John Block Reports from Washington

Hello everybody out there in farm country. This radio commentary is brought to you by the Renewable Fuels Association, Wal-Mart Stores, Monsanto, and John Deere. They are all friends, supporters, and allies of a healthy farm economy and prosperous rural America. Thank you.

Special recognition today for Wal-Mart. Wal-Mart announced its commitment to source more local fruits and vegetables to keep produce prices down. Their partnerships with local farmers have grown by 50% over the past two years!

And now for today's commentary.

Here in the United States, we have been so used to a consistent supply of cheap food that when we experience a little up tick in food prices, you would think the sky is falling. When I say "little up tick," I am talking about a 5 percent increase. That is not much more than the inflation of everything else. The concern about the ""soaring food prices," as the news commentators like to report, has sent our consumer searching for food bargains.

That is a good thing. That is why Wal-Mart Stores have seen their sales on a steady rise.

What I'm saying is that a net 2% increase in food cost above other inflation when only 10% of family income is spent on food is not a big deal.

However, if you live in a developing country and are poor, their food price inflation is a big deal. Because -- their food costs have gone up as much as 50% or more and they spend as much as 50% of their income on food. Why did their food cost go up so much more than ours? You have heard all the reasons. China and India are buying all the food; drought and other weather problems; some countries are restricting trade.

But, the problem can't be blamed on the U.S. We are exporting to those countries more food than ever in our history -- more than 100 billion dollars worth. Our wheat exports are the highest in 15 years with a 43% jump. May pork exports were almost double what they were last year. Corn exports are at record levels. Beef is up 30%. Other countries can't blame us. They can't blame our Conservation Reserve program. They can't blame our farm supports. They can't blame ethanol.

We are producing more and exporting more than ever. I rest my case.

Until next week, I am John Block from Washington.