Farm Foundation has issued an update of a report last year on “What’s Driving Food Prices?” and found the same factors affecting commodities.
“In July 2008, crude oil prices were at record levels, as were most agricultural commodity prices. Low supplies generated fears of food shortages. The rhetoric of the food-versus-fuel debate rose along with food prices. Today, despite remarkable course changes, the key drivers of food prices and their complex interactions remain the same,” according to the new report.
The new report updates the analysis Purdue University economists Phil Abbott, Chris Hurt and Wally Tyner did just nine months ago for Farm Foundation. That report, released in July 2008, identified three major forces driving food prices: World agricultural commodity consumption exceeding production growth, leading to very low commodity inventories; the decline in value of the U.S. dollar; and the new linkage between energy and agricultural markets.
In the second half of 2008, each of these driving forces completely reversed direction. “The transitions were truly remarkable—almost a 180-degree course change—yet the key drivers of food prices remain the same: supply and utilization of grains and oilseeds; the exchange rate of the dollar and related world macroeconomic factors; and the energy/agriculture linkage,” says Tyner. “Our updated analysis verified the role of the key drivers, although they sometimes play out in somewhat different ways.”
Tyner and his colleagues are participating in a Farm Foundation forum to discuss the results of the study this morning at the National Press Club.
Listen to an interview with Wally Tyner here: farm-foundation-tyner-09.mp3
Download the interview for broadcast use here: Wally Tyner on Food Price Drivers


The second trait is the Optimum Acre Max, which provides an insect protection system. These products will be brought to market pending approvals over the next few years.
Trent Loos is launching a new contest to feature the best and brightest young people in agriculture. It’s called the “Hot Peppers in Agriculture,” contest, and it calls for tasteful, fun photos that will make food producers “cool” again. Follow-up articles will highlight the interesting lives of farmers and ranchers. Photos can be sent to trent@loostales.com. To support this cause, join the group at facebook.com. Here is an excerpt from his column at
I’m not sure what a “robust” membership drive is but NCBA
What is it about blogs that are so addicting? Is it the ability to write about whatever your passions are? Is it the opportunity to peak inside the life of someone else? Is it a break from the work routine, a chance to escape and think about something fun? Is it a great way to be informed and meet with others that are interested in the same things as you? Is it a replacement to daily news reports? What is it?
Thanks to a heads up from the
Besides the new