Clements: A new analysis by the American Farm Bureau Federation shows the United States has the most affordable food supply in the world. Megan Nelson, AFBF economic analyst, researched global food prices and found Americans enjoy the most affordable overall price for food at home.
Nelson: American actually have the most affordable basket of groceries. The amount of money that each individual spends out of their disposable income on food is about 4.8 percent. That was from 2017. That’s substantially lower that a lot of other areas.
Clements: Nelson says people in low-income countries must spend much more of their household budget on food than those in high-income countries.
Nelson: For high-income countries, we’re looking at four to six, to maybe eight percent of their total disposal income being spent on food. But, then if you go into more low-income countries, you’re seeing over 50 percent of their household budget spent on food. And that has been true since the 1800s.
Clements: Nelson says it’s important agricultural trade and policy help reduce global food price volatility.
Nelson: The importance of keeping price predictable for not only farmers, but all individuals in these low-income countries is paramount. We really need to be able to stabilize markets abroad and build up trading partners, instead of having unstable trade flow.
Clements: Micheal Clements, Washington.