save middle class people. It will help them when buying food.”
Aug 23, 2022 23:01:07 #
thebigp wrote:
May 29, 2022, 10:35 AM by 6Park News Desk br br I... (show quote)
With this in mind, I don’t see how Biden can give a pass on student loans tomorrow.
If he does, he should be shot 
Aug 23, 2022 23:25:43 #
Weasel wrote:
With this in mind, I don’t see how Biden can give a pass on student loans tomorrow. If he does, he should be shot
If he does, he should be shot Hair sniffer will pimp his mom for a v**e
Aug 24, 2022 00:06:23 #
elledee wrote:
Hair sniffer will pimp his mom for a v**e
You Got That Right ✅️Aug 24, 2022 03:24:14 #
Biden must be eliminated by any means. The man is unAmerican and means the people harm by any power he has at his disposal and will not stop. There will not be much of a country left by 2024. Over-populated by supported i*****l a***ns and Americans homeless and starving in the streets!! That is the agenda of big tech, Bill Gates, George Soros, dark money, and the un-named g*******t who desire to k**l off the populist to cleanse the planet!!
Aug 24, 2022 08:01:28 #
retired teacher wrote:
Biden must be eliminated by any means. The man is unAmerican and means the people harm by any power he has at his disposal and will not stop. There will not be much of a country left by 2024. Over-populated by supported i*****l a***ns and Americans homeless and starving in the streets!! That is the agenda of big tech, Bill Gates, George Soros, dark money, and the un-named g*******t who desire to k**l off the populist to cleanse the planet!!
As usual, I wake up every single morning in anticipation of hearing the good news that this scumbag, that.people call The Great Unifier, has died in his sleep. .
Aug 26, 2022 19:21:54 #
Weasel wrote: As usual, I wake up every single morning in anticipation of hearing the good news that this scumbag, that.people call The Great Unifier, has died in his sleep. .
As usual, I wake up every single morning in anticipation of hearing the good news that this scumbag, that.people call The Great Unifier, has died in his sleep. .Today, 8/26/2022, I had to pay $7.22 fo a pound of hamburger 🍔. I had to pass on the A1 Sauce.
(I would ship it free also at that price)
If you want to reply, then register here. Registration is free and your account is created instantly, so you can post right away.