Record heat is set to drive the cost of fruits and vegetables higher

While inflation in the US has been cooling since hitting a four-decade high, the temperature outside continues to climb. It’s been one of the hottest summers on record for much of the country and the planet, which last week experienced the hottest day in recorded history.

But US consumers aren’t only taking a financial hit from this summer’s extreme heat by way of their electricity bills. Shoppers could soon have to pay much higher prices for fruit and vegetables as farmers shoulder higher growing costs from the heat, a reversal of a trend seen over the past year with the cost of fruits and vegetables dropping by 1%, according to June Consumer Price Index data.

Farmers are facing challenges due to near-record-breaking heat waves in California and Oregon, causing fruit to shrivel and resulting in less harvestable produce. This will decrease revenue potential for farmers. While prices for seasonal fruits may not significantly increase this summer due to existing contracts, as more heat events occur, production and supply dynamics will be affected, potentially leading to higher prices in the next few years.

Corn growers in the US are also suffering losses from heat, with a study projecting annual revenue losses of $1.7 billion by 2030. Additionally, higher temperatures have been shown to reduce strawberry yields by up to 40%, according to an analysis based on publicly available data.

The impact of climate change on agriculture has prompted farmers to consider adapting their operations. Some have shifted to indoor growing, allowing them to control environmental factors and mitigate the adverse effects of heat waves. However, the costs associated with this shift could contribute to higher prices for consumers. Other adaptive strategies, such as using sensors and artificial intelligence tools, are being explored to help farmers make informed decisions in response to extreme heat.

Overall, the challenges posed by extreme heat highlight the need for adaptive strategies in agriculture.