The Emerging Threat of Ferocious Agflation / Commodities / Agricultural Commodities

MostAmericans take food abundance for granted. Grocery store shelves are alwaysstocked, and America’s agricultural sector always grows more than enough corn,wheat, and soybean crops to keep the food production system humming alongsmoothly.

Thatall could change as abruptly as the weather. In fact, historically wetconditions throughout the Midwest have put this year’s spring planting injeopardy.

Asreported by Minnesota Public Radio, “Corn is being plantedat the slowest pace ever, while soybean seeding is the slowest since 1996. Andwith the start of June looming, many farmers are facing a tough choice — dothey even try to get crops in the ground at all?”

Forfarmers and ranchers across the heartland, it’s a financial crisis akin to aGreat Depression. U.S. farm income is down 45% since 2013.

FarmBailouts Could Bring Unintended Consequences

PresidentDonald Trump recently announced a $16 billion bailout for farmers hurt bytariffs.

Itwon’t help all farmers, though, and it won’t be enough to compensate for a hostof other misfortunes to befall the agricultural sector – from floodedfarmlands, to low futures prices.

Someeconomists fear the new wave of government subsidies could incentivize farmersto plant soybeans instead of other crops the market demands. As always,political interventions create unintended market distortions.

RepublicanSenator Ron Johnson warns, “This is becoming more and more like a Soviet typeof economy here: commissars deciding who’s going to be granted waivers,commissars in the administration figuring out how they’re going to sprinklearound benefits.”

Economicanalyst Michael Snyder notes, in addition toAmerica’s unfolding farming calamity, a recent plunge in Australian wheatproduction and the spread of African swine flu to pigs in China. He concludes,“We have never seen so many massive threats hit the global food supplysimultaneously.”

ConsumersShould Brace for Higher Grocery Bills

Whatdoes this all mean for consumers? Likely higher prices for pork bellies, cornflakes, and more. And possibly even shortages of some foodstuffs. There issurprisingly little margin for error in the “just in time” inventory systemthat ultimately puts food on the shelves.

Oneobvious way to protect yourself from agricultural inflation and a food supplycrunch is to stock up on non-perishable and long-lasting food essentials.

Forexample, oats and other whole grains, if stored properly, can last years oreven decades.

Havinga few months’ worth of canned foods and survival foods such as Meals Ready toEat (MREs) will improve your family’s food security and make you more resilientto emergency situations. Find all the best options at Survival-Goods.com.

Evenif you never actually need to draw upon your food stocks in an emergency, andeven if you don’t have a large family to feed, getting in the habit of buyingin bulk still makes financial sense.

Thisgoes for all household products that you consume over time. You save money on aper unit of product basis and stay a step ahead of consumer prices increases.

Stockingup on essentials is the most basic and practical ag-flation hedge. You’ll needto periodically consume your stocks and rotate in new stocks. Bear in mind, youdon’t want to go overboard and buy excessive quantities of products that willsit unused past their recommended shelf lives.

PreciousMetals Provide Eternal Value with No Expiration Date

Whenyou have adequate food and household product reserves built up, it’s time tolook into other ways to hedge against inflation and financial emergencies.

Physical precious metals are an essentialinflation hedge and the ultimate form of money when all else fails – theeconomy, the banking system, or the U.S. dollar itself. Fortunately, gold andsilver have infinite shelf lives. And they don’t take up much shelf spacecompared to groceries!

Thatsaid, we do recognize that you can’t survive solely on gold and silver coins.In an emergency, you may be able to use them to barter for things you need.

Butthat’s not the same as having immediate access to the things you need.

Sobefore you stock up on hard money, make sure you are also stocked up on food,water, household, and emergency essentials. Being both well prepared andresistant to increases in consumer price inflation is a win-win.

Stefan Gleason isPresident of Money Metals Exchange, the national precious metals company named 2015"Dealer of the Year" in the United States by an independent globalratings group. A graduate of the University of Florida, Gleason is a seasonedbusiness leader, investor, political strategist, and grassroots activist.Gleason has frequently appeared on national television networks such as CNN, FoxNews,and CNBC, and his writings have appeared in hundreds of publications such asthe Wall Street Journal, Detroit News, Washington Times, and National Review.

© 2019 Stefan Gleason - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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