Monday, July 18, 2011

supply and demand

Why aren't more cucumbers available to satisfy a demand which is pushing the FOB market into the $25.00 range?  The pat answer is the lousy weather early which delayed planting and caused disease and insect pressure.  The more likely possiblility is the farmer is his own worst enemy.  One Quebec grower had 30 acres of cukes ready to harvest last year at this time, but wound up disking most of them and dumping some already packed.  So he cut his acreage by two thirds this year.  So of course, he'll make money in this market and then probably increase his plantings next year and give all the profit back.  The common wisdom is to plant the same amount each year, or at least increase very slowly.  Unfortunately, most farmers chase the dream of hitting the home run with a large planting no one expected.  But of course all their neighbors were gearing up at the same time, so they all wound up in the red.  So much for the common wisdom.   It sounds pretty similar to Congress voting for all manner of unfunded programs for 10 years and then deciding we must cut the deficit despite all the evidence this will only make the situation worse.  At least most farmers are generous, optimistic and hardworking, unlike most of the fools we elect to represent our interests.

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