http://www.kenniffonline.com/profits-without-production/
How can the American public believes the price of food is very high if they have no idea of the cost of production ot
Consumers Americans have no idea of the financial cost to farmers or mentally affected each year with time and the rising cost of fuel, labor, fertilizer, chemicals and seeds. no one forces us to do so year after year with the possibility of losing hundreds of thousands of dollars hailstorm during the night in a freezing or Hurricane Katrina that hit us in 2005, but we must be able to make a profit to stay in business and grain prices are where they need to be to that happen. we can continue providing a safe supply of abundant food for America, but we can not produce below cost of production without the support of government if prices fall back to lows we have been now for 20 years. If U.S. farmers can not stay in business then our food will to be imported from other countries and if your one of those people who like imported oil, then its really going to love imported food.
For the consumer half, prices are arbitrary numbers set by the seller. In fact, prices communicate the costs of production and distribution of goods.
Where does profit come from? pt 1 of 2