1 drought and heat in Russia and wheat crop failure
2 Floods in asia
3 Lower crops in Brazil
4 Higher numbers of acres in Brazil given for cane for ethanol
5 EPA fines and new restrictive mandates
6 Drop in the value of the dollar due to 1 trillion dollar deficits
7 Obama killing the sale of offshore leases
8 Obama stopping all drilling permits in the Golf of mexico
9 Flooding in Austrialia
10 Frosts killing crops in South America
11 Bad weather in Canadia during planting season
12 Pushing an increase in ethanol consumption
13 Venezuela dictator taking control of American Oil companies like Obama seized the 2 car builders.
14 Out of control leftists shutting off the water to crop lands in California.
Please explain your top 3 choices.
Not a fair test, teacher, you didn't put the real answer as choices.
U.S. food prices rose
4% in 2007 and are expected to gain
3.5% to 4.5% in 2008. Higher farm commodity prices and energy costs are the leading factors behind higher food prices. Farm commodity prices have surged because (1) demand for corn for ethanol is competing with food and feed for acreage; (2) global food grain and oilseed supplies are low due to poor harvests; (3) the weak dollar has increased U.S. exports; (4) rising incomes in large, rapidly emerging economies have changed eating habits; and (5) input costs have increased. Higher energy costs increase transportation, processing,
and retail costs.
Although the cost of commodities such as corn or wheat are a small part of the final retail price of most food products, they have risen enough to have an impact on retail prices. Generally, price changes at the farm level have a diminished impact on retail prices, especially for highly processed products.
The impact of higher food prices on U.S. households
varies according to income. Lower-income households spend a greater portion of their income on food and feel price hikes more acutely than high-income families. Higher food costs impact domestic food assistance efforts in numerous ways depending on whether benefits are indexed, enrollments are limited, or additional funds are made available. Higher food and transportation costs also reduce the impact of U.S. contributions of food aid under current budget constraints.
From the website dated 3/14/2008
http://www.msnbc.msn.com/id/23632933...-capitol_hill/
As
President Bush noted in his comments on the economy Friday,
“Prices are up at the gas pump and in the supermarket.” Food prices increased at a compound annual rate of 4.7 percent for the three months ending in February, according to data released Friday by the Bureau of Labor Statistics.
That increase was far less than the 7.6 percent jump in energy prices for the same period, but it occurred in a financial environment in which investors have been fleeing declining dollar-denominated assets such as U.S. stocks and bonds. Instead, they've been investing in commodities, such as wheat, corn, and soybeans — and it's driving up their prices.
Exactly
one year ago (this would be 2007) National Turkey Federation president Ted Seger told the House Agriculture Committee that the federal ethanol mandate would drive up corn and soybean prices and hurt consumers who eat turkey.
There have long been tax breaks to encourage production of ethanol, and last year
President Bush signed a law mandating a substantial increase in the use of renewable fuels, principally ethanol, over the next 15 years.
Coadie, next time you give me a test, get your facts straight and let's be fair. President Obama was not the President then Bush was.
By the way, did I pass?
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