Meat and Dairy has strong global demand.

Grocery prices rise for 4th straight quarter

Strong global demand, especially for meats and other protein-rich foods, was a primary driver behind higher retail prices at the supermarket during the third quarter of 2011, according to the latest grocery price survey from Farm Bureau.
Indiana Farm Bureau’s latest “market basket” survey, an informal survey of grocery prices released every quarter, shows that 16 food items on the survey cost an average of $50.33, up $1.39 from the second quarter of 2011. Of those 16 items, 11 increased and five decreased in average price compared to the prior quarter.
The IFB survey is part of a nationwide survey compiled by the American Farm Bureau Federation from data supplied by state Farm Bureaus. The national survey reported similar results, showing a total average price of $53.12, up $1.95 from the previous quarter.
“Global demand for meat and dairy products remains strong and continues to influence retail prices here in the U.S.,” said AFBF economist John Anderson. “Many nations around the world rely on America to provide the food they need to improve their standard of living, particularly through the addition of protein to the diet. Strengthened demand for meats began in 2009, continued through 2010 and remains important as we look ahead to the close of 2011.”
Other factors also came into play, noted Anderson and Isabella Chism, IFB second vice president.
“Farmers continue to pay higher costs for fuel, fertilizer and feed for their livestock, but those costs aren’t passed along to consumers,” said Chism, who farms in Howard County with her husband, Kent. “It’s after the food leaves the farm that costs for transportation, processing, packaging, storage and marketing are added – and those costs continue to rise,” she said.
“As long as these costs remain elevated, consumers will continue to feel it in the form of higher food prices at the supermarket,” Anderson explained.
Meat and dairy products generally showed increases, with some exceptions. Shredded cheddar cheese rose by 20 cents to $4.24/pound; whole milk rose by 13 cents to $3.40/gallon; sirloin tip roast rose by 10 cents to $4.02/pound; and sliced deli ham rose by 3 cents to $5.26/pound.
But the increases in meat and dairy products weren’t universal. Bacon dropped by 24 cents to $3.92/pound, boneless chicken breasts dropped by 21 cents to $3.15/pound, ground chuck was down by 8 cents to $2.97/pound, and eggs were down 3 cents to $1.58/dozen.
Apples, which rose by 50 cents to $2.08 per pound, and potatoes, up 45 cents to $3.59 for a 5-pound bag, accounted for the two largest individual increases. Bagged salad mix also dropped significantly, decreasing by 41 cents to $1.88 for a 1-pound bag.
Other items that increased in price compared to the second quarter were flour, up 30 cents to $2.71 for a 5-pound bag; vegetable oil, up 22 cents to $3.20 for a 32-ounce bottle; white bread, up 18 cents to $1.79 for a 20-ounce loaf; orange juice, up 15 cents to $3.30 for a half gallon; and cereal, up 10 cents to $3.24 per 10-ounce box.
“At the beginning of 2011, a number of factors including growing demand pointed to continued increases in retail food prices, especially for meats. But there’s always a lag time as farmers and ranchers increase the size of their herds to meet higher demand,” Anderson explained. “Extreme weather conditions around the nation have further compounded the issue, diminishing production and further increasing costs.”
The year-to-year direction of the market basket survey tracks with the federal government’s Consumer Price Index (http://www.bls.gov/cpi/ ) report for food at home. As retail grocery prices have increased gradually over time, the share of the average food dollar that America’s farm and ranch families receive has dropped.
“In the mid-1970s, farmers received about one-third of consumer retail food expenditures for food eaten at home and away from home, on average. Since then, that figure has decreased steadily and is now about 16 percent, according to the Agriculture Department’s revised Food Dollar Series,” Anderson said. USDA’s new Food Dollar Series may be found online at www.ers.usda.gov/Data/FoodDollar/app/ .
AFBF, the nation’s largest general farm organization, has been conducting the informal quarterly market basket survey of retail food price trends since 1989. A total of 85 shoppers in 32 states participated in the latest survey, which was conducted in August. In Indiana, 23 volunteer shoppers participated.
According to USDA, Americans spend just under 10 percent of their disposable annual income on food, the lowest average of any country in the world.
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3rd Quarter Market Basket Results
Apples, 1 lb. $2.08
Potatoes, 5 lbs. $3.59
Bagged salad mix, 1 lb. $1.88
Orange juice, 1/2 gal. $3.30
Ground chuck, 1 lb. $2.97
Sirloin tip roast, 1 lb $4.02
Bacon, 1lb. $3.92
Sliced deli ham, 1 lb. $5.26
Boneless chicken breast, 1 lb. $3.15
Whole milk, 1 gal. $3.40
Shredded cheddar cheese, 1 lb. $4.24
Grade A large eggs, 1 doz. $1.58
Flour, 5 lbs. $2.71
Vegetable oil, 32 oz. $3.20
Cereal, 10-oz. box $3.24
White bread, 20-oz. loaf $1.79
Total $50.33

Fairboard Annual Meeting

The 2011 Annual Fairboard meeting will be held at the Community Building on the fairgrounds next monday, Sept. 26 starting with a pitch-in dinner at 6 pm. Membership and voting rights will cost adults $1 while 4-H members are already members through their 4-H fees. Come and voice your thoughts on the future of the fair through your votes.

Farm Getaway opens in Greencastle

New family farm getaway opens in Greencastle, Monday, September 12, 2011
By LAUREN BOUCHER Staff Writer

The Holton family will open the first family fun farm of its kind in the Greencastle area on Friday, Sept. 16.
As the weather gets colder and the leaves begin to fall, many families are faced with trying to keep their children active as well as entertained. This year families will now have the option of going to Red Barn Farm for some local family fun.
Starting this Friday the farm will be open to public each weekend from 1-7 p.m. until Oct. 31. The farm will feature various activities for kids of all ages such as a 4.5-acre corn maze shaped like Noah's Ark, hayrides, bonfires, and even a pumpkin slingshot. Other activities throughout the day will include story time, various games, as well a build your own scarecrow craft.
The family-run farm, headed by Tom Holton, is 155 acres. The farm has been within the Holton family since 1943 and for the last 15 years the family has been raising their livestock as well as their plants naturally. Which has recently become important to many people in the past few years.
"The reason we went the all-natural route is because a lot of American farmers do it the right way but, there are people out there who don't follow procedures correctly," explained Holton. "They've made consumers scared of the product at the grocery store."
Although the farm wasn't always naturally run, it was fully supported by his mother and father, Bud and Audra. Starting off as a young boy on a milk crate, Holton sold pork chops and pork burgers at the county fair. He learned from his mother and father that promotion of agriculture was extremely important for success.
"We used to go to grocery stores all over the state and pass out pork samples," Holton said. "Promotion is a big part of what we've done as a family."
Today, Holton still practices the same teachings his parents passed down to him. It is with the Red Barn Farms that the Holton family hopes to provide a fun-filled educational day. Many children as well as adults do not know much about where their food comes from about not only where their food comes from but also what is in it.
"We have a passion for teaching kids where their food comes from," said Holton. "It's extremely important to understand the values, the hard work and the animals care that goes into producing a healthy product for people."
The experience at the Red Barn Farm is going to be enjoyable as well as educational. It is the Holton's goal for families to leave with a better understanding of the workings on a farm.
"Parents like this just as much as kids do," explained Holton.
Expanding the farm to include such activities is the first change Holton will make to the farm since his father passed away.
"It's been an emotional rollercoaster because this is something we've always done together and it's my first time on my own," explained Holton. "Opening day without him is going a tough day without him."
Holton and his family spent the past year traveling to different farms around both Indiana and Illinois seeing what worked and what didn't. It took a full year of planning and daily activities in the spring and summer to prepare for this fall.
"My kids were my target audience," Holton said. "We have a good vision for this year but it is a work in progress."
There is still a lot of work to be done but the Holton family will be ready for opening day on Friday, Sept. 16. The farm will be open each weekend up until Oct. 31.
The cost for adults will be $6 and kids two and under will be free. The family has chosen to give a $1 discount to those who bring a canned food item. The food items will later be donated to the Greencastle Christian Church as well as the Putnam County Food Pantry.
"We believe in this community," explained Holton. "This is where we live and this is where we want to do our business."
There will be fall decorations for sale, corn, pumpkins, as well as frozen all-natural meats. It is the Holton family's goal to be open year round. But, for now, starting out with this fall celebration will have to do.
The farm is located just south west of the Putnam County Hospital, at 4409 S. CR 25 W. in Greencastle. For more information visit www.redbarnfamily.com or call 720-8840.