Ag Outlook 11-25-2020

As the year dawned USDA economists predicted food costs would rise between one-half and one and a half percent. With the arrival of COVID we’ve seen monthly adjustments upward with two to three percent expected by May when the pandemic began to impact food supplies, followed by a two and a half to three and a half anticipated rise the following month. That’s held steady – until now. USDA says we haven’t seen prices decline from their spring spikes. Beef prices remain 10 percent higher than a year ago. Fresh fruits and vegetables have also risen during the past month. The expectation now is for a three to four percent food price increase above 2019 with hope for some moderation not coming until next year.