Before reading this, please note that PeakResources.org believes we face two possible scenarios:
A food shock, either from a shortage, currency crisis, or energy crisis and
Higher food prices and supply shortages from a rising middle class and global population. This is not a doom and gloom prediction, these are two very real scenarios that you will live through over the next 10 – 30
years. It is important that you prepare for the worst, however we do not necessarily believe the worst will happen.
Food storage, we know seems like a no brainer, but we have to mention it. Expanding your current food storageas well as the purchase of dehydrated food storage is a must for anyone preparing for a food crisis. The right
foods. Many early ‘preppers’ will attempt to buy a lot of cheap food, canned green beans or calorie bars made of sugar. Will these help, yes, but buying foods you don’t regularly eat, or ones that can make you constipated will
not be what you need during a crisis. The right foods are the foods that you can store for more than 5 years and foods that you eat on a regular basis.
- A good plan is to look at what is in your pantry, then multiply it by 10.
You are going to eat these foods anyway, so why not own as much of it as you can while you can still buy it. Plus the best part is it won’t be wasted, you can eat on a first in first out basis. Don’t forget about flavor, plenty of
seasoning, sauces, and flavors for your drinks. Owning some flavored Gatorade powder may also help if you are drinking water that might not be as fresh as you would like.
Farmland if you can afford it. Farmland is selling dirt cheap right now, owning it usually requires a skill which is why it’s hard to sell, however, if you can control some through a lease option or purchase some in order to hold it for the long term, it will only be a matter of time before these property values soar. We wouldn’t be surprised if the government subsidizes the purchase of these properties in the future in order to ramp up food production.
Agriculture shares, companies that are tied to agriculture will thrive in the future. Investors have been burned for decades with these kind of stocks to the point where everyone hates them, which is one of the reasons we
love them. Potash, water, and farming equipment companies are way behind when it comes to meeting future demand, this will make these types of investments very lucrative for investors who can purchase shares now.
Inflation protected investments. One of the causes of food price inflation is energy price inflation and pure monetary inflation coming from central banks and governments. An easy way to protect yourself is to focus on
lasting purchasing power, which makes physical gold and silver a must for anyone who is preparing for a food crisis. For those looking for a little more bang for their buck, consider owning shares in mining companies.
Have a plan. If we see food prices rise rapidly, have a plan with friends an
d family. Know where to meet and decide who is buying what, for example, if one person can be in charge of buying as much pasta as possible at the start of a food crisis and another person purchase water. Or have everyone purchase the same package of goods in a scenario where it is an emergency.
This might sound crazy, but anyone who has lived through a hurricane knows empty store shelves can happen quickly. If food prices rise slowly as we expect, then you can still have a plan when it comes to eating the right foods and stocking up on the right ingredients of things you know will go up the most. We all need to prepare for higher food prices, so think this through. Over 4,000 products in the grocery store have corn in them, this is without a doubt one of the foods we see rising, so store essential items like vegetable oil that are made with corn.
Food production, plant a garden, buy some chickens, and some mature fruit trees. Become as independent as possible, don’t just buy seeds for a “what if” scenario. … Believe us, you will fail at a garden probably for the first few years, this is a skill that you will have to grow at. Not only is this a great idea for preparing for possible shortages in supermarkets, but it is a great way to get healthy as you enjoy the fruits of your labor.
Learn how to cook. Even the best cooks now a days don’t know how to make things from scratch. Learn how to make a few simple, but necessary items like bread in order to be better prepared for a shortage of supplies. Buy a good recipe book and practice with it, don’t wait until there are actual shortages before you try making something.
Household protection, in case of food riots. We recently saw several governments, including Egypt, become so unstable that the people in power for decades were overthrown. A toppling of a government is unlikely in the west, however, it doesn’t mean we won’t see a few food riots in the inner cities that could spread to the suburbs. A heavy stockpile of ammunition will be good not only for protection, but for trading with locals in case a currency crisis breaks out.
Cooking equipment. Wood for fire, lighting equipment, propane, and a grill. Probably the easiest thing you can do is own a BBQ and then buy 3 full propane tanks. These propane tanks can last for a full month cooking on them every day. So if you own 3, you are looking at 3 solid months of cooking as well as the ability to easily and quickly boil some water. If you have access to generating your own electricity, you should also own a portable electric oven, something you can just leave in a box until the day you need it.
Worst case scenario items. Let’s say for example we had a severe food shortage that sparked civil unrest. You need to think of items like pet food, diapers, women’s healthcare, toiletries, and water. These are the type of
things people will say you are crazy to store up on, but if there was a spike in oil, a collapse in the currency, or a severe drought, if we see civil unrest, these will be unavailable items. Buy them now, you are going to use them
anyway, instead of having enough on hand for a few weeks, consider buying enough for the next year.
To those who think a crisis can’t happen in your area, consider Hurricane Sandy in New England, millions without power and food. This was a first world region that had millions caught off guard, this can easily happen again only on a much grander scale. It is important to prepare for the future and the end of cheap resources. If oil goes over $150, don’t be surprised if we see crime dramatically rise in the United States, already one of the biggest trends is home invasions.
We mention the above not to scare you, but to help you.