Grain price trend: long term decline reversed in last decade

January 20, 2015

"Increased productivity in crop production underlies a general decrease in inflation-adjusted prices for corn, wheat and soybeans over the past century. This trend was reversed during the past decade by global growth in population and income, increasing biofuel production and a depreciation of the U.S. dollar."
Even with inflation adjusted prices now trending upward, overall grain price is still much lower than it was in 1910.
USDA, ERS
U.S. Current wheat price is ¼ of 1960 price, soybeans 1/3 of 1960s price
“The current soybean price near $5.75 per bushel is about one-third of the $15.40 price (in 2006 dollar terms) seen back in 1960. The current wheat price of $3.50 is about one-quarter of the $14.00 price (in 2006 terms) seen in 1960. The current price of corn near $2.40 is about one-third of the $7.86 price (in 2006 dollars) seen back in 1960.”
1960-2006 Commodity Research Bureau on US grains

 

USDA, ERS
http://www.ers.usda.gov/data-products/chart-gallery/detail.aspx?chartId=...
1960-2006 Commodity Research Bureau on US grains
http://www.crbdata.com/pubs/enc/grains.pdf
Accessed March 7, 2014

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