2011-06 PAER
June 15, 2011
- Wind Farm Development Growing Across Indiana
- When Times Get Tough: Food Assistance in Indiana
- Indiana Restructures Its State Budget
Articles in this Publication:
June 15, 2011
Joseph W. Longley, Graduate Student; Kevin T. McNamara, Professor; Larry DeBoer, Professor
So Yeong Lim, Graduate Student; Brigitte Waldorf, Professor
Larry DeBoer
When an energy shock ripples out from the Persian Gulf, the headlines focus on oil prices, gasoline costs, implications for value chains and the profit margins of U.S. producers.
READ MOREThe initial public reaction to an oil price shock reaching $110 per barrel is often to project near-immediate, dramatic increases in grocery prices. This instinct overstates the direct farm-to-retail transmission channel in a straightforward and measurable way. The USDA Economic Research Service tracks how each dollar of consumer food spending is distributed across the supply chain in its Food Dollar Series. The picture it reveals is sobering for those who expect large and rapid retail food price responses driven purely by higher farm input costs.
READ MOREThe conflict that began on February 28, 2026, with U.S.-Israeli airstrikes on Iran triggered the closure of the Strait of Hormuz — the narrow chokepoint through which approximately 20 percent of the world’s traded oil and significant volumes of liquefied natural gas (LNG) flow. Within days, Brent crude oil surged from roughly $70 per barrel to over $110, the highest level since Russia’s 2022 invasion of Ukraine. Gasoline prices at the pump rose roughly 17 percent in the first two weeks of the conflict, and diesel — the lifeblood of farming operations — followed closely.
READ MORE