The cost of food is one thing farm equipment users may keep a close eye on, and inflation in this sector is expected to remain low this year.
According to the U.S. Department of Agriculture's Economic Research Service, food-at-home prices are forecast to rise between 0.5 and 1.5 percent this year, while overall costs should rise about the same amount, which would be the lowest increase since 1992.
If it hits the upper portion of that range, food inflation will still be lower than last year, when it increased 1.8 percent from 2008's levels.
"Although inflation has been relatively weak for most of 2009 and 2010, higher food commodity and energy prices are now exerting pressure on wholesale and retail food prices," the ERS said.
Because of those pressures, the end of this year and the first half of 2011 may see food inflation rise 2 to 3 percent.
According to a report from the Federal Reserve System, some growers are holding on to their grain in the anticipation of prices being higher.
MachineFinder was created in 1998. Since then we have served millions of visitors, tens of thousands of pieces of equipment and integrated with our entire dealer network.
MachineFinder, John Deere and the associated trademarks are property and available only for the specific use of Deere & Company. All Rights Reserved. 2008-2013