Homestead growers, fresh from battling a nasty cold snap, will tell you that in the long run it is not a freeze in Florida or floods in California that will drive food prices up. The culprit is and will be increasing cost of gasoline and diesel.
"The price of fuel is going up, seeds are going up, fertilizers are going up, because it is all petroleum driven," said Sam Accursio Jr., getting right to the point.
The U.S. Department of Agriculture in a recent release predicted that the overall cost of food will increase two to three percent over the year and the price of pork and dairy will jump as much as five percent. In recent days, oil experts have been saying that U.S. consumers will face sharp increases in gas prices.
Currently in the Homestead area, regular gas at the pump is selling for $3.09, in Miami proper it is common to see the price at $3.15 per gallon.
"Fuel has gone crazy," Florida City grower/shipper Robert Moehling said, "and in a year or so we'll be happy to pay three dollars."
"Five dollars a gallon looks like it is a way off and bit in the future, but I think it is possible in 2012," said Daniel Dicker, an independent oil trader.
Charles LaPradd, the Miami-Dade Agriculture Manager, will tell you that any movement of anything is going to be far more expensive due to the fuel issue. He's talking about the tractors in the fields, the forklifts in the packing houses and especially the trucks that carry the produce to market.
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LaPradd also points out that shipping from Florida is expensive because we are at the end of a peninsula and most of the produce is transported to the Northeast.
Who will pay the gas tab? At the end of the day, it's the consumer who will shell out more at the check-out stand. And it's the farmer that gets the squeeze.
