WICHITA, Kansas -- Dairy prices are the latest grocery item predicted to skyrocket in the near future.
"It goes back to not only the energy price that were starting to rise, but it's a double hit in that now we have the drought compounding those prices," said John Jenkinson, KSN Ag expert.
The most dramatic rise in food prices will be at the end of the fourth quarter or at the start of the new year. It is expected to be a 15 percent increase.
"The thinner the supply the higher the demand and the higher the prices."
Higher energy costs through 2012 led to higher fuel and fertilizer costs for farmers.
"Anytime you take a farmer or rancher out of production, prices will continue to go higher because there's fewer people to produce that product."
And even with what farmers and ranchers hope is a good season this coming year, it won't turn prices around anytime quickly, according to Jenkinson.
"We're still looking at 12-15 months out before we see prices level off."
The situation is also impacted by the lack of a farm bill this past congressional session leaving farmers without a plan of attack.
Congress went on its five week election break without passing a farm bill.
Republican leaders in the House of Representatives announced that they would not take action on the new farm bill until after the November elections.
"At this point, it's really difficult to tell what crops to plant, how much to plant, it's made things extremely volatile."
Making dairy the most recent price increase prediction, but likely not the last.
"A lot of producers may say, 'I'm only going to produce what I know I can with the money that I have, and therefore there won't be an overabundance.'"
That will also impact farmers and ranchers spending money to get ahead on items such as equipment and facilities.
