Putting your money where your mouth is
How expensive is food, really?
Posted by Sharon Astyk
There is no doubt whatsoever that rising food costs are hurting people all over the world. More than half of the world's population spends 50 percent of their income or more on food, and the massive rise in staple prices threatens to increase famine rates drastically. We are already seeing the early signs of this in Haiti and in other poor nations.

It is also undoubtedly true that rising food prices are digging into the budgets of average people, including me. And I've got it easy. The 35 million Americans who are food insecure (that is, they may or may not go hungry in any given month, but they aren't sure there's going to be food) are increasingly stretched. Supportive resources like food pantries are increasingly tapped. And regular folks are finding that food and energy inflation are cutting into their budgets substantially. The rises in food and energy prices alone have eroded real wages by 1.2 percent. The USDA chief economist has announced that overall food prices will probably rise by another 3 to 4 percent this year, and grain products will rise considerably more.

But there's another side to this coin. Rising food prices are, to some extent, good for farmers. Certainly, large grain farmers in the U.S., Canada, and many other rich nations have been experiencing a well deserved boom. And there are plenty of people, myself included, who have been arguing for years that we don't pay enough of the true costs of our food. Who is right? How do you balance the merits and demerits of food prices?

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