Monday, September 30, 2013

Why nervous on long-term grain prices?

The success of farmers to feed the world has been based on high productivity for the main grain crops, yet a careful look at the productivity gains in yield shows that the Green Revolution has peaked and there has been a noticeable decline in yield improvement. Some of this has to do with bad weather, but the general trend is down. The success of farming is based on technology and if technology is not doing its part, food prices will continue an upward trend that has been a part of the current super cycle.

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