Think you have it tough at work? Consider the plight of the Midwest’s corn and soybean farmers. They churn out the basic raw materials of our food system: the stuff that gets turned into animal feed, sweetener, cooking fat, and even a substantial amount of our car fuel. What do they get for their trouble? According to a stunning analysis (PDF) by Iowa State ag economist Chad Hart, crop prices have fallen so low (a bumper crop has driven down corn prices to their lowest level since 2006), and input costs (think seeds, fertilizers, pesticides) have gotten so high, that they’re losing $225 per acre of corn and $100 per acre of soybeans. So if you’re an Iowa farmer with a 2,000-acre farm, and you planted it half and half in these two dominant crops, you stand to lose $325,000 on this year’s harvest.
Large-scale commodity farming is a vicious business—farmers are caught in a vice between a small handful of buyers (Archers Daniels Midland, Cargill, Bunge) that are always looking to drive crop prices down, and a small handful of input suppliers (Monsanto, DuPont Pioneer, Syngenta, etc) always looking to push the price of seeds, fertilizers, and pesticides up. It’s no wonder, as Iowa State’s Hart has shown, that the “long run profitability” of such farming is “zero.”