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 08-24-2007, 14:21 Post: 144983
kthompson



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 Price of Goods to grower.

Due to conversation on another thread thought this might be good. Thought it would be good for input on what the grower does get for those who have no idea.


The product I know of the highest ratio is local produce. The store will pay up to 50% of the retail price. However not always and they may only count what is sold. kt






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 08-24-2007, 17:01 Post: 144985
Murf

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 Price of Goods to grower.

Jeff, don't make any comments about "chicken feed"...... Wink yeah right

Seriously, I don;'t know about chickens, we eat all that we raise. Smile

We sell potatoes directly to the grocery stores, we get paid about 70% of retail prices, but don't get paid till it sells in the store. We absorb out of that all costs up to and including packaging and delivery directly to each store.

Best of luck.






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 08-24-2007, 20:22 Post: 144992
crunch



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 Price of Goods to grower.

When I was a kid I went with my neighbor fruit farmers to the New York City Bronx market and watched them sell fruit by the box off their trucks. It was great watching the store keepers and the farmers negotiating every deal. Lots of fun and lots of give and take.

One store keeper came every week - tasted the cherries, spit them out like he hated them. Then the farmer gets pissed since this guys buys every week, reaches in the store keepers pocket, grabs his wallet, counts out money for himself and puts the boxes in the storekeepers wagon.

A few years later all the farmers bought diesel trucks and had pre-arranged deals with all the grocery stores. Just load the truck - bring to the supermarkets distribution center - and unload the truck. Maybe easier for the farmer but not as much fun for me to watch.






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 08-25-2007, 06:31 Post: 145002
hardwood

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Other than feed grains, soybeans, hay, milk and meat I know very little about what the farmer gets for raw produce, (fruits, veggies, ornamental plants, etc.) It seems that the farmers markets are getting more popular each year locally. Nobody wants the grocery store to go broke, but the ability to buy the produce direct from the person harvested it at sunrise on the day you buy it is neat. I think we, (me included) tend to take for granted the fact that we can go into a grocery store here in the northern climates in mid winter and buy fresh fruits and veggies that may not have been picked at sunrise, but are of a quality that people in lesser developed countrys have never had the opportunity or financial means to enjoy. Last time I checked, the people of the USA spent the smallest percentage of their paycheck for food, (excluding paper, plastic, etc. non food itemss) of any developed nation in the world. I don't want to see this or any other thread turn into a "Feel Sorry for Farmers" discussion. I've been a farmers since I was a senior in High School. It was my chosen profession, you took the risks on your own, sometimes you won sometimes you lost, I would do the same thing again if I started over. Frank.






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 08-25-2007, 12:16 Post: 145006
candoarms



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 Price of Goods to grower.

Frank,

The food we buy on the grocer's shelves isn't as cheap as we might believe. Of course, the price we pay for a gallon of gasoline is also much higher than we pay at the pump.

Due to the taxes we pay to support the various farm programs, there is a hidden expense in most every farm produced product we purchase. This hidden expense is taken out of each paycheck we bring home.

In the case of gasoline, it is nearly double the pump price. This is due to the huge military expense which is put in place to keep our footprints in the middle east nations.

Our low grocery prices can be rather deceptive. Of course, the same is true for the price we pay for electricity, as most utility companies are collecting government subsidies for which to produce their products.

Bottom line.......we have to remember that the price we pay at the counter is only a portion of the actual price we pay.

Joel






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 08-25-2007, 21:02 Post: 145015
hardwood

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Joel; I do feel sorry for you that you cannot accept the privlidge you have of the cheapest, most plentiful, safest food supply on the face of the earth that you can enjoy. Do your kids eat hot lunch at school? Do you go to national parks? Do you see the meat inspectors at the packing house? Do the poor in your community get food assistrance? those are just a few of the direct benefits to YOU. As I pointed out before, the farmer gets a a short eleven percent of the total funds in the farm bill. Go to an under developed country, stand in line for poor quality foods and give the lion's of your pay to get it. I will not respond to any more of your unfounded direct attacks on the American Farmer. Frank.






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 08-25-2007, 23:06 Post: 145017
crunch



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Joel, you are in a fantasy world. The price we pay is the price we pay. There are no hidden costs in the price of food. The taxes we pay are the result of government - not the result of food prices.






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 08-26-2007, 00:58 Post: 145021
candoarms



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Crunch,

Since Frank takes my comments as a direct attack on him and his profession, I'll stay away from his comments and address yours, instead.

Politics, being what it is in this nation today, makes it very difficult to carry on a sensible conversation with most anyone. As is the case here, making enemies is very easy to do, as no matter which subject we bring up, somebody is going to be offended. Such is life.

However, this fact doesn't prevent me from addressing some of the most troubling aspects of our country, our government, or our laws.

Farmers are highly subsidized by tax dollars. There is no denying this fact. It's easy to prove. Most every farm commodity produced in this nation has some sort of government program attached to it, and in many cases this money goes directly to a "farmer".

The products produced by our farmers are sold at market, and the consumer pays a certain price for those items. Then, on April 15th of each year, the consumer pays an additional amount for those same items, because every consumer of farm products is being forced to contribute some additional part of his wages to taxes....some of which goes toward financing the farm program.

In other words, the price we pay at the grocery store isn't exactly the final price. There is a hidden price in those goods, which is extracted from us at a later date.

Over the past 10 years, the American taxpayer has been charged over 129 BILLION dollars for farm subsidy programs.
If I assume that there are 300 million people in this country, then each American has contributed 430 dollars in taxes to support these programs over the past ten years.

I find it difficult to believe that any farmer would attack me for my comments, when I am a farmer myself. I'm simply trying to point out something that most farmers don't wish to discuss, because they believe it to be a direct attack against them. HARDLY. In fact, the opposite is true.

Most farmers would like to see the subsidy programs come to an end. Most farmers, like me, would like to make an honest living selling what they raise and grow, rather than collect a government subsidy payment to help make ends meet. Yet when we look at who gets that 430 dollars paid by every taxpayer for these programs, it's most likely not the farmers. In almost every case, it's the big corporations who have their grubby little fingers in the collection plate.

If I could prove to any farmer that the subsidy programs are not helping them, but are actually helping billionaires get richer, I might be able to get somebody to listen........but as Frank proved here, it's almost impossible to ever get that far into this topic with any farmer. Most farmers are just too sensitive for their own good.

Joel






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 08-26-2007, 09:06 Post: 145027
crunch



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Cando, I just think that everyone knows about the price that is extracted from us on April 15. That goes into the total bucket known as taxes. Its not hidden in the price we pay. I think we can argue about anything that is in the tax bucket. That includes subsidies for cooperative extension services, land grant universities like Rutgers and Penn State, etc.

I am not ready to say these are bad or good things. I tend to think many of these services are good. I myself worked on milk pricing algorithms while at Penn State and now my BIL works on removing subsidies for the government. He is representing the government as they hold local hearings around the country and are ruling on issues as subsidies are removed. (He is not a well liked person at these meetings).

I think the total bucket called taxes is pretty well understood that these benefit some and take money from others.






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 08-26-2007, 12:22 Post: 145037
pelletfarmer

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Hey, crunch..."I think the total bucket called taxes is pretty well understood that these benefit some and take money from others."

Sure, but the size of the bucket is misunderstood! You guys are mostly talking about income taxes and subsidies, but you're missing the "recursiveness" of those, not to mention the zillion other taxes.

Ever been in a poker game with a 10% rake? Play long enough, and the house gets all the money.

The money the farmer gets for his product goes not only for income taxes, but property taxes, sales taxes, phone taxes (take a look at your bill lately?), and on and on. But that's not even it...what about what he pays directly for product and equipment, even besides his taxes? THAT guy (company) pays income taxes and property taxes and...

And what HE pays for HIS raw materials...well, you get the idea. Think about it...the house gets all the money. And we haven't even begun talking about what that "money" is and who prints it!

I had to chime in with that, though I could write a bit more on the morality of taking from some and giving to others. More on-topic, I'm a newbie here and really appreciate the TRACTOR stuff, so thanks to everyone for all the good advice.






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Discussion Boards > Active Subjects > Messages as Posted > Farming Ranching Agriculture Forum

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