Many United States and Canadian farmers have been seeing a tremendous drop in cash crop prices. The farming market is getting an overload of wheat, corn and soybeans, this lowers the price because it's not wanted. These low prices are "$4.25/ a bushel, in the United States." (Author Jim Romahn, Book name Ontario Farmer, page 4) Now, United States and Canada are in for another big change in prices, which are going to be lower then ever.
Brazil is a country that is far south from the United States and Canada, located near the equator. "Over a hundred million acres of land and a lot of that land is, scrub and rainforest land is being cleared for cash crop farmers." (Author Jim Romahn, Book name Ontario Farmer, page 4)
Brazil is selling cheap land and has cheap marketing prices, cheap man labour and low chemical prices, along with good bushels.
Brazil is a rapidly growing farming country, which is starting to overpower the world farming market, but just hasn't had a big enough impact on it yet. In Canada and United States, farmland is in demand and farmers want it so they pay high prices for it. "These prices range from $2, 000 to $3, 000 an acre in the United States." (Author Jim Romahn, Book name Ontario Farmer page 4) On the other hand, Brazil is becoming flooded with cleared out land, which is overpowering the farming population in Brazil. With such a little amount of farmers to take the land, land is selling cheap. Cheap such as, $16.00 an acre in the United States. This amount is a lot less expensive for farmers to cover in Brazil, so they can afford to buy more land.
One of the largest farms in the world is located in Brazil, which is, "150,000 acres with another 300,000 acres ready to be cleared of rain forest land." With the cheap land comes a cheap crop price sold to the world market. Farmers don't have as many expenses to cover, with the...