Tuesday, May 13, 2008

AG RELATED INDUSTRIES BENEFIT FROM HIGH PRICES

(CNN) -- The nation's economy may be weak overall, but one industry is booming and farm states are benefiting. Higher grain prices mean many farmers have money to spend. It's non-stop work inside the Hesston, Kan. AGCO plant, workers are churning out farm equipment at record levels. "Things are booming absolutely," said Andy Blanford of AGCO Corporation. The reason -- record grain prices. Not only are they paying off for farmers, anything ag related is thriving. Wheat and corn are at record prices. Blanford says more than 1,300 people are working at his plant now and they are recruiting workers from all over the area. Demand is so high they're having trouble finding qualified people. "We need all the skilled help we can get," he said. Like many small Midwest and Plains' communities, when farmers have more money to spend, the town benefits. "It's a benefit to the whole community, the school system, and everyone benefits from AGCO," said Mick Petrocci of the local True Value Hardware store.