Posted 10 years ago on Jan. 9, 2012, 11:19 a.m. EST by bill1102inf2
This content is user submitted and not an official statement
Feel screwed over at the grocery store??? You should.
Farmers became banksters over the last few decades.
You hear it all the time, gasoline is up 9% so food costs are going up 9%. Seems fair?? Hell to the F no its not fair. Bet you still think it is! Its not, here is WHY.
Farmer A produces lets say 1 Million Green 'thing'(bushels/lbs/WHATEVER) it doesn't matter.
He sells those things and makes lets say $1.00 per thing after expenses.
Now, lets say gasoline is $1.00 and he uses a WHOPPING 100,000 gallons per year $100,000.00 (remember, he makes a mil in profit).
Gas goes up 9%!, and lets say there are no advances in production and he uses the same amount, so now his cost is for that same gas is $109,00.00. All things being equal he would now only make $991,000 in profit.
BUT, the 'thing' he was selling was being SOLD FOR $3.00 per thing, and we figured 2/3rds was expenses (which is too high).
Raising prices by 9% increased his total take by $270,000.00 netting him out a REAL new adjusted profit of $1,261,000!!
Raising gasoline 9% and him raising prices 9% = BIG MOTHERTRUCKIN profits for the poor 'farmer'.
Guess who paid for that 2012 F-450 Quad-Extended Bed-Turbocharged-Chipped-Super Duty with $60,000 in just tires n rims parked next to the 2011 F-350 Super Duty with $60,000 in add-ons?
Sucked that it was you when you were forced to pay $5.99 for a gallon of milk which costs $.59/gal to produce, and that includes enough profit to put the farmers 3 kids through college and enough $ to send back to Mexico to feed a small village.