You are right on this. Part of the problem is that as soon as a price goes up a bit. Every one jumps on board and increas production. Thus over producing and lowering the price.
If there were a system run by farmers that would monitor needed crop acerage aganst planted acrerage. If say 50% of acrerage needed to be corn to support the price. 20% wheat, 20% Soybeans then the remainder hay,ect. Obviously drought and high yealds would effect this some what but major over production would not happen.
Price would be more stable. The system now is set up to keep farmers competing with each other. Plus how many farmers you know would only plant certain amount of acres if the price was high?
Could you just see ADM"S face if farmers all cooped thier acrerage?
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