Food Prices & Domestic Oil Production

Food Prices & Domestic Oil Production plus Food Forethought. I'm Greg Martin with today's Northwest Report.

Well here is some good news before the holiday. A new report confirms very, very low, if any, food price inflation which is great for food shoppers. USDA economist Ricky Volpe says there have even been some food prices falling this year.

VOLPE: We've seen a real mixed bag for the meat prices. For meat and fish and all these protein prices some have been up, some have been down. They've been very volatile in the last quarter or so but we've seen inflation ease for fruits and vegetables and we've seen a very clear trend in prices falling for pretty much everything that's kind of shelf stable, things that require a lot of processing and packaging.

According to the U.S. Energy Department - domestic oil production will soar for years to come - scaling to levels not seen in nearly half a century by the year 2016. Domestic oil production is projected to increase by an average of 800-thousand barrels a day annually through 2016 - nearly reaching the 1970 historic high of 9.6-million barrels a day. Experts say this annual outlook from the Energy Department's Energy Information Agency confirms the U.S. is well on its way to achieving virtual energy independence. The increase should bring the imported share of oil supplies down from the current 37-percent to 25-percent in 2016. The country imported half of its oil supplies just a few years ago. The report predicts the increase in production here at home will contribute to a decline in the world oil benchmark price to 92-dollars a barrel in 2017. That's 20-dollars a barrel less than the 2012 average of 112-dollars a barrel and should translate into lower prices at the gas pump.

Now with today's Food Forethought, here's Lacy Gray.

As Christmas quickly approaches and you're checking off items on your gift list hopefully you'll be checking off a donation to your local food bank. According to the USDA in 2012 17.6 million households were food insecure at least some time during the year. Nearly 49 million people are struggling with hunger in the U.S. today. There is an increased demand nation wide this year with food banks reporting that they are supplying families that they have not helped before. The main source of donated foods to food banks continues to be from growers and processors. Farmers Ending Hunger, a non-profit created in 2004, supplies food for the needy, working directly with the farmers who are growing and harvesting food, and have created a very efficient and effective system. There are numerous organizations such as this nation wide working to feed the hungry. So, in the true spirit of Christmas this year, share your abundance with someone less fortunate. The good feeling you'll get will surpass anything you can buy at a store.

Thanks Lacy. That's today's Northwest Report. I'm Greg Martin on the Ag Information Network.