Dl4-Uncaster Fanning Saturday, March 26, 1988 (Continued from Page Dl2) of running out, and this abnormal level of buying drove prices even higher creating more and more fear among consumers. All needs or necessities have one economic trait in common. Because they are necessities, consumers will bid against each other to ensure that they get their individual supplies. A small reduction in supply, even a perceived one, will drive prices up very strongly. In this country, the shoe is on the other foot most of the time. There aren’t any perceived shortages, and customers don’t work them selves into bidding frenzies. Instead, producers underbid their fellow farmers so they can sell. The net result or economic trait, which identifies this group of com modities we have on our needs list. PERKA BUILDINGS (”7 J DON’T WAIT! wSaamif order now for spring Perka Is: • Large Enough You 8 Building • Personal Enougl To Work With And/Or Your Contractor, PERKA has the building to satisfy your needs. CaU In N.J.: (609) 267-5571 Out Of State: (800) 338-5094 (Dealer Fax No.: (609) 267-8135 fperka buildings, Eastern Div. fig** ] • Engineer Stamped & Certified Ism'S? " 4 Ol • 40/20 Year Warranty j • Energy Advantages 31 [ • A Permanent Investment I 1• 12 Colors | • Steel Trusses And Wood ODW * i Or Steel Girts & Purlins. lm Serving NJ, PA, DEL, MD Or Write I Towi/dlf Coon! ! Ttkgtano Nn Po«M JI am biMratod In to Miming typa <X building j Wlddi Itngh Stat <* Ooet ImpMMnl SM Mry Hog J Worktop Loom Houaing SkUn I hduakU Camwidnl Ming Aim I Dili il tonang Ti lulil U_ is that small changes in supply, real or imagined, lead to very big changes in prices. Economists describe these commodities as being price inelastic.- On the other hand, those com modities on the want lists have a different set of economic traits. A ' small reduction in supply of one of ’ them will not result in a bidding war among consumers because, after all, they are not necessities. Prices for such commodities are said to be relatively price elastic. In other words, prices for such pro ducts do not go up or down a great deal with small changes in supply. A few weeks ago, while attend ing The Pennsylvania Vegetable Growers Association meetings at Hershey, I listened to a presenta tion made by an innovative market-oriented young farmer from North Carolina. His presenta tion was very good and was so sti mulating that I and several others sought him out later, and he led a lively discussion in the corridor. The man’s name is Mr. Carrigan. He lives in Mooresville, N.C., and he made a comment that I’d like to pass along to those contemplating diversification of their farming operations or those looking for alternative crops. When asked why he was shifting to flowers, orna mentals, Christmas trees and the production of other non-food items rather than increasing outputs of some of his food crops, he replied that he could make more money catering to peoples wants than he could producing food to meet their needs. I thought he made a very strong point. I would not attempt to Paying Top Prices For Good Quality Ear Corn • Wet or Dry • No Quantity too large or too small Fast Unloading - Dump on Pile & Go Easy access - 2.2 miles off 283 bypass- Manheim, Mt. Joy exit Daily Receiving 7:30 A.M. to 5 P.M. - un loading evenings & Saturdays by appt. Trucks available for pick up at your farm. JAMES E. NOLL GRAIN IRCIAL RIAL TURAL explain exactly what he meant, but I believe he was correct After all, food is not often in short supply in this country, as hamburger was believed to be back during the 1970’5. Generally there is abun dance, and prices tend to be low because food is a necessity and price inelastic. Mr. Carrigan is a direct marketer so he does gain the profits and incurs at least some of the costs experienced by middle men in a more typical system. If he were to expand production of food items, he’d drive his prices down still further. Once his customer’s stomachs are full, they want no more. But when his customers’ appetites are satisfied for bedding plants or any number of other non food items, prices will not have to fall so low to sell the remaninder - EAR CORN Call Anytime For Price 717-665-4785 .they are more price elastic. When we think of all the pets, pet food, bird seed, etc. that are, or could be, on consumers’ want lists, I think Mr. Carrigan is making a good point. Why expand by producing more for an already over supplied market.? Maybe we should look at consumers want lists and produce something they want -- and, oh yes, be willing to pay for. t&iyie oh Yi.v *>(.»£ &V«*/ NEED MORE ROOM? Read The Real Estate Ads In Lancaster Farming's Classified Section All-Plant LIQUID PLANT FOOD 9-18-9 PLUS OTHERS I • Contains 100% white ortho phosphoric acid. Made in USA • Non-corrosive Won’t settle •Top quality Excellent service • Newest equipment • Financially sound and growing l Big Demand Requires More Distributors! fj I sell to farmers. How do I become your distributor 7 n I'm a farmer. What’s the price 7 Where do I get it 7 CALL or SEND FOR FACTS: Phone 814-364-1349 | ALL PLANT LIQUID PLANT FOOD, INC. i \ 821 State Rd. 511 N..RFD3, \ \ Ashland, Ohio 44805
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