Crop Rotations Point To Higher Food Prices


The Wall Street Journal reports that the “the seeds of a sustained increase in food prices are about to be sown in Mississippi, Nebraska and other farm-belt states across the U.S.”  Why?  Well, it’s all about crop rotation.

The report continues:

With prices for everything from corn to cotton and soybeans soaring, the overall mix of production is likely to be similar to last year, instead of a major turn toward one hot crop, a move that would likely drive down the price of that crop.

In past years there have been some big acreage swings, but analysts expect mostly minor changes when the U.S. Department of Agriculture releases a closely watched survey of farmers’ intentions next month. Only a limited amount of idle land can be brought into production, further capping supply.

That could help extend the commodities rally, which has already seen corn futures jump 92% over the past year, soybeans rise 44%, wheat gain 69% and cotton soar 162%.

With worries rising about the world’s food supply, planting decisions are critical. The U.S. provides more than half of global corn exports and over 40% of soybean exports.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.