dropping to $1 a pound before a big bounce due to weather in Brazil. We apparently are going to finally get a huge crop of corn this year. The thing is, they talk about the price being below the cost of production now, which some claim to be $4.50 but let's just say $4. Does this mean far less production next year if prices remain in a funk (even if weather doesn't cut yields)?
I don't think it will effect production as long as soybeans and wheat keep going down in price along with the corn. A few may diversify into alfalfa, but probably not many. Farmers will just have to look for different revenue streams and sell their crops at a loss, like they had to do all through the 1970s - 90s
I had a corn crop 1 year and by fall harvest the price went so low it was almost not worth bringing it in. Farmers were chopping it up for silage. The price of livestock went through the roof because people decided it would be better to feed it than sell it. I kept it all and used it to feed to my hogs.