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| Bill M is correct as far as the US dollar goes. Right now whatever is exported out of the US is in a great position, ie grains. HOWEVER COMMA whatever is imported is killing the person/firm who is purchasing it, ie fertilizer, petroleum products.......the other kicker with fert is the US Fert industry is a shell of what it once was. The Nitrogen production in the US is something like 50 % of what it was 10 years ago, from what I read.
As far as the Fert industry putting it to the farmer, I am sure that is happening to some extent. In my experience it is alot like the fuel retailers here in Montana. When they have a load of fert or fuel already in storage ready for sale and the price goes up day to day, which is what is happening up here, that is indeed price gouging, no two ways about it. Oh yeah, they use the term "replacement cost", how come I never heard that when prices were going down??
We do live in a capitalistic society. The real problem lies in the fact that the retailers and wholesalers live in a world where they set/make the price, albeit they have competiotion to some extent, or used to. Meanwhile, guys out growing a crop to sell are price takers and have now ability and/or desire to band together to strengthen their bargaining position.
Should be an interesting winter and spring, too bad us farmers could not get buying groups set up to AT LEAST work on the input side of prices. The day you get a group of farmers together to sell grain, pigs will fly and the cow will jump over the moon for sure, though!!!
Buckwheat | |
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