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Profit margin compression, part 3 Price reality

2014-09-08 18:42:00| Corn & Soybean Digest

Inflation, while benign in the general economy, has been running full steam ahead in input and operating costs in the agriculture industry ranging anywhere from 5% to 10% annually. Combine this with increases in real estate taxes and the fixed cost component of equipment and machinery, and one can quickly observe how profit margins have quickly disappeared with lower commodity prices. Road Warrior read more

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