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| Authored by: 351-4V on Wednesday, February 20 2013 @ 12:41 PM EST |
Yes, the comparison is almost useless. The comparison necessarily rests upon
what it is being controlled for: Are we measuring cost per acre planted? Cost
per bushel of yield? Cost per man/hour?
Suffice it to say that the cost of
everything associated with planting a crop of soybeans has gone up dramatically.
Diesel, chemicals, equipment, labor and land have all increased in price. But
the cost of seed has probably risen more than any of the other factors when
considering the product at issue.
On the flip-side, the price a farmer receives
for the crop has also gone up. March Soybeans were trading at $14.82 this
morning.
Roundup Ready seed allows the farmer to apply Roundup (relatively)
indiscriminately post-emergence in a field. Prior to Roundup Ready seed,
Roundup could only be used pre-emergence or in a precisely controlled fashion as
it would kill not only the weeds but the soybean plants as well. Consider also
that the only reason for weed control is to eliminate competition for nutrients
and sun from the weeds. That and the pride of having a pretty and clean field
for your neighbors to admire if your rows happen to run perpendicular to the
highway. :)
Roundup Ready seed has decreased the cost of application of
herbicide, merely one component of the total cost of planting a crop of
soybeans.
On balance, it would be incorrect to think that the total cost of
planting soybeans, no matter the controlled constraint, has gone down. The cost
of planting has greatly increased. If measured as cost against revenue of
yield, it is probably safe to say that this measurement has remained relatively
constant over the past few years. It is revenue per investment dollar where the
farming activity increasing looks to be a futile endeavour due to the rapid rise
of capital expenditures required.
Disclaimer: I own a few acres of farmland
on which soybeans are grown using Roundup Ready seed. I otherwise no longer
participate in the farming activity and have not for over 30 years. All of my
first-hand experience predates isolation of the gene that Roundup Ready seed
uses.[ Reply to This | Parent | # ]
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