The price tally in the latest American Farm Bureau market basket survey of 16 basic groceries was $45.03 in the first quarter, up 9% from the same period last year. Many of the price increases are eye-popping -- a five-pound bag of flour cost $2.69, 26% more than last year.
The surge in food costs has been attributed to several factors, including the increasing number of American farmers who now grow corn to supply the ethanol industry instead of food companies. I
Corn prices have soared, hitting $6 a bushel, up 50% from 2007 and triple the price of three years ago.