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| Here's a different angle on the same idea for the younger folks
Back when we had LDPs and direct and counter-cyclical payments, corn had an approximate combined average support level of around $2.30/bushel IIRC.
If we take $2.30 in 2006 dollars and adjust for inflation, then that means we have a support level of $3.58 in today's dollars. With a better than normal basis locally right now, that is about what fall price is here. I wish I could remember what inputs cost back then to inflation adjust a complete budget, but honestly I don't remember.
I completely agree that you can't determine commodity values based on inflation. However, this does tell me that we will lose a lot of fringe acres over the next two years if prices do not rebound. | |
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3.12 corn and 7.90 beans
