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National food insecurity rate reaches 17% for the second time in 18 months

By Isabella Vesperini

Posted July 13, 2023

Food prices are increasing at a faster rate than other prices in the economy. (Isabella Vesperini / WFIU-WTIU)

The national food insecurity rate has risen to 17%, tying the highest recorded rate from March 2022, according to the June Consumer Insights Report.

Jayson Lusk, distinguished professor and head of the department of agricultural economics at Purdue University, said based on his survey from last month consisting of 1,200 U.S. consumers, food insecurity has risen about two percent in the last year.

“Food insecurity is really concentrated amongst lower income households, particularly those making less than $50,000 a year,” Lusk said. “Inflation is coming down, but food prices have risen at a faster rate than other prices in the economy.”

The Supplemental Nutritional Assistance Program (SNAP) helps address food insecurity. During the pandemic, SNAP temporarily increased their payments, but those extra payments went away earlier in the year.

“Those benefits have been curtailed a bit, and that again may be contributing to some of the increased rates of food insecurity that we observed last month,” Lusk said.

The report also includes consumer sentiment on AI applications in the food realm and consumer behavior based on income.

Lusk said he also found that consumer sentiments about applying AI are mainly positive or neutral. AI machines, such as self-automated tractors, could help with planting, harvesting and eliminating food waste. AI could also help increase food production and decrease manual labor, which is challenging to find.

“Sometimes, it just means better predictions,” Lusk said. “If you can reduce waste somewhere, that creates more supply available for consumers.”

Lusk said if AI could increase food production, it will make food more affordable and in turn lessen food insecurity.

Lusk said the results from the report also demonstrate that in case of a recession, people would cut back on dining out and spending money on primarily alcohol and steak. The results also show that people are happy with their food environment.

“Sometimes you focus on the doom and gloom and the food price inflation,” Lusk said. “But when you ask people directly if they’re happy with their food environment, by and large most people are.”