Rising Costs of Independence Day Celebrations
As Americans prepare for Fourth of July celebrations filled with fireworks, parades, and traditional cookouts, they face higher costs at the grocery store. This year’s American Farm Bureau Fourth of July market basket survey reveals an increase in the average cost of summer cookout staples, reflecting broader economic inflation trends.
Volunteers across the United States surveyed prices for a homemade cookout including cheeseburgers, chicken breasts, pork chops, potato chips, pork and beans, fresh strawberries, homemade potato salad, fresh-squeezed lemonade, chocolate chip cookies, and ice cream. This year, the average cost for a group of 10 is $71.22, a 5% increase from last year and a 30% rise from five years ago. For the first time, the cost per person has surpassed $7, averaging $7.12.
On The Grill
Meat prices are significantly contributing to the higher cookout costs. Ground beef, pork chops, and chicken breasts now account for 50% of the total expense. Ground beef has seen an 11% increase, costing $12.77 for two pounds. Despite an increase in the supply of fed cattle this spring, the overall cattle inventory is at a 73-year low, leading to higher prices due to reduced beef availability.
Pork prices have also risen, with pork chops up 8% to $15.49 nationally, influenced by California’s Proposition 12, which enforces strict animal welfare standards. However, chicken breast prices have decreased by 4% to $7.83 for two pounds, thanks to increased broiler production and improved biosecurity measures against avian influenza.
The Fixins
Side dishes have seen varied price changes. Hamburger buns have increased by 7% to $2.41 per package due to low wheat stocks. While milk production struggles have only slightly raised cheese prices, ice cream costs have surged by 7% to $5.65 per half-gallon. Lemonade, impacted by a citrus greening disease in California, has seen the steepest rise, now costing $4.19, up 12% from last year.
Conversely, potato salad costs have decreased by 4%, balancing out higher egg prices with lower potato costs. Prices for pork and beans, potato chips, chocolate chip cookies, and strawberries have mostly increased, with strawberries at $4.61 for two pints and potato chips up 8% to $4.90 per large bag.
Regional Differences
Grocery prices vary across the country. The Northeast boasts the lowest costs at $63.54 for a group of 10, while the West faces the highest at $80.88. The South and Midwest fall in between, with costs around $68.30.
Inflation Impact on the Supply Chain
The increased cookout costs mirror broader economic inflation. While food price inflation slowed in 2023, it remains a significant issue, with a 30% increase in cookout costs over five years. Despite inflation, the U.S. still offers one of the world’s most affordable food systems, with Americans spending only 6.7% of their expenditures on food and non-alcoholic beverages.
However, farm incomes are under pressure, having dropped 17% in 2023 and expected to fall another 25% this year. High production expenses and rising interest rates further strain farmers’ finances, highlighting the need for effective risk management tools and updated farm bill provisions.
How the Farm Bill Can Help
The farm bill is essential for providing farmers with risk management tools, including crop insurance and commodity programs. The current bill, extended from 2018, expires in September. A new bill is crucial to address recent challenges, such as high inflation and global supply chain disruptions, ensuring stability for farmers and food security for consumers.
Conclusion
This year’s Fourth of July cookout is the most expensive in the history of the survey, but adjusted for inflation, it hasn’t surpassed the 2022 record. Despite facing numerous challenges, American farmers and ranchers continue to provide safe, affordable food. As you celebrate, remember to appreciate the dedication of those who ensure your food supply, and advocate for legislative support to sustain their vital work.
