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Kansas Jon
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idea1947
Posted 10/30/2015 08:54 (#4866538 - in reply to #4866016)
Subject: could happen


"WHY In the World are we gonna see acreage increases on lower prices?"

Jon in a competitive environment like agriculture producers will expand production to a point where the variable costs of producing that next bushel equals their expected selling price.  That may not be a price that covers sunk or fixed costs.

I'm sure you heard the joke about the farmer who was losing $.10 a bushel hauling grain to the market and concluded he needed a bigger truck?

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