The Challenge of Feeding 9 Billion People
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May 30 (Bloomberg) -- America’s breadbasket, on the heelsof last year’s severe drought, abounds with predictions ofrecord corn and soybean harvests. The juxtaposition of the hopefor this growing season against the reality of last year shouldgive us reason to consider the lessons learned in 2012.
With grain stocks low, farmers have responded to higherprices and planted more. Although rising commodity prices areoften viewed only as harbingers of inflation, they also motivatefarmers to produce more. “The cure for high prices,” as thecommodities-market adage goes, “is high prices.”