Big drops in prices for crops make it tough down on the farm Corn, so.pdf

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Big drops in prices for crops make it tough down on the farm Corn, soybean, and wheat prices have fallen roughly 50 percent from the historic highs of earlier this year. With better-than- expected crop yields, world grain production will rise nearly 5 percent this year. Grain prices have also become more closely tied to oil prices because of the growing corn-based ethanol industry. Source: USA Today, October 23, 2008 Why did grain prices fall in 2008 ? B. the supply of grain increased The graph shows the marginal cost, average total cost, and marginal revenue curves for a farmer. Draw a point to show the quantity produced when the price is $4 a bushel. Label it 1. Suppose the price falls to $2 a bushel. Draw the new marginal > Draw only the objects specified in the question. revenue curve. Label it MR1. Draw a point to show the quantity produced when the price is $2 a bushel. Label it 2. Draw a shape that represents either the economic profit or economic loss when the price is $2 a bushel. Label it..

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AN INSIDE LOOK Organic Farming on the Decline in the Unite= d Kingdom GUARDIAN.CO.UK <= span style='line-height:125%'> Farmers Turn Away from Organic as Sa= les Drop Farmers have begun to turn away from organic food productio= n in the face of waning interest from the big supermarkets. The amou= nt of land being converted to organic cultivation across the UK has dropped= by two-thirds since 2007, according to statistics released by the Departme= nt for Environment, Food and Rural Affairs, as falling sales of organic pro= ducts mean fewer farmers are seeing a reason to change. a Sales of o= rganic products fell by 5.9% in the UK last year, according to the Soil Ass= ociation, from £1.8bn in 2009 to £1.7bn. That continued a decline from = record sales of £2.1bn in 2008, and came amid rising food prices. The amo= unt of organic poultry being produced has also fallen steadily.<= /span> Last year, across the UK, o= nly 51,000 hectares were in “conversion”—the process farm= ers need to go through to have their land and practices certified as organi= c. That is less than half the amount of land in conversion in 2009, itself = down markedly from the 2007 peak of 158,000 hectares. . . . c For livestock farmers, the picture is mixed. The= number of cattle reared organically has risen steadily, to more than 350,0= 00 last year. But despite widespread publicity by food campaigners on the c= laimed benefits of choosing free range or organic eggs and chickens, more t= han half a million fewer organic chickens, turkeys and other poultry were p= roduced in the UK last year. Amid falling sales overall, some specialists= are thriving. Abel & Cole, the organic box scheme, expects a 40% incre= ase in sales this year. Keith Abel attributes this to the same reason he be= lieves organic sales have fallen overall—because the big supermarkets= have taken organic products off the shelves to make room for cheaper non-o= rganic goods. “It is a self-fulfilling prophecy: they take them off t= he shelves, and they sell less,” he said. “But that’s gre= at news for me.” Top of Form Page= Goto the specified printed pa= ge number Bottom of Form <= /div> Print Activate the following button to retrieve the URL to cite or link to= this pageCite/Link S= ource: “Farmers turn away from organic as sales drop: The economic do= wnturn means organic farmers are less likely to reap rewards of premium pri= ces for their produce,” by Fiona Harvey from The Guardian, August 11,= 2011. Copyright © 2011 by Guardian News and Media Ltd. Reprinted by perm= ission Key Points in the Article = Since reaching a peak in 2008, orga= nic food production and sales in the United Kingdom have steadily fallen, a= s has the amount of land farmers have converted to organic cultivation. The= recession has been cited as a reason for the drop in sales, with large sup= ermarkets cutting back on their organic selections. With sales numbers decl= ining, many farmers have found it more difficult.

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