Drought-Adjusted Food Prices Harm Farms, Not Consumers
While consumers will see increases in the prices of meat, eggs and dairy products as a result of this year’s drought, they won’t see its effects nearly as much as farmers, according to an agricultural economist in Penn State’s College of Agricultural Sciences.
James Dunn, professor of agricultural economics, says that the drought’s effect on prices at the consumer’s end will not be significant. “The impact is really going to be on the farmers,” he says. “Corn and soybean producers will have nothing to sell, and livestock producers will have very expensive inputs. Consumers can adjust because they eat a variety of foods. Cows don’t.”
Read more: http://www.laboratoryequipment.com/news/2012/08/drought-adjusted-food-prices-harm-farms-not-consumers