Consumers will pay more for a typical Independence Day cookout this summer. Micheal Clements shares details from the recent American Farm Bureau Federation marketbasket survey.
Clements: The average cost of a summer cookout for ten people is $69.68, which breaks down to less than $7 per person, according to Farm Bureau’s summer marketbasket survey. AFBF Chief Economist Roger Cryan says the overall cost for the cookout is up 17 percent or about $10 from last year, because of several factors.
Cryan: One of them is the general supply chain challenges that we've had as we've recovered from COVID. Another one is the Federal Reserve Bank's expansion of the money supply which has caused general inflation. It's caused the prices of everything to go up. And another one of the big impacts, especially on food, is the war in Ukraine and the cascading effects from that.
Clements: Cryan says the increased costs for consumers is not a windfall for farmers and ranchers.
Cryan: Farmers and ranchers in the U.S. are facing rising input costs and those rising input costs are cutting into the returns they're getting for their product. In a lot of cases farmers are not even covering their increased costs with these higher prices. Livestock producers in particular are paying higher prices for feed while their own prices are not that much above last year, if they are at all.
Clements: Cryan says the war in Ukraine is a reminder of the importance of agriculture.
Cryan: For the last 40 years we’ve been very lucky. We've seen growth in agricultural productivity, we've seen market reforms in China and the former Soviet Union that unleashed a lot of productive potential and we've seen improving agricultural technologies. And many things have all contributed to food being more readily available, but this one event is cutting into that. It really serves as a striking lesson of how important it is to support productive agriculture, and how important it is not to take our food supply for granted.
Clements: Find the complete marketbasket survey at fb.org. Micheal Clements, Washington.