Inflation can be felt at the grocery store. Soup, cottage cheese, ground beef? But some economists say nay - not true. Do they know more than you about the prices you pay?
In California water prices are soaring. Food inflation will proceed at a faster pace as farmers cannot afford to irrigate every acre. Less supply; higher prices. Shoppers know. PB
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From Bloomberg.com:
Farmers in California’s Central Valley, the world’s most productive agricultural region, are paying as much as 10 times more for water than they did before the state’s record drought cut supply...
The drought gripping the state that supplies half the fruits, vegetables and nuts consumed in the U.S. has led federal and state providers to curtail the water they distribute to California’s farmers.
That’s prompted districts representing growers to buy and sell for escalated prices from other parts of the state as thousands of acres go unplanted.
The drought threatens to boost produce costs that are already elevated following a December frost, according to the U.S. Agriculture Department.
The price of fresh fruit is forecast to rise as much as 6 percent this year, the department said last month.
Dairy products, of which California is the biggest producer, may rise as much as 4 percent...
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Link: http://www.bloomberg.com/news/2014-07-24/california-water-prices-soar-for-farmers-as-drought-grows.html
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