#4801 ·
rowdyraven112 said:The bottom line? The market sets the price. Farmers are telling us that planting wheat hasn't been profitable lately; production costs are eating the sales price alive. At least, that’s how it’s been. The only thing keeping some people afloat is government subsidies. Essentially, the government is footing the bill to ensure food security. Right now, global wheat reserves are low, which means prices are climbing regardless of how much effort farmers put into the soil. It'll sell at whatever the market demands. But next year? Who knows. Costs could rise while prices tank. That’s when the government steps in again to bail out wheat production. This isn't just an American issue; it happens everywhere. Honestly, I can't think of a single country where wheat farming is consistently profitable without state intervention.
There is very little margin in wheat or corn. You need massive acreage and high yield just to survive. Only a tiny fraction of farmers actually manage that scale. On the flip side, expecting to make a living off such crops with only a few acres is naive. For them, any subsidy amount is merely survival money—social welfare, really—not capital for expansion. For small-scale producers, almost any buyback price is a losing game because their fixed overhead is already too high to cover. Those with limited land should have pivoted to different types of production, but that requires specialized knowledge, marketing expertise, and a host of other skills. If they possessed those capabilities, they would already be among the large-scale operators. Opportunities existed, but that window is closing or has already slammed shut. At this stage, you simply work with the resources you have left.