Indiana is set to have unexpectedly big corn and soybean harvests this fall, meaning continued tight profit margins for farmers and more low food prices.
The California drought is causing increased prices for certain products.
Overall grocery prices are higher than a year ago, but the price of a Thanksgiving turkey may actually be lower.
Indiana is expected to produce more than 1 billion bushels of corn for the first time this year.
The Secretary of Agriculture says the drought alone, is not enough to cause a big spike in food prices.
With food prices up across the country, Wal-Mart is cutting shipping costs by making inroads into the local produce market, but Wal-Mart's success in the local food market will depend on Indiana farmers.