The economics of agriculture, or any sector of the economy, are actually quite simple at their core. A product is produced and someone needs to be willing to purchase that product. What is the key to maximum profit? Connecting the product to the consumer in as few steps as possible. The process of getting the product to the consumer can be a very complicated process and every step of the way incurs a cost upon the farmer and ultimately their…
When thinking of commodities, the first thought would probably not be manure. Commodities like oil, gold, coffee, and natural gas have a fairly high demand, but who would pay a premium price for manure? In many cases, large farms need to pay others just to get rid of their massive amounts of manure. However, as the price of man-made fertilizers increases, it is entirely possible that manure will return to its state as a highly valued commodity. Notice that I…
The statistic is quite striking. In 1820 it is estimated that 72% of Americans worked on farms. In 1920, the number was 30%. Today, less than 1%. This concept continues to come up repeatedly. For 200 years, people have been leaving farms for the city. The underlying question is, “Why?” At the Plymouth Historical Society, there are stacks of old books that give a glimpse into the past of Plymouth and the United States. One stack included different copies from…