Don't know the answer to your question. From my experience 5 years ago
in the Ukraine, the issue was access to herbicides/other ag chemicals.
The stuff that was being bought was older formulations manufactured in
the Ukraine or more modern stuff from Europe.
Would be an interesting question to look at cost/acre for chemicals or
chemical cost/unit of production. Again, don't know the answer.
I think where the new exporters have an advantage is on the fixed cost
side. Lower land and labor costs. If I look at Canada, there are not
massive differences in variable costs per acre among farmers. Where the
big differences between operations lie is in fixed costs and debt. If your
fixed costs and debt are high, then a farm needs to be at the top end of
productivity with no room for weather glitches.
Way off the topic of a wheat commission but perhaps the point is whether
it is money well spent by farmers and from there, are systems in place to
ensure value for farmer investors. An expense like all other expenses.
in the Ukraine, the issue was access to herbicides/other ag chemicals.
The stuff that was being bought was older formulations manufactured in
the Ukraine or more modern stuff from Europe.
Would be an interesting question to look at cost/acre for chemicals or
chemical cost/unit of production. Again, don't know the answer.
I think where the new exporters have an advantage is on the fixed cost
side. Lower land and labor costs. If I look at Canada, there are not
massive differences in variable costs per acre among farmers. Where the
big differences between operations lie is in fixed costs and debt. If your
fixed costs and debt are high, then a farm needs to be at the top end of
productivity with no room for weather glitches.
Way off the topic of a wheat commission but perhaps the point is whether
it is money well spent by farmers and from there, are systems in place to
ensure value for farmer investors. An expense like all other expenses.
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