Economics and Prices in Perspective

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I have been thinking about the prices growers may receive relative to input costs and yields. See the attached pdf. As I did this I thought of prices over the past decade. I think we need to remind people of what can happen to supply and demand and ultimately price if we over produce in 2012. Peanut equipment is specialized and the question is what will people do if the price goes back down to $500 or $600/ton in 2013 or 2014. Just a thought. But things do look good right now. Two years ago I was encouraging people to think really hard about planting soybean rather than peanuts if they didn’t have high yielding ground or were in a situation with high input costs.

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Article first appeared as North Carolina Peanut Note (PNNC-2011-070)