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October 6, 2000

MARKETING
MARKETING
MARKETING

By Bryce Myrick
Director, TFB Agricultural Marketing Education

As we start fall harvest and planting, there are serveral factors that are affecting our bottom line. Although we do not have to be price takers, our livelihood is affected by many factors we cannot control.

Since 1996, the U.S. dollar has risen 35 percent in value. This has been a crushing blow to our U.S. agriculture exports. A five percent increase in the value of the dollar creates about a 10 cent decline in a bushel of corn and about a 15 cent decline in a bushel of wheat. This is why a strong dollar is such a detriment to agriculture producers.

Another factor that is hurting producers is energy cost. High gasoline, propane, diesel and natural gas are driving production costs up.

With higher cost and lower commodity prices, agriculture producers will have to work extra hard and smart to market our commodities at liveable prices.

To set up workshops or for help with your hedging needs, call 254-751-2242 or 915-698-0355 or e-mail: bbmyrick@swconnect.com.

10 percent decrease in price since '98

160 percent increase in price since '98

130 percent increase in price since '98

20 percent increase in price since '98