Wednesday, October 13, 2010

People Have To Eat

(click on image to enlarge)

The above graph, plus the current price of corn says we are heading for a cliff.

In America, the food system runs on corn. Even dairy is heavily dependent on corn. Although there are some grass based dairies, the larger operation providing the most milk all go heavy on grain, particularly corn.

So what does $6 corn mean? There seems to be little wiggle room. The retailers have no room to raise prices. At the same time the per capita beef is the lowest since 1952. Pork is about the same.

A the production level dairy, including the support business are bleeding badly.

Needless to say, the bulk of the public is in trouble financially. Can most of the public pay more? Can dairy farm margins be less - NO.

Is there any leadership - NO.


  1. And Jerry Kozak and mister motor mouth sit up in Arlington smokin cigars and drinkin the good stuff while offering the press release that was so full of self aggrandizement that I almost puked on my keyboard! How the Hell do we afford the insurance when we won't be able to afford the grain?
    Answers? not really just more smoke blowin!
    Pizzed off and and about to do something about it! JR

  2. I have a question for anyone to answer if they can. If a severe period of inflation is about to hit us, as many seem to think. How will the dairy industry fare? All the other commodities are screaming here it comes, including gold, silver, oil, copper..... If the dairymen are going to see $6 corn, higher fuel, parts and services prices. What about milk? Will we be stuck with much higher input costs and just a little more for our milk. There is no inflation adjustment to the milk price. I always thought that the best place to be during a depression was a farm. I'm not so sure now.