SW Wisconsin | indeeppigfarmer - 6/20/2017 18:56
demand has the ability to react to supply much faster if needed. If everyone planted a 'reliable 155 bu hybrid', exports would be surrendered to others, livestock fed to lighter weights or with other grain(more wheat) where possible, and a few ethanol plants would take more downtime or close temporarily. Price dictates demand, and a big jump in price ina short amount of time changes demand as the price rise is happening.
Please don't tell me that low prices are here to stay now. Certainly if we produced less corn the price would rise despite livestock producers feeding alternative sources of protein. We made good money back in the 70's raising 1/2 the corn yield that we do now. Price also dictates supply and we will get to the level where producers realize they can't raise corn for a profit. Perhaps there are some in that boat now.
It just seems we are stuck in a cycle of oversupply until some new source of demand arises or we have a drought in a major growing area.
Just a bit frustrated. Forgive my venting. |
Moral Hazard
