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68340 | Seed will not go up 50% just because #2 has increased 50%. I have seen seed companies increase prices based not only upon the price of #2 corn. They have other cost to consider also. They will claim it is because of #2 corn going up 50% that they need a sharp price increase. Not only do they have the cost of #2 corn up 50% they also have fert. , chemical, ect. price increase they pass along. They will find it very easy to increase the price of seed corn next year, maybe not 50%, but it will greatly increase. How much ? Time will tell. That increase profit the farmer may see this year will be sliced up by our suppliers, maybe not in 1 year, but it will be sliced up. I think of how tractors/machinery increase in the 1970's, maybe even today, by 10-15% or more per year. Tractor/machinery companies did not even blink at labor demands for more wages, just passed it along because they saw the money farmers were making and they could pass on the cost and still make money for their companies. Same thing over again. | |
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Just my opinion ,of how it will go.
