Going Green

Monday, March 31, 2008

Key Reports from the USDA

Some Key Reports from the USDA:



Grain Stocks



Prospective Plantings



Rice Stocks



These are all important indicators of price movement of important food and feed grains over the coming months.

Friday, March 28, 2008

Rice Prices Jump

Rising food grains prices will continue to be a problem.

Jump in rice price fuels fears of unrest

By Javier Blas in London and Daniel Ten Kate in Bangkok
Published: March 27 2008 18:30 Last updated: March 28 2008 09:06


Rice prices jumped 30 per cent to an all-time high on Thursday, raising fears of fresh outbreaks of social unrest across Asia where the grain is a staple food for more than 2.5bn people.

The increase came after Egypt, a leading exporter, imposed a...(complete article here).

Thursday, March 27, 2008

An MBA Mentality

As I dive into this topic, please don’t mistake my attitude toward education. I believe an educated society is crucial to the proper operation of our government, to the advance of society, and to a civil public discourse. However, through my years in business I have found that often, there are attitudes which come with a formal education that are counterproductive to business productivity.

A large portion of my career has been spent in sales or sales related activities. My formal title has never been salesman – it has been manager. Managers should be fully engaged in the sales activities of a business or it is likely the business will fail – whether it is retail, wholesale or a service business.

Many organizations – especially large ones – believe that the best managers have MBA’s (Master of Business Administration). From a logical perspective it makes sense. Find someone who has been formally educated in how to run a business and let them run your business. The problem comes when the MBA manager has no practical experience in the day-to-day function of the business itself. They have the head knowledge, but lack the heart knowledge. They know the tools but they don’t know the business – at least not from the hands-on level. Generally their understanding is conceptual in nature – not practical.

Why do I bring this up? Because it seems that I often spend an inordinate amount of time educating my suppliers on the realities of agriculture.

The MBA manager mentality is often one that is focused on the numbers or benchmarks. It is focused on “objective” measurement of factors which indicate progress in the business. This can be things such as the number of sales calls made, the number of contacts at a Trade Show, the percentage of gross margin -- both average and per sales, and similar easily measurable statistical indicators. They have been taught techniques for handling particular situations that regularly occur in business – like competitive pricing issues – and respond according to the “book” answer. The problem is that they have never walked in the shoes of their sales force or of their customer.

The last item is the key. The most successful people that I know understand their customer. They have either been involved in a business similar to what their customer does, or have spent enough time with their customer to understand their business or situation. They look at their own business through the eyes of their customer. They take time to see what their customer sees and adjust their business accordingly.

Do we do this in agriculture? Do we see ourselves from our customer’s point-of-view? When was the last time you spent time examining your operation from the outside? When was the last time you walked through the grocery store and took a hard look at your product – whether it is beef or cotton or wheat – from the consumer’s perspective? How does the quality of your product compare to competing products? What about price?

We are seeing a number of fundamental shifts in our economy. Fuel prices will soon drive dramatic changes of behavior in how we conduct business and in how consumers allocate their dollars. Transportation costs will force many things to be produced locally that have historically been shipped long distances – such as produce. Are we in agriculture merely riding the tide of the ethanol boom or are we preparing for the inevitable changes that the energy economy will drive?

We are good at managing the numbers. In today’s business environment, if a farmer or rancher can’t manage the numbers he’d better have a second job to support his habit. But, are we good at seeing our industry from the perspective of non-farmers and ranchers? If we educated the public to our business and educated ourselves to what the public truly wants, could we do a better job at providing for their wants and needs? When we can do that, there will be plenty of rewards for the effort. Don’t just focus on the numbers of your business; understand your customer and adjust accordingly.

Also published on Panhandle Poetry and Other Thoughts.

Decisions, Decisions, Decisions

It seems to me that a contra-strategy often works. Swim upstream.

Expert advises farmers to plant corn in fields not yet committed

WEST LAFAYETTE, Ind. - Market incentives all winter have indicated that farmers should plant more soybeans, but a reversal in the new crop futures has occurred, said a Purdue University agricultural economist.

"The March 31 Prospective Plantings report is going to suggest that producers will plant...(complete article here).

Wednesday, March 26, 2008

Americans Driving Less

Higher fuel prices are finally making an impact.

Americans drove less in 2007 for first time: government

WASHINGTON (Reuters) - As gasoline prices broke records in 2007, Americans cut back on their driving for the first time in more than 20 years, according to the U.S. Federal Highway Administration.

Total travel fell...(complete article here).

A New Blog in the Blogosphere

Senator John Cornyn of Texas has started a new blog because he recognizes that there are times that only bloggers are getting out the real story. Check out his blog here.

Tuesday, March 25, 2008

Forestry Research

Our government at work handing out dollars.


AGRICULTURE SECRETARY SCHAFER AWARDS MORE THAN $4.1 MILLION FOR USE IN WOODY BIOMASS DEVELOPMENT

Federal grants support the Healthy Forests Restoration Act, reducing wildfire risk and providing economic incentives to rural communities

WASHINGTON, DC, March 7, 2008 -- Agriculture Secretary Ed Schafer today announced...(complete article
here).

Monday, March 24, 2008

Water Wars in the Future?

Yes, water is the problem, but blaming Global Warming for the issue is off base. Population pressures, urbanization, higher demand for industrial and agricultural uses -- those are the real problems. The problem isn't the quantity of water. The problem is having sufficient usable water in the right place at the right time.

Water will be source of war unless world acts now, warns minister

By Ben Russell, Political Correspondent
Saturday, 22 March 2008

The world faces a future of "water wars", unless action is taken to prevent international water shortages and sanitation issues escalating into conflicts, according to Gareth Thomas, the International Development minister.

The minister's warning came as a coalition of 27 international charities marked World Water Day, by writing to Gordon Brown demanding action to give fresh water to 1.1 billion people with poor supplies. "If we do not act, the reality is...(complete article here).

Friday, March 21, 2008

Agricultural and Nature Tourism for the Texas Panhandle

Some time back I wrote about the opportunity of generating income from individuals who were interested in viewing nature. I am sure the idea was met with skepticism by most of the landowners who read the article. Lease income from hunters has become a significant source of income for those whose land provides good habitat for deer. Occasionally, we find someone who is generating income from quail, pheasant and dove leases. These are great ways to supplement income on land that is increasingly priced far above its productive value.

This past weekend, while attending the Texas and Southwestern Cattle Raisers Convention, I met some folks who are taking a completely new approach to generating income from nature tourism. It is an organization called “Images for Conservation Fund” (ICF) founded by John and Audrey Martin. What is unique about their approach is that it utilizes the free enterprise market system to both provide funds for conservation of prime wildlife habitat and income for the landowner.

One method the ICF utilizes for raising funds is built around the need for professional photographers to have access to prime habitat for photographing wildlife in their native surroundings. In response to this need, they have organized the Pro-Tour of Nature Photography which is styled along the lines of a professional golf tour. The tour is funded by donations from major corporate sponsors (just like a golf tour).

The organizers of the tour enroll twenty ranches and twenty professional photographers in the program for each event. The 2008 contest will be held during the month of April in the Coastal Bend. The landowner and photographer become a team for the month of April and are charged with producing a portfolio of images from several nature categories that showcase the diversity of the ranch. At the end of the month, they submit their photographs for judging. Prize money is awarded to multiple levels and categories so that all participants have the opportunity of sharing in the reward.

Through corporate sponsorships, the prize money can be significant. Here comes the part that is important to the landowners. The ranches receive half of the money raised. The first Pro-Tour, which was held in the Texas Hill Country in 2006, paid $160,000 in prize money with half going to the participating ranches.

The Pro-Tour of Nature Photography is a special event that is held every other year. Nature photographers seek access on a continual basis. My Trade Show booth was located next to the ICF booth and so I was able to visit at length with the Martins and some of their staff and volunteers. There are ranches in the Hill Country, the Coastal Bend and the Lower Rio Grande Valley already hosting photographers with the going rate of $100-$150 per day for access to the photo setting. Photography is low impact and can be a compatible addition to other ranch enterprises.

Do we have the type of landscape that would attract nature tourists to the Panhandle? Absolutely – and not just to the grandeur of places like Palo Duro Canyon or the Canadian River breaks. Our playa lakes are locations where there is a significant congregation of wildlife – especially at certain times of the year. Locations along the various creeks that traverse the area also could hold promise to wildlife photographers.

Photography is not the only opportunity for tourism dollars. There are companies that specialize in providing tours for foreign visitors to our country. Those visitors are interested in seeing what we do and agriculture is of great interest to them. Such visitors would be interested in seeing everything from how we raise cotton or corn to cattle grazing on wheat pasture. The landowner/operator could be as involved as he wanted to be with the tourists visiting his land. A personal tour in which one was available to answer questions would be one way to participate. For the truly creative, a Barbeque dinner somewhere on the place could be another way to both generate income and create goodwill.

As urban sprawl puts continued pressure on land prices, it is necessary to explore additional sources of revenue to maintain operations that can be sustained based on their productive value. Agricultural and nature tourism are definite possibilities for generating additional income.

Images for Conservation Fund can be found on the web at http://www.imagesforconservation.org/.

Wednesday, March 19, 2008

Loonies Seek Protection for Prairie Diggers

This is absolutely crazy. Black-tailed prairie dogs are a huge nuisance. They have ruined 100's of thousands of acres of grassland in recent years due to the pressure by environmentalists to leave them uncontrolled. It is almost impossible to remove a colony once they become established -- even with poisoning. I would be happy to let the environmentalists have all of the prairie dogs they want for their backyard.

Prairie dog protection sought

Interior accused of stalling "endangered" designation.

From the Associated Press
5:04 PM PDT, March 19, 2008


ALBUQUERQUE, N.M. -- A Western conservation group has filed suit in federal court in Washington, D.C., to force Interior Secretary Dirk Kempthorne to respond an August 2007 petition to list the black-tailed prairie dog under the Endangered Species Act.

The lawsuit filed by WildEarth Guardians on March 13 claims...(complete article here).

MIT's New Approach to Fusion

The idea of a fusion reactor intrigues me. I absolutely don't understand it, but I wonder, what happens if they achieve a sustainable reaction and the magnetic bottle fails? Does it shut down or does it melt down?

MIT tests unique approach to fusion power

Mimicking Earth's magnetic field in a giant thermos bottle

David Chandler, MIT News Office
March 19, 2008

An MIT team has successfully tested a novel reactor that could chart a new path toward nuclear fusion, which could become a safe, reliable and nearly limitless source of energy.

After 10 years of design, construction and testing, the reactor achieved full operation for the first time last November. Some of the...(complete article here).

Tuesday, March 18, 2008

Sense of Wonder Contest

The intergenerational nature of this contest appeals to me. It is important that a love for nature be passed down.

Second Annual Rachel Carson Sense of Wonder Intergenerational Poetry, Essay and Photography Contest

Release date: 03/18/2008


Contact Information: Shakeba Carter-Jenkins, (202) 564-4355 /
carter-jenkins.shakeba@epa.gov

(Washington, D.C. - March 18, 2008) The U.S. EPA Aging Initiative, in partnership with Generations United and the Rachel Carson Council Inc., are inviting submissions for its Second Annual Rachel Carson Sense of Wonder Intergenerational Poetry, Essay and Photography Contest.

Carson is considered to be the founder of the contemporary environmental movement through her landmark book, Silent Spring. Its publication is credited with reversing the nation's pesticide policy.

Using the title of another of Carson's books, "The Sense of Wonder," the contest is seeking...(complete news release here).

Monday, March 17, 2008

Israeli Water Technology

Water technology for a thirsty world.

Israeli water companies shoot for world market

By Ari Rabinovitch

JERUSALEM (Reuters) - After decades of developing water technologies aiming to "make the desert bloom", Israel has shifted focus to selling its products abroad with a goal of doubling exports in the sector to $2 billion by 2010.

From ultra-violet light technology to purify water to a recycling system using millions of small, plastic rings to breed bacteria and break down organic waste, Israeli innovations are finding...(complete article here).

Streams Role in Coastal Zones

Healthy streams work as a natural "flush" for the pollutants that are on the land. Guess where they go.....

Streams play key role in protecting coastal zones

by Margaret Coulombe

The plight of the world’s oceans is dire, according to recent studies, through insults from human activities that are depopulating and damaging reefs, altering coastlines, and creating pollutants, such as nitrogen runoff from terrestrial watersheds.

A study by 31 aquatic biologists involving 72 stream sites in the United States and Puerto Rico has found that...(complete article
here).

New Natural Gas Fired Electrical Generation Plant

Natural gas is a great fuel for electrical generation because of its efficiency and clean burning properties.

Panda Energy To Build 500 MW Power Plant In Texas

Dallas TX (SPX) Mar 17, 2008Panda Energy announced that it intends to build, own and operate a 500-megawatt combined-cycle power plant in an industrial-zoned area of the city of Sherman, Texas. The highly efficient natural gas-fueled generating station will be able to supply the power needs of approximately 400,000 homes in North Texas and is expected to bring more than $248,000,000 into the area's economy over the next 10 years.

The Panda Sherman generating station will...(complete article here).

Holistic Land Management

Population pressures and urban sprawl as well as environmental issues are creating an environment in which a much broader range of factors must be considered when evaluating land use. This applies not only to agricultural use but to other uses as well. Developing a sense of the overall impact of any use and determining ways to mitigate any potentially negative impacts will become increasingly important as we move forward.

Holistic Approach to Land Management Benefits Society and the Environment

Media Contact: Jennifer Martin, CSREES Staff (202) 720-8188
By Stacy Kish, CSREES Staff

March 17, 2008

Nature is dynamic and complex, and the intrusion of human society makes this complex web of interactions even more difficult to understand and manage. The BEHAVE program (Behavioral Education for Human, Animal, Vegetation and Ecosystem Management) breaks down the walls between society and the environment and, in the process, allows land managers to develop more effective management plans to benefit human society and the environment.

The goal of BEHAVE is to...(complete article here).

Saturday, March 15, 2008

Demand Analysis of Beef Industry for Distiller's Grains

Follow the linked title below for an analysis of demand for corn-based distiller's grains by the beef industry. My personal view is that cellulosic ethanol production will be utlized to convert much of the distiller's grains to ethanol in the near future. The effect will be further pressure on cattle feeding costs.

Steady Supplies or Stockpiles? Demand for Corn-Based Distillers Grains by the U.S. Beef Industry

Roxanne Clemens, Bruce A. Babcock

Friday, March 14, 2008

Ethanol Infrastructure

The infrastructure to handle Ethanol is a key piece to the energy puzzle.

Dallas Fort Worth Terminal Begins Ethanol Operations

OAKHURST, N.J. (DTN) –- Dallas Forth Worth Rail Terminal, LLC, a wholly-owned subsidiary of Texas-based U.S. Development Group, LLC, has begun ethanol distribution operations at its new Dallas Fort Worth Rail Terminal, according to a news release.

"Our new terminal will handle and distribute a...(complete article here).

Thursday, March 13, 2008

Australian Wheat Woes

Australia is one of the most important wheat producing countries in the world. The drought there has had a profound impact on worldwide supplies and prices.


Australia's food bowl lies empty

As the BBC looks at the impact of rising food prices around the world, Sydney correspondent Nick Bryant reports from Australia on how the worst drought on record has slashed its exports of wheat.

Though located in a remote corner of the planet, the fields of Australia's food bowl are central to the worldwide price of wheat.

In this part of rural New South Wales, water-starved farms and cavernous empty grain silos have the...(complete article here).

Monday, March 10, 2008

Put the Bugs to Work!

More on developing a bio-fuel economy.

UNIVERSITY OF MARYLAND

Bacterium Gets Wheels Turning on Ethanol Fuel



By
Susan Kinzie and David A. Fahrenthold
Washington Post Staff Writers
Monday, March 10, 2008; Page B04

A strain of bacteria accidentally found in the Chesapeake Bay more than 20 years ago -- a bug that decomposes everything from algae to newspapers to crab shells -- could help produce cheaper fuel, according to scientists at the
University of Maryland.

Gov. Martin O'Malley (D) will tout the work of professors Steven Hutcheson and Ronald Weiner on campus today in announcing that...(complete article here).

Chinese Bio-diesel

Two million metric tons annually of bio-diesel is a lot!

China Agro-Technology to build biodiesel refinery

March 10, 2008

The company said the $200 million plant would be able to produce 2 million metric tons annually.

Singapore-based China Agro-Technology (OTC: CAGTF) announced today that it signed a memorandum of understanding with the government of...(complete article here).

Texas Panhandle Ethanol Plants

Since I am frequently in Hereford, I have watched both the White Energy and Panda plants through the construction phase. What I find most interesting is that the White Energy plant seems to be a stream-lined, no-frills operation that is designed for efficiency. Although I don't know much about either plant, it appears that the Panda plant is a little more elaborate. They also seem to have experienced some major construction delays. I am amazed at how much electricity they must be consuming because at night it is lit up like an electrical power plant. I admit that I don't know much about their business, but from appearances alone, I would say the White Energy plant will make money when others, such as their neighbor down the road, will not.

Texas poised to become regional hub for ethanol

Panhandle alone will have four big plants soon

By BRETT CLANTON
Copyright 2008 Houston Chronicle

HEREFORD — Texas may be a latecomer to the ethanol business, but it is about to announce its arrival in a big way.

At a ceremony today in this small town near Amarillo, where cattle far outnumber residents and the brown, flat land extends forever in all directions, a Dallas company will formally open the state's first large-scale ethanol plant. It is one of the nation's biggest.

Yet it won't have bragging rights long. Three more major...(complete article here).

Switchgrass Production Costs

With all of the interest in cellulosic ethanol, switchgrass production will be the focus of many who are looking to capture part of the opportunity.

Scientists Determine Farm Costs of Producing Switchgrass for Ethanol

By Jan Suszkiw
March 6, 2008

Following up on a net-energy study published in the January Proceedings of the National Academy of Sciences (PNAS), a team of Agricultural Research Service (ARS) and University of Nebraska-Lincoln (UNL) scientists today reports the on-farm economic costs of producing switchgrass for cellulosic ethanol.

In their PNAS energy-analysis paper, the team...(complete article here).

Friday, March 7, 2008

California Grid for Wind Energy

This is a critical piece of the puzzle. Our electricity transmission infrastructure will have to be enhanced to handle the new sources of energy coming on line.

Work begins on California wind transmission lines

LOS ANGELES (Reuters) - Construction on the biggest U.S. transmission project largely for wind energy has begun, utility Southern California Edison said on Friday.

The Tehachapi Renewal Transmission Project aims to take wind power produced in a remote area called Tehachapi in Southern California to power customers all over the state through the state power grid.

If the full project is finished by 2013 as planned, it will be capable of carrying...(complete article here).

Thursday, March 6, 2008

Engineering Better Biofuel Sources

Learning how plants function at the cellular level is critical to developing more useful plants.

Newly defined signaling pathway could mean better biofuel sources

WEST LAFAYETTE, Ind. - A newly defined biochemical pathway in plants may provide the scientific tools to design plants that will yield larger quantities of alternative transportation fuels than currently can be produced, according to Purdue University researchers.

The pathway moves materials that determine cell shape and size through a system of signaling proteins, said...(complete article here).

Sustainable Agriculture Conference

Sustainable agriculture is moving main stream....

SARE’s 20th Anniversary New American Farm Conference Highlights Innovations in Sustainable Agriculture

Jennifer Martin, CSREES, (202) 720-8188
Dena Leibman, SARE, (301) 504-5230

March 6, 2008

Farmers and ranchers are turning to sustainable agriculture to boost profits; protect the land, air and water; and continue a rewarding way of life. The Sustainable Agriculture Research and Education's (SARE) 20th anniversary New American Farm Conference, March 25-27, in Kansas City, Mo., will feature two decades of groundbreaking research and innovations in sustainable agriculture...(complete news release here).

Wednesday, March 5, 2008

Wolf Killed While Seeking Warmer Climate

More on wolf recovery.

Rogue Wolf Kills Dozen Sheep in Massachusetts

SPRINGFIELD, Mass. — When more than a dozen lambs and sheep were slaughtered on a Shelburne farm last fall, wildlife officials suspected either a wolf that had escaped from captivity or a rogue mutt on a hungry rampage.


But after the culprit animal was killed and examined, they found themselves with a bigger mystery: How did a wild eastern gray wolf, an endangered species absent from the state for more than a century, find its way to western Massachusetts?

Thomas J. Healy, head of the U.S. Fish and Wildlife Service's Northeast regional office, said Tuesday recent DNA tests at...(complete article here).

Bioenergy Mandates Will Continue to Support Prices

The corn farmers should be happy...

2008 FAPRI Outlook Shows New Bioenergy Mandates Sustain Historically High Commodity Prices

Contacts:
Jacinto Fabiosa; jfabiosa@iastate.edu
Dermot Hayes; dhayes@iastate.edu
Sandra Clarke; sclarke@iastate.edu

March 5, 2008

WASHINGTON — Continuing high crude-oil prices and new bioenergy mandates, such as the U.S. Energy Independence and Security Act of 2007, are expected to sustain prices at historic highs across all agricultural commodities over the next decade. This is according to analysts with the Food and Agricultural Policy Research Institute, or FAPRI, who briefed Congress this week on their new 10-year projections for U.S. and international commodity markets.

Global net trade in ethanol is projected to increase by 2.53 billion gallons, reaching...(complete article here).

Methane From Manure in California

Methane -- natural gas.

California cows start passing gas to the grid

By Nichola Groom

RIVERDALE, California (Reuters) - Imagine a vat of liquid cow manure covering the area of five football fields and 33 feet deep. Meet California's most alternative new energy.

On a dairy farm in the Golden State's agricultural heartland, utility PG&E Corp began on Tuesday producing natural gas derived from manure, in what...(complete article here).

Tuesday, March 4, 2008

Balancing Security, Sustainability and Supply of Energy

From MIT...

Expert says big energy picture must balance security, sustainability, and supply

Deborah Halber, News Office Correspondent

March 3, 2008

The world has no choice but to build more energy-producing plants--and find new sources of energy--but the build out process will not happen overnight, a government expert recently told an MIT audience.

A worldwide boost in demand for energy, coupled with environmental concerns, will force a huge U.S. increase inthe number of nuclear power plants--but it will take more than two decades to...(complete article here).

It's going to be interesting.

Monday, March 3, 2008

Complexity of Managing the Grid

This article discusses the complexity of providing adequate electrical power.

Wind power woes not sole issue in near blackouts

By TOM FOWLER
Copyright 2008 Houston Chronicle

Texas' near miss with rolling blackouts Tuesday night may appear at first blush to be a sign of the failings of wind power — more than 80 percent of the state's wind turbine energy went offline when a North Texas cold front stilled the air.

But the state's grid operators say a...(complete article here).

Mining Manure

This is an important step in better handling of livestock waste. The nutrients available in the waste are a potential source of phosphorus and nitrogen. Recovering these nutrients from the waste is also an important step in mitigating their effects on streams and other bodies of water.

Mining Manure for Phosphorus

By Ann Perry
February 29, 2008

Underground phosphorus deposits around the world are mined for use as a much-valued fertilizer. Now Agricultural Research Service (ARS) soil scientists Ariel Szogi, Matias Vanotti and Patrick Hunt have found a way to “mine” the phosphorus in poultry manure.

In 2006, the United States produced...(complete article
here).