Source: University of Missouri
Food prices could increase by more than 4 percent in 2011 as the farm sector recovers from a sharp downturn in the recession, University of Missouri economists reported to Congress.
An annual MU FAPRI baseline shows net farm income may reach a record $99 billion in 2011. The MU Food and Agricultural Policy Research Institute presented the report to legislators, Monday, March 7.
"After two years of very subdued U.S. food price inflation, food prices may increase by 4.2 percent," said Pat Westhoff, director of MU FAPRI. "Projected food inflation drops to 2 percent, a level matching overall inflation, after 2012."
Food prices will rise not only from higher prices paid at the farm level for food grains and livestock, but also recent increases in energy costs.
Read the original news release