Once again we are heading into winter with bleak prospects of rain and almost zero soil moisture…I’m just glad that I was too broke to invest in fallowing any country for cropping.

Well, trying to look on the bright side…

…does anyone know of some good long-term forecasting sites? It would be awesome to at least see rain on someone’s forecast!!!

Unfortunately, however, I suppose food prices will continue to be high in Australia. Hopefully, like my mum and the other people around home, you are investing a few hours a week into a vege patch… Ace time of year for it…and it gets you outside…and most importantly, if you count your time invested in growing the veges as enjoyment, you might end up with veges that you won’t be wincing at the price of.

But just so we all know why food prices are so much higher now than the past twenty years… What has occurred is investment in commodities, just like the other markets out there. That is, people with capital who are unsure of where to put it have invested in commodity trading, which has artificially increased the price. Most commercial farmers won’t be complaining as food really has been one of the few industries not to leap ahead in its value. Just think about how much your house has increased or your hair cuts have cost over the past twenty years…

The big oil companies, fearing a small dip in their massive profits, will tell you that food pricing has risen due to the growing demand for ethanol production. Don’t be fooled, they are just afraid of renewable energy that can be grown year in year out and is currently being incubated by high energy prices…and may really hurt oil companies in the future when their profits are slashed.

Unfortunately, however, there is a massive worry that in the future these investors will dump commodities, as happens with any industry with artificial inflation. Well until then, drought stricken farmers unable to produce will be looking with envy at prices they wish they were receiving, and the househoulder should be thinking more seriously about either buying direct from farmers at markets or growing their own.