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AGRICULTURE ECONOMICS 101

02/11/08

Permalink 10:28:32 pm, by Bambi Osswald   English (US)
Categories: Young Farmer and Rancher

AGRICULTURE ECONOMICS 101

The news media has decided to tell the American public that the price of their food is going up because the farmers in the United States want to make ethanol instead of food. I am hoping someone who is not a farmer will read this and tell their neighbors that the news is full of it! Any farmer can tell you that since the beginning of time, they (farmers) have not decided what to do with their products or the price they would receive; the market has ALWAYS decided the price and the use.

So, to help everyone understand: the market/public/government has decided that ethanol is a good use for corn. Farmers have listened to the market and have raised more corn. Farmers DID NOT make the prices do anything. If farmers had not raised more corn, and the ethanol plants would have been built, the price of corn would be a LOT HIGHER because of the simple economics of supply and demand.

In conclusion, if you want to know what is driving the price up on almost everything, look up at the sign in front of your local gas station at those prices. Ask yourself this: who is controlling how high those prices are and why are they not being scrutinized for raising the price of the food you are on your way to buy at the grocery store? Farmers have always been price takers and NOT price makers. AGRICULTURE ECONOMICS 101

Comments, Pingbacks:

Comment from: Chris Chinn [Member]
Weather and high fuel costs are the reasons food prices are increasing but the media forgets to mention this to consumers. We had areas of the U.S. last year that had an early freeze, other areas experienced droughts and floods. All of this has an impact on food prices, as well as high fuel costs. Fuel and heating costs are a big deal for farmers, too. No one likes those higher bills but they don't even consider the fuel it takes to plant a crop or heat a hog or chicken house. And, yes, hogs and chickens often get heat and AC when some people don't because farmers are looking out for their animals. It would be nice if the media could tell the true story!
02/13/08 @ 09:53

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