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Sanctions on Russia

Started by Richard Wilson4 · · 👁 770 views · 9.5K replies

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Participants Richard Wilson4velvetcyclist95Jeremy Peterson4silentsurfer3rowdytiger13Carol Newman2William Anderson5Carl Cookfrozencobra50Paul Patel95Michael Davis10Gary WilsonGregory Ramos3slyfox43dustywolf13Tyler Jones6Larry Walker24Ashley Ramirez4Paul Clark80Adam Lee13northernangler8Nancy Ruiz5James Chavez91neonheron9 …
Christian Torres3 Christian Torres3 Regular
604 messages
joined Sep 2014
#4781 ·
hollowdriver13 said:It’s funny, really. I can't stand the West, yet here I am saving in their "sinful" currency. I claim to dislike the West, but my son is out there making his living over there... 🤔

I say I hate the West, but I’m out here buying Swiss investment gold.... 🤷

Yeah, right. Nobody ever wants to admit they actually made their money in dollars...
urbanotter urbanotter Regular
431 messages
joined Oct 2020
#4782 ·
Christian Torres3 said:Yeah, right. Nobody ever wants to admit they actually made their money in dollars...


If you had actually asked me who lost out, maybe I would have spoken up sooner, but honestly, I don't even know what a winning hand looks like anymore, let alone having a photo of one to show off.
It seems I just lack the innate talent for making a profit on paper; I’ve spent my whole life on the losing side of the ledger.

I lost my shirt back when we were dealing with the old currencies, then through the various shifts in the dollar, and by the looks of things, I'll be losing on the Euro too.
I guess it’s just my fate—I was foolish enough to believe that hard work actually leads to wealth, but all it’s earned me is enough to keep breathing for now, though I'm starting to wonder how much longer that will last.

p.s.
When I was twenty-three and traveling through France, I really should have pushed further toward that promised land instead of coming back to this little corner of nowhere.
In that promised land, they say "every business is blooming."
analogbear5 analogbear5 Regular
571 messages
joined Aug 2019
#4783 ·
Newsflash: that promised land? It doesn't exist.

Anyway, back to the topic: Russia decided to stop publishing its trade data and budget spending—and get this—tax revenues plummeted by more than half in May compared to April.
Nancy Gomez26 Nancy Gomez26 Regular
787 messages
joined Jan 2018
#4784 ·
steelfox98 said:Go ahead and check the inflation rates before and after February. It all traces back to raw materials and energy costs—and the European Union doesn't have a single damn thing of either.
We produce more food than anyone else on the planet—great. Except we went and slapped sanctions on fertilizer. Just sitting here waiting to see the fallout once harvest season actually hits.
Flour prices have already spiked 50% in just the last four months. I remember when a bag of King Arthur didn't cost a small fortune at the local grocery store. It's all going downhill fast.

The Germans slapped sanctions on spare parts, and now they’re sweating over a single turbine while Russia just laughs at them. The Yamal pipeline is dead in the water. Last month, Ukrainians choked off part of the supply, and now the Americans are dealing with their own mess involving a damaged terminal... everything is falling apart.
I wouldn't be surprised at all if they slashed exports to Europe even further just to rein in domestic prices. Elections are right around the corner, and Joe Biden is sitting on his worst approval ratings in US history.

What’s the deal with the supply from Qatar? Three months ago, the Germans were all over the news claiming they’d struck a deal, only for the Qatari side to turn around and say they hadn't a clue what anyone was talking about. Typical.
Now they’re trekking across Africa begging for scraps, just so Olaf Scholz can stand up and give some grand speech about "progress" without actually delivering a single thing. In plain English? It's nothing but heavy-handed posturing, much like their dealings with the Qataris.

In short, how we handle this winter depends entirely on whether Putin and Russia decide to be merciful. Just my luck.

In this year's wheat harvest, you won't actually feel the impact of these fertilizer price hikes. Why? Because the fertilizer for this crop was already purchased well in advance, including the stuff for spring application. Even us farmers have learned the lesson: Ken is at its most expensive when you actually need it for feeding, but it's cheapest in the summer when the next round is still far off. Investing in Ken makes sense because the margin is huge—assuming you aren't hit by other sudden price spikes—it's much more profitable to hold onto fertilizer than to park your cash in a bank. Of course, you need somewhere to store it. This year was strange; Dow Chemical wasn't even producing Ken, they were just importing it from the Czech Republic and apparently just repackaging it at the Dow Chemical plant. I don't know if it was due to maintenance or if they simply couldn't compete on price. Earlier this spring, there was still some Ken coming out of Dow Chemical.
Since we're expecting decent corn prices this year, people didn't skimp on the fertilizer (at least in my neck of the woods), regardless of how expensive it got—though the pricing was wildly inconsistent. Sure, fertilizer went up, but buyback prices skyrocketed right along with it. For me personally, the ratios remain roughly the same; it's just the total dollar amounts that have shifted. Right now, a single bad storm can do more damage to a wheat crop than anything else, especially when you have finished product just sitting there in the field.
It stands to reason that flour prices rose because wheat buyback prices rose. And it’s a certainty that this will trickle down to the cost of bread and any other goods using flour.
Bryan Booth82 Bryan Booth82 Regular
483 messages
joined Feb 2024
#4785 ·
Nancy Gomez26 said:That is a perfectly normal state of affairs for Russia. For Germany, a mere 0.3% drop in growth compared to the previous year is considered a national crisis. Comparing the two is... well, it's incomparable. It simply makes no sense. Both nations are holding their own within their respective parameters. It's just that those parameters are vastly different.

Imagine if the Russian Federation were actually prospering—if wages and living standards rose steadily over decades, and the general population actually saw some progress... who would go to war then? And once they had a taste of stability, they might even start looking to demand changes at the top. So, for them, this status quo is better. If there is any surplus wealth, it just means a few extra meters on a yacht anchored somewhere—perhaps even in a marina along the Adriatic Sea. And there we have it.

That is a pretty naive explanation. It suggests that Germans are genetically programmed to thrive while Russians can live on cabbage and water, and that things have always been this way and will remain so until the end of time.

Look, it’s a decent enough theory to toss around at a bar after two beers, but let's be honest: it’s a low-level argument meant for the uncritical or those who don't want to think too hard about the current moment.

Abigail, I really wish this could be a place with slightly higher standards than what we're seeing here.

The idea that Germany isn't collapsing and Russia isn't advancing simply because it’s "destiny" or written in their DNA is nonsense. The actual reasons are much more complex.
Best regards
Nancy Gomez26 Nancy Gomez26 Regular
787 messages
joined Jan 2018
#4786 ·
urbanotter said:You can't seriously think I don't realize electric cars don't have pistons; you're just grasping at descriptive metaphors to try and prove to me that every product starts from raw materials and
I drove a Mercedes for several years before my daughter "stole" it from me—it was an A 180.
Ten years ago, it was the perfect city car; there was enough room for four grown adults, it had a low floor since the battery was tucked under the passenger side, and the seats were high enough that you just slide right into them, much like the Grand Cherokee I drive now.

Regarding the Chinese auto industry, you should really look into ten of their brands and models that will be dominating the roads in Russia soon; some of those buyers who have the cash for a Mercedes will end up buying one regardless of the price tag.

That represents that 5% mentioned by the blogger Krule in his live stream, which is essentially like having one rotten apple in a basket—it eventually spoils the whole lot.

https://hr.expertevolux.com/top-samy...lej-iz-kitaja/

Instead of worrying about what 95% of Russians will be driving, maybe you should focus more on what we'll be driving ourselves.
I've been hearing that the price of used cars in Germany has spiked significantly, and it seems like Germans are increasingly turning away from new models in favor of second-hand ones.

It seems the prevailing wisdom here is "I don't care if my neighbor's cow dies, as long as mine stays healthy."

As Mirjana Hrga wrote on her profile recently, the last true "macho men" were the ones from the 90s; those guys knew how to strip down and reassemble an AK-47, whereas today's crowd is carrying Vuitton bags and wearing feathers around their necks.

Either that, or I'll just make you laugh or cry.

Do yourself a favor and pick up a Mercedes as soon as you can, while they're still actually available on the market

I'm not really a Mercedes guy; I need a different kind of vehicle—something with a rear hitch so a forklift can load a pallet. Even Mercedes has options like that (since Mitsubishi works for them), but it's too expensive for me; I have more pressing investments.
There is no need to worry about Russians; they have their own vehicles, or they can travel back in time, wait out the current regime, or just smuggle some junk across the border. It might get a little "hot," but who cares when there's a brutal winter over there. As for the Chinese auto industry, it feels a bit "off" to me—they seem a bit green right now, though they’ll likely be solid in a while. I once wrote about a colleague who bought a new Chinese tractor because it was such a bargain; it seemed fine at first, but there are plenty of teething problems. In the end, the man bought used Western tractors and is completely satisfied with them—he’d sell the new Chinese one in a heartbeat. It's hard to claim a Yugo is a good car once you've driven a Golf (which isn't anything special itself). For Chinese standards, their tractor is probably perfectly fine; for our standards today, not so much.
Nancy Gomez26 Nancy Gomez26 Regular
787 messages
joined Jan 2018
#4787 ·
Bryan Booth82 said:That is a pretty naive explanation. It suggests that Germans are genetically programmed to thrive while Russians can live on cabbage and water, and that things have always been this way and will remain so until the end of time.

Look, it’s a decent enough theory to toss around at a bar after two beers, but let's be honest: it’s a low-level argument meant for the uncritical or those who don't want to think too hard about the current moment.

Abigail, I really wish this could be a place with slightly higher standards than what we're seeing here.

The idea that Germany isn't collapsing and Russia isn't advancing simply because it’s "destiny" or written in their DNA is nonsense. The actual reasons are much more complex.
Best regards

No, it isn't written in their genes that Germans must prosper; it's simply that organization is their entire existence. They track, analyze, plan, and organize based on the situation—which is constantly shifting. If you want to extract maximum value from any endeavor, you need a system and discipline. The Germans react to even the slightest hint of trouble with immediate, coordinated action.
With the Russians, everything is constant chaos. Organization is practically science fiction there; things are usually handled on the fly with a heavy dose of improvisation (which might have its niche benefits, but carries far more drawbacks). It is certainly not true that everyone in Germany is perfectly organized or that everyone in Russia works with systematic precision. There are good and bad examples on both sides, but one thing is certain: in a competitive economic environment, constant improvisation is hard to sustain. In an environment defined by volatility, long-term planning and organization simply lose their utility.
rowdyraven112 rowdyraven112 Active Member
248 messages
joined Jun 2024
#4788 ·
urbanotter said:If you had actually asked me who lost out, maybe I would have spoken up sooner, but honestly, I don't even know what a winning hand looks like anymore, let alone having a photo of one to show off.
It seems I just lack the innate talent for making a profit on paper; I’ve spent my whole life on the losing side of the ledger.

I lost my shirt back when we were dealing with the old currencies, then through the various shifts in the dollar, and by the looks of things, I'll be losing on the Euro too.
I guess it’s just my fate—I was foolish enough to believe that hard work actually leads to wealth, but all it’s earned me is enough to keep breathing for now, though I'm starting to wonder how much longer that will last.

p.s.
When I was twenty-three and traveling through France, I really should have pushed further toward that promised land instead of coming back to this little corner of nowhere.
In that promised land, they say "every business is blooming."

It's obvious they're just jerks. ☕
If they had any actual arguments, they wouldn't have to label everyone a "Putin follower" or a "Kremlin lickspittle." They claim Russia will collapse, then ask why you don't just go work in Russia if you like Putin so much... their entire communication strategy is basically just proactive small talk with Dumb and Dumber.☕
On one hand, they scream hatred toward Putin and claim solidarity with the people of Ukraine, yet on the other, they buy Russian gas and fuel, effectively funding the aggression against Ukraine. Of course, they still buy food at the grocery store that was delivered using Russian fuel.☕
swiftjackal11 swiftjackal11 Regular
271 messages
joined May 2018
#4789 ·
rowdyraven112 said:It's obvious they're just jerks. ☕
If they had any actual arguments, they wouldn't have to label everyone a "Putin follower" or a "Kremlin lickspittle." They claim Russia will collapse, then ask why you don't just go work in Russia if you like Putin so much... their entire communication strategy is basically just proactive small talk with Dumb and Dumber.☕
On one hand, they scream hatred toward Putin and claim solidarity with the people of Ukraine, yet on the other, they buy Russian gas and fuel, effectively funding the aggression against Ukraine. Of course, they still buy food at the grocery store that was delivered using Russian fuel.☕

And you clearly love Putin. You graduated from Moscow State University and you're making maybe $1,500 a month while his mistress has billions. You aren't stupid, you just accept it as normal. And why does she and those other thousand people have so much? It's because they're stealing from you Americans.
rowdyraven112 rowdyraven112 Active Member
248 messages
joined Jun 2024
#4790 ·
swiftjackal11 said:And you clearly love Putin. You graduated from Moscow State University and you're making maybe $1,500 a month while his mistress has billions. You aren't stupid, you just accept it as normal. And why does she and those other thousand people have so much? It's because they're stealing from you Americans.

Classic Dumb and Dumber logic right here. ☕
Nancy Gomez26 Nancy Gomez26 Regular
787 messages
joined Jan 2018
#4791 ·
rowdyraven112 said:It's obvious they're just jerks. ☕
If they had any actual arguments, they wouldn't have to label everyone a "Putin follower" or a "Kremlin lickspittle." They claim Russia will collapse, then ask why you don't just go work in Russia if you like Putin so much... their entire communication strategy is basically just proactive small talk with Dumb and Dumber.☕
On one hand, they scream hatred toward Putin and claim solidarity with the people of Ukraine, yet on the other, they buy Russian gas and fuel, effectively funding the aggression against Ukraine. Of course, they still buy food at the grocery store that was delivered using Russian fuel.☕

Let me be clear: when I pull up to a station, fill my tank, and pay the bill, that fuel becomes my property. Period. It doesn't matter where the supply originated. This idea that Putin is bundling his fuel with some hidden political agenda—acting as though he maintains a lingering claim over the energy I've already paid for and consumed—is a logical fallacy that simply doesn't hold water for me.

Putin is a despicable man. He shows the least amount of regard for his own people, who will be left to shoulder the consequences of his decision to launch an open war in Ukraine for years to come. Once he is gone, Russia will likely find itself even weaker than when he first seized power, back when the nation was already in a state of absolute desperation.
urbanotter urbanotter Regular
431 messages
joined Oct 2020
#4792 ·
Nancy Gomez26 said:I'm not really a Mercedes guy; I need a different kind of vehicle—something with a rear hitch so a forklift can load a pallet. Even Mercedes has options like that (since Mitsubishi works for them), but it's too expensive for me; I have more pressing investments.
There is no need to worry about Russians; they have their own vehicles, or they can travel back in time, wait out the current regime, or just smuggle some junk across the border. It might get a little "hot," but who cares when there's a brutal winter over there. As for the Chinese auto industry, it feels a bit "off" to me—they seem a bit green right now, though they’ll likely be solid in a while. I once wrote about a colleague who bought a new Chinese tractor because it was such a bargain; it seemed fine at first, but there are plenty of teething problems. In the end, the man bought used Western tractors and is completely satisfied with them—he’d sell the new Chinese one in a heartbeat. It's hard to claim a Yugo is a good car once you've driven a Golf (which isn't anything special itself). For Chinese standards, their tractor is probably perfectly fine; for our standards today, not so much.

You’ve gone and used the wrong photo of those Chinese products again; honestly, you probably should have just stuck to using the stuff from Pevec.
From what I’ve gathered, that old saying about "you get what you pay for" when it comes to music holds true in China just as much as it does here in the States. It’s a bit of a different landscape there, though; they have such an incredibly vast catalog of notes and compositions available that you can essentially tailor a whole musical experience to fit your exact mood or preference.
I wouldn't call myself much of a Mercedes-Benz enthusiast myself; most of the time, those cars were being driven by women in my circle. For me, it was always more about practicality, like that old Citroën Jumpy I had that I eventually converted into a makeshift refrigerated van.

I don't have any personal experience driving Chinese cars myself, but there’s actually a dedicated thread on this forum where professional test drivers share their hands-on reviews. If I were you, I’d spend some time looking through that to get a real sense of how they perform. It's probably better to base your opinion on actual driving data rather than just making assumptions based on how much rain falls in a small town in the US during May.

I have been thinking lately about how much the landscape is shifting over in Russia, and I honestly suspect we’re going to see them leaning more and more heavily on Chinese automobiles. It feels like a natural progression, especially if they decide to move beyond just buying cars and actually start forming deep strategic partnerships with major Chinese manufacturers. I remember seeing a similar trend in the US automotive market years ago when certain foreign brands started making massive inroads, but this seems much more systemic. At this point, it wouldn't surprise me at all to see them integrating Chinese tech and production directly into their own infrastructure.
swiftjackal11 swiftjackal11 Regular
271 messages
joined May 2018
#4793 ·
rowdyraven112 said:Classic Dumb and Dumber logic right here. ☕

Nobody's stopping you from loving Russia.🤷If you want to vacation there, read their books, watch their movies, buy their stuff, or save your money in rubles, go for it. I can appreciate all that while still being part of Western civilization. That’s why I stick with the West.
rowdyraven112 rowdyraven112 Active Member
248 messages
joined Jun 2024
#4794 ·
Nancy Gomez26 said:In this year's wheat harvest, you won't actually feel the impact of these fertilizer price hikes. Why? Because the fertilizer for this crop was already purchased well in advance, including the stuff for spring application. Even us farmers have learned the lesson: Ken is at its most expensive when you actually need it for feeding, but it's cheapest in the summer when the next round is still far off. Investing in Ken makes sense because the margin is huge—assuming you aren't hit by other sudden price spikes—it's much more profitable to hold onto fertilizer than to park your cash in a bank. Of course, you need somewhere to store it. This year was strange; Dow Chemical wasn't even producing Ken, they were just importing it from the Czech Republic and apparently just repackaging it at the Dow Chemical plant. I don't know if it was due to maintenance or if they simply couldn't compete on price. Earlier this spring, there was still some Ken coming out of Dow Chemical.
Since we're expecting decent corn prices this year, people didn't skimp on the fertilizer (at least in my neck of the woods), regardless of how expensive it got—though the pricing was wildly inconsistent. Sure, fertilizer went up, but buyback prices skyrocketed right along with it. For me personally, the ratios remain roughly the same; it's just the total dollar amounts that have shifted. Right now, a single bad storm can do more damage to a wheat crop than anything else, especially when you have finished product just sitting there in the field.
It stands to reason that flour prices rose because wheat buyback prices rose. And it’s a certainty that this will trickle down to the cost of bread and any other goods using flour.

Not too long ago, some farmers decided to go all-in on zucchini. What happened? The market was flooded, supply spiked, and the buyback prices tanked. You want to know what they were getting? Roughly... $6.75 If I remember correctly, next year we’re going to see way more small-time farmers popping up out of nowhere, all hoping for another handout. What, do they think it works like that? $6.75 Per pound. This year's price hovered around... $1.75Per pound.

Look, the market's going to set this year's wheat prices. With the situation over in Ukraine, there's already a massive shortage. Unless the government steps in and bans grain exports—which, let’s be honest, would make sense—farmers are going to sell at whatever the market dictates. They aren't going to sell at the price you have stuck in your head. ☕
hollowdriver13 hollowdriver13 Regular
705 messages
joined Feb 2022
#4795 ·
rowdyraven112 said:It's obvious they're just jerks. ☕
If they had any actual arguments, they wouldn't have to label everyone a "Putin follower" or a "Kremlin lickspittle." They claim Russia will collapse, then ask why you don't just go work in Russia if you like Putin so much... their entire communication strategy is basically just proactive small talk with Dumb and Dumber.☕
On one hand, they scream hatred toward Putin and claim solidarity with the people of Ukraine, yet on the other, they buy Russian gas and fuel, effectively funding the aggression against Ukraine. Of course, they still buy food at the grocery store that was delivered using Russian fuel.☕

He’s over here bashing the West while he EATS food grown and produced right here in the West... honestly, is there any actual proof that specific gas comes from Russian oil, whereas you somehow know exactly which country your food came from?

And FYI, when it comes to fuel production, the industry usually prefers Sahara or Middle Eastern light crude because it doesn't need as much refining; Russian heavy crude is actually better suited for products made by companies like Dow Chemical.

Watch out you don't stare too long in the mirror—it might crack under the sheer weight of that hypocrisy.
George Robinson43 George Robinson43 Regular
472 messages
joined Oct 2017
#4796 ·
Nancy Gomez26 said:Let me be clear: when I pull up to a station, fill my tank, and pay the bill, that fuel becomes my property. Period. It doesn't matter where the supply originated. This idea that Putin is bundling his fuel with some hidden political agenda—acting as though he maintains a lingering claim over the energy I've already paid for and consumed—is a logical fallacy that simply doesn't hold water for me.

Putin is a despicable man. He shows the least amount of regard for his own people, who will be left to shoulder the consequences of his decision to launch an open war in Ukraine for years to come. Once he is gone, Russia will likely find itself even weaker than when he first seized power, back when the nation was already in a state of absolute desperation.

Look, if you're worried about sourcing, just go to a station like Shell or ExxonMobil. Their gasoline is 100% non-Russian, and over the last two years, they've managed to cut their Russian diesel and heating oil imports down from 7% to essentially zero. If you want to deal with that messy Canadian-Russian conglomerate, you'll be stuck with Russian products, but you have better options here. 😉
crimsoncyclist71 crimsoncyclist71 Active Member
175 messages
joined Aug 2016
#4797 ·
hollowdriver13 said:He’s over here bashing the West while he EATS food grown and produced right here in the West... honestly, is there any actual proof that specific gas comes from Russian oil, whereas you somehow know exactly which country your food came from?

And FYI, when it comes to fuel production, the industry usually prefers Sahara or Middle Eastern light crude because it doesn't need as much refining; Russian heavy crude is actually better suited for products made by companies like Dow Chemical.

Watch out you don't stare too long in the mirror—it might crack under the sheer weight of that hypocrisy.

Don't forget he’s posting this on a forum built by an American company. If he’s typing on a PC, it’s because Americans invented them. If he’s using an OS, he’s using some software designed by those "hated" American tech giants. If he’s on a phone, he’s relying on the systems of those "hated" American capitalists.

Without the hated West, he'd be stuck carving letters into clay tablets.☕
Nancy Gomez26 Nancy Gomez26 Regular
787 messages
joined Jan 2018
#4798 ·
rowdyraven112 said:Not too long ago, some farmers decided to go all-in on zucchini. What happened? The market was flooded, supply spiked, and the buyback prices tanked. You want to know what they were getting? Roughly... $6.75 If I remember correctly, next year we’re going to see way more small-time farmers popping up out of nowhere, all hoping for another handout. What, do they think it works like that? $6.75 Per pound. This year's price hovered around... $1.75Per pound.

Look, the market's going to set this year's wheat prices. With the situation over in Ukraine, there's already a massive shortage. Unless the government steps in and bans grain exports—which, let’s be honest, would make sense—farmers are going to sell at whatever the market dictates. They aren't going to sell at the price you have stuck in your head. ☕

Zucchini is a local commodity. It’s highly perishable and, as far as I know, there isn't much industrial processing for it here. It’s grown and consumed locally; it has to be moved within days before it rots. Consequently, you can squeeze much higher margins out of zucchini per acre than you can from corn. It requires significant manual labor, which limits how many acres one can realistically manage.
Corn and wheat, however, are staples of global trade. Their prices are set on international exchanges. Quality standards for wheat are strictly defined, waste during intake is calculated, and logistics costs are transparent. These are dried crops—harvested dry, stored, and consumed year-round. But the profit margin per acre on corn is significantly lower than on zucchini. The industry is heavily mechanized; you need massive acreage and high yields just to see any meaningful return.
These two categories of goods are fundamentally different products, despite both being food items. The price of corn in the States is influenced more by crop assessments in the Midwest or the war in Ukraine than by whether we had a wet or dry season in our own backyard. This is because the domestic price is tethered to the global market; it cannot exceed the world price plus shipping, nor can it drop below the world price minus shipping and processing costs. Global pricing is driven by supply, demand, and the constant speculation regarding future surpluses or shortages.
Nancy Gomez26 Nancy Gomez26 Regular
787 messages
joined Jan 2018
#4799 ·
George Robinson43 said:Look, if you're worried about sourcing, just go to a station like Shell or ExxonMobil. Their gasoline is 100% non-Russian, and over the last two years, they've managed to cut their Russian diesel and heating oil imports down from 7% to essentially zero. If you want to deal with that messy Canadian-Russian conglomerate, you'll be stuck with Russian products, but you have better options here. 😉

As far as I'm concerned, the origin doesn't matter. Once I fill my tank and pay the bill, it's mine.
rowdyraven112 rowdyraven112 Active Member
248 messages
joined Jun 2024
#4800 ·
Nancy Gomez26 said:Zucchini is a local commodity. It’s highly perishable and, as far as I know, there isn't much industrial processing for it here. It’s grown and consumed locally; it has to be moved within days before it rots. Consequently, you can squeeze much higher margins out of zucchini per acre than you can from corn. It requires significant manual labor, which limits how many acres one can realistically manage.
Corn and wheat, however, are staples of global trade. Their prices are set on international exchanges. Quality standards for wheat are strictly defined, waste during intake is calculated, and logistics costs are transparent. These are dried crops—harvested dry, stored, and consumed year-round. But the profit margin per acre on corn is significantly lower than on zucchini. The industry is heavily mechanized; you need massive acreage and high yields just to see any meaningful return.
These two categories of goods are fundamentally different products, despite both being food items. The price of corn in the States is influenced more by crop assessments in the Midwest or the war in Ukraine than by whether we had a wet or dry season in our own backyard. This is because the domestic price is tethered to the global market; it cannot exceed the world price plus shipping, nor can it drop below the world price minus shipping and processing costs. Global pricing is driven by supply, demand, and the constant speculation regarding future surpluses or shortages.

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.

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