World

Deja Food: Shrinking Corn Surplus Again Stokes Worries About Rising Food Prices

NEW YORK (AP) — Food prices could rise next year because an unseasonably hot summer likely damaged much of this year’s corn crop.

The U.S. Department of Agriculture estimated Monday that a surplus of 672 million bushels of corn will be left over at the end of next summer. The estimated surplus is down from last month’s forecast and well below levels that are considered healthy.

Photo: AP

This spring, farmers planted the second-largest crop since World War II. But high temperatures stunted the plants.

“We just didn’t have a good growing year,” said Jason Ward, an analyst with Northstar Commodity in Minneapolis. “It was too hot, too warm, too dry at the wrong time.”

The price of corn was relatively unchanged at $7.33 a bushel on Monday. While that’s down from its peak of $7.99 reached in June, it’s still nearly twice the price paid last summer.

More expensive corn drives food prices higher because corn is an ingredient in everything from animal feed to cereal to soft drinks. It takes about six months for corn prices to trickle down to products at the grocery store.

Shrinking Corn Surplus Could Lead to Higher Food Prices

But many food producers are already being squeezed by the higher prices. Chicken producer Sanderson Farms Inc. reported its third straight quarterly loss late last month, in part, because of increased costs for feed. Smithfield Foods Inc., the world’s largest hog producer, said last week that high feed costs would remain a problem this year.

“Ingredient prices are going to stay high for a while,” Ward said.

Traders also worry that grain shortages could return next year because of the damaged crops.

Farmers are expected to have a surplus of 920 million bushels when the harvest begins this month, the USDA said. That’s roughly a 26-day supply of corn, slightly less than the previous month’s estimate.

But the USDA said the corn surplus could dwindle next fall to about a 19-day supply. A 30-day supply is considered healthy.

When crop reserves are low, market prices can jump quickly, said Scott Irwin, an agriculture economics professor at the University of Illinois. When reserves are at adequate levels, a decline in grain supplies tends to cause prices to rise modestly. But when reserves are unusually low relative to demand, short-term supply disruptions can cause prices to jump exponentially, Irwin said.

In part, that’s because unlike with other goods, rising food prices generally don’t cause people to buy less food. Rather, they typically cut spending on other things so they can keep the diets they’re accustomed to. Prices tend to stay high until demand finally slackens.

A smaller surplus drove corn prices higher earlier this year. Global demand for corn, soybeans and wheat has outstripped production for the last 10 years. Surpluses, vital to a stable food supply, have shrunk.

—

Cutter reported from New York. Leonard reported from St. Louis.

Comments (56)

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  • rightwinglefty
    Posted on September 13, 2011 at 12:29am

    There are probably millions of acres around the world being used to grow marijuana, coca and opium. Those things destroy societies. If these were used to grow grain, imagine the difference in the world. We don’t need hemp clothing either, we have cotton.

    Report Post » rightwinglefty  
  • MUDFLAPS
    Posted on September 12, 2011 at 11:53pm

    Its all in the plan boys. Monsanto and the government. They are not as stupid as you think. They are willing to walk slowly as long as they are walking toward the goal. We conservatives are asleep as usual and have RINOS in the government. As usual. Wake the F up you bunch of nuts! Your loosing your country.

    Report Post »  
    • followthefounders
      Posted on September 13, 2011 at 2:30pm

      The one sure thing we can do is follow Glenn’s pleas to prepare !!
      See www. I-M-PREPARED.COM , try their free food samples. Get some peace of mind in this crazy world.

      Report Post »  
  • 1casawizard
    Posted on September 12, 2011 at 10:28pm

    Corn should not be used to spread gasoline supplies. It is a FOOD. It lowers the miles-per-gallon you can get, substantially. It corrodes aluminum, rots out plastic fuel lines and primer bulbs in small engines in just a few years. Ethanol-free gas is hard to find plus it cost more,but you recover the cost in MPG in your road vehicles. It looks like everything they can do to throttle back this country is working in a time the rest of the world is passing U.S. by. The EPA has TOO much power.

    Report Post » 1casawizard  
  • truff
    Posted on September 12, 2011 at 10:18pm

    not only subsidies harming us, but the EPA is now regulating HAY AS A POLLUTANT. yes. hay. hay = grass.

    http://www.thenewamerican.com/tech-mainmenu-30/environment/8909-cattle-feeder-says-epa-declared-hay-a-pollutant

    welcome to the socialist states of amerikka. where they control energy, health, food…

    and btw, this retarded reasoning has them storing HAY – highly combustible– in BUILDINGS (with less air flow pretty much guaranteeing them to spontaenously combust)

    Report Post »  
  • Red Hilly Land
    Posted on September 12, 2011 at 9:21pm

    Hello All,

    I am a farmer, i suppose that makes me the enemy. For the record, i have never, ever sold corn to an ethanol plant, There are none near me. I have sold corn to a pet food plant. When corn is made into ethanol, there is a byproduct called DDG(dried distiller grain) which are being used world wide for animal feed. The corn i sold to the pet food plant, well, none of that was used for any livestock feed.

    An exerpt from this article. http://www.usda.gov/oce/reports/energy/2008Ethanol_June_final.pdf

    “A dry grind ethanol plant that produces and sells dry distiller’s grains and uses conventional fossil fuel power for thermal energy and electricity produces nearly two times more energy in the form of ethanol delivered to customers than it uses for corn, processing, and transportation. The ratio is about 2.3 BTU of ethanol for 1 BTU of energy in inputs, when a more generous means of removing byproduct energy is employed.Some dry mills are already using up to 50 percent biomass power. The energy output for these plants is near 2.8 times energy inputs, even using the conservative byproduct allowance. As processors master the logistics of handling bulky biomass, the energy balance ratio could reach 26 BTUs of ethanol per BTU of inputs used.”

    Let us also not forget about MTBE. Ethanol is how much better than that? I do not care for subsidies, they are the hand we have been dealt. If my picture shows up, it is of a combine, that costs in excess of 400K. I cant a

    Report Post » Red Hilly Land  
    • Red Hilly Land
      Posted on September 12, 2011 at 9:41pm

      One thing you cannot dispute, is the fact that the US ethanol industry, employ local people. No one has had to mobilize a military to protect a corn field, yet. Every ounce of ethanol, takes an ounce of foreign oil out of our country.

      Thanks for reading a few random thoughts, from a simple lifelong farmer. I appreciate the opportunity to help put food on your table. I hope you appreciate the commitment of the American Farmer.

      Report Post » Red Hilly Land  
    • mickusa
      Posted on September 13, 2011 at 3:56pm

      While I as most Americans support the American Farmer, I am an American worker, I work for a poultry company that is on the verge of collapse due to High Grain Prices. It may make people feel good at the pump to see ethanol in your gas, because after all “we don’t want any more foreign oil in our country” right? But when you see grain costs going up 100% and beyond, and food costs going up 100% and beyond, coupled with American workers jobless and companies going out of business, all in the name of reducing the price of gas by 1 cent per gallon, it just does not make sense.. If things don’t change, Americans will not only pay 5 dollars per gallon at the pump, they will also pay 18 dollars for your chicken sandwich. I also see that China as purchased more grain from the US farmers in 1 month than they have in an entire previous year’s time. I suggest scrapping all the ethanol BS and and start limiting our grain exports. America feeds the world, but not if we continue down this path.

      Report Post »  
    • M100Spiral
      Posted on September 13, 2011 at 8:46pm

      @MICKUSA

      I worked for Tyson Foods, Inc. for close to ten years. I obtained a degree while working full-time in one of the live plants. And, of course, after getting my degree, I moved on. But, oddly enough, I miss working at Tyson’s. I had—and still have—better friends in those days, and many, who did not retire, are still working for Tyson’s.

      Your comment is correct!

      I do not want to see my old friends unemployed, and I do not want to see a package of ten chicken thighs selling for $18. I now see that the Ethanol Industry was a BAD idea!!!

      Report Post » M100Spiral  
  • WeeDontNeedNoSteenkinBadges
    Posted on September 12, 2011 at 8:19pm

    “Shrinking Corn Surplus”?

    Darn! Gotta fill up my gas tank while it’s available!!
    (And who’s idea was it to burn corn anyway?)

    Report Post » WeeDontNeedNoSteenkinBadges  
  • grumpyt
    Posted on September 12, 2011 at 7:15pm

    Keep using food for fuel and we will all starve. BTW, then the fat stockbroker will fit in a White Castle booth.

    Really, if you guys cant figure out that this is more about using up our corn for things other than food then you aren’t as awake as you like people to believe. We are being regulated to death and “ethanol for fuel” is one more way that, with out congressional action, we are loosing our Liberty. Buying votes…yep, buying votes. AGENDA 21 at it’s worst!

    Report Post » grumpyt  
  • maraboo9
    Posted on September 12, 2011 at 7:14pm

    The end of the Ogalalla aquifer will be the end of America if the marxist don’t end it 1st. We pump a finite supply of water out of the ground to water corn used not for food, but for fuel – idiotic

    Report Post »  
  • Bill Rowland
    Posted on September 12, 2011 at 7:14pm

    Excuse me sir will the government pay me not to grow corn? If they do will they pay me not to raise pigs to not feed the corn to that you are going to pay me not to grow. If you will do this I will purchase some land south ot Yuma to not grow the corn on and will promise not to raise pigs to not feed the corn to.

    Thank You – Please pray for our President – Psalm 109:8

    Report Post »  
  • docmo
    Posted on September 12, 2011 at 7:06pm

    Corn for gas. The poor are starving and we use more fuel, more pollution, more imported oil and ruin engines.Food prices soar but what the hell the presidente eats on our dolllar and congrees eats cheap. The farm lobby is strong and loves ethanol. Corn for fuel is easy to grow and we subsidize the farmers. Your government at work.

    Report Post »  
  • texascav
    Posted on September 12, 2011 at 6:29pm

    I have emailed my congressmen and senators in the past about this…………….. and nothing back about it…….. The fat cats in Washington, don’t care as they will still eat well and not sacrifice or do without.

    Report Post » texascav  
  • texascav
    Posted on September 12, 2011 at 6:10pm

    Our corn surplus has been shrinking for years now. And yes its going to get worse, much worse. Obuma just a while back approved more ethanol production, while our farmland has been raveged by floods in the midwest and heavy rains and flooding in the East and major drought in the South and West. Livestock feed has been going up regularly these past 2 years. Why do you think ranchers are getting rid of there livestock. When you have major flooding, drought, wild fires,and heat waves like we are having its going to effect the crops and food supply. Has our government even looked into this and thought .hey….. maybe we shouldn’t use our corn for ethanol? No………… We have and still are having a major catastrophe in this country and I haven’t heard anyone address the issue or even recognize that we have a problem. Get ready, people…………high food prices and famine could be closer than you think……………..

    Report Post » texascav  
    • mikem1969
      Posted on September 12, 2011 at 6:46pm

      You said it. First and foremost they need to stop ALL ETHANOL SUBSIDIES. Then they need to stop subsidies to large mass profit farms and start helping the small farms. These two alone would bring our surplus of corn back up to where it needs to be within a couple of years. But if you look at the codex alimentarius and rex 84 you will see why they keep doing this, not to mention the urban control act that was done by executive order a month or so back that gives the government the ability to tell you what to do with your land. This is all part of the liberal progressive plan to depopulate all but the willing zombies.

      Report Post »  
    • M100Spiral
      Posted on September 13, 2011 at 4:45am

      @TEXASCAV and MIKEM1969

      Out of the $4 trillion Obama spent during his first 31 months in office, he should have invested in developing a sound natual gas industry. Apparently, our Northern section of our nation has a nice reserve of natural gas resources.

      Report Post » M100Spiral  
  • Impenitent
    Posted on September 12, 2011 at 5:01pm

    Obama’s new jobs plan will involve ethanol stamps…

    Report Post »  
  • EA5900
    Posted on September 12, 2011 at 4:34pm

    Shrinking corn reserves isn’t the reason for increasing food prices! The AP in “New York” has it all wrong. Here in Idaho, nearly no-one grew corn this year because the price of wheat has and is skyrocketing, much more than the price of corn. The rise in wheat prices along with so many other grain prices is due almost entirely to the fact that so many farmers have stopped growing everything except corn because there is guaranteed government subsidy money in the corn-for-ethanol program. If you’re running the family farm business, why grow food when you can grow corn for fuel and get paid a premium? This has caused a subsequent shortage in the other grain crops which has sent prices through the roof. Case in point: Ten years ago the average US wheat price was $2.62/bu. Last year it was $4.87/bu. This year $5.70/bu. Next year, the predicted price is $7.60/bu. If government would get out of the farming business and let the free market determine demand for products such as corn, we wouldn’t have this problem!

    Report Post »  
  • SteveShelton
    Posted on September 12, 2011 at 4:03pm

    Food prices will continue to climb. Be prepared.
    Stock up now. http://www.shelfreliance.com/joelshelton

    Report Post »  
  • turkey13
    Posted on September 12, 2011 at 3:52pm

    My sons put almost 900 acers in the Government program (CRAP) where they get paid not to produce. IN Oklahoma it was good deal this year because all the neighbors lost their seed, fuel, labor and wear and tear on equipment. Of course we are the only people stupid enough to burn our food in cars. Fuel that without Gov. subsidys would be $4.20 a gallon. Al Gore wants us to burn the corn so we won’t be able to swap it for barrels of oil.The middle east may have oil but you can’t eat it or drink it.

    Report Post »  
  • endgamer
    Posted on September 12, 2011 at 3:41pm

    Want to know why the borders are wide open? look to the lobbying efforts of these big food conglomerates. It has nothing to do with immigration at all, It’s cheap “casual” labor.

    Report Post » endgamer  
  • hoosierdaddyobama
    Posted on September 12, 2011 at 3:41pm

    In my area in Indiana the corn fields have been looking dead dead for the last month or so even though most fields are being irrigated. My girlfriend asked a farmer friend what the cause of this was. He stated that this year “they” wanted smaller seed corn and were supposed to spray their fields with a chemical that apparently stunted their growth or caused the crop to die earlier. I assume “they” are the seed suppliers not the actual farmers. I interpret “smaller seed corn” as a reduced harvest. I‘m no farmer but I’m certain the gov has their hands all over the seed suppliers and are playing games to drive food prices to the point that only the people on gov aid will be able to eat.

    Report Post »  
  • thegreatcarnac
    Posted on September 12, 2011 at 3:29pm

    We are not storing grain like we used to. We get too much money for it when we export it. Therefore we take he money over the stored grain. Unfortunately…our people cannot eat money. We are also using more and more corn products to make ethanol. We are burning our food in our vehicles. The weather has been dry and hot and this has ruined our agriculture in many places. Our leaders are fools. We are slowly pushing out the small farmers in favor of industrial farms. Soon….food will be at a great premium in the US. They will try to use food to control us. We need to individually begin growing our own.

    Report Post »  
  • UnreconstructedLibertarian
    Posted on September 12, 2011 at 3:29pm

    You folks complain about burning food for fuel, how about using Class 1 cropland for housing?

    Nobody‘s been too worried about building homes we don’t need upon productive land we need badly. All land is not created equal. You can’t grow 150 bu/ac corn on a damnned rocky hillside or in the desert.

    Its about time some real economic forces came into play and real economic decisions get made. Government interventionism has run its course in making food artificially cheap. Ag land prices are coming into competition with housing (housing down – Ag up) which makes us think rationally about the choices we make. Adam Smith’s invisible hand will eventually take control – even if governments try to keep it handcuffed.

    Agreed, the ethanol subsidy artificially effects the allocation of resources – I detest the subsidy as skewing the economy against better choices. But, so does bogus government housing edicts.

    Net effect of either – the people lose – bad choices get made.

    Government’s role is only that which is explicit in the constitution – not screwing with the economy. Be that housing, agriculture, or ethanol.

    Report Post » UnreconstructedLibertarian  
    • SDmom
      Posted on September 12, 2011 at 6:41pm

      Unreconstucted – you are so right. We are losing cropland to housing everyday. As this land is taken out of production, every producing acre must produce more. Ethanol is not the only reason for the price increases.

      Report Post »  
    • M100Spiral
      Posted on September 13, 2011 at 3:42am

      The government did not interfere until the Great Depression.

      When the economy collapsed, Americans pleaded for help. At this point in time, the government finally got involved or, in other words, began interfering. Then, from that point on, every time something went wrong in America, “we the people” would plea for economic help.

      When the Dust Bowl Era occurred, no one got help. People were either unemployed, displaced in poverty or living on their land breathing dust 24/7 and watching their little ones die from the unhealthy conditions. Nowadays, every time a natural hazard occurs, “we the people” expect the government to help. And, up until the Texas fires, “we the people” were getting some kind of government aid.

      When the housing market collapsed, “we the people” expected relief, but the big corporations got the aid. When American citizens were losing their jobs, homes, cars, and whatever they could sell, the banks were crying for relief from the foreclosures, reprocessed cars, defaulted loans, and defaulted credit cards. General Motors and other auto companies, Bank of America and other banks, as well as Fanny Mae and Freddy Mac, got help. Actually, up until recently, “we the people’ usually got the help. Only during Obama’s time, the government went to helping big industries over the common people.

      Around eighty years ago, “we the people” invited government interference. Now, our government is an unwanted guest that W

      Report Post » M100Spiral  
    • M100Spiral
      Posted on September 13, 2011 at 3:46am

      Continued:

      Around eighty years ago, “we the people” invited government interference. Now, our government is an unwanted guest that WE WANT OUT OF OUR HOUSE!

      Report Post » M100Spiral  
    • M100Spiral
      Posted on September 13, 2011 at 4:35am

      @SDMOM

      Around 22 years ago, I lived in New Jersey. It was all industry then. I work with a lady who was the youngest of like 12 children. She was a successful, college educated manager. What they called a “Yuppie” back then. One day, she sat down and began talking about her childhood. Her father was suffering from Alzheimer’s, and she was feeling guilty about something she had decided on with him.

      I learned she grew up on a nice farm in New Jersey. Her father earned a nice enough income that he sent several of the children to college. While she was expressing her appreciation for her upbringing, I asked her where this farm of her childhood was. She explained that the farm no longer existed, because the manufacturing industries came in and bought up the land. She explained that, up until around 45 years ago, most of the State of New Jersey was a large farm community. I was floored, because New Jersey was really developed two decades ago. She said some of the areas of the state had some of the most fertile soil.

      Well, apparently, because the farmers of her father’s generation did very well in the industry, they were able to invest in educating their children. Unfortunately, after the children were educated, they did not want to go back to the farm life. When her father’s generation was too old to manage the land, they sold that fertile land to industries that most likely polluted the soil.

      Report Post » M100Spiral  
    • UnreconstructedLibertarian
      Posted on September 13, 2011 at 12:19pm

      I am a lifelong farmer. Every career or life experience I’ve had, has been involved in agriculture.

      As a child and adolescent young man, every male in my church was a farmer – except one. That one ran a garage that worked on the community’s vehicles and equipment. By the end of the 80′s those numbers had completely reversed. Only one full-time farmer remained – he still farms but is over 80 years old now. Only 3 part-time farmers remained (which still holds true), I was one of the part-timers. I still work off the farm in addition to my farming operation – which produces close to 3.25 million lbs of live weight for meat per year.

      That would equate to 6.6 million lbs of RedHillyLand’s corn; nearly 120,000 bushels if their diet was all corn. The diet is not all corn – but given the mixture and yeilds of the other grains, it takes about 1200 acres of feedgrain production to run my one operation. Right now, the local feed mills are paying a 30 cent premium to capture grain from the field locally rather than it loaded into boxcars and shipped to ADM or Cargill. There are about 150 such animal operations in a 50 mile radius of me who are of comparable size. You do the math. The point being, ethanol usage is a literal drop in a 55 gallon drum compared to overall grain usage for food.

      Why are food prices so high? The chickens have come home to roost based on numerous factors.

      Let’s have a look at some of them.

      Report Post » UnreconstructedLibertarian  
    • UnreconstructedLibertarian
      Posted on September 13, 2011 at 12:47pm

      The chief reason for the increase in Food would be the economic principle of Scarcity. Both real and contrived scarcity.

      Real scarcity exists in both farmers and farmland.

      There is only 1.5% of the population feeding the rest of the 98.5% plus the amount of export to the global system. The age of that 1.5% is averaging 65. Us 40-somethings who are either actively full time farming, or about to jump to full-time farming, are college educated and understand economics. Supply and demand set commodity prices, regardless of government intervention. We’re going to do more of what makes money – less of what doesn’t. You’ll pay more in taxes and less at the store, or less in taxes and more at the store. The post that mentioned crop shifting away from corn to crops with wider margins – was exactly right.

      The best farmland is also the best developmental land. The surge in government backed housing in the past 20 years has absolutely eaten up some of the most productive farmland in the nation. Government policies kept commodity prices low, stagnant, and dependent so the proper opportunity cost of land usage has not been functional. The price of a tract of class 1 cropland should have been set by its free market competitive uses. The farmer should have been able to compete with the land developer – government intervention made that crucial relationship impossible. Whatever sector the government policies favor, has unfair advantage in price competition.

      Report Post » UnreconstructedLibertarian  
    • UnreconstructedLibertarian
      Posted on September 13, 2011 at 1:10pm

      Lets move on to “Contrived” scarcity.

      The two real factors make it much easier to manipulate the system from the top. If you have fewer farmers and less cropland, the only thing necessary to control the system is to have fewer “gateways” of opportunity for those commodities to enter the marketplace.

      For all practical purposes, the grain markets have been taken over by ADM, Cargill, and Monsanto. All movements of grain are controlled by ADM and/or Cargill. Most all inputs are controlled by Monsanto and to a lesser degree DuPont. ADM and Cargill dictate the terminal sale of grain, both at the farm gate and the processor’s dock. These gateway corporations wield so much market power, expecially since passage of the “Food Safety Modernization Act”, they can dictate their own margin. This is the reason for local mills tacking on 30 cents to keep the local grain supply – that 30 cents was going to be taken up by the transport to and from ADM/Cargill.

      If somebody isn’t playing the game, the FSMA can allow the FDA to execute a raid and siezure on thier processing facility without just cause – effectively giving the “Gatekeepers” a nuclear option in the enforcement of their monopoly. This same model of Corporate/Government collusion is being employed in the banking and financial sectors – as “Gatekeepers” to your money. Hence the “stress test” weapon to eliminate competitive banks.

      The corporations who fork over the most campaign contributions get to be

      Report Post » UnreconstructedLibertarian  
    • UnreconstructedLibertarian
      Posted on September 13, 2011 at 1:31pm

      correcting that cut-off.

      The biggest political donors get to be the “Gatekeepers”. They get to direct the FDA’s attention to naughty rogues in the system and shut them down.

      Make no mistake, grain subsidies are what created the climate for these “Gatekeepers” to exist. Subsidies held the price of grain low and margins accordingly low for the middle-men. This favored economy of scale over smaller operations. While that would seem to be a good thing, it wasn’t operating according to “free market” forces, but responding to artificial prices and created dis-economies of scale. Those dis-economies of scale went way beyond the point of diminishing returns and relied on crony legislation to exist. Truly independent firms went the way of the DoDo bird or were merged into the “Gatekeepers” conglomerate.

      Now, every agricultural commodity you consume is subject to some form of “Vertical Integration”. Which is the corporate term for Centrally Planned Capitalism. All decisions: from input use, management, and marketing opportunity – are chosen for you by a “Gatekeeper”.

      The most mature of these Centrally Planned Capitalist systems would be poultry, swine, and tobacco. Grain farmers are still able to choose what species of crops they are going to plant – but increasingly are subject to “suggestions” by a “Gatekeeper” in order to secure forward contracts. Beef cattle cow/calf operators are the only truly “free market” left. Even that is being disma

      Report Post » UnreconstructedLibertarian  
    • UnreconstructedLibertarian
      Posted on September 13, 2011 at 2:09pm

      What we see happening right now is a convergence of both real and contrived scarcity.

      The finger of blame in all cases goes to one source – the Government.

      It would have been better if the government had never skewed a single factor in the economic discovery of price – at any level or sector. We would have been monumentally better off to have been making consumer choices based upon real factors rather than artificial ones.

      I woke up in the 80′s regarding farm programs; when I noticed that not a single one of my friend’s family farms, my school and church mates, were saved by either massive government subsidy/loan programs or Farm Aid. I didn‘t wake up soon enough in the 90’s and 00′s to realize that I was walking into one of the most mature Centrally Planned Capitalistic sectors of the US ag machine.

      The result of my involvement with Centrally Planned Capitalistic Agriculture – is that I still work off the farm to make ends meet. My outside employment is actually subsidizing the production of my commodity. If you go back to the original article, the processors are speaking for themselves – not the folks raising their commodities. That’s just like any Socialistic system – its all about the Central level, even if the underlings are eating dirt.

      So, there you have it. Too few farmers beholden to too few Gatekeepers – with the Government making decisions it really doesn’t understand.

      Food has no direction to go but skyrocket.

      Report Post » UnreconstructedLibertarian  
    • M100Spiral
      Posted on September 13, 2011 at 8:02pm

      @UNRECONSTRUCTED LIBERTARIAN

      Thank you for taking the time to explain the process. For some of us, who lack a farming background or the knowledge of the agricultural system, it was very helpful.

      I found the information disheartening for the median-size (I do not know the term) and small farmer. Nowadays, many part-time farmers subsidize their farming with full-time employment with benefits. It seems like only the large farmer can afford to be a full-time farmer.

      After you broke down the agricultural system, I could only see lots of corruption. While reading, I actually remembered people getting out of farming 25 years ago because of these issues of corruption. They claimed it was nearly impossible to make a living anymore. These were people who grew up on farms and/or their families leased acreage for farming.

      Report Post » M100Spiral  
    • M100Spiral
      Posted on September 13, 2011 at 8:14pm

      @UNRECONSTRUCTED LIBERTARIAN

      Continued:

      I live in the desert now. I commute and work in a modern suburb. This area became suburbs between 5 and 10 years ago. The land was once all farm or ranch land. I do think cattle or sheep ranching was going on, but I believe it was being used for horse ranching.

      That entire era has been erased except for one large pig-farming operation. The owner, I heard, is in his 60s and does not ever plan to sell. At night, the air has a moist, pungent smell. There might be some cleaning or hosing down process occurring every evening.

      Well, as rumor has it, the owner always reminds certain authorities that he was there first. He did not bring his industry into their suburb and that the people developed up to his industry. He always reminds them that the suburb was developed around him, thus enclosing his industry within the suburb. He claims he will never sell in his lifetime. And, despite the evening odor, I do support the man.

      Report Post » M100Spiral  
  • W@nd@
    Posted on September 12, 2011 at 3:26pm

    Think?
    with the fires, floods and the heat waves it will affect everything most likely!
    No one seems to plan ahead in this administration! waiting for the emergency to arise no doubt!

    Report Post »  
    • jkendal
      Posted on September 12, 2011 at 3:37pm

      This administration’s moratorium on oil drilling affects the price of food much more than anything else. Let us drill for more of our own oil and watch the price of everything come down. Of course we‘ll have to get rid of the current administration before that’ll happen. OR, a few of the oil producing states could just ignore the un-Constitutional moratorium and just start drilling anyway…..

      Report Post »  
  • sillyfreshness
    Posted on September 12, 2011 at 3:12pm

    I’m not exactly sure what they mean by “surplus” of corn. A surplus usually means what’s left over after all that is needed to be used up is taken into account. So a surplus would be excess corn that we would ship to other countries because we don’t need it. If we have any surplus left over it shouldn’t drive up food prices at all since there is more than enough to go around. It’s just another excuse to raise prices. We don’t need to worry though. Our government doesn’t take food inflation into account when calculating inflation. They just look at things like prices of wash machines and bulldozers to calculate it. Food, gas, and utilities are no longer taken into account to calculate inflation.

    Report Post » sillyfreshness  
    • W@nd@
      Posted on September 12, 2011 at 3:29pm

      that is why those contracts already approved
      are still waiting for obama to sign them for almost 3 years
      tell me
      are these the actions of a potus that gave a crap! ???

      Report Post »  
  • thekuligs
    Posted on September 12, 2011 at 2:59pm

    Food prices will never come down. Sure the market fluctuates, but for the most part, people adjust to paying higher prices and they don’t ever come all the way down to where they were.

    Be smart, pay attention. Texas is in the worst drought in a long time. Learn where your food comes from and prepare now. America loses something like an acre of farmland a minute. With our country we should easily be able to feed ourselves, yet we import more and more agricultural products. Many countries in the world hate us; soon the only way to get food will be to pay outrageous amounts of money for it.

    In the not too distant future we will no longer be looking at the cost for a barrel of oil, but the cost of a bushel of corn.

    Report Post » thekuligs  
  • Uncle Sammy
    Posted on September 12, 2011 at 2:50pm

    Food will be the next Gold.. except, food is truly necessary. Take some profits in PM and put the fiat dollars to work in the agricultural market of your choice. There are many AG ETF’s.. they are currently fairly cheap.

    Report Post »  
  • FToth84
    Posted on September 12, 2011 at 2:44pm

    It’s never a good idea to mess with food supply. Especially, when it is used for burning in the form of Ethanol before it can be consumed by people.

    We are on a dangerous path. Please prepare for the worst and hope for the best. Food Wars will come one day.

    Report Post » FToth84  
    • AB5r
      Posted on September 12, 2011 at 2:52pm

      There is probably not a single other example throughout known history of any civilization burning their food for fuel. Since fire was discovered man has always had enough sense to burn items that were not otherwise of use for food or for instance better wood which would be used for shelter. The stupidity of modern man in this new area of so-called green are truly staggering.

      Report Post » AB5r  
    • FToth84
      Posted on September 12, 2011 at 3:08pm

      Well put AB5R

      Report Post » FToth84  
    • Fantastic Four
      Posted on September 12, 2011 at 3:52pm

      AMEN to that

      Report Post » Fantastic Four  
    • lylejk
      Posted on September 12, 2011 at 6:43pm

      I agree with you. Stop the freaking subsidies on ethanol and not only will there be more then enough corn to use as actuall food and feed, but cars will run better too. Entec now sells 87% real gas but it costs aroun 14¢ more per gallon. I‘m now paying this premium since my old ’96 Chevy Cavelier was not designed to burn ethanol. Also using it now for my lawnmower since alchohol will literally ruin engines since alcohol absorbs excess water and when that water enters engines, the water could mess things up (not just fail to ignite, but also steam and cavitation issues could destroy lawn engines). Stop this madness now and let’s go back to real unleaded gas again. :)

      Report Post » lylejk  
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