socrateazz

Agricultural Commodities in the Face of Deflation

As a farmer I can not disagree with your analysis. Interesting you mention fuel cost. Even more important to me is my fertilizer cost which is about double my total fuel cost even though I feel and leaf analysis indicates I am shorting the needed nutrients. As with any business, costs can not continue to exceed return. There will not be as many farmers as long as margins are as tight as they are. My margin has been negative for the fifth year this year. There are a lot of folk having the same problems. If return relative to cost of foods do not increase, then severe and drastic shortages will develop. Some foods will increase markedly in price and more production will result. The need is for important people to realize how important food is! I suggest minimal interevention. Over the long haul costs of production can not continue to exceed returns. I may become an exfarmer if the current trend continues. And many others are in the same situation.