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| I don't think that we all have the general consensus to "keep overproducing". The concensus would be to maximize production/profit in the area in which we produce-be it grain, livestock, fruit, vegetables etc. Sometimes overproduction is the result. Some food commodities can be stored for a time until price finds a place to utilize the production. Over the past 50 years, government programs have tried to manage production through various setasides, loan rates, storage programs etc. Success of these programs is up to debate. We are now in era where shortages are more common due to a larger global demand and a limit to what can be produced. Future demand will continue to rise, and any blip in production will cause price instability. In the last 2-3 years we have seen corn from $2-$7, beans from $6-$14. It will continue to happen. | |
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College economics and the grain markets.
