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Panhandle of Ne. | I remember when I was in college, the economics course I took talked about supply and demand. Should the supply be larger than the demand, companies that were selling their commodity for less than the cost of production would lower their production bring the demand back and thus the price of their commodity they are selling. Why doesn't that enter farmers minds to cut production when the market is smothered with the commodities we produce? IMHO, the markets are telling us that grains will continue to go down as long as we overproduce.
I understand that everyone has a different breakeven price, but I also question if everyone is having to include in their budgets every nut and bolt like we have to.
Just wondering. | |
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College economics and the grain markets.
