With calving season in high gear, I am sure the cost of the RFID tags has crossed the Supper table more then once this season. After doing some research of my own I have begun questioning the cost of these little chips. 


First off lets look at just how they work. Passive RFID tags rely entirely on the reader as their power source. These tags are read up to 20 feet away, and they have lower production costs than battery powered active and semi-active tags. Most passive RFID tags cost between 7 and 20 cents each [source:RFID Journal]. 

What I am trying to understand is how a chip that cost 20 cents max can be costing farmers $3.00 to $3.50 for a little more plastic and large numbers. Don't get me wrong I think that a strong identifying system is key especially when it comes to tracking diseases and other hazards to the industry, but I think that the price has been inflated due to the farmers dependence on the tag to sell livestock. let me know what you think of the price and the reason why they are so expensive.