<p style="text-indent:0px; line-height:12px;"><span style="font-weight:bold;">United States-</span><hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding">By ANUK Staff<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding">01.11.13</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"><p>Today, we face a major concern with rising food costs. Affordability is commonly measured as the percent of income spent for food, according to a report by FarmEcon LLC. Affordability improvement has been slowing in recent years, but had still been trending down until 2006. </p><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"><p>In 2006 the trend reversed, and is the largest since 1950. Since 2006, food prices are increasing relative to all other prices. Consumers’ food costs are now increasing compared to disposable income. The gap between the 1950-2005 long term affordability trend and actual food costs has been increasing, according to the report. Food costs for a family of four has increased more than $2,000 above 2012 predictions.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"><img src="https://cdn.andnowuknow.com/legacyWriterImages/confoods011113body2.jpg" alt="Images011113" /></p><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"><p>Average food costs for a family of four were $2,055 more than trend. This represents an additional $162 billion spent on food last year for the country. The reports anticipates another 2013 food bill increase, as well.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding">Within the $162 billion above-trend total food cost increase for the 2012 U.S. food bill, approximately $74 billion, can be attributed to 2005-2012 price increases for grains, soybean products, DDGS and hay.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"><img src="https://cdn.andnowuknow.com/legacyWriterImages/confoods011113.jpg" alt="Images011113" /><hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding">This study revealed the recent increase in percent of DPI spent for food, or food cost, relative to trend is strongly linked with rising raw commodity costs, and corn in particular. There has been an increased use of corn for fuel ethanol production. The 2005 advent of federal mandates for fuel ethanol consumption partnered with increasing gasoline prices, have created a favorable environment for increased fuel ethanol production.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"><p><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href=" http://www.farmecon.com/Documents/Food%20spending%20and%20corn%20prices%20ELAM%201-8-13.pdf " target="_new"> Consumer Food Cost Trends </a></p><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding">
