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Corn

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Corn America

The demand for corn has greatly increased because of its many new found uses but mainly because it has been discovered that corn can be use as an alternate energy source. This great demand for corn has increased many area of farming and production of corn here and other countries such as Mexico and South America. This great demand has lead to an increase in farmers who are willing to cash in on these cash crops and try to earn a few quick dollars because of the great demand for it. In 2007 Corn farmer saw record profits because famer where getting twice as much for corn as they did in previous years. The same trend continued but farmers dealt with so many obstacle such as weather, bugs and lack of equipment that they found themselves in an upside down situations. (www.cnn.com) Many of the corn farmers have made lots of sacrifices to meet the demands of corn by producing more corn, buying more land and seeds, use of extra fuel in farm equipment, which increased the farmers spending but also return great profits. This will cause the production of corn’s substitute, soybean, to diminish but not disappear because soybeans have a market of their own in china because of its production of soybean oil and milk that is wide spread in China. As far as the US and soybean its production will slowly starts to diminish because many of the farmers will use their land to grown more corn to gain a better profit, instead of growing soybean and only making a fraction of the profits intended from soybean.( www.hpj.com) Now as stated by the laws of supply “that as the price of a good increase, suppliers will attempt to profits by increasing the quantity of the product sold (www.investopedia.com) When farmers are growing and producing corn for the use and production of energy, and other uses, this will show farmers that the production

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