If the low-cost producers can't make money...

All is not well in our main soybean competitor. Land prices in Brazil are plummeting, according to this report by the Delta Farm Press. Some will see this as justification for our farm policy, since our producers do not experience prices below about $5.50.

I see something else - their system is adjusting. Unlike subsidy-fueled land prices here, soybean acres in Brazil are priced according to their true investment potential, and adjust up and down. These acres aren't going away.

They may be going to some type of ethanol production, but many of them really are best suited for soybeans.

Stay tuned.