farming costs
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Started by bear - Dec. 9, 2021, 11:09 a.m.

so, for you guys who farm,... what costs do you have that is rising the most?   and how do you hedge those costs?  

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By wglassfo - Dec. 9, 2021, 11:47 a.m.
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My costs in order highest and on ward to lower

Fertilizer

machinery

Land

Chemicals

 Fuel

Unfortunately the price is already at the top or one would think it is at the top of the price range

I am afraid the horse has already left the barn Most items  do not have a hedge method I know of except buy before the price increase. So who will pay for product that may not arrive or can see the price increase coming

NH3 a fertilizer, uses natural gas to produce NH3

The cost  of natural gas is less than 50%  [33% maybe] of the cost to produce. Some added cost  for transportation but most of the end price is  price gouging due to a limited number of production Corporations. Other fertilizer also has limited price competition

It is much the same as you trying to hedge lumber to build a new honey bee hive. At least you have lumber future. There is no land futures market

We are  also a victim of lack of labour. Money is not an incentive for 16 hr days

We are using capital purchases in place of labor to reduce the number of 16 hr days

Farming is like a great big factory with no roof

Most livestock has a roof