Drought will cause food prices to increase
The U.S Department of Agriculture is projecting the drought will increase food prices by 3 to 4 percent next year. Beef prices are expected to see the largest increase at 4 to 5 percent. Dairy prices are expected to climb by 3.5 to 4.5 percent. And poultry prices are expected to rise by 3 to 4 percent. Meat and poultry are the most affected because feed prices represent the biggest part of the cost of production. Processed food prices are less affected but corn, soybean and other commodity prices are soaring.