Centre county Pennsylvania, USA |
The higher prices in grain could also be partially described as a long term aberration caused by higher cost of grain production. Attached chart is USDA's historical evidence of corn price VS cost of corn production from 1981 through 2011. Average cost of US 2013 corn production (estimated by USDA and others) appears to be about $4.50/bu. If the USDA's historical chart is truth then corn farmers should expect average price of 2013 corn to be greater than $4/bushel but less than $5/bushel.
(HistoricalCornProdCost.v.Price.jpg)
Attachments ---------------- HistoricalCornProdCost.v.Price.jpg (72KB - 35 downloads)
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