Has anyone plotted a graph of wheat yields over the last 50 years? I suspect that the economic law of diminishing returns is already kicking in and that the rate of increase per annum is begining to slow. Is there not also a theoretical maximum based upon crop physiology?
To my mind the more important points mentioned above are the gross margin, profitability, and, often missed, the consistency of yield year-on-year. I do occassionally cite this latter point. Here a poor year can mean a yield of 70% below the average, in the UK it is 10%! A massively important factor when you are trying to finance a business.
Further, I frequently argue that crop insurance is not the way to go in Europe, it is far better to invest the money in real risk reduction tools like good management, good seeds, good breeding, irrigation, drainage, soil management, harvesting capacity, fertilisers, disease control....This is something that the UK farming community is generally very, very good at. It annoys me greatly when I read about proposals for crop insurance schemes, they just take money out of the industry. Far better to invest the money in the right technology and in management. These are what deliver consistent, food-secure, yields.