Food Prices Are Soaring, But Farmers Aren't Getting Richer
BAKER CITY (OR) - Soaring food prices have consumers grumbling, but don’t blame farmers and ranchers. They’re just passing along huge increases in the cost of fuel, feed and petroleum-based fertilizers and pesticides.
While some consumers have been calling for government action to rein in soaring food prices, Peggy Browne, president of the Baker County Farm Bureau, said that could force farmers and ranchers out of business.
“ Energy prices drive food price increases,” Browne said. “The cost of food has gone up pretty close to the amount input costs have gone up.”
The American Farm Bureau Federation’s April Marketbasket Survey shows the total retail cost of 16 basic grocery items in the first quarter of 2008 was $45.03, up about 8 percent from the fourth quarter of 2007.
A 5-pound bag of flour showed the largest retail price increase, up 69 cents to $2.39.
John Sartwelle, an AFBF economist, said USDA statistics show that despite retail grocery price increases, USDA statistics show the farmers’ and ranchers’ share of retail food prices has declined from roughly 33 percent in the 1970s to around 22 percent in the first quarter of 2008, or $9.90 of the $43.05 market-basket total.