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Re: [OM] Poppies

Subject: Re: [OM] Poppies
From: Ken Norton <ken@xxxxxxxxxxx>
Date: Wed, 20 Jun 2012 11:30:36 -0500
> When all else fails read the data.  See:
> <http://www.farmdoc.illinois.edu/manage/uspricehistory/USPrice.asp>
> which will draw you a graph of historical prices received at the farm,
> not Kellogg.  Try the graph of average annual prices from about 1991 to
> 2011 for corn or any other starting year you want.  2012 annual data
> shows 0 so going to the current year is not useful.

I couldn't open that graph, however, those graphs are usually a little
misleading because they isolate corn pricing from other commodity
markets AND from the costs of production.

It costs an average of about $700 per acre for corn. If the average
yield is 150 bushel per acre, then the absolute floor has to be right
around $5 per bushel. As oil costs increase, so does the cost of
fertilizer, fuel and transportation. IF bio-fuels is driving the costs
up, be very thankful. If it wasn't for the increased demand which
keeps the price above the price floor, you'd be seeing another farm
crisis on our hands rivaling that of the 1980s.

Last I checked, nobody in the world was starving because of bio-fuels.
Politics and distribution is the problem.

Iowa has been converting from producing raw commodity to providing
value-add. This creates jobs and stabilizes the economy.

-- 
Ken Norton
ken@xxxxxxxxxxx
http://www.zone-10.com
-- 
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