The U.S. Department of Agriculture has downplayed the threat of a worldwide jump in food prices, as farmers in America planted record amounts of grain in response to the soaring commodity markets, according to the Financial Times.
The news source reported that this initial projection may come as a relief to many Americans, but this is tentative due to the potential for weather to negatively impact farming regions.
"Where it looked like we … might be seeing another big bout of inflation, it looks at least for the time being that has moderated. That’s very, very good news, obviously, for households," Joseph Glauber, chief economist for the USDA, told the Times.
Events like a drought are rarely noticed by the general populous, but for people who have used farm equipment there is a completely different view of this type of weather.
The agricultural sector, led by companies like John Deere, have tried to develop technologies to increase the potential yields for farmers, in preparation for possible droughts.
Agriculture.com reported that this correlation between high prices and large plantings by American farmers has led to a variance in the size of yields on a year-to-year basis.
Department of Agriculture predicts receding food prices
This initial projection may come as a relief to many Americans, but this is tentative due to the potential for weather to negatively impact farming regions.