The daily Minneapolis Tribune list commodity prices for grains soybeans, cattle, hogs, etc., from the Chicago Board Of Trade. High commodity prices are generally good news for farmers. Often higher commodity prices are followed by higher prices for inputs; those things farmers must purchase to plant a crop. These inputs include seed, fertilizer and chemicals. Fuel costs are another major expense and can fluctuate significantly. Parts for machinery typically are expensive as is labor for repair.
My experience today gave me a minor example of the costs with which farmers are confronted. One of my tractors, manufactured in the 1960s, requires a special lubricant. This tractor, manufactured by International Harvester Corp., uses a lubricant in its transmission that also serves the hydraulic system, Produced by the tractor manufacture this fluid is called Hi-Tran.
The five gallons I purchased bulk, I provided my own container, cost $93.00. This was a small amount, nothing compared to the volume real farmers must purchase. It's an example of what farmers confront in efforts to make a profit. Commodity prices can be volatile but costs only go up.
Takk for alt,
Al
No comments:
Post a Comment