Recent months have seen dramatic fluctuations in agricultural commodity markets.
These market fluctuations have been the focus of much attention within the industry, in the media and in government. However, the impacts of higher commodity prices on certain segments of the agricultural sector and the legal issues that flow from such market conditions, including the allocation of risk, have gone largely unnoticed.
Had prices remained at the high levels reached in June and July or gone even higher, an industry-wide crisis may have resulted.
While market prices did ebb more recently (creating additional issues for certain industry participants), prices remain at historically high levels, and the future remains uncertain.
This article considers how high agricultural commodity prices have adversely affected industry participants and assesses which market participants bear the risks of the higher prices. Read more...