When living in a rural, farming community, it is easy to see the prominent signs of the agricultural overbuilding due to the last era of prosperity. There are still many farmers enjoying their luxurious equipment purchased from 2005 to 2013, a period commonly known as the farming boom (“US Farmers Respond to Changing Crop Demands”). During this phase, many aspired to have their share of the windfall profits associated with growing corn and soybeans. Consequently, the previously depleted grain supply exceeded the end users’ demand. Ultimately, the farming boom adversely affected established farmers. The farm boom was an event driven by economics. According to “The Renewable Fuel Standard” the United States created a policy in 2005, which required
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Since more people could now afford higher quality food, there was a greater demand for meat, opposed to less expensive grains such as rice (Wilson, Jeff and Durisin, Megan). Pork was the primary source of meat consumed, which was fed with a grain blended with a protein source like soybeans. Even though the United States and South America are large producers of soybeans, there was still a short supply, thus soybean prices also increased. This great demand for corn and soybeans finally peaked in 2012, due to a severe drought in the United States. Overall, it took eight years to have the demands of the end users …show more content…
These high input prices were reasonable in the times of great revenues, but now input costs are exceeding some farmers’ revenues. In 2016, three years after the boom era ended, the major expense of seed has barely decreased from its’ all-time high. “Historical Costs of Crop Production,” a study published by Iowa State University, compares the estimated corn seed, fertilizer, and chemical costs over time. These costs were estimated to be $136 per acre in 2004, but in only five years, the same inputs had nearly tripled to $350 per acre (“Historical Costs of Crop Production”). Unfortunately, these inputs, especially seed and rent, have barely changed in accordance with farm profits. All in all, farmers were making more money in 2004 before the boom than in 2016 after the boom, even without accounting for
Since more people could now afford higher quality food, there was a greater demand for meat, opposed to less expensive grains such as rice (Wilson, Jeff and Durisin, Megan). Pork was the primary source of meat consumed, which was fed with a grain blended with a protein source like soybeans. Even though the United States and South America are large producers of soybeans, there was still a short supply, thus soybean prices also increased. This great demand for corn and soybeans finally peaked in 2012, due to a severe drought in the United States. Overall, it took eight years to have the demands of the end users …show more content…
These high input prices were reasonable in the times of great revenues, but now input costs are exceeding some farmers’ revenues. In 2016, three years after the boom era ended, the major expense of seed has barely decreased from its’ all-time high. “Historical Costs of Crop Production,” a study published by Iowa State University, compares the estimated corn seed, fertilizer, and chemical costs over time. These costs were estimated to be $136 per acre in 2004, but in only five years, the same inputs had nearly tripled to $350 per acre (“Historical Costs of Crop Production”). Unfortunately, these inputs, especially seed and rent, have barely changed in accordance with farm profits. All in all, farmers were making more money in 2004 before the boom than in 2016 after the boom, even without accounting for