Farmers are in trouble and the food price index rises slightly

This is your agribusiness update from the Ag Information Network.

**With some of the state’s key agricultural commodities struggling and farmers and ranchers facing increasing economic and regulatory pressures, California agriculture industry leaders are warning that the industry will continue to lose farms as more and more operations are displaced.

At a recent meeting of the California State Board of Food and Ag, farmers and stakeholders from the specialty crops, viticulture, cattle and dairy industries expressed concerns about issues affecting the industry.

They warned of further consolidation and a decline in agricultural holdings.

**Farm credit pressures were limited in the second quarter but showed signs of tightening amid lower grain prices and rising input costs, a Federal Reserve Bank survey showed.

According to the survey, the credit crisis in agriculture remained contained despite sharp declines in farm incomes and investment spending, but there were signs of financial pressure.

According to the Fed, about 60 percent of agricultural lenders reported lower revenues than a year ago.

**The food price index rose by 0.2% in July, as in June.

Three of the six major grocery store food group indices rose during the month, while the other three fell in July.

The index for meat, poultry, fish and eggs rose by 0.7%, with the increase being strongest for eggs.

The index for cereals and bakery products fell by 0.5%, as did the index for dairy and related products.