Volatile Markets a Growing Concern for Farmers

Volatile prices, uncertain demand push some farmers into the red

By Clay Dillow, Newser Staff

Posted Dec 30, 2008 1:05 PM CST

(Newser) – Volatile commodity prices and uncertainty about future demand are nurturing growing concern among American farmers as revenues sink—even as demand sprouts in emerging energy markets, the Wall Street Journal reports. Costs of doing business—namely seed, machinery, and fertilizer—are riding high alongside transportation costs, and commodity prices are fluctuating faster than farmers can figure out what, and how much, to grow.

Corn prices, which rarely varied by more than a dollar in the past few decades, have swung by $4 a bushel this year, an indication of the market’s inability to establish prices. Growing demand and diminished reserves are elevating grain prices, leading suppliers and landowners to cash in by boosting the costs of farming. But bumper crops have slashed the summer’s spiking prices, leaving many farmers operating in the red.

[Images (3)]

[Quotes (1)]

An ear of corn is missed during harvesting near Sherman, Ill., Friday, Sept. 19, 2008. (AP Photo/Seth Perlman)

Farmer Gary Niemeyer uses a shovel to force the last of the harvested corn grain toward the bottom of the auger on his farm near Auburn, Ill., Friday, Sept. 26, 2008. (AP Photo/Seth Perlman)

Dale Rossman empties a load of corn into a truck from his combine while harvesting corn on his farm in Spring Mills, Pa., Sunday, Oct. 28, 2007. (AP Photo/Carolyn Kaster)

« Prev« Prev | Next »Next » Slideshow

There's a phenomenal change in the whole structure of the farm economy. We've never seen farm incomes swing this dramatically before.
- Shane Tiernan, business development officer at Grundy National Bank

« Prev« Prev | Next »Next » Slideshow

To report an error on this story, notify our editors.

More Newser Stories

Seed Shortage Buries Hopes for Record Corn Crop

Corn prices may hit record high this year

(NEWSER) - American farmers had been planning the biggest corn planting since World War II this spring, but they're being thwarted by a seed shortage. Drought conditions in the Midwest and Great Plains last year have caused what dealers in the corn belt say is the biggest shortage of top-quality seeds they've ever seen, the Wall Street Journal finds. Corn prices hit a record $8 a bushel last spring, and commodities brokers say another disappointing crop this year could send prices as high as $10. More»

We've Ruined the Tomato

It's got plenty of weight but no taste: Author

(NEWSER) - In America’s melting pot of food culture, few ingredients have been as broadly assimilated as the tomato. Whether it’s ketchup, marinara, salsa, or just fodder for salads, our country’s demand for the tomato is extreme. But as journalist Barry Estabrook says in an interview with Salon , America’s love for the tomato has turned it into a tasteless commodity. How? Simple economics. A tomato grower puts it bluntly, “I don’t get paid a cent for flavor, not one cent. I get paid for weight." More»

Nation's Oldest Family Farm Up for Sale

Tuttles of NH have been there since 1632

(NEWSER) - The Tuttles of New Hampshire have been running a family farm since before the nation existed, but their 378-year-old tradition is coming to an end, the Boston Globe reports. What is billed as the country's longest continuously operating family farm is up for sale. The 134-acre property, which has become gradually surrounded by suburban homes over the years, lists for $3.35 million. More»

Monsanto Contracts Strangle Competition: Report

Licenses forbid mixing Monsanto genes with competitors'

(NEWSER) - Monsanto, the country’s dominant seed business, is squeezing competitors with stringent licensing agreements that protect its incredibly dominant position in the industry. Monsanto’s licenses prevent companies from breeding plants that contain both Monsanto’s genes and those of competitors, an AP investigation reveals, effectively locking competitors out of the market. Another provision requires independent companies that change ownership to destroy all their corn seeds immediately—a provision that’s likely helped Monsanto buy those companies. More»

'Hobby Farms' Cropping Up

USDA says small farms are becoming more popular even as large farms grow

(AP) - Most evenings, Gary Mithoefer can be found at the end of a long gravel driveway off a busy highway, tending two garden plots filled with white sweet potatoes, squash, cabbages, and a dozen other vegetables still thriving in early fall. The 62-year-old, who gardens after his workday ends at his state highway job, is one of a growing number of Americans rolling up their sleeves and digging into the dirt to raise crops or livestock on a small scale. More»

NEWS FROM OUR PARTNERS

What is Newser?

Face it: there's too much news. At Newser, we choose the most thought-provoking and entertaining stories from hundreds of US and international sources and reduce them to a headline, picture, and two paragraphs. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »

Partnering with: Slate

View Newser on the mobile website

Volatile Markets a Growing Concern for Farmers