Tuesday, April 10, 2007

The price we pay for cheap food

We all want quality items at a cheap price. Unfortunately, if we don't pay, someone has to. The government sets a price that farmers have to sell there food so that we, the consumers, are not paying a lot on food. Well, this hurts the farmers because while there profit stays the same, their fixed cost goes up. The government doesn't set the cost of equipment and machinery at a certain price and they don't set the cost of animal food at a certain price so the while the farmers have to keep paying more for these things that they need to produce food, they are still getting the same amount of profit.

4 comments:

ashley wagner said...

The farmers always get the crappy end of the deal. they are working to feed the rest of the world, which is more than a lot of people can say they accomplish in a day. It is unfair that there is a price limit on their goods they try to sell, while their fixed costs continue to rise, because eventually, the farmer will lose so much money that he will be forced to quit. This is sad because most farmers are doing this sort of work because they love it and they get the chance to feed everyone else. Why should they be punished?

Luke Haumesser said...

I agree. Farmers do a lot of the grunt work for America and it is in fact something they do because they love it. It is a shame that there is a price limit on the goods that they sell because in the end they are the ones that are being affected by it. However, is there not some type of government legislation that pays farmers not to grow crops, mainly to avoid surpluses?

msowko said...

I also agree farmers are up from sun up to sun down. The government should put some restrictions on how much farm machinery and feed for livestock should cost. This in turn will lower the farmers fixed cost and eventually lower thier total cost. Although this may not need to happen because as we learned as long as the total variable cost is less than total revenue you should still produce your outputs.

Racy said...

Farmers in some ways have the most back breaking work to do, it takes up alot of their day and they dont even make that much. If their products have to be set at a certian price then everythign else should and therefore if it was like that they would be able to have the chance to make more money.