Suppliers lose their customers. There's no doubt that recent changes in the farm economy have hurt a lot of people. In a nutshell, he said, the basic laws of supply and demand apply differently to farming. Take the grain sector, for instance. A manufacturing plant can cut production any given week or month.
Farmers make planting decisions once a year.
John Deere can gauge the tractor supply and adjust production accordingly. But unless a farmer has a crystal ball with a long-range weather forecast, he plants to capacity and hopes for the best. Food demand stays about the same, regardless of price and people's income. Everyone has to eat. But by the same token, just because people make more money doesn't mean they will buy more food.