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 - History of the Nuffield Tractor - by Anthony West. The Nuffield tractor story started in early 1945. The British government still reeling from the effects of the war on the economy, approached the Nuffield organization to see if they would design and build an "ALL NEW" British built wheeled tractor, suitable for both British and world farming.
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