1. Despite bad weather, farmers are expecting a bumper crop. Prices are down because demand has slowed down and thus there is an oversupply of corn and soybeans. As trade talks between China and U.S have not progressed even though demand has been high from China, domestic demand has been subdued. Elasticity is greater when due to a fall in prices, demand increases drastically. But in this case, even though prices have fallen, domestic demand is still low, which showcases an inelasticity of demand for corn and soybeans.

2. Another explanation in terms of why additional demand is not boosting prices is that of decrease in domestic demand because of the pandemic as restaurants and institutions are shut, which has led to subdued demand in the domestic economy.

3. Small family farms are bearing the brunt of the lower prices as they have been burdened with debt and have no other resources. Where as large scale farmers are buying the farmlands of such farms at cheaper rates.

4. According to the law of supply, when prices are high, farmers tend to produce more in order to seek greater level of profits. But in this case, as prices are lower, farmers are trying to grow larger crops to sell more, which is not consistent with the law of supply as at lower prices, they are increasing quantity supplied, whereas it is the other way round in law of supply, where prices are high, that is when they increase quantity supplied.