Farmers protests

[Geoff Parkstone]

"The price comes down! I often cringe when the media talk about a bad harvest in terms of volume. yes yields may be down, but guess what supply shortages means prices rise. Often the same "profit" will be gained room less produced."

The flaw in your argument is that in particular commodity crops such as wheat rape barley are now global markets. In the 60's yield down price up logic was valid. Now if your UK yield goes down it doesn't mean price goes up if weather has lead to big harvests in US Midwest, Australia or (historically) Ukraine. Look at the impact of the Russian invasion on wheat prices as an example - they shot up, but so did fertiliser prices.

Secondly commodity prices are subject to futures markets and speculation by investors with no physical product and so price is no longer a function of simple yield. Farmers are not experts in futures trading or hedging - although they have had to try to become so or face the consequences.

[swaledale]

"The price comes down! I often cringe when the media talk about a bad harvest in terms of volume. yes yields may be down, but guess what supply shortages means prices rise. Often the same "profit" will be gained room less produced."

The flaw in your argument is that in particular commodity crops such as wheat rape barley are now global markets. In the 60's yield down price up logic was valid. Now if your UK yield goes down it doesn't mean price goes up if weather has lead to big harvests in US Midwest, Australia or (historically) Ukraine. Look at the impact of the Russian invasion on wheat prices as an example - they shot up, but so did fertiliser prices.

Secondly commodity prices are subject to futures markets and speculation by investors with no physical product and so price is no longer a function of simple yield. Farmers are not experts in futures trading or hedging - although they have had to try to become so or face the consequences.

Ah well yes, to an extent your correct and the cost of inputs recently has indeed rocketed, but then one would think that the end result would be less crops grown or animals produced, in fact I'm somewhat surprised that hasn't happened to a large extent, I mean if its impossible or very difficult to make a good living farming, then why do it? Many other industries that used to employ many thousands more people than agriculture ever did, have fallen by the wayside for various reasons, why should farmers be a special case?