{"id":516,"date":"2019-03-11T19:40:28","date_gmt":"2019-03-11T19:40:28","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/sunyltnutrition\/?post_type=chapter&#038;p=516"},"modified":"2019-04-15T14:26:38","modified_gmt":"2019-04-15T14:26:38","slug":"14-5-food-cost-and-inflation","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/suny-mcc-ltnutrition\/chapter\/14-5-food-cost-and-inflation\/","title":{"raw":"14.5: Food Cost and Inflation","rendered":"14.5: Food Cost and Inflation"},"content":{"raw":"<div id=\"skills\">\r\n<div class=\"textbox learning-objectives\">\r\n<h3>Learning Objectives<\/h3>\r\n<ul>\r\n \t<li>Cite a recent event that has had a profound effect on how consumers feel about the food supply.<\/li>\r\n \t<li>Give a historical overview of the era of cheap food.<\/li>\r\n<\/ul>\r\n<\/div>\r\n<\/div>\r\n<p id=\"zimmerman_1.0-ch14_s04_p01\" class=\"para \">Statistics show that Americans spend more than $1.5 trillion on food each year at supermarkets, in restaurants, and from other food providers.<span id=\"zimmerman_1.0-fn14_034\" class=\"footnote\">Plunkett Research, Ltd. \u201cUS Food Industry Overview.\u201d 2011.\u00a0<a class=\"link external\" href=\"http:\/\/www.plunkettresearch.com\/food%20beverage%20grocery%20market%20research\/industry%20statistics\" target=\"_blank\" rel=\"external nofollow noopener\">http:\/\/www.plunkettresearch.com\/food%20beverage%20grocery%20market %20research\/industry%20statistics<\/a>.<\/span>\u00a0According to the USDA, a thrifty family of four spends about $540-$620 per month on groceries.<span id=\"zimmerman_1.0-fn14_035\" class=\"footnote\">US Department of Agriculture. \u201cOfficial USDA Food Plans: Cost of Food at Home at Four Levels, US Average, August 2011.\u201d Issued September 2011.\u00a0<a class=\"link external\" href=\"http:\/\/www.cnpp.usda.gov\/Publications\/FoodPlans\/2011\/CostofFoodAug2011.pdf\" target=\"_blank\" rel=\"external nofollow noopener\">http:\/\/www.cnpp.usda.gov\/Publications\/FoodPlans\/2011\/CostofFoodAug2011.pdf<\/a>.<\/span>\u00a0A number of factors affect the rising cost of food. They include agricultural production, processing and manufacturing, wholesale distribution, retail distribution, and consumption.<\/p>\r\n<p id=\"zimmerman_1.0-ch14_s04_p02\" class=\"para \">Around the world, commodity prices rose sharply in 2010 as crop production shortfalls led to reduced supplies and a higher volatility in agricultural markets. Other factors that played a role in increasing food prices include a population boom that has drastically increased demand, droughts and other natural disasters that have crippled farmers, and trade policies and practices that are unfair to developing nations.<\/p>\r\n<p id=\"zimmerman_1.0-ch14_s04_p03\" class=\"para \">Rising agricultural commodity prices have led to concerns about food insecurity and hunger. In an agricultural outlook report for 2010\u20132020, the Secretary-General of the Organisation for Economic Co-operation and Development states, \u201cWhile higher prices are generally good news for farmers, the effect on the poor in developing countries who spend a high proportion of their income on food can be devastating. That is why we are calling on governments to improve information and transparency of both physical and financial markets, encourage investments that increase productivity in developing countries, remove production and trade distorting policies, and assist the vulnerable to better manage risk and uncertainty.\u201d<span id=\"zimmerman_1.0-fn14_036\" class=\"footnote\">Organisation for Economic Co-operation and Development. \u201cOECD-FAO Agricultural Outlook 2010\u20132020.\u201d June 17, 2011.\u00a0<a class=\"link external\" href=\"http:\/\/www.oecd.org\/document\/31\/0,3746,en_21571361_44315115_48182047_1_1_1_1,00.html\" target=\"_blank\" rel=\"external nofollow noopener\">http:\/\/www.oecd.org\/document\/31\/0,3746,en_21571361_44315115_48182047_1_1_1_1,00.html<\/a>.<\/span><\/p>\r\n\r\n<div id=\"zimmerman_1.0-ch14_s04_s01\" class=\"section\">\r\n<div id=\"section_1\" class=\"mt-section\">\r\n<h2 id=\"Who_Bears_the_Cost.3F-633\">Who Bears the Cost?<\/h2>\r\n<p id=\"zimmerman_1.0-ch14_s04_s01_p01\" class=\"para \">The cost of our food is influenced by the policies and practices of farms, food and beverage companies, food wholesalers, food retailers, and food service companies. These costs include the energy required to produce and distribute food products from farm field to supermarket to table. Rising prices also reflect the marketing and advertising of food. All of these factors affect all participants in a food system, but some participants are more affected than others. A 2011 report by the Economic Research Service of the USDA shows the division of the consumer food dollar among various aspects of the American food system. A far greater amount of the money you spend to buy a product goes toward the marketing components than toward the actual farmer.<span id=\"zimmerman_1.0-fn14_300\" class=\"footnote\">US Department of Agriculture, Economic Research Service. \u201cOverview.\u201d Last updated November 19, 2012.\u00a0<a class=\"link external\" href=\"http:\/\/www.ers.usda.gov\/data-products\/food-expenditures.aspx\" target=\"_blank\" rel=\"external nofollow noopener\">http:\/\/www.ers.usda.gov\/data-products\/food-expenditures.aspx<\/a>.<\/span><\/p>\r\n\r\n<div id=\"zimmerman_1.0-ch14_s04_s01_s01\" class=\"section\">\r\n<div id=\"section_2\" class=\"mt-section\">\r\n<h2 id=\"The_Consumer_Price_Index-633\">The Consumer Price Index<\/h2>\r\n<p id=\"zimmerman_1.0-ch14_s04_s01_s01_p01\" class=\"para \">The Consumer Price Index (CPI) measures changes in the price level paid for goods and services. This economic indicator is based on the expenditures of the residents of urban areas, including working professionals, the self-employed, the poor, the unemployed, and retired workers, as well as urban wage earners and clerical workers. The CPI has subindices for many different types of products, including food and beverages. It is a closely-watched statistic that is used in a variety of ways, including measuring inflation and regulating prices.<\/p>\r\n\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<div id=\"zimmerman_1.0-ch14_s04_s02\" class=\"section\">\r\n<div id=\"section_3\" class=\"mt-section\">\r\n<h2 id=\"Implications_Around_the_World-633\">Implications Around the World<\/h2>\r\n<p id=\"zimmerman_1.0-ch14_s04_s02_p01\" class=\"para \">Food prices and inflation disproportionately affect people at lower income levels. For the poorest people of the world, increasing prices can raise levels of hunger and starvation. In many developing countries where the cost for staple crops steadily rises, consumers have faced shortages or even the fear of shortages, which can result in hoarding and rioting. This happened in 2007 and 2008 during rice shortages in India and other parts of Asia. Rioters burned hundreds of food ration stores in the Indian region West Bengal. In the West African nation Burkina Faso, food rioters looted stores and burned government buildings as a result of rising prices for food and other necessities.<span id=\"zimmerman_1.0-fn14_037\" class=\"footnote\">Vivienne Walt, \u201cThe World\u2019s Growing Food-Price Crisis,\u201d\u00a0<em class=\"emphasis\">Time<\/em>\u00a0Magazine, 27 February 2008.\u00a0<a class=\"link external\" href=\"http:\/\/www.time.com\/time\/world\/article\/0,8599,1717572-1,00.html\" target=\"_blank\" rel=\"external nofollow noopener\">http:\/\/www.time.com\/time\/world\/article\/0,8599,1717572-1,00.html<\/a>.<\/span>\u00a0In some poor countries, protests also have been fueled by concerns over corruption, because officials earned fortunes from oil and minerals, while locals struggled to put food on their tables. Bringing down prices would quell protests, but could take a decade or more to accomplish.<\/p>\r\n\r\n<div id=\"zimmerman_1.0-ch14_s04_s02_s01\" class=\"section\">\r\n<div id=\"section_4\" class=\"mt-section\">\r\n<h2 id=\"The_End_of_the_Era_of_Cheap_Food-633\">The End of the Era of Cheap Food<\/h2>\r\n<p id=\"zimmerman_1.0-ch14_s04_s02_s01_p01\" class=\"para \">Concerns about food shortages and rising prices reflect the end of the era of cheap food. Following World War II, grain prices fell steadily around the world for decades. As farms grew in scale, factory-farm practices, such as the use of synthetic and mined fertilizers and pesticides, increased. Agribusinesses also invested in massive planting and harvesting machines. These practices pushed crop yields up and crop prices down. Food became so inexpensive that we entered what came to be called the \u201cera of cheap food.\u201d<\/p>\r\n<p id=\"zimmerman_1.0-ch14_s04_s02_s01_p02\" class=\"para \">However, by 2008, economic experts had declared that the era of cheap food was over. The rapid growth in farm output had slowed to the point that it failed to keep pace with population increases and rising affluence in once-developing nations. Consumption of four staples\u2014wheat, rice, corn, and soybeans\u2014outstripped production and resulted in dramatic stockpile decreases. The consequence of this imbalance has been huge spikes felt moderately in the West and to a much greater degree in the developing world. As a result, hunger has worsened for tens of millions of poor people around the world.<span id=\"zimmerman_1.0-fn14_038\" class=\"footnote\">Justin Gillis, \u201cA Warming Planet Struggles to Feed Itself,\u201d\u00a0<em class=\"emphasis\">The New York Times<\/em>, 4 June 2011.\u00a0<a class=\"link external\" href=\"http:\/\/www.nytimes.com\/2011\/06\/05\/science\/earth\/05harvest.html?_r=2&amp;hp\" target=\"_blank\" rel=\"external nofollow noopener\">http:\/\/www.nytimes.com\/2011\/06\/05\/science\/earth\/05harvest.html?_r=2&amp;hp<\/a>.<\/span><\/p>\r\n<p id=\"zimmerman_1.0-ch14_s04_s02_s01_p03\" class=\"para \">Two major trends played a part in this shift. First, prosperity in India and China led to increased food consumption in general, but more specifically to increased meat consumption. Increased meat consumption has led to an increased demand for livestock feed, which has contributed to an overall rise in prices. The second trend relates to biofuels, which are made from a wide variety of crops (such as corn and palm nuts), which increasingly are used to make fuel instead of to feed people.<\/p>\r\n<p id=\"zimmerman_1.0-ch14_s04_s02_s01_p04\" class=\"para \">The world population in 2010 was 6.9 billion.<span id=\"zimmerman_1.0-fn14_039\" class=\"footnote\">United Nations. \u201cWorld Population Prospects, the 2010 Revision.\u201d\u00a0<a class=\"link external\" href=\"http:\/\/esa.un.org\/wpp\/Analytical-Figures\/htm\/fig_1.htm\" target=\"_blank\" rel=\"external nofollow noopener\">http:\/\/esa.un.org\/wpp\/Analytical-Figures\/htm\/fig_1.htm<\/a>.<\/span>\u00a0It is projected to grow to 9.4 billion by 2050.<span id=\"zimmerman_1.0-fn14_040\" class=\"footnote\">Food and Agricultural Organization of the United Nations. \u201cExecutive Summary.\u201d\u00a0<a class=\"link external\" href=\"http:\/\/www.fao.org\/docrep\/004\/y3557e\/y3557e03.htm\" target=\"_blank\" rel=\"external nofollow noopener\">http:\/\/www.fao.org\/docrep\/004\/y3557e\/y3557e03.htm<\/a>.<\/span>\u00a0The rate of increase is particularly high in the developing world, and the increased population, along with poverty and political instability, are helping to foster long-term food insecurity. In the coming decades, farmers will need to greatly increase their output to meet the rising demand, while adapting to any future trends.<span id=\"zimmerman_1.0-fn14_041\" class=\"footnote\">Christian Science Monitor. \u201cWhy the Era of Cheap Food Is Over.\u201d December 31, 2007.\u00a0<a class=\"link external\" href=\"http:\/\/www.csmonitor.com\/2007\/1231\/p13s01-wogi.html\" target=\"_blank\" rel=\"external nofollow noopener\">http:\/\/www.csmonitor.com\/2007\/1231\/p13s01-wogi.html<\/a>.<\/span><\/p>\r\n\r\n<div id=\"zimmerman_1.0-ch14_s04_s02_s01_n01\" class=\"key_takeaways \">\r\n<div id=\"section_5\" class=\"mt-section\">\r\n<div class=\"textbox key-takeaways\">\r\n<h3>Key Takeaways<\/h3>\r\nFood prices are rising in the United States and around the world, which has greatly affected both agricultural producers and consumers.\u00a0A number of factors have contributed to rising costs, including population booms, natural disasters, and the production of biofuels, among others.\u00a0Economic experts have declared that the era of cheap food, which began after World War II, has ended due to rising population rates and decreased agricultural production worldwide. As a result, hunger has worsened for tens of millions of poor people globally.\r\n\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<div id=\"section_6\" class=\"mt-section\">\r\n<div id=\"zimmerman_1.0-ch11_s04_s02_s03_n02\" class=\"exercises block\">\r\n<div id=\"section_7\" class=\"mt-section\">\r\n<h3>Discussion Starter<\/h3>\r\n<ol id=\"zimmerman_1.0-ch14_s04_s02_s01_l02\" class=\"orderedlist\">\r\n \t<li>Examine the graphics from\u00a0<a class=\"link external\" href=\"http:\/\/www.ers.usda.gov\/data-products\/food-dollar-series\/documentation.aspx\" target=\"_blank\" rel=\"external nofollow noopener\">http:\/\/www.ers.usda.gov\/data-products\/food-dollar-series\/documentation.aspx<\/a>. What does each image indicate about agriculture and the American economy?<\/li>\r\n<\/ol>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>","rendered":"<div id=\"skills\">\n<div class=\"textbox learning-objectives\">\n<h3>Learning Objectives<\/h3>\n<ul>\n<li>Cite a recent event that has had a profound effect on how consumers feel about the food supply.<\/li>\n<li>Give a historical overview of the era of cheap food.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<p id=\"zimmerman_1.0-ch14_s04_p01\" class=\"para\">Statistics show that Americans spend more than $1.5 trillion on food each year at supermarkets, in restaurants, and from other food providers.<span id=\"zimmerman_1.0-fn14_034\" class=\"footnote\">Plunkett Research, Ltd. \u201cUS Food Industry Overview.\u201d 2011.\u00a0<a class=\"link external\" href=\"http:\/\/www.plunkettresearch.com\/food%20beverage%20grocery%20market%20research\/industry%20statistics\" target=\"_blank\" rel=\"external nofollow noopener\">http:\/\/www.plunkettresearch.com\/food%20beverage%20grocery%20market %20research\/industry%20statistics<\/a>.<\/span>\u00a0According to the USDA, a thrifty family of four spends about $540-$620 per month on groceries.<span id=\"zimmerman_1.0-fn14_035\" class=\"footnote\">US Department of Agriculture. \u201cOfficial USDA Food Plans: Cost of Food at Home at Four Levels, US Average, August 2011.\u201d Issued September 2011.\u00a0<a class=\"link external\" href=\"http:\/\/www.cnpp.usda.gov\/Publications\/FoodPlans\/2011\/CostofFoodAug2011.pdf\" target=\"_blank\" rel=\"external nofollow noopener\">http:\/\/www.cnpp.usda.gov\/Publications\/FoodPlans\/2011\/CostofFoodAug2011.pdf<\/a>.<\/span>\u00a0A number of factors affect the rising cost of food. They include agricultural production, processing and manufacturing, wholesale distribution, retail distribution, and consumption.<\/p>\n<p id=\"zimmerman_1.0-ch14_s04_p02\" class=\"para\">Around the world, commodity prices rose sharply in 2010 as crop production shortfalls led to reduced supplies and a higher volatility in agricultural markets. Other factors that played a role in increasing food prices include a population boom that has drastically increased demand, droughts and other natural disasters that have crippled farmers, and trade policies and practices that are unfair to developing nations.<\/p>\n<p id=\"zimmerman_1.0-ch14_s04_p03\" class=\"para\">Rising agricultural commodity prices have led to concerns about food insecurity and hunger. In an agricultural outlook report for 2010\u20132020, the Secretary-General of the Organisation for Economic Co-operation and Development states, \u201cWhile higher prices are generally good news for farmers, the effect on the poor in developing countries who spend a high proportion of their income on food can be devastating. That is why we are calling on governments to improve information and transparency of both physical and financial markets, encourage investments that increase productivity in developing countries, remove production and trade distorting policies, and assist the vulnerable to better manage risk and uncertainty.\u201d<span id=\"zimmerman_1.0-fn14_036\" class=\"footnote\">Organisation for Economic Co-operation and Development. \u201cOECD-FAO Agricultural Outlook 2010\u20132020.\u201d June 17, 2011.\u00a0<a class=\"link external\" href=\"http:\/\/www.oecd.org\/document\/31\/0,3746,en_21571361_44315115_48182047_1_1_1_1,00.html\" target=\"_blank\" rel=\"external nofollow noopener\">http:\/\/www.oecd.org\/document\/31\/0,3746,en_21571361_44315115_48182047_1_1_1_1,00.html<\/a>.<\/span><\/p>\n<div id=\"zimmerman_1.0-ch14_s04_s01\" class=\"section\">\n<div id=\"section_1\" class=\"mt-section\">\n<h2 id=\"Who_Bears_the_Cost.3F-633\">Who Bears the Cost?<\/h2>\n<p id=\"zimmerman_1.0-ch14_s04_s01_p01\" class=\"para\">The cost of our food is influenced by the policies and practices of farms, food and beverage companies, food wholesalers, food retailers, and food service companies. These costs include the energy required to produce and distribute food products from farm field to supermarket to table. Rising prices also reflect the marketing and advertising of food. All of these factors affect all participants in a food system, but some participants are more affected than others. A 2011 report by the Economic Research Service of the USDA shows the division of the consumer food dollar among various aspects of the American food system. A far greater amount of the money you spend to buy a product goes toward the marketing components than toward the actual farmer.<span id=\"zimmerman_1.0-fn14_300\" class=\"footnote\">US Department of Agriculture, Economic Research Service. \u201cOverview.\u201d Last updated November 19, 2012.\u00a0<a class=\"link external\" href=\"http:\/\/www.ers.usda.gov\/data-products\/food-expenditures.aspx\" target=\"_blank\" rel=\"external nofollow noopener\">http:\/\/www.ers.usda.gov\/data-products\/food-expenditures.aspx<\/a>.<\/span><\/p>\n<div id=\"zimmerman_1.0-ch14_s04_s01_s01\" class=\"section\">\n<div id=\"section_2\" class=\"mt-section\">\n<h2 id=\"The_Consumer_Price_Index-633\">The Consumer Price Index<\/h2>\n<p id=\"zimmerman_1.0-ch14_s04_s01_s01_p01\" class=\"para\">The Consumer Price Index (CPI) measures changes in the price level paid for goods and services. This economic indicator is based on the expenditures of the residents of urban areas, including working professionals, the self-employed, the poor, the unemployed, and retired workers, as well as urban wage earners and clerical workers. The CPI has subindices for many different types of products, including food and beverages. It is a closely-watched statistic that is used in a variety of ways, including measuring inflation and regulating prices.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div id=\"zimmerman_1.0-ch14_s04_s02\" class=\"section\">\n<div id=\"section_3\" class=\"mt-section\">\n<h2 id=\"Implications_Around_the_World-633\">Implications Around the World<\/h2>\n<p id=\"zimmerman_1.0-ch14_s04_s02_p01\" class=\"para\">Food prices and inflation disproportionately affect people at lower income levels. For the poorest people of the world, increasing prices can raise levels of hunger and starvation. In many developing countries where the cost for staple crops steadily rises, consumers have faced shortages or even the fear of shortages, which can result in hoarding and rioting. This happened in 2007 and 2008 during rice shortages in India and other parts of Asia. Rioters burned hundreds of food ration stores in the Indian region West Bengal. In the West African nation Burkina Faso, food rioters looted stores and burned government buildings as a result of rising prices for food and other necessities.<span id=\"zimmerman_1.0-fn14_037\" class=\"footnote\">Vivienne Walt, \u201cThe World\u2019s Growing Food-Price Crisis,\u201d\u00a0<em class=\"emphasis\">Time<\/em>\u00a0Magazine, 27 February 2008.\u00a0<a class=\"link external\" href=\"http:\/\/www.time.com\/time\/world\/article\/0,8599,1717572-1,00.html\" target=\"_blank\" rel=\"external nofollow noopener\">http:\/\/www.time.com\/time\/world\/article\/0,8599,1717572-1,00.html<\/a>.<\/span>\u00a0In some poor countries, protests also have been fueled by concerns over corruption, because officials earned fortunes from oil and minerals, while locals struggled to put food on their tables. Bringing down prices would quell protests, but could take a decade or more to accomplish.<\/p>\n<div id=\"zimmerman_1.0-ch14_s04_s02_s01\" class=\"section\">\n<div id=\"section_4\" class=\"mt-section\">\n<h2 id=\"The_End_of_the_Era_of_Cheap_Food-633\">The End of the Era of Cheap Food<\/h2>\n<p id=\"zimmerman_1.0-ch14_s04_s02_s01_p01\" class=\"para\">Concerns about food shortages and rising prices reflect the end of the era of cheap food. Following World War II, grain prices fell steadily around the world for decades. As farms grew in scale, factory-farm practices, such as the use of synthetic and mined fertilizers and pesticides, increased. Agribusinesses also invested in massive planting and harvesting machines. These practices pushed crop yields up and crop prices down. Food became so inexpensive that we entered what came to be called the \u201cera of cheap food.\u201d<\/p>\n<p id=\"zimmerman_1.0-ch14_s04_s02_s01_p02\" class=\"para\">However, by 2008, economic experts had declared that the era of cheap food was over. The rapid growth in farm output had slowed to the point that it failed to keep pace with population increases and rising affluence in once-developing nations. Consumption of four staples\u2014wheat, rice, corn, and soybeans\u2014outstripped production and resulted in dramatic stockpile decreases. The consequence of this imbalance has been huge spikes felt moderately in the West and to a much greater degree in the developing world. As a result, hunger has worsened for tens of millions of poor people around the world.<span id=\"zimmerman_1.0-fn14_038\" class=\"footnote\">Justin Gillis, \u201cA Warming Planet Struggles to Feed Itself,\u201d\u00a0<em class=\"emphasis\">The New York Times<\/em>, 4 June 2011.\u00a0<a class=\"link external\" href=\"http:\/\/www.nytimes.com\/2011\/06\/05\/science\/earth\/05harvest.html?_r=2&amp;hp\" target=\"_blank\" rel=\"external nofollow noopener\">http:\/\/www.nytimes.com\/2011\/06\/05\/science\/earth\/05harvest.html?_r=2&amp;hp<\/a>.<\/span><\/p>\n<p id=\"zimmerman_1.0-ch14_s04_s02_s01_p03\" class=\"para\">Two major trends played a part in this shift. First, prosperity in India and China led to increased food consumption in general, but more specifically to increased meat consumption. Increased meat consumption has led to an increased demand for livestock feed, which has contributed to an overall rise in prices. The second trend relates to biofuels, which are made from a wide variety of crops (such as corn and palm nuts), which increasingly are used to make fuel instead of to feed people.<\/p>\n<p id=\"zimmerman_1.0-ch14_s04_s02_s01_p04\" class=\"para\">The world population in 2010 was 6.9 billion.<span id=\"zimmerman_1.0-fn14_039\" class=\"footnote\">United Nations. \u201cWorld Population Prospects, the 2010 Revision.\u201d\u00a0<a class=\"link external\" href=\"http:\/\/esa.un.org\/wpp\/Analytical-Figures\/htm\/fig_1.htm\" target=\"_blank\" rel=\"external nofollow noopener\">http:\/\/esa.un.org\/wpp\/Analytical-Figures\/htm\/fig_1.htm<\/a>.<\/span>\u00a0It is projected to grow to 9.4 billion by 2050.<span id=\"zimmerman_1.0-fn14_040\" class=\"footnote\">Food and Agricultural Organization of the United Nations. \u201cExecutive Summary.\u201d\u00a0<a class=\"link external\" href=\"http:\/\/www.fao.org\/docrep\/004\/y3557e\/y3557e03.htm\" target=\"_blank\" rel=\"external nofollow noopener\">http:\/\/www.fao.org\/docrep\/004\/y3557e\/y3557e03.htm<\/a>.<\/span>\u00a0The rate of increase is particularly high in the developing world, and the increased population, along with poverty and political instability, are helping to foster long-term food insecurity. In the coming decades, farmers will need to greatly increase their output to meet the rising demand, while adapting to any future trends.<span id=\"zimmerman_1.0-fn14_041\" class=\"footnote\">Christian Science Monitor. \u201cWhy the Era of Cheap Food Is Over.\u201d December 31, 2007.\u00a0<a class=\"link external\" href=\"http:\/\/www.csmonitor.com\/2007\/1231\/p13s01-wogi.html\" target=\"_blank\" rel=\"external nofollow noopener\">http:\/\/www.csmonitor.com\/2007\/1231\/p13s01-wogi.html<\/a>.<\/span><\/p>\n<div id=\"zimmerman_1.0-ch14_s04_s02_s01_n01\" class=\"key_takeaways\">\n<div id=\"section_5\" class=\"mt-section\">\n<div class=\"textbox key-takeaways\">\n<h3>Key Takeaways<\/h3>\n<p>Food prices are rising in the United States and around the world, which has greatly affected both agricultural producers and consumers.\u00a0A number of factors have contributed to rising costs, including population booms, natural disasters, and the production of biofuels, among others.\u00a0Economic experts have declared that the era of cheap food, which began after World War II, has ended due to rising population rates and decreased agricultural production worldwide. As a result, hunger has worsened for tens of millions of poor people globally.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div id=\"section_6\" class=\"mt-section\">\n<div id=\"zimmerman_1.0-ch11_s04_s02_s03_n02\" class=\"exercises block\">\n<div id=\"section_7\" class=\"mt-section\">\n<h3>Discussion Starter<\/h3>\n<ol id=\"zimmerman_1.0-ch14_s04_s02_s01_l02\" class=\"orderedlist\">\n<li>Examine the graphics from\u00a0<a class=\"link external\" href=\"http:\/\/www.ers.usda.gov\/data-products\/food-dollar-series\/documentation.aspx\" target=\"_blank\" rel=\"external nofollow noopener\">http:\/\/www.ers.usda.gov\/data-products\/food-dollar-series\/documentation.aspx<\/a>. What does each image indicate about agriculture and the American economy?<\/li>\n<\/ol>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-516\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li>Food Cost and Inflation. <strong>Authored by<\/strong>: Medical LibreTexts Contributors. <strong>Provided by<\/strong>: LibreTexts. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/med.libretexts.org\/Courses\/Sacramento_City_College\/SCC%3A_Nutri_300_(Coppola)\/Chapters\/14%3A_Food_Politics_and_Perspectives\/14.5%3A_Food_Cost_and_Inflation\">https:\/\/med.libretexts.org\/Courses\/Sacramento_City_College\/SCC%3A_Nutri_300_(Coppola)\/Chapters\/14%3A_Food_Politics_and_Perspectives\/14.5%3A_Food_Cost_and_Inflation<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-nc-sa\/4.0\/\">CC BY-NC-SA: Attribution-NonCommercial-ShareAlike<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":44985,"menu_order":7,"template":"","meta":{"_candela_citation":"[{\"type\":\"cc\",\"description\":\"Food Cost and Inflation\",\"author\":\"Medical LibreTexts Contributors\",\"organization\":\"LibreTexts\",\"url\":\"https:\/\/med.libretexts.org\/Courses\/Sacramento_City_College\/SCC%3A_Nutri_300_(Coppola)\/Chapters\/14%3A_Food_Politics_and_Perspectives\/14.5%3A_Food_Cost_and_Inflation\",\"project\":\"\",\"license\":\"cc-by-nc-sa\",\"license_terms\":\"\"}]","CANDELA_OUTCOMES_GUID":"","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-516","chapter","type-chapter","status-publish","hentry"],"part":505,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/suny-mcc-ltnutrition\/wp-json\/pressbooks\/v2\/chapters\/516","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/suny-mcc-ltnutrition\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/suny-mcc-ltnutrition\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-mcc-ltnutrition\/wp-json\/wp\/v2\/users\/44985"}],"version-history":[{"count":3,"href":"https:\/\/courses.lumenlearning.com\/suny-mcc-ltnutrition\/wp-json\/pressbooks\/v2\/chapters\/516\/revisions"}],"predecessor-version":[{"id":963,"href":"https:\/\/courses.lumenlearning.com\/suny-mcc-ltnutrition\/wp-json\/pressbooks\/v2\/chapters\/516\/revisions\/963"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/suny-mcc-ltnutrition\/wp-json\/pressbooks\/v2\/parts\/505"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/suny-mcc-ltnutrition\/wp-json\/pressbooks\/v2\/chapters\/516\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/suny-mcc-ltnutrition\/wp-json\/wp\/v2\/media?parent=516"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-mcc-ltnutrition\/wp-json\/pressbooks\/v2\/chapter-type?post=516"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-mcc-ltnutrition\/wp-json\/wp\/v2\/contributor?post=516"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-mcc-ltnutrition\/wp-json\/wp\/v2\/license?post=516"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}