Monday, January 31, 2010
The last day of the month and this will be the end for my diary. I made another trip today to Greenville, OH to deliver corn to the ethanol plant. The weather sounds bad for the rest of the week. The worldwide grain shortage has pushed the price a little higher this past week. This has been a great help to farmers to cover their expenses for the upcoming year. Everything we are buying for our next crop has went up substantially. We have not reached parity in the price of our commodities. For instance, corn would need to be $9.88 per bushel to be equal to what the rest of our economy is right now. This is what the U.S.D.A. (United States Dept. of Agriculture) calculates for a fair an equal price. The price of corn locally is $6.30 a bushel. If you use a bushel of corn or 56 pounds, and divide $6.30 by 56 lbs., totaling .12 cents a pound. The next time you buy a 1 pound box of corn cereal, the farmer will be receiving .12 cents of the cost the consumer will pay for the 1 pound of corn. Five years ago corn averaged around $3.00 a bushel. A farmer would have received around .06 cents for that same 1 pound of corn used in that box of cereal then. In the 1970’s, corn averaged around $3-4.00 per bushel. In the past 3-4 years, the grain market prices have risen to what grain prices would have been in the 70’s. This year the prices are much higher due to drought conditions and worldwide shortages. All we can do is hope for the best and see what mother nature has in store for farmers for 2011.
Attached is a picture of the Ethanol Plant built around 5 years ago in Greenville.