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Shining Light on Farm & Food Policy for 20 Years.
Wednesday, December 18, 2024
Declining prices for cereals and vegetable oils helped drive world food commodity prices down for the 12th straight month, the Food and Agriculture Organization of the United Nations said Friday.
USDA Chief Economist Seth Meyer says a drive to diversify revenue streams through the growth of climate-smart commodities has potential but also needs to be better understood from an economic standpoint.
USDA’s latest farm income forecast could provide some ammunition to farm groups and their allies in Congress who argue that soaring production costs are eating into farm earnings while producers have little chance of seeing payments from commodity programs.
An index of global food commodity prices dropped for the 10th straight month in January on declines in the cost of vegetable oils, dairy products and sugar.
Grocery prices rose 0.2% in December, driven in part by another spike in the cost of eggs and an increase in beef prices that helped offset declines in many other categories.
Rising production costs were offset by higher commodity prices in 2022, USDA said in its latest forecast, which predicts a jump in net farm income of 13.8% for this year.
Analysts say consumers are likely to see relatively high prices in grocery stores and restaurants for some time, due to strong commodity markets and high agricultural input costs that get passed through the food chain.
Agricultural lenders are bracing for declines in farm profitability next year amid the looming threat of a recession, but some believe strong commodity prices could help ease some of the potential pain producers experience.
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