cnelsen
Gold Member
- Banned
- #261
Taxes are variable production costs? Farmer's profit is a variable production cost? Outbuildings are a variable production cost? Not likely. BUT IN ANY CASE, the labor in the field is a negligible portion of the price the consumer pays in the store. You, NPR, and that farmer, each for his own reasons, feels the need misinform the American people apparently.It is unbelievable that that is put out by the USDA. This quote alone:
The most recent data from ERS indicate that labor accounted for 42 percent of the variable production expenses for U.S. fruit and vegetable farms, although labor’s share varied significantly depending on the characteristics of the commodity and whether the harvest was mechanized.In the first place, labor doesn't account for 42 percent of the retail consumer cost, it's 42 percent of the "variable production expenses". So that probably doesn't include cost of machinery, cost of storage, cost of transportation, taxes, the farmer's profit, etc. It is likely only the labor, seed, irrigation, fertilizer, and, possibly, tillage, so, yeah, it could be 42 percent, that STILL is a negligible part of what you pay in the store for a box of strawberries.
Actually, machinery, cost of storage, cost of transportation, taxes and more are counted as production expenses. There is a survey of farmers done every year called the Agricultural Resource Management Survey (ARMS) that ask all those and more. This is on top of monthly Ag Labor reports which tracks just the labor.
You really should learn what you are talking about prior to coming on such a forum as this.
42 percent of the variable production expenses for U.S. fruit and vegetable farms
Yes, "variable" as in always changing, not set. Transportation cost change with the cost of fuel, off farm storage cost change based on the demand for the storage and so forth.