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Galahad, Alberta | Just a theory here, but could this new level of commodity prices be what it takes to get those abandoned acres back producing grain? I doubt that it would be by hand with a hoe and ox and plow. Possibly more mechanized by the chinese equivalent of a state farm? China has tremendous production capabilies given the size of their growing area. 1.3 billion people and they can almost feed themselves. And a lot of that food comes frome backyard garden plots fertilized with the chamber pot. What if China realized that they could export food at the current prices for some serious coin to pay for their current industrial expansion? Would they not try to ramp up grain production? The state offers the peasants a couple more yuan for their efforts, then turn around and sell the grain for a few thousand yuan. I think that people get too hooked on what happens inside our borders. I think China, the FSU, and S. America will have more clout in these new market levels. Some how they seem to be able to turn on the tap at will, while we are always trying to be at the max just to get by.
Rosco | |
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Early AM
