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NEIN | I believe you that wholesale Potash was 200 because I bought retail for 250 clear up here in Northern Indiana. My point is that unless you live next door to the river that is all you have, a river price, now move it anywhere and your cost is a lot more per ton. In commodity production you must be the low cost producer to make any money because in the long run Price will always equal Cost.( P=C) Inputs cost can very quite a bit and account for regional differences in land value as Basis effects that too. In the long run all profit is bid into the scarcest resource and that is land and capital, thus the reason in the long run land ownership is the best way to accumulate wealth in Agriculture. | |
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Cost of production/per acre ???
