Soaring Production Costs at New York City’s Greenmarkets
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| Farmers Struggle as Commodity Prices Rise |
Farmers in the Midwest have more than doubled their profits since 2005 by selling grains like corn and soybeans. In the country’s biofuel craze, Northeast farmers, who mainly raise livestock, ended up on the wrong side of the tipping scale.
Many farmers refuse to pass on the higher costs of animal feed and fuel to their customers. But if costs continue to rise, prices at New York City’s Greenmarkets will as well (watch video on the right).
Penn State Agriculture Economics Professor Dr. Timothy W. Kelsey said consumers will have no choice but to pay the price.
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| Farmers Try to Keep Prices Down (Click image for slideshow) |
Many blame high food prices in the U.S. on the Energy Policy Act of 2005. It called for the amount of biofuels produced in the U.S. to almost double in six years.
The price of corn, the main ingredient to produce ethanol, soared. Wheat and soybean farmers devoted some of their acreage to corn. In response, the price for those crops also rose.
According to the U.S. Department of Agriculture soybeans prices have more than doubled, and corn and wheat prices have tripled.
At the same time, gasoline and diesel fuel prices have risen by about 30% and 50%, respectively, since 2005, according to the U.S. Department of Energy.
Those farmers at Union Square market who have not increased their prices since last year hold their breaths and wait for better days ahead.
Learn more about Elly Hushour and Ron Kipp, two of NYC’s Greenmarket farmers:
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