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The main reason prices are falling is that we are coming off the biggest commodities boom in history. 2008-2013 saw record setting prices for corn, soybeans, an
by randomdata 9y ago
The main reason prices are falling is that we are coming off the biggest commodities boom in history. 2008-2013 saw record setting prices for corn, soybeans, and wheat. Really, things are just returning to normal now that the boom is over.
As you would expect, marketing corn is more challenging now, after the boom, but there is still opportunity for money to be made. The thing about these crops is that the market price can swing by fairly large amounts in the matter of days, so the fact that a losing venture today can become a huge profit opportunity next week keeps people interested.
There is no lack of people keen to buy land and equipment if someone really wants out of the business, but we're not that bad off yet.
- nikdaheratik 9y agoThe other issue is that many of the "boom" prices are based on the spot market price, but the majority of these commodities are actually negotiated through long term contracts that have a steadier income, but much fewer highs and lows. Which is why a multi-year drop can be especially hard for producers, since that's the price that often gets locked in for several seasons.