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| I said “Sure, there will still be boom and bust”
As long as we have free markets, boom and bust will continue to be a challenge. My point, the bust cycle may bottom at a higher levels—but your costs are also going to re-adjust. In addition, land prices have advanced meaning your investment equity has increased.
And, there may be periods when gasoline values plummet & we have general international overproduction-good weather. Additionally, there will always be currency cycles.
The other considerations. China will be aggressive in using technology to expand their production but they have a slightly different situation as they’ve a large population rapidly headed into urban areas, but China is also getting involved in crops to energy conversion as are many other countries.
The former Soviet Union has limitations since the bulk of the land is about the same latitude as Canada. With the exception of Manchurian products coming through the port of Vladivostok the bulk of the former soviet union trade by ocean vessel is through the Bosphorus into the Black Sea which is a very narrow channel.
Kazakhstan produces about 15% of USA production, the Ukraine about 30% & Russia about 75% but has less net to export.
Bottom line in my view, as international economies continue to improve over time & with the energy considerations, we are entering a period of higher highs and higher lows with the occasional major wipeout when the entire world enjoys good weather.
Adding value:?? Stopped by an imported & organic food store this morning because of its convenient location to pick up romaine lettuce, a couple of sweet onions, 2 lb loaf of coarse Italian bread, a few organic tomatoes, some flatbread & a bottle of olive oil—guaranteed to have been squeezed out by cold press by elderly Sicilians—Total Cost $ 97.08 that is adding value!!! And, the place is packed with people. The large parking lot is jammed.
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WHOA!! Still will be boom & bust
