Many farmers in the U.S.A are facing a market crisis with their excessive farm produce. Apparently, the supply has exceeded the demand and market prices are falling by the day. This has seen many farmers denied the much-needed income due to oversaturation of produce in the market. Corn and wheat have flooded the market after years of investing in farming activities. Approximately 23 states have been affected by falling market prices since the year 2014. Quality farming involves massive spending on land acquisition, farm inputs, and labor. This is an investment that cannot be reversed and takes many years to bring in reasonable returns.
An agricultural economist from Purdue University, Chris Hurt, stated that the situation in the industry was irreversible. Therefore, more produce is expected to get into the market. Economic enigma looms over the market with prices dropping and production shooting over the roof. Farmers also face time constraints in that they are unable to invest in activities as quickly as need be, most especially for new market trends. By the time they respond, many players would already be producing the same product. One of the challenging issues in the industry is the inability for farmers to co-operate to regulate production and market prices. David Anderson of the Texas A&M’s Department of Agricultural Economics noted that farmers have mixed feelings when asked to minimize production.