Economic Impacts

While the cold here in the northeast is slowing economic activity and depressing demand for fresh veggies, the same type of weather on the west coast will ensure the current high prices for said veggies will continue despite the low demand.   Most receivers are pushing for lower prices, but the glut of trucks sitting in the Yuma area argues the shortages are not over and more cold weather and rain is moving in for the weekend.  The present situation poses an interesting question.  If the present variability in the weather continues or gets worse, will we see a fundamental shift in the price of fresh fruits and vegetables which will reflect the increasing risks to production.  Cheap prices are fine for everyone when yields are increasing, but growers cannot supply low cost product when they are liable for huge losses when weather conditions decimate crops.  The input costs for land rent, seeds, fertilizer and labor are orders of magnitude greater than the halcyon days of the 50s and 60s of the last century.  It used to be said a farmer had to start out with enough capital to survive 7 lean years.  To amass that much money nowadays you would need a venture capitalist to back you and they don't invest in low return industries.