Tecolote said:

---

CrossTimbersW said:

---

I recently paid $8.20 at the local feed store here in Gatesville. That is too high with what corn is bringing at market. I was able to purchase about 2 tons in the field from a friend. With the tip it came out to about $4.13 a bushel or about $3.62 per 50#. It seems about $8 is the going rate but corn is plentiful and incredibly cheap right now. Hopefully those prices at the store go down soon.

---

So, we've been talking prices on vets. So, let's talk commodities. You friend bought at 3.62 in the field. And you feel $8.20 at the feed store is too much. What do you think is a fair price?

Let's look at costs to get the corn in the bag at the store.

1) trucking to processing mill
2) the bag itself (easily $0.30-0.50 each)
3) filling, weighing, closing, stacking - whether manual or automated, plenty of costs in that.
4) mill's margin
5) shipping to store (okay, maybe save here by buying at the mill's store)
6) store's margin. Buc-ee's can sell at cost or below because they hope you buy the high margin items like a coke and some food or other items.

So, what's a fair price?

---

tandy miller said:

---

Tecolote said:

---

CrossTimbersW said:

---

I simply stated that bagged corn was too high based on what corn is trading at right now. I didn't offer a fair price.

When the farmer has his corn contracted out at $3.85 per bushel that's about $3.50 per 50#. Let's add in $0.50 per bag so we're up to $4 per 50# bag of corn. That corn needs to be cleaned and shipped. I'll add $1 per bag for cleaning ($5 per bag now) Let's say it needs to be hauled 200 miles. Nothing in my area should have that mileage but I'll just use that as an in-between. Two hundred miles @ $7 loaded mile hauling 1,000 bags of corn is $1,400 or $1.40 per bag. We're up to $6.40 per bag. I'm sure there's plenty of other hands in the pot and things I've missed that would bring that price up. We're still a long ways from $8 a bag. My opinion was $8 was too much. My opinion has not changed.

What is your fair price?

---

The $8.20 to 8.99 is pretty fair price. The Buc-ee's (think Walmarts) can sell at cost or loss. But the store owner has employee costs, insurance, overhead (e.g. utilities), workman's comp insurance, etc. And then they need to make a little on top to stay in business (only communism thinks a profit is bad). You won't change your mind and that fine. But, your views and knowledge, and expectations of unsustainable margins, is why manufacturing won't ever really see a rebirth in the US.

So, you've gotten to $6.40 in costs (which were not all inclusive). How much do you think the store should add on top of their $6.40 cost and charge you - you think they should make $0.50 per bag?

---

<$7 here. I'll let them know they're getting hosed next time I'm there

---

CrossTimbersW said:

---

Furlock Bones said:

---

Prices should start falling. Most acres planted in corn since 1936!

---

Be careful with facts around here. If you suggest anything less than $8 per bag is even remotely be possible, you'll likely get called a communist or the downfall to American civilization. Did you know if feed stores sell it for less than $8 there's no way they can make a profit and they will go out of business? If you suggest such a thing, you're suddenly against the "big bad" feed store industry too.

Side note, I guess all of my favorite feed stores will soon go out of business because they've been between $5.95 and $6.95 for about 3 weeks now. When I go pick up feed next week, I'm going to remember to let them know that they're going to go out of business. It's my civic duty.

---