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Butcher Prices - Revisited
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<blockquote data-quote="hayray" data-source="post: 505951" data-attributes="member: 3046"><p>That is a good question. There is a local farm next to me that farms over 4000 acres of cash grain and also has a good sized on farm feed store. They charge right now close to $6.50/bushel because as they stated to me that they make the feed store business buy the grain from the farm, so inorder to make money on $5 commodity corn right now that the feed store is buying from the farm then they need to charge that much, again, one is a retail business and another is a grain commodity business. Most of us who buy corn buy from a grain elevator at the very least and they always charge me a good bit above market price for a handleing fee. And going to a feed store you are paying alot more for any feed, especially processed feed because you are paying for all the extra costs of bagging, processing, advertising, transportation, etc. I have my freezer beef priced to cover all these extra costs, otherwise if I have extra I can't sell that way they will go to the auction but then I don't pay all those extra costs of doing business as I do with my retail business.</p></blockquote><p></p>
[QUOTE="hayray, post: 505951, member: 3046"] That is a good question. There is a local farm next to me that farms over 4000 acres of cash grain and also has a good sized on farm feed store. They charge right now close to $6.50/bushel because as they stated to me that they make the feed store business buy the grain from the farm, so inorder to make money on $5 commodity corn right now that the feed store is buying from the farm then they need to charge that much, again, one is a retail business and another is a grain commodity business. Most of us who buy corn buy from a grain elevator at the very least and they always charge me a good bit above market price for a handleing fee. And going to a feed store you are paying alot more for any feed, especially processed feed because you are paying for all the extra costs of bagging, processing, advertising, transportation, etc. I have my freezer beef priced to cover all these extra costs, otherwise if I have extra I can't sell that way they will go to the auction but then I don't pay all those extra costs of doing business as I do with my retail business. [/QUOTE]
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