I wrote:
>Frankly, our farmers can and do match whatever demand is out there.
>If the prices of corn and beans went up high enough, we can easily
>raise that 140 per acre average to 200 without breaking a sweat.
BBBean wrote in response:
> I'll take issue with that. I don't know anyone who wouldn't take an
> extra 60 bu/acre if it was economically feasible. Extra grain is
> more likely to come from acreage shifts from other crops, or new
> land put into production.
Like I said, if the prices went up high enough, we can justify the
economics of land and equipment improvements. A deep-sea drilling
platform can cost one-billion USD. At $25 per barrell of oil, that
kind of investment in technology is a non-starter. But at the
current oil prices, we're tapping oil resources that would otherwise
have remained beyond reach. Some day, when oil reaches $100 per
barrel, we'll be tapping oil resources in the middle of the ocean
that will easily sustain us for another 100 years. Same with
agriculture. It sure would be nice to have the prices up high enough
that we don't have to have subsidies for the farmers to survive.
And, Barry, you are absolutely right. Around here, the bulk of the
agribusinessmen (farmers) are very well versed in international
affairs. Here in Iowa, most can probably tell you the annual yields
of at least a half dozen countries and five states. They can also
tell you what the weather forcast for the next week will be in the
major growing areas of China, Brazil, India and Argentina. They can
tell you about the intracies of trade with Japan, India, the EU and
China. Of course, not every farmer is like that. There are some
morons out there bringing the average yields down. Here in Iowa, the
decisions of hybrid types and other field inputs are based on the SOI
and sea-temperature readings all over the Pacific, the number of
low-pressure lobes circulating around the north pole and 10, 20 and
50 year weather cycles. Global climatology is alive and well and
careful study of that is many high-producers base their planting
decisions on.
It's all economics. No-Till and single-pass farming is taking the
industry by storm because of fuel costs. Unfortunately, there is no
free lunch because you need higher pesticide usage for no-till.
We are highly mechanized here in Iowa. We have to. There isn't the
population base to do it any differently.
AG
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