New Holland and the Ag Equipment Group Message Board

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Non-Tech : New Holland and the Ag Equipment Group

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To: Michael Burry who wrote ()	8/30/1998 5:19:00 PM
From: Bob Rudd	Read Replies (1) of 113

This weeks Barrons carries a good article on farming entitled: Too Much Food? How scientifically engineered crops will help keep inflation in check for years to come If you subscribe to wsj online: interactive.wsj.com While the title sounds bearish for farm income, quite the opposite is the thrust of the article. In a nutshell, large farmers are increasing their income by cutting out middle men growning specifically engineered crops on contract basis for outfits like Frito-lay that seek specific properties. The farmers pay a little more for genetically engineered seed, but receive quite a bit more because the customer will pay up for specific properties. Intermediaries like ADM are often cut out of the deal. This can increase the farmers income by 15% over commodity crops. More farm income means more $'s to buy tractors & such. Be well all, Bob

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