I am a news junkie; I can’t seem to get enough of the local
or national news. Often I listen to it on the radio, watch it on TV, read the
newspaper and look at different sites on-line. There are no two ways about it;
I am addicted to the news. This is an odd addiction because often what I hear,
read and see on the news makes me upset and that very thing happened this week.
Just about every news outlet I tuned into had a story about
the rising cost of food. It seems due to drought, the cost of food is projected
to rise by 3.5%. Now like many of you, I do not have any extra money to spend
so any increase in my cost of living is unwelcome. However, one thing I was
unhappy about was that this increase was not put into perspective.
As Americans we spend less of our annual income on food than
anywhere else in the world. I found a publication from Washington State
University stating that we spend only 6.8% of our annual income on food.
Compare that with other countries such as the Ukraine (they have been in the
news here lately); Ukrainians spend over 40% of their annual income on food. I
don’t know exactly what 3.5% of 6.8% is but I know it isn’t much.
It seems funny to me that fuel cost can go up 10 to 20 %
easily in a couple of months, yet we rarely see any news outlet report on that.
I would guess that most of my monthly utility bills have all increased by over
3.5% in the past year. Was the increase unwarranted or excessive? I am not sure
but the point is that there does not seem to be any reporting over these price
increases. Why is that?
Well, for one thing we have done such a good job of
producing the most affordable, reliable and wholesome food supply that we have
spoiled our consumers. Think about it we are used to walking into just about
any grocery store and making a choice between anyone of a dozen different
choices for any grocery item. Choices like conventional or organic, name brand
or store brand, you name it we have a choice. Often the price differential is
not even that great, we are way too used to have affordable, abundant food at
our finger tips.
Here is a news flash, even with a 3.5% increase in food costs;
we still have the most affordable food supply anywhere in the world. Don’t get
me wrong, I am concerned. I recognize that there are many who struggle to pay
for their food and we must pay attention to them. Most of us can easily absorb
a 3.5% increase even if it means one less movie night each year, but for those
who can’t we should provide them some help.
I also fear that supply problems and the corresponding price
increases caused by droughts will cause some damage to our demand for our
products. First and foremost would be the commodity nearest and dearest to my
heart, beef. Because of our historically low cow numbers and short supply of
beef, the cost of beef in the grocery store is climbing and I fear that in the
long term it will scare consumers away. This will not be because the majority
cannot afford beef; it will be because there are more affordable options.
While it is frustrating that a small increase in the price
of food can bring headlines in the news, I can see some positive in all of
this. First, it does focus the general public on how important our food supply
is. I think many of us do not fully realize this because we have never been
faced with a shortage of food. The general public just assumes that the grocery
store shelves will be full and the prices will be low. The production of food
is one of the most important and the most overlooked part of our national
security.
Finally, it gives those of us in agriculture the opportunity
to educate our consumers about what we do and why it matter to them. I would
bet that most of us are far more aware of the importance of irrigation waters
in California than we were just a couple of months ago. It should help with the
decisions in times of drought between green lawns, swimming pools and crops. We
need to have an educated consumer because whether we know it or not we are all
big fans of the safe, abundant and affordable food supply this great nation
produces.