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north central Oklahoma | I think most people have this idea that "N" is just grabbed out of the air by these manufacturing industries for next to nothing and then they rape us with hig prices. The cost of natural gas alone touches $250 per ton of NH3 produced. There are a host of other catalyst materials that are consumed in the process, as well as the machinery and labor utilized to manufacture same. Then there is all the handling and transportation before it ever reaches us. Our co-ops are not non-profit organizations, and that is where I get a little back anyway in patronage dividends. It is a free market system in this country, they ask a price and we are free to turn it down. Most don't as they can still pencil a profit.
I was visiting with a friend recently who just purchased a new 24 row Deere planter. Price differential between old 12 row and new 24 row was staggering for only an additional 12 units on a bar with the same basic bulk box system. Dealer let it out that Deere does not price equipment for what they have in it, it is based on the value it has for the end user, us. A 24 row can provide much more value due to increased ocres covered, thus we will pay it. Is Deere screwing the farmer too? Prolly yes, but we (not me though) are still buying their machinery.
It's a very fine line to tow for sure, but when we finally quit buying enmass, then perhaps we might see a price pullback.
My two pesos, which we might be using someday of things don't change.
Edited by Cowboycorn 10/28/2007 21:08
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