1. Wade Bowers Emily Bunka Tiffany Cole Vincent Continenza

2.  Between 1996 and 2003, profits ranged between $40 billion and $60 billion.  Annual U.S. farmer profits rose to $85.8 billion in 2004.  This increase is due to the race to expand bio- fuels in the U.S. and the increasing demand for grain-fed livestock in developing countries. (i.e. China)

3.  Economist predicted a continuation of the “golden era” in the farming industry.  Farmers are currently struggling to break even with a change in weather and rising supply prices.  They are losing money on their crops while paying more for supplies and struggling to meet demand for grains, soy, and corn.

4.  Torrential rains have destroyed soy and corn crops and washed away fertilizer.  Iowa corn prices: $7.54 a bushel - July 4  $3.81 a bushel – October 22  Approximately 50% decrease.  Prices of barley, cotton, sugar, and wheat have also fallen.  Fertilizer and seed costs could rise by more than 40% for next spring’s planting.

6.  Unpredictable weather is making farmers rethink what they want grow and what supplies to purchase.

7.  Bunge Ltd., which sells fertilizers and processes soy beans, has dropped 67% since June.  Farmers are expected to pay 60% more for nitrogen-based fertilizer next spring.  Archer-Daniels-Midland, which is a grain processor and exporter, is 60% off its 52 week high.

8.  In the “golden era,” farmers were spending more on land, grain, and equipment.  Agricultural supply companies were making record profits.  In the current state of the economy, farmers are buying less to compensate for loss of total revenue.  Frugality among farmers is on the rise.

9.  Wholesale prices of key food items have risen dramatically from a year ago:  Butter prices are up 31%  Cheddar cheese prices, up 65%  Nonfat dry milk prices, up 117%  Broiler chickens, up 17.5%  Beef, select, up 12.8%

10.  Livestock producers are saving money when purchasing grain to feed their animals.  Operating costs for grain-handling firms are also going down as a result of lower crop prices.  Ethanol producers are saving money because corn represents nearly 75% of their costs.

11.  The public is concerned that we will have a repeat of the 1980’s when the federal government had to bail out the largest farming lender.  Concerns are heightened by an already unstable economy.

12.  “Agriculture learned its lessons in the 1980s,” said Robert B. Engel, CEO of Denver’s CoBank, a cooperatively owned lender to agribusiness. “I still think the golden era of agriculture will be with us for another five plus years.”