Corn prices seem high now, but here’s a story that can put things in a different light.
Reflecting back on the days when my parents farmed, there was a time in the mid 90’s when times were tough. Growing crops and feeding cattle was not quite enough to make a profit for the year. The harvest was good, but the prices for both the crop and livestock were down. Astoundingly, a spike in prices happened in the late winter. So instead of feeding the corn, it was hauled to town and sold for just over $4 a bushel. By the time the spike was over, the peak cash price at that time was nearly $5 per bushel. Didn’t matter. You can sing all the way to town when you can stay in business at least another year without getting greedy. For a long time before that, there were piles and piles of corn and a good amount of it rotted before it could be used.
Fast-forward to a time where prices for corn have routinely topped $8 on the Chicago Board of Trade and cash prices have nudged in that direction. Corn with its golden color now seems to have been confused for that other precious commodity that is harvested from the earth in mines instead of by a combine.