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Ag economist projects impact of recession on food purchases

A food and agriculture economist says the current recession will continue to impact food purchases and food security.

Jayson Lusk with Purdue University says especially for consumers who have lost income, food will be a more important part of their budget. He projects the categories to take the biggest hits will be…

“Things like alcohol and food away from home. Fresh fruits and vegetables are another category where we might expect some greater reductions.”

He says there will also be greater risk for food insecurity as more people turn to food banks. Lusk says a recent study by Feeding America shows a dramatic increase in the number of food insecure people in the coming year.  

“On par with the increases we saw back during the Great Recession.”

In the future he expects a continued increase in e-grocery shopping and restaurants focused solely on meal delivery. By this time next year he expects to be back down to normal rates of food price inflation.

Lusk was the keynote speaker during a virtual conference on Midwest Agriculture and Shifting Consumer Preferences hosted by the Federal Reserve bank of Chicago.