Soaring wheat prices have recently affected the welfare of farmers, middlemen, consumers and the government. The average farm income is projected to be the highest of any year during the past decades. Greater yields and grain prices more than offset higher costs of fertilizers and pesticides. Government subsidies contribute much less to net farm income due to the higher grain prices.

In the past, most economic indicators changed slowly and continuously and economists could therefore explain and predict them. This is in the process of dramatic change. The recent price explosions in rice were not only triggered by doubling of costs for major inputs including fertilizers and pesticides but also by general shortages on the world market caused by substantial decreases in exports. The latter shortages are results of a widening gap between domestic demand and supply in many countries ncluding India and China. Developing countries such as Haiti with no substantial domestic production but ever increasing population simply can no longer afford to finance purchases on this scale and the developed countries cannot give that amount away as aid.

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Times Cited: 2 Article English Schwesig, D IWW Rhenish Westfalian Inst Water Res, Moritzstr 26, D-45476 Mulheim An Der Ruhr, Germany Cited References Count: 33 702YM VAN GODEWIJCKSTRAAT 30, 3311 GZ DORDRECHT, NETHERLANDS DORDRECHT