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Iowa - Living at the Epicenter

Nobody Wants to Say It....We Will

Drunk The nation's farmers have drunk the Kool-Aid and so has Washington.  We're all just a little tipsy.

Months ago we started asking questions about the rising prices of grain.  We were told it was good for farmers.

Months ago we asked about the relationship between the rising price of grains and the increased food prices.  We were told we should not worry and there was no relationship between the two.

Today we're not so sure.

I just got off the phone with one of our clients who told me that between the increased price for fuel (transportation) and the increased price for grain (corn, soybeans, wheat, take your pick) they can't raise prices fast enough.  "Michael, if we could, we would be raising prices twice a week."

Let me say that again...a national client that is in the business of making a consumer based product has told us they can not raise prices fast enough to keep up with their costs of production.

We think they are not alone.

This is not a rural vs. urban debate.  This is becoming a national concern.

Last week I paid twenty-one cents for an egg.  One egg.  Six months ago that egg cost me eleven cents.

Angus_bulls_2 In a matter of months we have seen grain prices increase by 200%.  You think that will not have an impact on lots of products?  Last time I checked we eat a bunch of corn-fed beef. If six or seven months ago a rancher was feeding grain priced at $1.98 a bushel and they, today, are feeding the same ration at $4.35 bushel. Think that might impact price?

Look, our bottom line is focused on agriculture and rural lifestyle both have been good for us and we are grateful.  But...we think we're headed for a major backlash as the rest of the country (the 95% who are not farmers and ranchers) get real antsy about the cost of everything from eggs to dog food.

Maybe it is Gods way of telling us to go on a diet?  What do you think?

Michael P. Libbie - Insight Advertising, Marketing & Communications....we love farming...and cooler heads.