Cattle Network Warns Farmers: Big Time Inflation Is Coming and You Better Have an Explanation

Economic Policy Journal ^ | January 18, 2011 | Robert Wenzel

[2ndDivisionVet]

The insiders know, they see it coming. A spike in food prices is just around the corner. Here's what Drovers Cattle Network is telling farmers:

Americans have spent less than 10 percent of their disposable income on food for many years now. That’s about to change. Food prices are on the rise and there will be new records set for some, actually many goods, this year. Meat, dairy and poultry prices are among the products on pace to set records.

While the general inflation rate was nearly zero in 2010, food and fuel presents another story. Predictions for 2011 food inflation range from 3 percent to 6 percent, with some estimates in recent days pushing into the double digits.

This will come at a time when gasoline and energy prices also are on the rise—oil is projected to reach beyond $100 per barrel....Consumers will see higher prices in the supermarket and hear about record commodity prices and will perceive you as riding waves of money. Part of this is the current supply and demand dynamics for food products, but it is also the Ben Bernanke printing press. It's going to be a perfect storm of events pushing food prices much higher. DCN is talking about 3 percent to 6 per cent inflation, but I think it will be over 10 percent. It's going to be pretty ugly out there. And some will blame the farmers. DCN is telling farmers:

News stories are already outlining this year’s higher food prices. In recent days, I’ve seen coverage on ABC, NBC, cable news and a National Public Radio business show. Still, nothing drives the point home like actually feeling it in your wallet, and that is yet to come in a significant way. I believe consumers are in for some sticker shock, and they’ll wonder what the heck has happened.

They will point to “big, greedy, modern farmers.” Never mind that globally, there are 1 billion more people to feed than in the 1990s, as well as more who’ve upgraded their previous diets.

My point is with rising food costs on the horizon, consumers will again look at farmers with jaundiced view. So, polish up your talking points about the reality of farming, finances and food production today and be prepared to explain the truth to consumers in a calm, thoughtful way.

If you have a big freezer, fill it with meat right now.

[Claud]

I can understand the concern about freezers if energy is going up—so knowing how to can is good idea.

But then again, you still have to buy canning supplies. You still have to boil the jars and maybe even pressure cook them. All takes money and energy, and you’ll be getting the latter from the power company unless you have a wood burning option.

A stand-alone freezer uses 1000-1500 kw a year, so like $150-$200 bucks a year or $12-$16 a month.

What I don’t get is the whole freeze-dried food thing. Expensive, you can’t do anything with it besides what’s in the package, and you have to rely on someone else to freeze dry it.

I’d think you’re better off with dried beans and staples like flour, sugar, rice, etc. that you can make a million things out of. And a garden and maybe some foraging skills.

[June2]

Thanks for the book recommendation. We’ve done some canning that’s worked out well, however, our try at canning meat turned out ok but wouldn’t be our first choice of a meal. What is your favorite canned meat recipe? What have you found to work best?

[Nowhere Man]

Any fool can serve up a lib. Problem is, some is kinda scroungy and others are out and out plump. How to bake baste and season, soas to be palatable.

Sounds like a good idea, we do need to thin the liberal herd out a bit. B-) However, the meat we'd get sounds unappealing to me. Who knows where it's been? We could end up with "Mad Human Disease" or something, having my brain turn into a hole filled sponge doesn't sound appealing to me. B-P Even so, their would either be too much fat or you have to beat the meat with a sledgehammer to tenderize it. I do have a strict rule, neve4r eat anything that has eyes in the front of their head, I think that rules out liberals. A coworker of mine once had bear meat, an animal with eyes in the front of the head, and he told me it was the most rancid and icky thing he's ever ate.

[Nowhere Man]

But Obama wants to outlaw home gardens with more food regulation. Piven and Cloward!

There is no way they can enforce it, heck, people still grow marijuana. The downside is that there could be examples made and if you're one of them, that is not a good thing. Still, I keep thinking about what Ayn Rand where she said, "the more laws you have, the more criminals you make."

The day any fed tries to outlaw my garden, they will be having a talk with Mr. Remington. Oh and we live in communist NYS (upstate which is mostly conservative but gets outvoted by the downstate libs)

Well, Teddy Roosevelt said that we have four boxes, the soap box, jury box, ballot box and when all else fails, the cartridge box. The soap box is under attack, the jury box is teetering (The Supreme Court) or doesn't work too well, the ballot box, well there seems to be hope there with the Tea Party, we shall see. BTW, I think the New York City area should be a separate State, I think the same should be true for Philly here in Pennsylvania.

I believe the DEC is trying to outlaw wood burning entirely here.

You know, there will be a time when we will have to tell The Man to just plain stick it where the sun don't shine.

[JustaDumbBlonde]

One of my favorite meats to can is chicken. It takes a little more effort than a leaner meat like venison, but is well worth it. When the local grocer puts leg quarters on sale for 35-40 cents/pound, I'll buy as much as I can get over the length of the sale.

I have not canned fish yet, but we are planning an Alaska fishing adventure, and I hope to do some canning right there on the stove in the camper!

So hard to single out a favorite canned meat recipe. Casseroles, stuffed pies, soups and dumplings prepared from the chicken are always great. Hearty meat and barley soups from venison are quick and satisfying.

One of my favorite soups is to take a 16 or 19 bean mix, envelopes of savory herb & garlic and onion soups from Lipton as a base. (1 envelope for each quart of water that you'll add -- a bag of beans usually takes a total of 4 quarts) Add home canned green beans, corn and meat (chicken, deer or elk), maybe some barley and/or brown rice about an hour before mealtime and bake a loaf of fresh pumpernickel or sourdough bread. Kings don't eat that well as far as we're concerned.

[June2]

thanks! I’ve already found the canning book online.

[ichabod1]

My mom used to tell the story of how when she was a kid, in order to have a salad, her and her sister would go out along the road and pick “greens” from in the ditch.

[ichabod1]

McDs is cheaper.

[familyop]

"They will point to “big, greedy, modern farmers.” Never mind that globally, there are 1 billion more people to feed than in the 1990s, as well as more who’ve upgraded their previous diets."

Be prepared to see larger portions of American food shipped to Asia. Your previous jobs are there, and Asian inflation follows. When Asian workers pay more for their products, so do you. ...not to mention freight fuel.

[familyop]

"McDs is cheaper."

America: Only Two More Years?
www.thetrumpet.com ^ | From the February 2011 Trumpet Print Edition | By Robert Morley

Excerpt:
"Even McDonald’s needed to borrow money from the Fed. Corporate America is so addicted to debt that it needs to borrow money each and every day."