Food Storage Economics

http://www.marginalrevolution.com/marginalrevolution/2008/03/brain-twisters.html

I have always struggled with food storage even though it has been a admonition of my church. I've thought it was inefficient because a diverse portfolio should outperform storage of a depreciating asset in the long run. I felt like you could effectively insure against nearly every risk. For example, buy TIPS to insure against massive inflation, etc. That said, it appears there is a scenario where food outperforms other assets. When the global warming mania starts to cause us to burn our food supply in the tanks of our cars, it's time to buy and store food. I've read several articles recently saying that food prices are outpacing inflation (even though food is obviously a component of inflation) and is even outpacing other commodities.

btw, expect more inflation:
http://biz.yahoo.com/ap/080311/fed_credit_crisis.html