1 May 2023
Historical Corn Grain Yields - bushels per acre

It is important to bring attention to a topic that doesn't seem to be widely discussed. While there may have been some mention of it, it is still largely overlooked. The subject at hand concerns a crucial aspect of inflation that has yet to gain enough traction in public discourse.

Over the past century, there has been a significant increase in mass production, with better and more advanced technologies being developed. This has consistently driven down the cost of production. However, it is possible that this trend may be plateauing, and there may not be much room left for further improvement. The inflation fails to account for this development. Despite inflation being a constant factor, according to this logic, we should have seen a substantial decrease in inflation.

Some people argue that significant loss of land due to development, as well as the exportation of corn and the increasing demand for corn resulting from the growing human population. But that is not valid in this context. We are looking at increased yields per acre of land, through technology. Production gets cheaper that way. It has nothing to do how much land there actually is or how much is demanded. Just looking at bare production costs going down, but we haven't had any reduction in prices ever. If you want to look at demand, then yes you have to take in account how much land there actually is used for agriculture. For our purpose, that is irrelevant. You can always grow on more or less acres. We don't want to go into too much detail, we would start making huge errors.

One example that illustrates this is the production of corn, where there has been an increase in bushels per acre.