It’s not over yet. Food prices are expected to spike in 2011, and investors that are in the know are already whetting their appetites with agriculture exchange traded funds (ETFs).

The scuttlebutt is that food prices aren’t even close to finished rising, and ETFs covering everything from sugar to wheat to soybeans are attracting investor interest.

This year, grain and food prices are up 26%, so the coming year is going to be interesting. How much higher can prices go? You can’t forget that there’s an economic recovery, and rising prices could have the negative effect of curtailing consumer spending and hitting the poor where it hurts, explains John Foley for The New York Times.

You’ve got two ways to play rising agriculture prices – equities or futures. Two such funds are:

  • PowerShares DB Agriculture (NYSEArca: DBA): Owns futures on coffee, sugar, cocoa, cattle and more. DBA offers exposure to those and other commodities via rolling futures contracts.
  • Market Vectors Agribusiness (NYSEArca: MOO): An “all things farm” play, this ETF is the largest of all companies farm related across the spectrum.

For full disclosure, Tom Lydon’s clients own shares of MOO.

Tisha Guerrero contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.