Generally they are relatively nonperishable, storable, transportable, and undifferentiated: At that time most North Americans lived on farms and most farmers were poor.
Already have an account? Page history last edited by Jessi Moths 6 years, 9 months ago Commodity crops are crops grown, typically in large volume and at high intensity, specifically for the purpose of sale to the commodities market as opposed to direct consumption or processing.
The most common commodity crops in the United States are corn, soybeans, and wheat; some areas also grow other commodities such as cotton, sorghum, tobacco, sugar beets, and non-wheat cereal grains.
Many commodity crops re-enter the food production industry in some way: They are also used in industrial manufacturing processes and even as substrate for producing biofuels.
Commodity crop production in the United States has been in existence since the colonies, but the first organized futures markets were established in Chicago in the s for sale and speculation of commodity crop futures see also: Commodity Futures Trading Commission.
Now, commodity crops are perhaps most recognized for their support from federal agricultural subsidies, which originated in during the Great Depression in the New Deal. Today, about 62 cents of every commodity crop dollar comes from government subsidy.
Commodity crops have contributed, at least in part, to the global lowering of food costs.
|What’s a Commodity Crop? - Food Dialogues||Future markets are used to hedge commodity price risks. They also serve as a low cost, highly efficient and transparent mechanism for discovering prices in the future by providing a forum for exchanging information about supply and demand conditions.|
|USDA ERS - Crops||Future markets are used to hedge commodity price risks.|
The industrial food system is supported by the cheap input costs of commodity-based components high fructose corn syrupsoybean oil, etc. To some extent, this has allowed industrial food to expand immensely and feed many more people at much lower cost to the consumer.
This is both positive in that it can control worldwide hunger, and negative, as we are seeing in foodborne illnesses and diet-related chronic disease rates.
Environmentally, commodity crops are nearly always grown as large monoculturessometimes from genetically-modified seeds and requiring heavy soil augmentation and pesticide application. Soil degradation, nutrient runoff, and habitat and species damage all result from these situations, which are now virtually the norm in the American Midwest and Great Plains agricultural regions.
The economic and social impacts of commodity farming on farmers are also significant. Farming has become nearly untenable unless a farmer chooses to rely on the federal subsidy program and grow commodities.
Commodity markets have driven crop prices so low that the profession of farming itself is disappearing and diminishing the inter-generational connections that farms once provided.- Commodity Prices The financial term commodity is defined as a physical substance, such as food, grains, a and metals, which is interchangeable with other product of the same type, and which investors buy or sell, usually through future contracts.
GLOBAL COMMODITY is an international corporation dedicated to the trade and promotion of diverse Latin American products to Asia, USA, Middle East, Africa and Europe. Essay on Commodity Prices - Commodity Prices The financial term commodity is defined as a physical substance, such as food, grains, a and metals, which is interchangeable with other product of the same type, and which investors buy or .
Aug 06, · Corn, cotton and wool, beans, fruit and tree nuts, peanuts, potatoes, rice, soybeans and oil crops, sugar and sweeteners, vegetables and melons, and wheat. Essay on Commodity Prices - Commodity Prices The financial term commodity is defined as a physical substance, such as food, grains, a and metals, which is interchangeable with other product of the same type, and which investors buy or sell, usually through future contracts.
Commodity prices will always be volatile – it is the nature of agriculture. It is noted that government intervention, that has been prevalent in the past, may not be necessary to maintain adequate food supply.