Drought-Proof Your Grocery Budget

I receive a newsletter from the Frugal Living site at About.com and today it was on a timely topic that I thought I would share. I know that a lot of people are worried about what the nationwide drought will do to their food budget. I am not that worried, but thought that this information is interesting and can be helpful to anyone that is worried, or has a tight budget.

(Shared from Erin Huffstetler at About.com Drought-Proof Your Grocery Budget)

You can't watch the news right now without hearing about the drought, and there's good reason for that. Check out these statistics from the USDA and the United States Drought Monitor:

• 55% of the continental U.S. is now under drought conditions
• 1,297 counties have been declared national disaster areas        
• 88% of the corn crop is located in areas impacted by the drought        
• 87% of the soybean crop is located in areas impacted by the drought
• There hasn't been a worse drought in the U.S. since the 1950's

All of that adds up to bad news for farmers and consumers. Analysts say to expect higher prices at the grocery store in the coming months, and the list of impacted foods is staggering.

Basics like flour and dried pasta will go up because of the failing wheat crop. Cheese, butter and milk will go up because of a decline in milk production. Meat prices will go up because of increasing feed costs, and fruit and vegetable prices will go up because of smaller than normal harvests (caused by both the drought and the extreme heat). In short, it seems there aren't many foods that won't be impacted.

So, what can you do to keep all of these increases from taking a big bite out of your grocery budget? Start stockpiling now. While dairy and meat prices will start climbing within the next couple months, many of the other increases won't reach stores until next year (when we start relying on the 2012 harvest). That gives you plenty of time to stock up on food at this year's prices.

Here are some places to start:

• Load up on fresh produce when you find a good deal. Then, freeze or can the extra to enjoy later
• Stock up on cheese and butter when it goes on sale. It freezes beautifully
• Meat prices are experiencing a temporary dip. Fill your freezer before the prices start to go up
• Build up your supply of flour. Wheat flour can be frozen to extend its shelf life
• Stock up on canned and frozen fruits and veggies. The canned and frozen foods that are in stores now came from the 2011 harvest, so they're still cheap
• Combine sales and coupons to build a reserve of cereal, oatmeal, dried pasta and other non-perishables

For a complete list of foods that you should consider stockpiling now, check out: What To Stockpile Due To The Drought