Consumers would purchase local food products instead of organic, according to a new survey released by the Food Marketing Institute and Rodale. With explosive growth in sales of natural and organic products in recent years, challenges in supplying these products has led to longer supply chains, food safety challenges and more interest among consumers and the distributors, retailers, and restaurants who supply them in knowing where their food comes from, how they can be sure it is safe, how it is raised and the impact on the environment of delivering it from farm to table. Books like Michael Pollan's, The Omnivore's Dilemma and cover stories in national news magazines have increased interest in local sources of supply. Consumer and technical research on topics from animal welfare to carbon footprints sometimes result in surprising impacts on markets food and agriculture products. As food distribution and retailing become more concentrated, and concerns with food safety and security lead to more stringent supply requirements, the challenge faced by agricultural producers in supplying consumers interested in local products are increasing. Market Solutions LLC has worked with clients on projects to help preserve local crop and livestock industries, and support sales of local products through farmers' markets, chain and specialty retailers and distributors, and a variety of hotel, restaurant and institutional foodservice outlets.

What's Behind Commodity Price Volatility and Widening Price Basis? Recent hearings by the Commodity Futures Trading Commission (CFTC) and U.S. Congress have sought to better understand factors contributing to recent increased volatility of futures market contracts for a number of agricultural commodities. Substantial increases in commodity price levels as well as price basis, the difference between cash prices and prices of nearby futures contracts, are being blamed by some observers on speculation by hedge and index funds, government support for biofuels, energy prices, exchange rates and a variety of other factors. Market Solutions LLC recently analyzed changes in price basis for soybeans in different parts of the country, and the role that rail transportation costs have been playing in widening basis. Preliminary findings have been widely cited in the press. (Visit our Newsroom for more details.) Additional analysis is underway.

The U.S. Congress has passed a new Farm Bill that includes spending for farm programs, nutrition and conservation and numerous other items. Critics of U.S. agricultural policy have argued that U.S. farm subsidies make it more difficult for agricultural producers in the developing world to make profitable livings in agriculture. Now, due to a variety of factors, critics are blaming high food prices and food security challenges that have contributed to rioting in some parts of the world on U.S. biofuels policy. Where will this and other policy developments related to support for agriculture, energy, trade and transportation shake out in terms of impacts on agricultural production and trade, food security and economic growth? Market Solutions LLC has examined agricultural and trade policy issues for clients in many parts of the world. Our findings have been used to better understand accomplishments and unintended consequences of reform, and options for improvement.