2006-09-20 08:21:54 · 2 answers · asked by Brandon 1 in Business & Finance ➔ Other - Business & Finance
Prices are even more volatile than ever. I have to put gas in my trucks, planters, tractors and combines. I'll only be able to sell the corps for what they're worth? How much is all that gas going to cost? Will I lose money this year? How much? Who knows?
2006-09-20 08:29:53 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Well, let's see.
Farmer Jones in Michigan has a gigantic crop of pumpkin's that are ready for picking. He has to use trucks to move around the pumpkin field and he'll have to have bigger trucks to take the pumpkin's to a market where he can sell them. Some of them will be sold locally, but for a crop like Michigan's pumpkin crop- more than 70% of the product is trucked out of state for Halloween purchases all over the USA. Oil, oil,oil.
So the cost of that one Michigan pumpkin sitting on the front porch in Tallahassee might be more than a dollar higher than it would have been last year.
If distributor's in Florida don't want to be paying that higher price for Michigan pumpkins, they will find a closer grower and cancel their contract with Farmer Jones. And Farmer Jones was already in big financial trouble with the same issues over his corn field.
Farmer Jones now has to chose whether to sell the farm that his great-great grandfather started or sell out to a huge farming conglomerate, and then he has to find a job in Michigan and since the auto industry is cutting jobs left and right as a direct result of gas guzzling vehicles and rising oil costs-... well, The Ironic Fairy has whacked Farmer Jones right in the head.
2006-09-20 15:36:00 · answer #2 · answered by Mimi Di 4 · 0⤊ 0⤋