Some analysts are looking at the current cycle of the farm economy and think it echoes the 1980s.
According to Dan Hueber, editor of the Hueber Report, there’s a “dominant 30-year cycle” in commodities.
“It’s not exactly 30 years to the date, but if you go back to that mid- to latter part of the 1980s, much different farm program at the time, but you really farmed for the program” he told AgDay host Clinton Griffiths.
He said now it’s as though farmers farm for the insurance program.
“We adjust our planting to what the prices tell us they are in the spring, and realistically with a lot of people the insurance program that is going to keep things afloat this year,” he said.
2012 is still fresh in a lot of farmers’ minds. Both corn and soybeans saw impressive numbers on the board: corn sold for $8 per bushel and soybeans $20. According Hueber, world production saw a 5 percent reduction.
“Any disruption in the supply side and we’ve got a whole new ballgame out there,” he said.
Hear his full comments on AgDay above.