Many analysts say world grain stocks are so low that strong prices are likely for the next two, three or even five years. If world demand doesn’t get side-swiped by another severe economic downturn, the years ahead could be a great time to be a farmer. However, not all the consequences will be positive. If grain prices go too high too fast, watch out for food riots in less developed nations. This happened back in 2008 and has been reported again recently in countries such as Algeria. If grain becomes critically short, it could prompt all sorts of international nastiness. However, maybe the irrational fear over genetically modified crops will fade. In fact, the technology might finally be heralded for helping to feed the world while decreasing the need to bring ecologically sensitive land into production. Corporate farms have always been a bogeyman, but the worry has been largely groundless. Many family grain farms are incorporated entities, but large outside corporations have not jumped into farming in a major way. They have been content to sell inputs and buy grain. If grain farming becomes lucrative for an extended period of time, might that change? If the market analysts are even close with their projections, a lot of paradigms are going to shift in the years ahead.
I’m Kevin Hursh.
DynAgra, an independent Western Canada-based Company, is dedicated to providing growers with the tools to manage the risk and maximize the profitability of their farm business through the continued innovation of agricultural products and services. We are committed to developing and providing growers with the latest in precision agronomics, variable rate technology, soil fertility, crop protection, fertilizers, custom application and financial solutions.