"Cost of Thanksgiving Dinner Ingredients for 2010"
Rising commodity prices due to demand from China and other emerging markets have yet to impact the cost of Thanksgiving dinner. The American Farm Bureau reports that the average cost of the ingredients for a turkey dinner with all the trimmings large enough to feed 10 people this holiday season is $43.47, a slender 1.3 percent increase from Thanksgiving 2009. This is about the same as the 1.4 percent gain in food prices for the 12 months ending in October and barely ahead of the 1.2 percent gain in the Consumer Price Index for All Urban Consumers according to the U.S. Bureau of Labor Statistics. Farmers are doing better than office and industrial landlords, who have been unable to push through any rent increases this year. The average asking rental rate for a square foot of office space in the U.S. fell from $26.60 full service gross in the third quarter of 2009 to $26.10 in the third quarter of 2010, a decline of 1.8 percent, while a square foot of industrial space fell from $5.38 to $5.35 triple net, down 60 basis points. Nevertheless, sales prices of the associated real estate have risen sharply during this period. Irrigated cropland in the territory served by the Federal Reserve Bank of Kansas City rose in value by 9.6 percent while the average per-square-foot sales price of office and industrial properties increased by 13.2 percent and 8.2 percent, respectively, according to Real Capital Analytics. Some analysts have expressed concern that prices for income-producing real estate, whether prime agricultural land or core office buildings, are getting ahead of the market fundamentals due to a combination of very low mortgage rates and investor concerns over inflation somewhere down the road.
Source: American Farm Bureau Federation