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Jesup, IA | Thor, although there is always the prospect that more South American (Brazil), African or Eastern Eurpopean land might come into production, it will need to overcome the reasons why it isn't in production now.
Two trips to Brazil and I sure can comprehend that they can grow it, but getting it to a market is as big of issue to them as "they are not making any more of it" (read, I want to buy the land next to me, but it isn't for sale) is to an American farmer. And it isn't just a matter of needing to build a road. They also need a friendly government, a cooperative truckers union, elevators, three phase power lines, additional port facilities, trade finance, favorable currency exchange rates and less environmentalists to break up lots more land. Yes, gradually it will come in, but when the market offers prices that beg it to.
Also, if Brazil iisn't your cup of tea, want to invest in the Ukraine? I didn't think so. And that's just a walk in the park compared to African sovereign issues.
Additional production is a threat, but not the threat we here in "the Beverly Hills of Agriculture" realize. | |
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Farmland next to join deflation slide
