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To: Jurgis Bekepuris who wrote (43515)7/23/2011 12:08:57 PM
From: gcrispin  Read Replies (2) | Respond to of 78669
 
Thanks for posting the article. I'm interested in agriculture as I own wheat farmland that has been in my family for over a hundred years. I agree that I would be cautious in thinking that "this time is different" as the variables that go into a price of wheat are many, enough at least to counterbalance each other.

However, one can make the argument that agricultural prices haven't kept up with general inflation and this could be one of those periods where there is a secular period of prices simply catching up amidst the general boom and bust cycles. Below is a further explanation to this proposal that I posted earlier on the farming MB.

Message 26286876

I think it is also interesting to note the difference in obesity rates between developed and some developing nations. The WSJ had an interesting article regarding this. My point is that our assumptions of consumption (ie demand) might not be factored correctly. As much as the food paradox is focused on an increasing population, one must also consider the wealth factor. There are a couple of statistics that stand out.

[font=Arial, Helvetica, sans-serif]By 2005, meat comprised 27% of the Chinese diet, up from 6% in 1965, according to the most recent figures from the Food and Agriculture Organization of the United Nations[/font]
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[font=Arial, Helvetica, sans-serif]Excessively plump figures have become increasingly prevalent in China, with around 25% of the country’s adult population qualifying as either overweight or obese, according to the University of North Carolina study. Two-thirds of U.S. adults are overweight or obese.[/font]
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blogs.wsj.com