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I just finished watching the discussion regarding the possiblity of low value crops such as grains and probably animal production as an investment strategy for investors. I didn't know whether to laugh at the short sightedness of the potential investor or cry for the future of the grain growers and animal producers. The most recent history of such an analogy has already proven not to work. We have an excellent example with the hog producers across our great nation that have millions of dollars ( per operation) in the most efficient delivery systems possible for growing hogs and the industry just went bust in the past 5 years. the same scenario goes for the corn, and soy operators who invested heavy in the grains for fuel push in the last five years. Although I believe this has the greatest potential of any for using food substance for non food consumption. The biggest loser will still be the producer simply because of the false escalation in land values. There are always winners and losers when you use food as an investment play. And that's the real problem,large corporate investors will hold out a carrot in hopes that they can create enough interest for their own agenda. The sucker is always the producer who does not do his due dilegence on the long term results of his decision to buy over priced land for a low value commodity that someone is telling him they need for their investment scheme. I think we all need to re-evaluate the original concept of commodity exchange as well as futures contracts. the person interviewed makes the claim that there will be a great demand for agricultural commodities in the near future. But based on the continueing price trend for ag commodities I believe we have enough supply to feed the world into the next century. Another issue that was not brought to the table is quality. Proven over and over again is the relationship between quality and mass production of food in general. The nations health is already an epidemic concern and yet we pump this idea in the agriculture industry that industrial food production is good and there are no side effects to spreading mass amounts of synthetic poisons on the ground and the crop before it gets packaged for your table.
It is my view that the corporate investor should stay out of the agruculture discussion when it comes to food production. We first have to fix the the current method of food production for consumers where health of thee end user is of the utmost concern.
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