|
| I understand your example, but commodity prices are set by supply and demand (even if it is perceived demand). It's a little different when the input supplier just decides to raise his price. But... if fertilizer is plentiful surely there would be some suppliers willing to sell at a lower price to capture more business thus lowering the price others sell at. So.. even with out an open outcry auction perhaps a perceived fertilizer supply shortage is driving up prices.
In the end, I think we are in for a lot of high input prices because our commodities are high and we can afford it. I imagine most of us will do more soil testing and only apply what we need or use strategies like strip till to reduce the amount we use. At some point supply should start going up with the chance of prices lowering. I don't think prices will come down significantly until the commodity bubble bursts.
my 2 bushels,
Pat | |
|
what if this is going on
