Chip, while some of that price increase in hay might be due to inflation. Most of it is caused by a simple fact. In Texas, we are having to truck in hay from Kansas (and sometimes even farther). The drought we are having is absolutely horrible. If we do not get significant rain in the next 6 months (and we are not predicted to get any), we will be seeing electricity shortages. Some electric power plants (coal, natural gas and nuclear) will have to shut down because they won't have the water necessary to cool the plant and generate power.
I figured the drought was some of the price increases but the fact that prices have soared to nearly 9x seems extreme unless cost inflation is part of the equation. This has to be one of the worst droughts Texas has ever experienced I would imagine.
While it isn't funny, this made me laugh. I just pictured a couple of knuckle dragging hill billies each running off with a full bale of hay.
ReplyDeleteChip, while some of that price increase in hay might be due to inflation. Most of it is caused by a simple fact. In Texas, we are having to truck in hay from Kansas (and sometimes even farther). The drought we are having is absolutely horrible. If we do not get significant rain in the next 6 months (and we are not predicted to get any), we will be seeing electricity shortages. Some electric power plants (coal, natural gas and nuclear) will have to shut down because they won't have the water necessary to cool the plant and generate power.
ReplyDeleteI figured the drought was some of the price increases but the fact that prices have soared to nearly 9x seems extreme unless cost inflation is part of the equation. This has to be one of the worst droughts Texas has ever experienced I would imagine.
ReplyDelete