This morning I made pancakes. The price of wheat is around $6.11/bu. A bushel is equal to 149 cups. So $6.11 / 149 cups = $0.04 per cup. So if the price of wheat doubled with all other costs (marketing, packaging, processing, etc.) remaining the same, I would have paid $0.08 for the flour in my pancakes. I think almost everybody can afford that increase. I know its not that simple, there are other factors such as efficiencies and difference in weight of flour vs grain, etc. But for the sake of discussion, my point is the price of grain seems to me to have very little to do with the cost of food in the grocery store. The real increases in food comes from the middle men. As a kid I would see prices go up on the farm and up at the grocery store. But when prices went down on the farm, the prices didnt necessarily follow in the store. MHO is that if you doubled farm prices, it should not double, or anywhere close to to double, the price in the grocery store.
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Today's Featured Article - A City Guy's First Tractor - by Fred Hambrecht. After living in apartments in Atlanta for more years than I care to remember, the wife and I decided to move to the country. Humming "Green Acres is the place for me..." we purchased a 29 acre tract about 60 miles south of Atlanta. Next came the house, I could talk about that ordeal for another two weeks... But, I want to talk about my tractor! We didn't even own a lawnmower, and all of a sudden we had enough grass to feed all the starving children of the bovine world. Naturally, I talked
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