How To Feed Your Family on a Budget Despite High Prices

Photo: d3sign / Getty Images

For years, eating at home was one of the best ways to save money on food. But food inflation has become a very real issue for families in the United States. In fact, the cost of food at home increased by 13.5% in 2022—the largest 12-month increase since 1979.

To further complicate matters, a new study shows that dollar stores are now the fastest-growing food retailers in the U.S. limiting families’ access to fresh food—especially when these retailers are their only options for groceries.2 In fact, as many as 54 million Americans live in areas with low access to food, according to the US Department of Agriculture (USDA).

“With inflation leading to tightened wallets, parents are seeking out smarter ways to spend and save across retailers and brands,” says Jean Ryan, a retail analyst and vice president of strategic advisory for Daymon. “While the need to save is a key purchasing driver, parents are not looking to compromise on the health, lifestyle, and dietary needs of their families.”

If this scenario resonates with you—wanting to save money on groceries without compromising on nutrition—keep reading. Below, we not only take a closer look at the study on dollar stores but also provide tips on how to shop for groceries on a budget.

Dollar Store Grocery Shopping On The Rise

Dollar store grocery shopping is not new, but it is on the rise. According to the study, which was published in the American Journal of Public Health, dollar stores nationwide were responsible for about a 2.1% share of household food purchases as of 2020. What’s more, in rural and low-income areas, people tend to spend more than 5% of their food budget at such retailers.

While dollar stores are certainly filling an important need, researchers indicate that this trend to get groceries at dollar stores could impact a family’s nutrition goals—especially since the food and beverages stocked by dollar stores tend to be lower in nutrients and higher in calories. These stores also often lack fresh produce and meats.

The researchers also found that as a family’s income decreased, the share of food they purchased at dollar stores increased. For this reason, learning to shop on a budget—and stick to a budget—is increasingly important when trying to meet your family’s nutritional needs.

How to Shop for Groceries on a Budget

When it comes to shopping on a budget, it’s important to note this is not going to look the same for every family, says Kristi Ruth, RD, CNSC, LDN, a registered dietitian with Carrots & Cookies. Not only does each family have different nutritional needs and goals, but they also may have different options for where they can shop for food. Some may be limited to dollar stores in their area, while others might have access to a number of different retail options.

“[Plus] high grocery costs can put a lot of pressure on families,” adds Ali Bandier, MS, RD, CDN, a registered dietitian and founder at Senta Health. “Parents want the best for their children, but it is important for them to remember that healthy eating doesn’t have to be expensive. There are plenty of budget-friendly options…if they know where to look and how to plan their trip.”

Here are some general tips on how to stretch your dollar when shopping for your family.

Continue reading…

By Sherri Gordon, CLC

Source: How to Feed Your Family on a Budget Despite High Prices

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Oil Products Crisis: New Opportunities For Plant-Based Alternatives

getty

Vegetable oils are found in thousands of products, from cosmetics and shampoo to cookies and other food products. They’re also used for cooking by billions of people and, in fact, are the food commodity that’s growing the fastest, with demand consistently higher than supply.

Current disruptions in the worldwide supply caused by weather issues, armed conflict, supply chain disruptions and labor shortages are resulting in higher prices, causing a ripple effect of sticker shock throughout the food economy, according to Amanda Leland of the Environmental Defense Fund.

Biofuels, widely used in Europe and whose demand is increasing, are likewise affected. Businesses with interests in these and other vegetable-oil-related markets need to take notice. With oil products in crisis, there’s an opportunity for new avenues of increasing supply, including indoor farming and replacing certain vegetable oils with other types of oils.

Current Disruptions

Russia’s invasion of Ukraine exacerbated the shortage of cooking oils, especially sunflower oil. Before the war, Russia and Ukraine produced approximately 75% (subscription required) of the world’s sunflower oil. With countries banning Russian imports and the conflict preventing Ukraine producers from harvesting, the supply predictions plummeted.

The next year’s harvest for Ukraine looks dismal due to the country’s disrupted transportation system, labor shortages and other related factors. This has caused ripple effects around the world where sunflower oil is used, including in the U.K. and Germany.

The supply of vegetable oils is impacted by labor shortages due to Covid and weather issues as well as geopolitical conflicts. For palm oil producers in Malaysia, the second largest market provider, there’s an ongoing shortage of both laborers and fertilizer, hampering production (subscription required).

Meanwhile, in South America, where over 50% of the world’s soybeans are grown, labor problems and ongoing drought are severely impacting production. This will require food producers to adjust as soybean oil prices reach a nine-year high.

The Local Indoor Farming Opportunity

This problem has created an opportunity for traditional farmers. Farmers can fill the current need by starting to produce other vegetable oils such as olive oil, flaxseed oil, coconut oil, avocado oil, grapeseed oil and sesame oil, which can be used as substitutes for vegetable oils.

Controlled Environment Agriculture (CEA) is also a solution. The infrastructure required for a controlled indoor grow environment can be easily built or adapted from existing structures, and it uses far less water than a traditional environment. This can allow for optimal results in places where access to water and fertilizer are limited and as we continue to face issues of drought.

Advanced indoor grow operations use hydroponics and artificial lighting to better control growing conditions and offer plants the nutrients and light levels they require. Automated tools can match energy, water, fertilizer, air flow and other data points to increase yields and profits. (Full disclosure: My company, Pangea, produces software and smart lighting solutions for indoor farming.)

A data-driven approach with centralized controls makes the oil-yielding indoor grow market financially viable, especially in the face of global conflicts and labor shortages. CEA can localize the growing of soybeans, palm or other plants. This will shorten supply chains and provide a long-term answer to regional issues driving price inflation and disruptions for providers and the end consumer.

One form of indoor agriculture is vertical farming, which produces foods in stacked layers instead of a field or greenhouse, allowing for a smaller footprint. This technique is not new but has existed for hundreds of years. Contemporary vertical farming uses LED technology instead of natural sunlight; the integration of light and technology gives precise data to farmers to reduce the human error that comes along with growing crops.

A market report from Technavio, a leading global technology research and advisory company, predicts a compound annual growth rate (CAGR) of nearly 22% from 2021 to 2026 for the global vertical farming market due to increased demand and innovations in farming practices. The report points to the massive opportunity for localized indoor farming production of oil-yielding plants and the chance to address some of the supply issues with vegetable oils.

Techniques like these demonstrate how AgTech is quickly advancing to help secure a better future for farmers and consumers alike.

Source: Oil Products Crisis: New Opportunities For Plant-Based Alternatives

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The Next Fintech Revolution: Agriculture Finance

A farm worker labors in a field near the town of Arvin, California. California's Central Valley is ... [+]..Getty Images

The last few years of tech news headlines were dominated by the word “fintech.” From massive fundraises to customer growth to product launches to scandals – new disruptors were everywhere in consumer banking, credit, payments, investment, and crypto. You’d have good reason to think we’ve hit peak fintech.

But the industries where most fintech is focused today represent only a fraction of the $23 trillion global financial services market. Products like Cash App, Robinhood, and Chime all tackle markets that are intuitive to everyday consumers, but consumers only see the tip of the iceberg.

Fintech’s next wave will focus on improving the less well-known, less ‘sexy’ markets fundamental to the global economy – and one of the largest markets primed for disruption is agriculture finance. 2022 saw a quiet but steady rise in fintech products being built for the massive agriculture industry, and they’re only getting started.

So – why disrupt agriculture finance to begin with? For the two best reasons in tech: the size of the market and the limitations of existing service providers.

Looking at the US alone, while farms contributed $134.7 billion to 2020 GDP, the industries dependent on farming – food manufacturing, food services, textiles – contributed over $1 trillion to the economy, accounting for over 5% of annual GDP. For many emerging markets, agriculture’s share of the overall economy is significantly higher – as much as 25% in some countries.

And yet, financial services are not as competitive as you’d expect in an industry the size of agriculture. Looking again at the US market – one of the most well-serviced in terms of agriculture finance – farm debt has continued to climb over the last year, farm loan interest rates are rising sharply, and farm lending continues to increase while the number of farm-focused banks continues to drop.

In a world where demand for food is expected to increase 70% by 2050, requiring $80 billion of annual investments, sluggish legacy players create a large and growing opportunity for new entrants.

While ‘agriculture finance’ refers to a large and heterogeneous set of activities – equipment lending, supply chain finance, commodities trading, farm banking – emerging fintechs have been focused on a few subsectors:

Agriculture Lending: Oxbury Bank in the UK raised funding twice last year to originate £650 million in agriculture loans to UK farmers. Tarfin in Turkey and Agro.Club in Eastern Europe provide supply chain financing to underserved medium-sized farmers who generally have to turn to their ag input suppliers for loans at exorbitant rates.

Companies like Crowde in Indonesia and Campo Capital in Brazil set up a peer-to-peer farm lending network. Players like Traive, AgroLend, Terra LUNA3 +1.9% Magna, and Agree all tackle farm lending across Latin America. ProducePay allows Mexican farmers to take out loans secured by their US purchasers.

Farm Payments: Agriculture tends to be a lagging industry in the use of new payment methods, with transaction products like checks still estimated at 90% of the industry. Bushel recently launched a payment facilitator, digital wallet, and embedded payments feature that connects purchasers to 40% of grain providers in the US.

Pricing Data & Commodities Trading: The deep markets for grain, livestock, and other commodities are paramount to well-functioning agriculture supply chains, and accurate pricing data is the lifeblood of the industry. These markets let purchasers hedge against rising food prices, and large agriculture operations insure themselves against supply chain price fluctuations. FarmLead is one company focused on digitally connecting cash grain trading networks and integrating trade data into other farmer & grain buyer digital tools.

Insurance: Agriculture is the most delicately poised industrial sector when it comes to climate change risks, due to incidences of drought, flooding, and natural disasters. Insurance is incredibly vital to avoid the collapse of precarious farm systems, but traditional insurers have a hard time underwriting farms. That’s where platforms like World Cover, which provides satellite-enabled climate insurance to small farmers in countries like Ghana, Uganda, and Kenya, or GramCover, focused on providing insurance access to farmers in India, come into play.

Marketplaces: While e-commerce platforms like Shopify have opened up global retail markets to independent merchants, most farm marketplaces still operate as centralized offline exchanges. In Kenya, startups like Twiga Foods, FarmShine, ShambaPride, and M-Farm have built platforms to connect farmers directly with buyers, and list easily accessible price information.

Banking: The largest prize for fintechs is to win over new customers in one vertical, such as lending or insurance, and cross-sell them banking products built specifically for their needs. DeHaat in India provides financial services to farmers across credit, materials sourcing, advisory, and sales. New Zealand’s Figured provides financial planning tools for farmers. FarmDrive creates a credit score for Kenyan farmers. Seso provides hiring, workforce management, and asset management tools to simplify farm payrolls in the US.

Over the next decade, we will see a parallel market of products across all fintech categories – banking, lending, savings, payments, investment, HR, payroll, and trading – develop focused specifically on agriculture.

While agriculture may not be the most obvious market for fintech to pursue, it’s definitely one of the largest and most consequential, and I expect to see many of these companies grow quickly and dominate the next wave of fintech.

I write about financial technology, specifically its impact on financial inclusion and opportunities for future innovation.

Source: The Next Fintech Revolution: Agriculture Finance

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U.S. Farmers Struggle Through Drought To Bring Food To The Table But Face More Challenges Ahead

The drought has dragged on for a long time. Last year, orchard farmers in California’s Central Valley destroyed trees that were dying due to lack of water. This year, many more farmers did the same.

Lack of summer rain forced Nebraska farmer Kevin Fulton to go underground to find water for his crops. Not a perfect solution: the Ogallala Aquifer, where Fulton tapped in, has pumping restrictions in some areas, just not where Fulton is located. That’s because the aquifer is running dry.

As drought extends its deadly fingers from California to the eastern side of the Mississippi River — a vast stretch of the continent that produces most of America’s food, including three-quarters of its beef cattle and 70% of its vegetables, fruits and nuts — farmers and ranchers are facing a double whammy. They have to go farther to find water and higher fuel costs are forcing them to pay more to pump whatever isn’t coming from the sky. That predicament is still better than what’s happened to the land that’s not irrigated, Fulton says.

“The pastures are burning up,” Fulton, a 28-year veteran of farming the land he inherited, told Forbes. “Some aren’t going to produce anything and the yields have been drastically reduced. This wears on you mentally. You’re working hard to keep up with the irrigation. It’s depressing. These kinds of things sometimes push farmers over the edge.”

Only heroic efforts by farmers and ranchers have kept supermarket shelves supplied in the parched U.S. Even so, drought is expensive for consumers and limits their choices. Inflation caused by higher production costs will persist as long as hot, dry weather dominates vast swathes of the country. Many of the folks who make their living from agriculture realize that conditions in summer, the most dangerous season, will likely persist into the future.

“The hazards in recent years have been relentless,” Kristy Dahl, the Union of Concerned Scientists’ principal climate expert, told Forbes. “We need to be better prepared for ‘danger season,’ otherwise we’ll increasingly be caught off-guard every year. Climate change is getting worse.”

Despite the drought — in some places, the driest conditions going back more than 1,000 years — American producers have managed to bring in a projected harvest that’s nowhere near as bad as it could be. Soybean production will actually increase 2% from 2021, according to the U.S. Department of Agriculture, and wheat is up 8% over last year as global demand soared in the wake of Russia’s unprovoked war on Ukraine, a major wheat-producing country.

The concern is the corn harvest, which the USDA predicts will be down 5% from 2021, with less of the supply classified as good or excellent compared with last year. Still, the USDA forecasts record-high corn yields in California, Iowa, Washington and Wisconsin.

American food producers polled by the American Farm Bureau Federation last year complained of dangerously dry conditions. The farmers and ranchers surveyed in August 2022 say circumstances are pretty much the same or worse.

Nearly three-quarters of farmers saw a reduction in harvest yields due to drought, while 37% said they were tilling over fields that won’t produce anything because of a lack of water, up from 24% last year. One-third of orchard farmers nationwide, and 50% in California, said they were ripping up trees, an increase from 17% in 2021. In one case, the Farm Bureau said, a California producer dropped all the fruit on five acres of young Cabernet grapes to help the vines survive without water. That ensured that the farmer would have no revenue from those vines.

Similar measures plague the livestock industry, according to the Farm Bureau. Two-thirds of ranchers reported selling off animals or birds, with average herd sizes expected to be down 36%. The biggest herd declines are in Texas (down 50%), New Mexico (43%) and Oregon (41%), a good example of the wide geographic distribution of the distress.

Fulton says 2022 was the worst year of drought in the past decade, and the second-worst in his three decades of farming, after 2012. Some of Fulton’s neighbors are now reducing the sizes of their herds and taking the livestock to the auction barn. Fulton says he’s considering doing the same. Drought kills off the grass that cattle need to graze on, so farmers have to buy expensive hay to feed them instead.

“You can’t feed yourself out of a drought. It doesn’t work from a profit standpoint,” Fulton says. “We’re going to run out of grass.” In mid-August, rains finally hit farms in dried-out Southwestern states, including Texas, Arizona and New Mexico. Then the rains arrived on the Great Plains. Farmers like Fulton welcomed the brief break. But it was too little, too late.

On Fulton’s farm, the effects of a changing climate are pervasive. There are more grasshoppers, which love dry weather and eat the crops. Fulton’s bees have also been less active. Honey production is half of what it normally is, he said. There’s also the looming threat of heat-driven poison: If some plants don’t get enough water, they can produce high levels of nitrates, which makes them toxic for the livestock that eat them.

According to the USDA’s August production report, the rains in mid-August helped to replenish topsoil moisture and “revived drought-ravaged rangeland and pastures. However, hot, dry weather persisted.” From the Pacific Coast to the northern Plains, temperatures averaged at least 5°F above normal. Readings even averaged 10°F above normal in some locations across the interior Northwest and Northern California.

Drought-resistant seeds and drip-irrigation to conserve water are promising solutions, if they can be put to use at scale. A lot of money has gone towards funding startups and research, but there haven’t been many mainstream successes.

This year’s industrially grown commodity crops so far still seem strong overall. But the cracks driven by climate change are starting to show. Darvin Bentlage, a 66-year-old, fourth-generation cattle and grain farmer located north of Joplin, Missouri, says the extreme weather that he and his neighbors face has taken them on a roller-coaster ride. Earlier this year, it rained so much that he had to delay planting. Then the drought came.

“That was a rough start,” Bentlage told Forbes. “In my 50 years of farming it never went from being so wet to so dry – it’s the fastest I’ve seen.” He added: “Pray for rain.” Despite decreasing access to water and extreme weather projections on the horizon, Fulton says he’s optimistic for the future.

“Like most farmers, when we have a bad year, we say it will be better next year. We live to farm another year,” he says. “Sometimes it seems like it can’t get any worse.”

Chloe Sorvino leads coverage of food and agriculture at Forbes. Her book Raw Deal: Hidden Corruption, Corporate Greed and the Fight for the Future of Meat will be published in

Source: U.S. Farmers Struggle Through Drought To Bring Food To The Table But Face More Challenges Ahead

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War-Fueled Global Hunger Catastrophe On The Way With Solutions Tough To Come By


Tens of millions of people, from Europe to Asia, Africa to the Middle East, are expected to go hungry this year due to a grim combination of factors made significantly worse by Russian President Vladimir Putin’s unprovoked war in Ukraine.

The conflict, which involves two countries that together produce nearly one-third of the world’s wheat, helped push the grain’s global price up 21% in just the 10 days that ended March 3. Extreme weather, such as persistent drought in North America, high fuel costs, fertilizer prices through the roof and the need to feed an increasing number of refugees displaced by war and climate change will contribute to the menace of growing hunger in 2022.

“The situation is in many ways bordering on catastrophic, and without substantial and immediate assistance, it will get worse,” said Eric Muñoz, senior policy advisor for agriculture at Oxfam, the Nairobi-based charity. “There’s no better wake-up call than the current moment, with sky-high food prices and skyrocketing hunger, to have a serious conversation about rethinking global food systems.”

Short-term solutions are hard to come by. American farmers, hobbled by what some observers are calling the driest weather in 1,200 years, can’t be depended on to make up for the shortfall. Nutrien, the world’s biggest fertilizer maker, has said it plans to ramp up production by 20%, but prices have been so high that a lot of the world’s growers still won’t be able to afford it.

A more permanent way out of chronic world hunger would be creating more options in more places to grow and access food. Organic farming also shows glimmers of growth, but still accounts for less of 1% of agricultural acreage in the U.S.

Then there’s the problem of getting food to people who are in some cases so hungry they’re starving. Before the war in Ukraine, 26 million refugees, the highest level in history, relied on a network of aid and government organizations for food. Russia’s attack on Ukraine has displaced or made refugees of another estimated 10 million.

The World Food Programme, the UN’s food-assistance branch, expects its costs to rise $71 million a month due to the conflict alone. The organization says it has already had to reduce rations in hunger-stricken Yemen, where it says more than 16 million people are food insecure and “there are pockets of famine-like conditions.”

The Middle East and North Africa are particularly vulnerable to higher food prices, according to the World Food Programme. Lebanon imports about half its wheat from Ukraine, the organization said. For Tunisia, the percentage is 42% and for Yemen 22%. Food prices worldwide are already at an all-time high, and buyers that need to shop around to replace Ukrainian wheat would pay even more, the organization said.

Russia has already curtailed wheat and maize exports, and Ukraine’s agricultural minister said Tuesday that its spring crop could be as small as half what the country expected before the invasion. Ukraine has suspended exports of meat, livestock, salt, sugar, buckwheat, oats, millet and rye.

In 2010, skyrocketing bread prices contributed to the political uprisings of the Arab Spring, which swept through some three dozen countries and forced regime change in Egypt and Libya. Protests against high food prices also played a part in the rise of the violent Islamic State extremist group. The current global food supply is not as bad as in 2010 — when total food supplies were even lower — but the global grain supply is now in a critical situation.

U.S. farmers are hamstrung when it comes to filling the gap in food production. First, there’s the historically lousy weather. Thirty-five states, or 61% of the total acreage of the lower 48 states, were in drought last week, according to government calculations. Extreme or severe dry conditions persist from the Pacific coast in the West to as far as Louisiana and Arkansas in the East.

Then there’s the availability of land. Farmers in places like the U.S. and Brazil are already farming as much as they can. Agriculture requires long-term planning far ahead of a planting season, and companies and organizations purchase food months if not years in advance. Direct contracts with suppliers give growers even less leeway on what crops to raise. That’s why ending the global food shortage is far from as simple as American or Brazilian farmers planting more wheat or corn.

The high cost of fertilizer has also put a drag on global agriculture. Nitrogen fertilizer prices have increased four-fold, while phosphate and potash prices have climbed more than three-fold since 2020. Nutrien said it’s expanding its mining in Southern Canada for potash, an essential source of potassium, to help offset what could be a gaping global shortfall due to sanctions on Russia, a big exporter.

Proponents of industrial agriculture say chemical fertilizers are necessary to harvest large yields and feed a growing global population. Fertilizer overuse, however, is a leading cause of waterway pollution and dead zones like the massive one in the Gulf of Mexico, as well as soil degradation and erosion. Those are all factors which will challenge access to food in the future, and advocates of sustainable agriculture say now is the time to make the transition to more resilient systems.

“These are all price signals that show the world is telling us to change,” said Sanjeev Krishnan, the chief investment officer at venture firm S2G, which is backed by Walmart heir Lukas Walton and has invested in food and agriculture since 2014. “Is this cyclical or structural? In my opinion, it’s structural.”

Just as fertilizer prices were starting to spike, the U.S. Department of Agriculture announced it would create a $250 million fund to invest in alternative and U.S.-made fertilizers. The government of Brazil, which has imported a lot of fertilizer from Russia, is also investing in alternatives. Meanwhile, earlier this month, French President Emmanuel Macron signaled support for more investment in food infrastructure.

“Europe and also Africa will be very deeply destabilized in regards to food because of what can’t be planted right now in Ukraine,” Macron said March 11. “We will have to prepare for that and reevaluate our production strategies to defend our food sovereignty, but also to be able to define a strategy concerning Africa.”

Food security should have the same priority as energy security, said Graham Gordon, U.K.-based head of policy at the nonprofit Catholic Agency for Overseas Development, the world’s second-biggest humanitarian network after the Red Cross.

“We’ve had two years where supply chains haven’t been working,” Gordon said. “How can we rethink food and how can we push for more food sovereignty?”

Chloe Sorvino leads coverage of food and agriculture at Forbes. Her seven years of reporting at Forbes has brought her to In-N-Out Burger’s secret test kitchen, drought-ridden farms

Source: War-Fueled Global Hunger Catastrophe On The Way With Solutions Tough To Come By

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Critics:

The war in Ukraine grows worse by the day, with an estimated 1,500 civilians killed and more than 3 million forced to seek refuge in other countries, according to the Council on Foreign Relations.

Stopping the war as soon as possible is essential for saving lives, protecting Ukraine’s sovereignty, and curbing global repercussions.

In particular, the war has had a devastating impact on local food production. Since the global food system is a fragile web of interconnections, many countries dependent on Russia and Ukraine for food and agricultural supplies now face immediate and looming food shortages that will inevitably worsen the global hunger crisis.  

“I am deeply concerned that the violent conflict in Ukraine, already a catastrophe for those directly involved, will also be a tragedy for the world’s poorest people living in rural areas who cannot absorb the price hikes of staple foods and farming inputs that will result from disruptions to global trade,” said Gilbert F. Houngbo, president of the International Fund for Agricultural Development (IFAD), in a statement

“We are already seeing price hikes and this could cause an escalation of hunger and poverty with dire implications for global stability.” IFAD, a Global Citizen partner, has teams worldwide working to support small-scale producers and improve food security in rural areas of developing countries that have documented the ways in which the war in Ukraine has worsened existing food crises.

The impact has been particularly devastating in agricultural contexts, where the ability to acquire and distribute food is always a vexed ordeal due to chronic underfunding. But new crises are emerging as a result of the disruptions caused by the war…..

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