Posted by IaGary on February 25, 2011 at 08:02:05 from (216.51.227.72):
When corn is $4 a bushel there is 5.6 cents worth of corn in a 18oz box of corn flakes. When corn goes up to $6 a bushel there is 8.6 cents worth of corn in that box.
A liter of soda pop has 3.3 cents worth of corn at $4 a bushel. 5 cents when corn gets to $6 a bushel.
It takes 12.6 cents worth of corn to produce a gallon of milk when corn is $4 per bushel. 19.3 cents at $6 per bushel.
Cost to produce one pound of meat goes up about 10 cents for beef 13 cents for pork and 10 cents for chicken when corn goes up from $4 per bushel to $6.
I guess my point is when corn goes up to $6 it does not greatly affect the cost of food.
Costs to produce a box of corn flakes goes up 3 cents a box and the processors raise the box by a quarter.
Just keep this in mind when grain prices get up to where they have been lately.
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Today's Featured Article - The Revival of a John Deere Combine - by The Red, John Fritz. For several years I had been driving by a farm house on the west side of Indianapolis that had a John Deere combine parked in high weeds in a lot behind the house. The gentleman no longer farmed because the entire area was developed with housing and light industry. I had stopped several times and knocked on the door but no one would answer. My curiosity was up and I wanted to contact the owner. I wanted to see what he planned to do with the combine.
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