Supply And Demand Of Corn Here In Iowa

In microeconomics, two of the most common terms are supply and demand. In a more concentrated topic, supply and demand of corn here in Iowa is very important to not only farmers but to everyone. Supply and demand never stays constant which causes a lot of other changes in our economy that are sometimes hard to adapt to and can even affect the way the rest of our society and government functions. First off, mother nature is something that can never be controlled and is a huge influence on the changing supply and demand. As the year goes on, it only takes one rain storm, hail storm, or a hot week with no rain to diminish the potential yield of a crop. If it’s too wet early in the season, some of the fertilizer will leach out and go too far in

The most common way people tend to think of effects from livestock is greater yields driven by the use of manure fertilizer. This is clearly very significant and has a massive effect on supply and demand, but even the amount of livestock that corn producers have has an effects on supply and demand and inevitably, the price that corn is sold for. When there is more livestock, there is more manure that can be spread over more acres bringing about better yields to those crops. A higher number of livestock, lets say cattle for example, requires more food than a smaller amount of cattle would. With corn already being at hand to use for the cattle’s food source, many livestock owners often use the crops they produce to feed livestock, if they are able to. If there are more cattle, more corn will be eaten by them, causing less corn to be sold in the market. When there is less corn being sold at market, there it is not as abundant, so the price and demand of corn increases while the supply decreases.. On the contrary, when livestock numbers are smaller, less corn would be used to feed livestock. In this case, more corn would be sold on the market which causes there to be more supply and less demand and a lower price for the

dollar compared to the value of foreign dollars also plays a big role in the demand of corn. When considering foreign trade, the demand can fluctuate outside the United States depending on the proportion of the dollar value between the United States and a partner in trading’s dollar value. Value of the dollar never stays constant, so the demand when considering these factors, it is also constantly changing. When the United States dollar value is less than the value of the trading partner’s dollar, there will most likely be more demand for our corn in foreign trade because it is less expensive to purchase the good from the United States than other countries. On the contrary, when the United States’ dollar value is more than the value of the trading partner’s dollar, there will most likely be less demand for our corn in foreign trade because it is more expensive to purchase our good than it would be to purchase from another