334 - Oversupplied: What Happens When Ag Keeps Increasing Production While Demand Slides?

The Business of Agriculture Podcast

We in Agriculture love production! For example, we’re producing about 50% more corn, soy, and pork than we did just a quarter century ago here in the U.S. The playbook for decades has been: find more global markets to peddle our commodities so we can keep doing what we like doing, which is producing stuff. Here’s the problem — and the commodity price outlook is reflecting this — we have too much supply and demand is decelerating. Todd Thurman joins me to discuss some unpleasant realities: Population growth won’t support more Ag production. Nor will increased globalization or advancing economies. Quite simply, global food production is way over-supplied and likely will be for a long time. And if we reduce food waste from the current 35% rate, it adds even more to our supply. What does the future of an oversupplied Ag system built on a “feed the world” mentality look like? Potentially “un-pretty" economic outcomes could be around the corner.

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