Prudence for Dummies: Interesting Anecdote Related to Food Prices

Monday, June 27, 2011

Interesting Anecdote Related to Food Prices

I was talking to some people in the dairy business yesterday. Dairy farmers operate on the margin between the cost of feed grains and the bulk price of raw milk. Grain is running about $14 per hundred in our part of the country. Milk is around $20 per hundred in this area. There is a rumor that the price of milk will go to $25 a hundred, which it has to at some point in order for the producers to stay in business. The other option is that feed could drop back a few bucks to around $10. If milk does go up, don't expect the processors to eat the increase. They will pass all of it, most likely, along to the consumer. In easy numbers, if milk is selling in the store for $4.00 a gallon at the moment, it would not be unreasonable to see it go to $5.00.

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The PFD Recommended Viewing and Reading List --- Suggestions are welcome

The Secret of Roan Innish -- suggested by Farmlog's John Lien
The Incredibles
The Man Who Shot Liberty Valance
Secondhand Lions
The Book of Eli Finally got around to watching it myself. "It's ca-at."
The Road -- I haven't seen the movie, but I can recommend the book
Blackhawk Down -- The modern battlefield
Last of the Mohicans (1992) -- "Find yourself a musket."
The World's Fastest Indian -- Ingenuity and determination and motorcycles
Iron Will -- "Run longer. Sleep less." And, finally, a use for fruitcake.
The Apostle -- Because redemption is real
Jeremiah Johnson -- I cannot believe I left this one off.
Walking Tall -- I prefer the original based on the short life of man who just wanted to do the right thing.
Treasure of Sierra Madre -- Gold will change a man. Fruit trees are better.

Quotables

Don't believe them, don't fear them, don't ask anything of them -- Solzhenitsyn

Tyrannos omnes oportet perire — “It is fitting that all tyrants perish”

The true Christian should not resign himself to the inevitable: he should trust in the impertinence of a repeated prayer. -- Don Colacho

Political tags — such as royalist, communist, democrat, populist, fascist, liberal, conservative, and so forth — are never basic criteria. The human race divides politically into those who want people to be controlled and those who have no such desire. The former are idealists acting from highest motives for the greatest good of the greatest number. The latter are surly curmudgeons, suspicious and lacking in altruism. But they are more comfortable neighbors than the other sort. -- Robert A. Heinlein

When law and morality are in contradiction, the citizen finds himself in the cruel dilemma of either losing his moral sense or of losing respect for the law -- Bastiat

The tank, the B-52, the fighter-bomber, the state-controlled police and military are the weapons of dictatorship. The rifle is the weapon of democracy.

If guns are outlawed, only the government will have guns. Only the police, the secret police, the military. The hired servants of our rulers.

Only the government -- and a few outlaws.

I intend to be among the outlaws. --Edward Abbey from “The Right to Arms”