Bread and Circuses

According to an article in a Kansas newspaper, the winter wheat harvest is beginning early this year because of the drought and high temps in that part of the Midwest.  It's amazing that one corner of the heartland is drying up while other areas will remain underwater for the entire summer.  The gist of the article is the harvest will be poor, but the price will be up.  They interview a farmer who says she is hoping for 20-25 sixty pound bushels of wheat per acre.  At $9.00/bushel (4x the price of a few years ago)  that means they will gross from $180-225/acre before expenses.  If you calculate seed, fertilizer, fuel and machinery depreciation, custom harvesting, oh and rent or taxes, it's hard to believe there will be anything left for the farmer.  If she nets $20.00/acre on 2500 acres, that is $50,000.  After deducting some sort of wage, I doubt she would have enough profit to take the family to McDonalds to celebrate the harvest.  Meanwhile, Cargil, or whichever company buys the grain, will make a killing, as the world market is very tight.  Russia, China, and Australia are all experiencing varying degrees of crop failure, and most of the US is in similar shape.  And you thought I was pessimistic about veg crops!