A bumper crop is bad news?
We have surely gone thru the looking glass.
Bumper crops are nearly always bad news for farmers. The costs to produce are still there in good and bad times. The problem as I see it with a Bumper crop is that the price given for the farmers crops drops in times of bumper crops and they may just break even or possibly make some money.
In bad times the middle-men want to keep the prices low as they were when there was a bumper crop. The farmer’s cost’s remain the same or greater and then they will not make enough to even break even for the year.
Is there a solution? Well possibly so, it means that the farmer must expend even more money for grain storage facilities so that when commodity prices are better for him/her, they can sell the stored grain at a profit.
Knowing the government I’m sure there’s some regulation or law prohibiting that though...
When you get down to the core of it, Farming is profession of faith and an avocation, a lifestyle if you will.
Don’t most farmers sell their crop in advance on the CME futures board as a hedge against things like this that they can not control. If they have already sold in advance, what does it matter if the current price is lower?
Ever met a farmer that makes money in any year? Yet, we still have farms!