by Robert Williams, Publisher
Tuesday, October 13, 2009
It’s incredible how fast the tables can turn sometimes. Eighteen months ago, at the height of the Agriboom, supply shortages turned our nation’s farms into virtual ATMs.
Farmers couldn’t grow their respective crops fast enough. Farm incomes were pushed about 30% higher than the average wage for all workers. And thanks to the accompanying rise in property values, the average net worth of a full-time farmer mushroomed to $830,000. (U.S. farmers earned a record $80.4 billion after expenses in 2008.)
Even colleges with Agricultural majors saw big upticks in enrollment.
Well, proving again that trends typically swing back to their historical means, we recently got the latest data on farming. And it isn’t good for farmers.
The U.S. Department of Agriculture expects farm income this year – when adjusted for inflation – to be 39% lower than last year’s record high. If they’re right, it would mark the worst annual percentage drop since 1983. Ouch.
Who wins? Consumers.
Across the board, prices are down. For example, the same gallon of milk that cost about $3.89 last year is now only $2.98, according to the Bureau of Labor Statistics.
Now if these grocery store bargains aren’t enough, and you really want to exploit the agriculture space for big profits, check out Lee Lowell’s article.
And remember, Lee spent six years in the trading pits of the NYMEX, where daily commodities prices are set. So a thorough read is likely in order.
Ahead of the tape,
Robert Williams
Related Investment U Articles:
- Agriculture Making a Comeback in the U.S. Economy
- The Corn Crop Won’t Offer Relief to Rising Food Prices
- The 2010 Corn Crop: The Bullish and Bearish Sides of this Commodity
- The Corn Market: Butter Up Your Portfolio
- The World’s Biggest Food Fight
Comments
**By submitting your comment you agree to adhere to our Comment Policy and Privacy Policy. |
 |
In addition to once being a full-time trader of equities and equity derivatives, Robert Williams has served as the lead financial analyst for a Forbes top-50 private corporation and an analyst for the endowment of a major academic institution. He's also been profiled in such books as Trade with Passion and Purpose and Alexander Green's The Secret of Shelter Island. 
