According to the U.S. Department of Agriculture, food price inflation in is expected to fall to 4.5 percent in 2009. If energy prices continues to be low, this will be a real boom to the amount of disposable income available to people. But the question remains, has these high food prices created a fundamental change in people’s eating and food buying habits? That’s especially true in the protein industry, such as beef. Despite ethanol, cattle and calves are still the king of the roost in Nebraska. Cattle and calves was a $7.137 billion industry in Nebraska in 2007 accounting for 49 percent of total cash receipts. Continued decline in the beef industry in 2009, along with the continued slow down in the ethanol industry if gasoline prices continue to be low, will have economic consequences for Nebraska’s economy. RKP

USAgNet reports that the USDA is reporting food-price inflation in 2009 may fall to 4.5 percent as lower dairy costs give consumers relief from this year’s price gains, the highest in 28 years.

The forecast for inflation, estimated as high as 6 percent this year, is falling as commodity prices drop from records set this year, reports Bloomberg News.

The price of crude oil, a major cost in transportation, has plunged 73 percent from its July peak. Corn, wheat and soybeans are all at least 46 percent below their all-time highs in Chicago.

Prices for dairy products, which rose as much as 9 percent this year, may fall as much as 4 percent next year, the USDA said.

Costs for fats and cooking oils, which have climbed up to 14 percent in 2008, may only rise 3 to 4 percent in 2009.