Lots of headlines lately about the soaring costs of food, especially wheat and rice, worldwide – but until recently I wasn’t too clear on the exact triggers driving the run-up in prices, right now. Whenever I read an article that really explains a complex financial or economic issue, I’m all about sharing that, on the theory that I’m not the only one in the dark and fumbling towards the light. First it was the credit crunch, now the global food crisis. As the summary to this Washington Post special edition puts it, this series of articles explores how “a complex combination of poor harvests, competition with biofuels, higher energy prices, surging demand in China and India, and a blockage in global trade is driving food prices up worldwide.”

So what are you folks doing to beat your rising grocery bills? A quick peek around the blogosphere revealed some pretty sharp strategies. Here’s a rundown of good reads on the subject:

Four Pillars’ Festival of Frugality is an excellent summary of all things belt-tightening, including quite a few pointers on cutting food costs without sacrificing taste or quality.

Eat.Drink.Better advises on how to eat more cheaply AND protect the environment. Even if you aren’t ready to go veg to save a few bucks, this list offers other good ideas you might go for more readily.

WSJ’s The Juggle takes readers’ temperature on this claim: a February 2007 poll funded by the Institute for Women’s Policy Research and the Rockefeller Foundation found that women generally worry more about their economic security than men. The range of reactions to this post are pretty interesting. Some consider this poll as perpetuating gender stereotypes, while others noted a surprising plus: a little extra worry leads you to get really creative in cutting costs big and small, which might make for smarter belt-tightening and more saved bucks in the long run.

What about you? Have you planted a garden or cut back on meat in meals or simply broken out that dusty old wok instead of heading to a restaurant?

[image: Ear of wheat by RedGlow82 on flickr]

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Ramen and McDonald's Dollar Menu! Everything a college student needs to survive. :)

Very astute comments, guys - thanks for helping me learn more about this.
 
Couldn't agree with you more, Buydow: oil is the hidden driver behind soaring prices. It's got us personally buying more food locally than ever before - if your food hasn't been moldering on a truck for days to reach you, it's a LOT fresher, and while the prices aren't cheap compared to the big grocers, at least your money goes towards buying a quality product from local farmers, not towards shipping fuel costs. Of course, we're in Florida, so fresh local food year-round is very available - that's not true in every part of America, in every season.
 
Good point about the money supply, Snowman - it's interesting how speculation and flight-to-commodities investing isn't always credited as a factor in the articles I've read on this subject. I hope your vision of hyper-inflation doesn't become a reality, but then again, anything's possible nowadays...
 
Be Good,
Don

Let's not forget about commodity futures trading as a reason the prices are going up.

Wheat went from $3.00 to $15.00 long before oil hit a $100. it is all commodities. It is the only thing holding its value, but you have to pay for storage costs, so the government is unlikely to interfere.

buydow thanks for the information, had some DBA when it was at its peak and read the fine print and got out. (taxes) Wheat has definitely not lost any value from a year ago. My point is all commodities were hit and it was not necessarily related to oil. However oil prices will effect everything in the future. It takes about 6 months before the full affect is felt in the market place. It seems a shame that farmers are forced to speculate along with the rest of the market. That could make or break a farmer on any given year.

Thanks for correcting my chronology, Snowman.
 
Glad to hear that Australia's drought has cleared up, too, although it does prompt me to wonder how the recent natural disasters in Burma and China might affect crops those regions specialize in? This isn't a topic I follow closely, but I find it fascinating how seemingly unrelated events can impact a macroeconomic cycle already in motion...