Food Prices /Farmers/Agriculture/ $15.00 for 100 lbs of peanuts?

Question

Just a curious thought for the night:

I recently moved to a rural area (I'm a city kid), and have wondered why I can buy a 100 lb. sack of peanuts for about 15 bucks or 50 pounds of dried corn for 7 bucks, but when I go to the store for food, there is several magnitudes of difference in price. It seems like there could be an untapped market for bulk food straight from the farm. But, experience tells me, if it was that simple, someone would have done it.

Answer 1

Here is the answer I supplied to a farmer who was angry at being verbally accosted for high food prices when obviously it wasn't his, or any farmers fault. Why is food so expensive at the store?

People can't see the truth because they don't know the reason for what is in front of their eyes. Farmers put all the food on our tables these days. Unless you grow at least some of your own food, you buy it all and someone has to grow it. The high cost should be obvious but people can't see past their shopping receipt. Farmers labor and that is a lot, plus seed and all that is needed to grow and harvest that crop. That is big money. Shipping from the farm is equipment use and depreciation +oil +maintenance +labor +management. Dispersion from that point all brought together just to go to processing add transportation +depreciation +oil +maintenance +labor and than can't forget management. Now as most food that is eaten then gets processed you then have processing equipment use and depreciation +electricity +maintenance +labor and management + metal and paper and plastic packages +boxes +on pallets. Now it gets sent to shipping and there is that huge blue collar support and computers and railroad or trucking reservations. Then Dispersion from that point add transportation +depreciation +oil +maintenance +labor. There may even be a second distribution. Some items are even handled by air shipping. Then labor with direction from management puts it on the shelf if there is anything left of it. That is why fresh produce tastes like the box it ships in. Look at what you buy and it is a whole lot more than a jar of applesauce now. That is why we pay so much for food. I love the farmer dearly, I have an agriculture degree and I love it, but this is all just B>S>. In any other place and time I believe the term is RACKETEERING. But in agro business it isn't. The cost of food is agro-racketeering.

Answer 2

Most farmers will sell you bulk corn, or peanuts, or rice, whatever he raises, if you go to the farm and ask. It is not the normal way farmers do business, but most will sell you something just to help you out. You just to time it right and ask. Also seek out farmer's markets, you can find bulk food there a lot better and cheaper than in the grocery store.

Answer 3

The problem is the middle man who makes all the money because it sure isn't the farmer. He's selling his products for that bulk price because that is probably what he is getting for it.