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Kittitas Co. Wa. State | Farmer Mo,, you are absolutely correct efficiency has been raised in some parts of the nation. Yes it's possible to plant a section a day. Fuel usage is down with minimal tillage practices, and again all the inputs are more efficiently applied.
And, fuel is now $3.20/gal, tractor's/$125,000 so all I'm pointing out is there are fewer inputs but those inputs are and have been consistantly costing more (inflation,etc) across the same time period. (say 1970-2007) There has been inflation directly tied to that same increased efficiency.
The American Producer feeds something like 144 people and the American consumer pays the lowest percentage of their disposable income for food of any Country in the world. If I recall the "Ag today" show correctly the American consumer's "check out day" (meaning days worked during a year to pay for all their food needs in a year) is something like 76 days. All Americans work something like 130 days a year just to pay thier taxes. It was also pointed out if the cost of wheat doubled the price of a loaf of bread would only go up 3 cents a loaf in the Grocery store. On average out of every $1.00 spent on food the American Producer only receives 16 cents. All the rest is in "manufacturing", handling, and transportation. Again,, if I recall what I'd heard on the "Ag Today" show correctly.
The real concern I have is "big" business already can see the GROSS PROFIT is up for Producers, and the "INPUT Providers" are going to demand their "share of those increased Gross profits". And, On the other side, The Product buyers are going to continue to buy the farm products regardless of cost. They will simply raise the Consumer Cost of their product when they sell it. They have ALREADY started pointing the Finger at the American Producer trying to make it the Farmer's fault they are raising their prices. When in Reality they are ONLY raising their prices because they KNOW WE (the American Producer) won't put the blame of the "Manufacturers" raising the prices on them.
As a Producer I don't have to appologize because I make money, as a business when I make money, it allows me to be more productive, buy more products, (newer better more efficient, etc) in order to do better JUST as ANY business does. I deserve to make a NET PROFIT for my efforts just as ANY business. What I don't like is the "inputs" digging into my back pocket simply because they want to, and the "product buyer" raising their prices to the consumers and using the Producer as "the EXCUSE" for the buyer's gouging the consumers. You, me, and everyone else who is a Producer knows different but,, THe American Consumer doesn't.. They believe what the "suppliers" tell them.
Know I'm long winded but don't you get tired of being called "rich Farmer!" simply because you are a Business man?
My last question would be, exactly how much of that $ 3.50 box of corn flakes does the Farmer actually recieve for his corn?
just my 2 cents | |
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Highs in wheat market
