U.S. milk and butter prices have risen to record levels this year.

The Department of Agriculture's final report for 2012 says farm income increased despite the drought, because of high prices for crops that made it to market. But the drought is continuing into winter and could affect next year's harvests.

The drought has already affected livestock feed prices. Holiday dinner shopping list prices may be next.

Weather, speculation, and the economy all impact food prices. So are you paying more for groceries today than in decades past? Find out with the Marketplace Grocery Shop Simulator.