Could Your Food Bills Soon Be Lower Thanks to the USDA?

If you're like most people, chances are good that you've noticed your grocery bills have become a lot more expensive in recent months. This may be hitting your bank account hard if you're spending a lot more to feed yourself and your family. In some situations, high food prices may even send you into credit card debt.

The good news is, there are some efforts underway to try to reduce the amount you'll have to pay at the grocery store. They are being spearheaded by the Biden Administration, which will be working in conjunction with the states to try to provide some financial relief for those who are struggling at the store. 

Could the USDA help lower your food costs?

Recently, the USDA announced it was forming a historic partnership with bipartisan attorneys general in 31 states across the country, along with AGs in Washington, D.C. 

The goal of the partnership is to help the attorneys general address anti-competitive behaviors that are allegedly occurring in agriculture and other industries. These are having an adverse impact on grocery prices.  

Unfortunately, the Biden Administration is concerned that a small number of companies now control a large portion of various food markets. And during the pandemic, issues like formula shortages demonstrated why this can be a huge problem that leads to supply shocks when something goes wrong with one of them.

Since the Biden Administration is seeing companies forming monopolies that can lead to elevated prices and supply shortages, the goal of the partnership will be to enable the states to investigate and potentially take action in more complex antitrust cases.  

The USDA has also launched a Farmer Seed Liaison Initiative, to foster competition among plant breeders and those who grow seeds, and bring more competition into the market. The administration is also strengthening the enforcement of laws designed to prevent mergers that could lead to monopolies or other anti-competitive behaviors. 

The impact of these initiatives is yet to be determined and it's unclear if they will have a meaningful effect. While some experts believe that consolidation within the food industry is a major contributing factor to rising grocery prices, this claim is contested by others who point out that while companies within the livestock sector are rapidly consolidating, the broad trend within the farming industry has been less consolidation since 2007.

How to handle your high grocery costs in the meantime 

These efforts from the Biden Administration may or may not make a meaningful difference, depending on whether food prices really have been driven up by too few competitors in our food supply chain. 

Even if they do make an impact, however, it will take time for regulatory action to affect the behaviors of companies currently producing the bulk of our groceries. So, you may not see your bills fall dramatically anytime soon. 

In the meantime, if you're struggling to cover the cost of food, there are things you can do to save on groceries. Some options include:

• Clipping coupons: Coupons can help you to spend less, especially if you are willing to try new products that manufacturers heavily promote and offer great discounts for. 
• Tracking prices: Keeping track of where items cost the least can help you be more strategic in where you shop. Keep a notebook of products you buy most and jot down the price so you can see where the costs are lowest. You can also monitor sales schedules and stock up. So, for example, if your favorite pasta sauce goes on sale every eight weeks and you use one jar a week, you could buy eight of them at the sale price.
• Meal planning: When you get store sales flyers, plan meals around what's on sale and batch cook to make multiple meals, so you can take advantage of bulk deals. 

Ideally, the USDA's efforts will provide you with some much-needed help in getting your food bills back down to a more manageable level. But trying these tricks in the meantime can make an immediate difference and give your family the breathing room you need.