This unusual scenario can be explained through demand elasticity. As we know the demand elasticity measures the responsiveness of consumers to a given change in price. Now we also know that a good with an elastic demand should charge lower prices to maximize revenues where as products with a low demand elasticity should charge higher. This is because for a elastic good a change in price will lead to a proportional larger change in quantity demanded and so a reduction in price will lead to a higher demand. An elastic good is the exact opposite and so this could be the case for the farmers. Due to low crop yield this would lead to a fall in supply and thus a rise in price. Since corn is a necessity and is required for food for many people, livestock and is used in many production processes of foods and has little substitutes that are readily available. This makes the demand for corn inelastic. Since the price has risen this will lead to a proportionally smaller fall in demand leading to increased revenues and because the costs of producing the crop does not increase by much the farmers will see an increase in profits.
Here is a diagram showing how the rise in price for an inelastic good leads to a proportionally smaller fall in quantity demanded:
Here is a diagram showing how the rise in price for an inelastic good leads to a proportionally smaller fall in quantity demanded:
As you can see the demand curve is very steep showing that the demand is inelastic.
This article talks about the demand elasticity of the iphone:
http://www.theblogpaper.co.uk/article/business/31may09/price-elasticity-demand-iphone
This article talks about the demand elasticity of the iphone:
http://www.theblogpaper.co.uk/article/business/31may09/price-elasticity-demand-iphone