Geez Louise!

rutgers1(6NJ)April 7, 2008

I called my local feed store to order some soy and alfalfa. I was notified that each had risen from $15 to $30 and that everything is skyrocketing.

What is going on here? Ugh!!!!!!!!!!!!!!!!!!!

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morpheuspa

What is going on here? Ugh!!!!!!!!!!!!!!!!!!!

Petroleum products to produce fertilizer, petroleum products to produce plastic, petroleum products to run the farm equipment, diesel fuel to run the trucks that deliver the products, increased demand throughout the world, bottlenecked supply, no new petroleum refineries in the US for what, 30 years....

And diesel just went over $4 per gallon. Couple that with farmers planting fields with corn for ethanol and you have a second part of the puzzle.

Stinks. My grocery bill is rising fast, too.

    Bookmark   April 8, 2008 at 7:13AM
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lou_midlothian_tx(z8 DFW, Tx)

Wow. That's a big jump. I wonder if that is directed at customers using them as lawn fertilizer instead of animal feed and they're trying to discourage them to buy them for fertilizer?

    Bookmark   April 8, 2008 at 10:19AM
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hardin(7 SE OK)

I think it is just the petroleum companies looking to make a better profit for their next quarter. I think I heard one company only posted a $125 billion dollar profit on the last quarter. Gee, that's not enough money to do ANYTHING! I'd need more than that too. NOT........! Therefore, when gas prices go up, the next in line has to pass on the cost of it, to cover their cost, and the next guy has to pay and he passes it on and on and on..........

    Bookmark   April 8, 2008 at 12:31PM
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earthworm73(WA z8)

It's a shame when even organic gardening is becoming too expensive. What's next?

    Bookmark   April 8, 2008 at 5:34PM
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woodycrest(Ontario, Canada)

organic gardening too expensive??
true organic gardening(lawn care) doesn't cost anything beyond time and effort!

    Bookmark   April 9, 2008 at 10:01AM
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dchall_san_antonio(8 San Antonio)

Welcome back woodycrest! Please post new pictures!!

I think it is just the petroleum companies looking to make a better profit for their next quarter.

I work in the energy business and would like to say that the oil companies do not set the price of oil or gasoline. Oil and gasoline are commodities traded on commodity exchanges around the world? Other commodities include gold, silver, cattle, orange juice, rice, corn, wheat, soy beans, soy bean meal, soy bean oil, milk, sugar, and many (MANY) more. The worldwide price for these commodities does not vary much from country to country. Prices are set by investors, not producers, distributors, owners, etc. When the feedlot price of beef rises to $1.50 per pound, say due to an expected worldwide shortage, the farmer with beef makes "windfall" profits that year. The same thing happens in the oil industry. But during the years when beef sells for $0.75 per pound, the farmer sucks wind. And the same thing happens in the oil industry.

The really good news is that the high price of energy has suddenly made it very cost effective to invest in alternative forms of energy. That is what spurred the increased interest in corn and other grains for making ethanol. But interestingly, the sudden high price of corn has made it cost effective to invest in alternative sources of ethanol. Hopefully we can shift to common weeds instead of costly corn for ethanol. I'll bet the grass growing in the medians in Texas could supply all the ethanol needed.

Here is a link that might be useful: CNN commodity prices

    Bookmark   April 9, 2008 at 5:43PM
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