Source: National Corn Growers Association

Corn farmers who came to St. Louis for the National Corn Growers Association's Priority and Policy Conference this week enjoyed a presentation by Bruce Scherr, CEO of Informa Economics and one of the nation's leading agricultural economics research firms. In his presentations, Scherr reviewed the historical trends in corn prices and looked at how changing global demographics are shifting the agricultural commodity market paradigm.

"What we see in increased corn prices today is the ripple effect of economic expansion," Scherr said. "The expansion of commodity values is not over. It's just beginning."

Noting that commodity prices remained, on average, stagnant for three decades despite significant inflation in the market as a whole, Scherr explained that it is essential to keep current price increases in perspective because prior values were unsustainably low. He also pointed out that, while demand initially surged, increases have leveled off and are now trending to more gradual growth. 

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