| senodak - 11/29/2025 12:09
National Corn Growers says there are over 500,000 corn farmers in the US. All that will continue to plant corn even if at below breakeven costs unless there is a profitable alternative. Which there is currently none.
There are considerably less businesses engaged in oil extraction.
Corn/soybean farming is a cottage industry compared to oil. But the general idea is the same, yes. All of it gets sold / used somewhere.
While it’s true that a farmer will plant his land even at a projected less than breakeven cost, that in itself isn’t the economic barometer that makes the decision.
As long as price is above variable cost, the farmer will plant. Once variables are paid for, anything above and beyond will begin to pay for part of the fixed costs the business has. If the farmer doesn’t plant, his fixed costs are the same, need to be paid, however, the farmer has no revenue stream from cropping to pay those costs.
Have grain prices even approached a level that variable costs were not covered? |
Grain supply just like the Oil supply?
