posted on Feb, 22 2011 @ 02:44 PM
I have to wonder if the looming federal government shutdown plays a role here. If the government shuts down, subsidies will not be paid to the
farmers, meaning competition will flourish and the price floor will effectively go away. The farms will be forced to sell higher volumes to make up
for the lower income per unit for as long as the government is not cutting subsidy checks. Hell, this flows beyond subsidies as I suspect the
government will spend some amount of time also not buying crops for their various food stockpiling & aid programs, effectively releasing that quantity
of produce out into the competitive market rather than keeping it locked into whatever agreed upon sale price it would be at with the government
buying programs in effect. I believe the government is the largest single purchaser of grains.