Solar farm boom leading the bust in prime agricultural land use is one of the key reasons for the current glut in commodity prices and economic slowdown.
Miles Broughton of the Institute for Agriculture and Trade Policy in Ireland said: “The fact that th더킹카지노e price of farmland has collapsed and is falling across Europe is a major factor.”
His research finds that, in 2015, US farmland accounted for more than two-thirds of all farmland burned in the world – with over three-quarters of that burnt at corn and wheat.
But just how is this phenomenon driving the price collapse? In a new study, Broughton suggests that it is the increasing value of corn and soybeans which explains the current rout in the price of wheat and cotton.
The price of wheat, cotton, barley, and potatoes has fallen significantly over recent years, falling 25% and 60% respectively between 2004 and 2015. Wheat prices fell by around 4% and 10% in the decade ending 2013.
The price of soybeans has also fallen as much as 40% in the past 18 months, with the value of their main constituent (corn) rising 80% over the same period.
Dr Broughton said: “The fall in commodity prices means that farmers have no money for their basic needs. It means they are putting up with less food that they use and have less money to send to their neighbours and countries around the world. The world is losing land.
“In the last several years, many poor people have seen how much land they need to produce food for themselves – and that requires far more land than can be cleared for agriculture – and in many cases those farmers and their families have been pushed to sell land as quickly as they can to raise the cost of food for people in developing countries.
“If you’re a farmer or a food farmer, when the price of land and food falls, the cost of food becomes very high. That means you are losing a lot of your land as a result of that situation.
“And it’s hard to get out of that situation, because the cost of energy to produce food is now in the tens of billions, and at the very heart of that is oil.
“As oil price falls, the cost of fuel – gas to transport food and people to where food is needed for a reasonable price – also goes up.