There have been articles in some of the printed press recently about the increase in food costs. It is certainly true that prices at the grocery store are higher than a year ago. However, except for some of the meat products which have increased substantially due to the weather I don’t know if an increase of 3 to 4 percent which is the amount I have read is that much.

Especially, when the articles I have seen fail to mention that this is the first increase in prices in the past couple of years. In the meantime, most of those who have not had a layoff have had increases in their earnings over that period. That means the cost of food for many has decreased over that time period and even with this years increase they are spending a smaller percent of their income on food than they did two years ago.

The other thing I have not seen in these articles is what each economic sector’s share of the prices received is.

I recently ran across this table which was calculated by the National Farmers Union. It only shows the farmers share. It doesn’t show how much goes to the transportation sector which is now paying higher fuel costs, nor the processing sector for turning corn into corn flakes. Nor the supermarket for their costs and profits.

The other thing that is important to all of American, and especially to this sector of the country is just how much agricultural prices have declined in the past year and more. While that was also not included in the series, readers can see that by reviewing some of my earlier postings.

I know that most people not involved in the food sector understand how little of the total price the farmer gets. Here is a relatively current example. Thanks to the Farmers Union for providing this data.

 

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