Soaring grain prices fuel farm recovery

A crop glut that has plagued American farmers is dwindling, fueling an unexpected recovery in the American agricultural belt after a multi-year agricultural recession.

Corn, soybean and wheat prices have climbed to their highest level in more than six years as dry weather and strong export demand from China deplete U.S. stocks.

Rising commodity prices are rippling through the food chain, contributing to a sharp increase in farm incomes in the United States and increasing the prospects for a swathe of rural businesses, from grain traders to food manufacturers. equipment and fertilizer suppliers.

At the same time, the revival of the grain sector raises costs and puts pressure on the profit margins of food and fuel producers who consume large amounts of US corn and soybeans each year, and is likely to lead to higher prices for US corn and soybeans. foodstuffs for consumers, certain food products. say the leaders.

This is a dramatic reversal from recent years when bumper harvests have inflated US grain supplies, pushing prices down and reducing farm incomes. A wave of bankruptcies swept through farms in the Midwest, followed by trade disputes and the coronavirus pandemic, which worsened farmers’ struggles.