Corn prices, which usually means the price of corn futures are ultimately tied to energy prices, because corn is used to make ethanol, an additive to gasoline. Corn prices peaked in June 2008 with the Iowa floods with corn prices around $7.88 per bushel. The prices fell in the fall of 2008 as commodity prices, in particular oil prices declined as a result of the slowing economy.

In December 2008, corn prices are at a two year low and farmers are anxious about any sign of rebound. In the week of 15 - 19 December 2008, prices rallied to $3.89 per bushel. Although this is an increase of more than 30%, farmers say the prices need to reach $4.00 per bushel to cover the cost of producing the crop. Many farmers are putting their crop in storage rather than bringing it to market, in hopes of higher prices to come. The latest market price quoted at the close of business was $3.73 on Friday 2/13/2009.

Now you are wondering to yourself, why is he talking about corn prices? The primary purpose, it has to do with history, recession, and depression. The last two words have been used quite frequently as of late. The majority of us were born after the Great Depression. We have no concept of the hardships that the "Great Generation" went through during this period of time. Our historians can discuss it in great detail, however, it has little impact or importance to us because we cannot relate.

But when you hear it from the written words as it was being experienced it really has meaning because you can relate to it. Today, my cousin Dr. Roy Baker of Lincoln, Nebraska was kind enough to send me a series of letters pertaining to my family when my father and mother were first married. These letters covered a period of a couple of years and written by my Great Aunt Esther Black Baker. The men mentioned in her letters are my Great Uncles who were farmers in Nebraska. Unfortunately, I never met any of them, however, I grew up listening to my father and mother talk about my fathers uncles.

In a letter of 24 February 1934 she writes, "Will is going to borrow on his corn & stop some of his interest. I don't think Clyde or Wayne are going into it. I don't know whether you understand this business, I don't know much about it myself. But the crib must have a good floor & good roof. Then the Government agent inspects it, measures it, & seals it up (I don't know how) and you can draw 40 cents a bushel on it, If I get it right, if the price of corn gets above 40 cents you can shell & sell it & pay off your loan. If it don't get above 40 cents it belongs to the Government." She is talking price per bushel of corn.

She then writes in the same letter which is very appropriate today: "This is a good time to buy land if anyone has the money to invest, for land is bound to go up as soon as the depression lets up a little. Many have lost their farms, there are some farms listed for sale that were mortgaged while times were good and they mortgaged for more than the land is worth now. Some moneyed town guys are out grabbing up farms. I think it is disgusting, a sin & shame." Does that paragraph sound familiar to anyone, despite it being written seventy five years ago?

For my children, she mentions your Grandfather in her letters often. One particular story she relates which I thought you would enjoy. Dad and his Uncle Earl had hiked to Iowa to husk corn. So many men showed up for work that no one made any money, but she writes "I don't know what Laverne made but he belonged to the hobo class, he would sleep anywhere, he laughed about going into a bakery when he got into Sioux City, laid a dime on the counter & told them that was all the money he had & asked them to give him as much as they could for it. He said they filled a large bag with cookies, doughnuts, rolls, etc., enough for 2 -3 days. The things were not fresh, but good."

From reading these letters I gained two things beside additional knowledge of my family. The first being that the term of "Depression" is presently being over emphasized to describe our current down turn of the economy. The second being, despite the down turn we still have a higher standard of living than anyone in the world. Our current unemployment rate is 7.5%. When you relate it to the "Great Depression" the unemployment in 1931 = 15.9%; 1932 = 23.6%; 1933 = 24.9%; 1934 =21.7%; 1935 = 20.1% and 1936 = 17.0%.

Despite the scare tactics, we still have it pretty good, except a can of corn sells for .98 cents in the store and there is only 14.75 ounces of corn, not a bushel.

New Posting on American Profile: "Alaska's Aircraft Carrier"