Of course not. In a free market, supply meets demand. The demand for farm equipment is up because, as you pointed out, farmers have more cash now because farm income is up this year. Not only that, but the dollar is down, making US products cheaper and so foreign sales are way up.
"Farm equipment exports to South America grew 46 percent in 2007, with purchases totaling $689 million dollars. Africa took delivery of $247 million dollars worth of American-made agricultural equipment in 2007, a gain of 28 percent, and exports to Europe increased 24 percent and totaled $3.3 billion dollars."
http://news.thomasnet.com/companystory/540944
I don't understand what you want to do with the futures market. Abolish it? Or just use it as an excuse for the problems of farmers.
Dan— All that needs done with futures and options
is force speculators to put in more, IE risk more
instead of small percentage they do now. Same for oil.
If that was done, oil and corn would drop.You give
investment firm 100 bucks, by the rules they hold
15% I think for reserves, invest the rest(85) only having
to put up 15% I heard in speculating, so the hundred
dollars you put in causes about 600 dollars worth of
speculating. So little in the pot, speculators
are reckless only wanting to be the next to the
last holder when it goes down.. Reckless gamblers..
Congress makes investment rules and aren’t doing the job.
And the way the rumors are flying it wouldn’t
surprise me to see corn at 10 bucks. Not good at all.
As people/politicians will crucify farmers....Ed