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Northeast Louisiana | The fertilizer dealer may have very well bought his urea of $300 at ton. That really doesn't matter, because now it's worth more. If you bought a peice of property for a $1000 an acre, then the ajoining farm sells for $3000 an acre, will you still sell yours for $1000?
Fertilizer, oil, and prices of other items are all determined by the markets. Other businesses don't have as much freedom as one would think in setting their prices. Unfortuately, most of the public is clueless as to how markets work, including the idiots in congress that were grilling oil company executives this week. I thought it was particularly funny when Dick Durbin was complaining about Chicago paying the highest prices in the nation, when it is the state tax that makes it so high. Then we have the genious Maxine Waters who admits she wants the government to take over the oil companies ala Hugo Chavez! What a disaster that would be!
Oil prices are high worldwide because of strong worldwide demand and a pretty static output, just like grain prices are high worldwide. In addition, a weak dollar and a limited refining capacity has made our fuels particularly expensive in the US. Oil companies sell their oil on the market just like we sell our crops on the market.
Of course it's aggrevating when prices keep going up, and it's easy to sit back and blame "them" for fixing prices and charging too much. Just remember, farmers are also being accused of being greedy and charging too much for our products, even though we have no control over it. It's silly and counterproductive in both cases.
Anyway, that's just my 2 cents.
Edited by Deadduck 5/24/2008 12:03
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what if this is going on
