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Pierce county WI | Not to mention, the end users have less risk if they control the ground. They can know their costs and can fix their costs. Spike in prices? They just pass the costs on, and instead of the farmer having a good year, they do. It's vertical integration. Ford probably would like to own their own steel production source. Years ago, international harvester had their own steel mill. It's like abomb says, they want control of the dirt, they don't have to own it. Just like hogs. You don't have to raise hogs under contract. However, the only time cash hogs are worth much is when there is a demand increase, or a decrease of supply. Once the majority of the crop acres in the US are under contract, the remaining acres will be screwed. | |
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Mega-dairies - cost plus contracts?
