Will the Good Times Last? (2)
From AgriMarketing Magazine - There’s an ongoing debate within production agriculture. Most people agree that the industry is experiencing some of the best times in recent years; however, they question and disagree on whether the current trend is sustainable. Coming to a consensus on when change will occur is difficult, but assessing the supply and demand forces shaping the situation will provide some insight. In our first column, we described how three forces—ethanol and energy, the exchange rate and global production—are affecting the industry. The final two forces—food and fuel, along with weather and wheat—add further implications for continuing strong prices and incomes for the next three to five years.