3 ms·

But not American onion farmers.

• bluGill 4y ago
  Onions are effectively a monopoly, the company that packages them contracts the growers before the season so while there isn't a futures market to trade there is the same. (I don't know how effective the monopoly is, could be a number of different companies that compete, but farmers don't plant onions without a contract, and even if they did there is no market if you don't have a contract so the crop is worthless. Potatoes don't have a future market, and they are still planted. Though I believe even then big names like McDonald's contract all their potatoes in advance.
  • dragontamer 4y ago
    That's a monopsony, which is the opposite of a monopoly. Monopoly is one seller, many buyers. Monopsony is many sellers, one buyer.
    • bluGill 4y ago
      I never heard that term before, but I'll stand corrected