Replying to a message of Jeff Binkley to Bob Klahn:

 BK>>>>  What is the farmer's portion of the sale price? Double the
 BK>>>>  workers wages and you won't double that portion. So, if the
 BK>>>>  farmer gets 10%, you won't pay more than 10% more for the food
 BK>>>>  if the farm price doubles.

 BA>>> The farmer's share of a $2 loaf of bread is about three
 BA>>> cents.

 BK>> Which doesn't really surprise me. A decent living for farm
 BK>> workers would mean a small increase in food costs.

 JB> Or the farmers could start their own bread manufacturing and retail 
 JB> distribution channel and then retain any profits from the
 JB> efficiencies  they can drive out.

Actually they wouldn't necessarily have to set up the retail distribution
channel.  A couple of years ago I noted that there was an empty factory
(since demolished) across the street from a large grain elevator in Red
Oak, Iowa.  I suggested that would be a great place for a commercial
grain mill and bakery, and that said bakery could contract with Hy-Vee and
Fareway (both are Midwest supermarket chains serving this area) for distribution.
I think this is still a viable project, even though the building is gone
there's still
a couple of acres of commercial property there.

One hindrance - that was discussed in POLITICS many years ago - is the
fact that the smell of baking bread is considered by some to be air pollution.
I thought that was ridiculous, but it was pointed out by an individual who
worked in the (Illinois) state government at the time that the substances
released into the atmosphere from commercial bakeries were in fact pollutants.

I suppose that some would also consider any dust emitted from a grain mill
during the production of flour would also be pollution.  

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