It is amazing what can be done with technology. The trouble is that sometimes it is as much art as it is science.
Plants Text Message Farmers When Thirsty
By Don Comis
April 29 , 2008
Beginning this crop season, farmers will be able to receive text messages on their cell phones from their plants saying whether they are thirsty or not.
Accent Engineering, Inc., of Lubbock, Tex., developed the SmartCropTM automated drought monitoring system based on...(complete article here).
Wednesday, April 30, 2008
Fertilizer Shortages Impact Yields
Fertilizer -- much of it derived from petroleum -- is key to good yields. Not only is the price a limiting factor, now in many places, some key fertilizers are limited in availability.
Shortages Threaten Farmers’ Key Tool: Fertilizer
Wednesday April 30, 1:35 pm ET
By KEITH BRADSHER and ANDREW MARTIN
XUAN CANH, Vietnam — Truong Thi Nha stands just four and a half feet tall. Her three grown children tower over her, just as many young people in this village outside Hanoi dwarf their parents.
The biggest reason the children are so robust: fertilizer.
Ms. Nha, her face weathered beyond its 51 years, said her growth was stunted by a childhood of hunger and malnutrition. Just a few decades ago, crop yields here were far lower and diets much worse.
Then the widespread use of inexpensive chemical fertilizer, coupled with market reforms, helped power an agricultural explosion here that had already occurred in other parts of the world. Yields of rice and corn rose, and diets grew richer.
Now those gains are threatened in many countries by spot shortages and soaring prices for fertilizer, the most essential ingredient of modern agriculture.
Some kinds of fertilizer have nearly tripled in price in the last year, keeping...(complete article here).
Shortages Threaten Farmers’ Key Tool: Fertilizer
Wednesday April 30, 1:35 pm ET
By KEITH BRADSHER and ANDREW MARTIN
XUAN CANH, Vietnam — Truong Thi Nha stands just four and a half feet tall. Her three grown children tower over her, just as many young people in this village outside Hanoi dwarf their parents.
The biggest reason the children are so robust: fertilizer.
Ms. Nha, her face weathered beyond its 51 years, said her growth was stunted by a childhood of hunger and malnutrition. Just a few decades ago, crop yields here were far lower and diets much worse.
Then the widespread use of inexpensive chemical fertilizer, coupled with market reforms, helped power an agricultural explosion here that had already occurred in other parts of the world. Yields of rice and corn rose, and diets grew richer.
Now those gains are threatened in many countries by spot shortages and soaring prices for fertilizer, the most essential ingredient of modern agriculture.
Some kinds of fertilizer have nearly tripled in price in the last year, keeping...(complete article here).
Corn: Food or Fuel?
The food versus fuel debate continues. The corn farmers are happy.
Siphoning off corn to fuel our cars
As farmers feed ethanol plants, a costly link is forged between food and oil
By Steven Mufson
CHARLES CITY, Iowa - Erwin Johnson picks up a clump of the dark, rich soil that he has farmed for 35 years, like his father and grandfather before him. In a few months, this flat expanse of northern Iowa will be crowded with corn ready to be trucked to market.
A year ago, that market got a little closer -- and a lot better. Instead of sending his corn to a barge company to be shipped down the Mississippi River for export, Johnson now loads it into an open truck and sends it two miles up the gravel road to a hulking new ethanol distillery that he can see from his field. The plant is paying him $5.50 or more a bushel, more than twice as much as Johnson could get just a couple of years ago.
"This is a fantastic time to be farming," Johnson says. "I'm 65, but I can't quit now."
Across the country, ethanol plants are swallowing more and more of the nation's corn crop. This year, about a quarter of U.S. corn will go to feeding ethanol plants instead of poultry or livestock. That has...(complete article here).
Siphoning off corn to fuel our cars
As farmers feed ethanol plants, a costly link is forged between food and oil
By Steven Mufson
CHARLES CITY, Iowa - Erwin Johnson picks up a clump of the dark, rich soil that he has farmed for 35 years, like his father and grandfather before him. In a few months, this flat expanse of northern Iowa will be crowded with corn ready to be trucked to market.
A year ago, that market got a little closer -- and a lot better. Instead of sending his corn to a barge company to be shipped down the Mississippi River for export, Johnson now loads it into an open truck and sends it two miles up the gravel road to a hulking new ethanol distillery that he can see from his field. The plant is paying him $5.50 or more a bushel, more than twice as much as Johnson could get just a couple of years ago.
"This is a fantastic time to be farming," Johnson says. "I'm 65, but I can't quit now."
Across the country, ethanol plants are swallowing more and more of the nation's corn crop. This year, about a quarter of U.S. corn will go to feeding ethanol plants instead of poultry or livestock. That has...(complete article here).
Tuesday, April 29, 2008
Tyson CEO Speaks Out On Ethanol
The voice for ending ethanol subsidies is getting louder....
Tyson CEO Bond Calls For End To Ethanol Subsidies
CHICAGO (Dow Jones)--The call from the head of Tyson Foods Inc. (TSN) for most ethanol subsidies to be swept away promises to re-ignite the food-versus-fuel debate among U.S. agribusiness companies.
Dick Bond, Tyson's president and chief executive, said on an earnings call Monday that Congress should reduce or drop a federal tax subsidy and end import tariffs on sugar-based ethanol.
Tyson has been...(complete article here).
Tyson CEO Bond Calls For End To Ethanol Subsidies
CHICAGO (Dow Jones)--The call from the head of Tyson Foods Inc. (TSN) for most ethanol subsidies to be swept away promises to re-ignite the food-versus-fuel debate among U.S. agribusiness companies.
Dick Bond, Tyson's president and chief executive, said on an earnings call Monday that Congress should reduce or drop a federal tax subsidy and end import tariffs on sugar-based ethanol.
Tyson has been...(complete article here).
The Decline of U.S. Wheat Production
Shifting acres from wheat to corn and soybeans is changing the landscape of the Great Plains.
Emptying the breadbasket
Decades of Great Plains' wheat as king and low prices everywhere are over
By Dan Morgan
At Stephen Fleishman's busy Bethesda shop, the era of the 95-cent bagel is coming to an end.
Breaking the dollar barrier "scares me," said the Bronx-born owner of Bethesda Bagels. But with 100-pound bags of North Dakota flour now above $50 -- more than double what they were a few months ago -- he sees no alternative to a hefty increase in the price of his signature product, a bagel made by hand in the back of the store.
"I've never seen anything like this in 20 years," he said. "It's a nightmare."
Fleishman and his customers are hardly alone. Across America, turmoil in the world wheat markets has sent prices of bread, pasta, noodles, pizza, pastry and bagels skittering upward, bringing protests from consumers.
But underlying this food inflation are changes that are transforming U.S. agriculture and...(complete article here).
Emptying the breadbasket
Decades of Great Plains' wheat as king and low prices everywhere are over
By Dan Morgan
At Stephen Fleishman's busy Bethesda shop, the era of the 95-cent bagel is coming to an end.
Breaking the dollar barrier "scares me," said the Bronx-born owner of Bethesda Bagels. But with 100-pound bags of North Dakota flour now above $50 -- more than double what they were a few months ago -- he sees no alternative to a hefty increase in the price of his signature product, a bagel made by hand in the back of the store.
"I've never seen anything like this in 20 years," he said. "It's a nightmare."
Fleishman and his customers are hardly alone. Across America, turmoil in the world wheat markets has sent prices of bread, pasta, noodles, pizza, pastry and bagels skittering upward, bringing protests from consumers.
But underlying this food inflation are changes that are transforming U.S. agriculture and...(complete article here).
Monday, April 28, 2008
Missouri Reconsidering Ethanol?
Momentum is building....
Food price hikes fuel anti-ethanol moves in U.S.
By Carey Gillam
KANSAS CITY, Missouri (Reuters) - Missouri is considering rolling back a mandate supporting ethanol production amid growing outrage over rising prices for food and livestock feed.
It was less than four months ago that ethanol supporters were celebrating the implementation of a Missouri law requiring gasoline sold throughout the state contain 10 percent ethanol. The law, passed in 2006, took effect January 1.
But now, in the face of...(complete article here).
Food price hikes fuel anti-ethanol moves in U.S.
By Carey Gillam
KANSAS CITY, Missouri (Reuters) - Missouri is considering rolling back a mandate supporting ethanol production amid growing outrage over rising prices for food and livestock feed.
It was less than four months ago that ethanol supporters were celebrating the implementation of a Missouri law requiring gasoline sold throughout the state contain 10 percent ethanol. The law, passed in 2006, took effect January 1.
But now, in the face of...(complete article here).
Senator Hutchison Addresses Ethanol Mistake
Thank you, Senator Hutchison!
Undoing America's Ethanol Mistake
by Senator Kay Bailey Hutchison
Published in the Investor's Business Daily
April 28, 2008
The Nobel Prize-winning economist Milton Friedman once said, "One of the great mistakes is to judge policies and programs by their intentions rather than their results."
When Congress passed legislation to greatly expand America's commitment to biofuels, it intended to create energy independence and protect the environment.
But the results have been quite different...(complete article here).
Undoing America's Ethanol Mistake
by Senator Kay Bailey Hutchison
Published in the Investor's Business Daily
April 28, 2008
The Nobel Prize-winning economist Milton Friedman once said, "One of the great mistakes is to judge policies and programs by their intentions rather than their results."
When Congress passed legislation to greatly expand America's commitment to biofuels, it intended to create energy independence and protect the environment.
But the results have been quite different...(complete article here).
Saturday, April 26, 2008
Texas Requests Ethanol Cutback
I know this particular move was politically motivated and relatively safe in Texas because corn is not on of the biggest crops -- although there is a lot of it grown in the Corpus Christi area as well as the Panhandle. Beef on the other hand is huge and there is significant swine and poultry production as well. He is correct in his statement that the ethanol mandates are misguided. I don't expect anything to come of this but it is good to see his effort.
Texas seeks U.S. ethanol cutbacks; cites corn costs
By Joan Gralla
NEW YORK (Reuters) - Texas Gov. Rick Perry on Friday asked the U.S. government to cut "skyrocketing" food prices by waiving half of the renewable fuel standard for ethanol made from grain.
The Republican governor from the oil-producing state said in a statement that such a waiver was "the best, quickest way" to ease rising food costs before lasting damage was done.
"We're diversifying our state's energy portfolio at a rapid rate, but this misguided mandate is...(complete article here).
Texas seeks U.S. ethanol cutbacks; cites corn costs
By Joan Gralla
NEW YORK (Reuters) - Texas Gov. Rick Perry on Friday asked the U.S. government to cut "skyrocketing" food prices by waiving half of the renewable fuel standard for ethanol made from grain.
The Republican governor from the oil-producing state said in a statement that such a waiver was "the best, quickest way" to ease rising food costs before lasting damage was done.
"We're diversifying our state's energy portfolio at a rapid rate, but this misguided mandate is...(complete article here).
Friday, April 25, 2008
Complexity of the Global Food Crisis
The article linked below from the BBC is one of the more thoughtful that I've found on the "global food crisis." It discusses the complexity of issues that have contributed to rising food prices rather than seeking to place blame on a particular factor.
How to solve the global food crisis
By Kaushik Basu
Professor of economics, Cornell University
The world economy has many problems but none more pressing than what is happening to food prices.
There have been food riots in Haiti, the Philippines, Ethiopia, Indonesia and several other nations.
Twenty thousand desperate textile workers in Bangladesh went on a rampage, giving rise to fears of wider instability, since the garment industry accounts for three-fourths of the country's exports.
Global food prices have been rising over the last three years; but in the last few months they have spiralled out of control.
Over the last 12 months the...(complete article here).
How to solve the global food crisis
By Kaushik Basu
Professor of economics, Cornell University
The world economy has many problems but none more pressing than what is happening to food prices.
There have been food riots in Haiti, the Philippines, Ethiopia, Indonesia and several other nations.
Twenty thousand desperate textile workers in Bangladesh went on a rampage, giving rise to fears of wider instability, since the garment industry accounts for three-fourths of the country's exports.
Global food prices have been rising over the last three years; but in the last few months they have spiralled out of control.
Over the last 12 months the...(complete article here).
Thursday, April 24, 2008
National Arbor Day
National Arbor Day is Friday, April 25th. Celebrate by planting a tree.
Each state sets its own Arbor Day. The Arbor Day Foundation is a great source of information and source of trees.
Each state sets its own Arbor Day. The Arbor Day Foundation is a great source of information and source of trees.
Monday, April 21, 2008
Trade, Texas, Security and Prosperity
Senator Cornyn speaks again about the political maneuvering by Nancy Pelosi regarding the Columbian Free Trade Agreement.
Trade boosts Texas prosperity, national security
Monday, April 21, 2008
By: Sen. John Cornyn
From its beginning as a state, Texas has prospered through trade. Texans work hard and efficiently, and what we produce is highly valued around the globe.
In the early days of Texas statehood, cotton was king, and most of it was exported to mills abroad. Then came the Texas cowboy and cattle drive era, the beginning of our international beef industry.
Today, Texas leads all states in exports of goods, ranging from...(complete article here).
Trade boosts Texas prosperity, national security
Monday, April 21, 2008
By: Sen. John Cornyn
From its beginning as a state, Texas has prospered through trade. Texans work hard and efficiently, and what we produce is highly valued around the globe.
In the early days of Texas statehood, cotton was king, and most of it was exported to mills abroad. Then came the Texas cowboy and cattle drive era, the beginning of our international beef industry.
Today, Texas leads all states in exports of goods, ranging from...(complete article here).
Tuesday, April 15, 2008
Cornyn Comments on Colombia Free Trade Agreement
The more that I look into the Colombia Free Trade Agreement, the more I realize how important it is to agriculture -- and not only agriculture, but other industries as well. A large portion of our trade with Colombia is currently agricultural products. As the news release points out, this agreement is actually better for the U.S. in many ways than most trade agreements that come before Congress. Currently there are tariff barriers to many U.S. products going into Columbia which would be removed under this bill. On the other hand, there currently are no tariffs on the primary products that Columbia ships to the U.S. If Nancy Pelosi wasn't playing political power games with this agreement rather than allowing the representatives of the American people to vote on it, we would all soon benefit from its likely passage. Instead, we are caught once again in the power struggle between those who would wield their power in the interest of their own personal gain or the gain of very narrow interest groups rather than in the interest of the majority of the people. I applaud Senator Cornyn for standing up and expressing his views on this important economic issue for the American people.
Cornyn Urges Congress To Pass U.S. - Colombia Free Trade Agreement
Says accord will boost Texas jobs, America’s security
Monday, April 14, 2008
WASHINGTON—U.S. Sen. John Cornyn, R-Texas, a member of the President’s Export Council, on Monday urged Democrat House Leader Nancy Pelosi to reconsider her obstruction of the U.S.-Colombia Free Trade Agreement, which would boost Texas job opportunities and bolster America’s national security.
Sen. Cornyn said Texas sends $2.3 billion in goods to Colombia, but America currently faces unilateral tariffs on those products. The accord levels the playing field and creates jobs and opportunity here in the United States, he added. “Last year, Texas led the nation in exports to Colombia… This agreement will remove those tariffs and allow U.S. manufacturers to sell even more goods to this large and growing market. And when...(complete news release here).
Cornyn Urges Congress To Pass U.S. - Colombia Free Trade Agreement
Says accord will boost Texas jobs, America’s security
Monday, April 14, 2008
WASHINGTON—U.S. Sen. John Cornyn, R-Texas, a member of the President’s Export Council, on Monday urged Democrat House Leader Nancy Pelosi to reconsider her obstruction of the U.S.-Colombia Free Trade Agreement, which would boost Texas job opportunities and bolster America’s national security.
Sen. Cornyn said Texas sends $2.3 billion in goods to Colombia, but America currently faces unilateral tariffs on those products. The accord levels the playing field and creates jobs and opportunity here in the United States, he added. “Last year, Texas led the nation in exports to Colombia… This agreement will remove those tariffs and allow U.S. manufacturers to sell even more goods to this large and growing market. And when...(complete news release here).
Friday, April 11, 2008
Wind Power and the Texas Grid
Infrastructure again. The new energy economy requires its own infrastructure -- whether we're talking wind, ethanol, biodiesel or solar -- it requires infrastructure investment.
Wind power experts say Texas grid needs work
HOUSTON (Reuters) - Problems integrating a rising amount of wind-generated electricity into the Texas wholesale power market may slow short-term development, but won't deter long-term prospects for local wind generators, industry sources said on Thursday.
Strong spring wind production in West Texas has been...(complete article here).
Wind power experts say Texas grid needs work
HOUSTON (Reuters) - Problems integrating a rising amount of wind-generated electricity into the Texas wholesale power market may slow short-term development, but won't deter long-term prospects for local wind generators, industry sources said on Thursday.
Strong spring wind production in West Texas has been...(complete article here).
Human Behavior's Impact on Food Prices
Below is linked a thoughtful article on the rising price of basic food grains throughout the world. There is only one factor discussed with which I would take exception. That is the impact of biofuels on the prices of wheat and rice. Although there could arguably be a point at which competition for acres will impact production of these two crops, I do not believe that it has occurred at this point.
Traditionally, in the U.S., corn is primarily destined for cattle feed. In the southern part of the wheat growing areas of the country -- such as Texas and Oklahoma -- cattle often graze wheat pasture (stocker phase) prior to entering the feed lot for finishing. The cattle are removed from the wheat pasture at an early date so that the wheat can continue to mature and produce grain. These are complementary enterprises. With the high prices for corn due to competing demands from ethanol production, it would be assumed that cattle would remain in this stocker phase of production longer -- thus taking the wheat acreage out of harvest for grain. High prices for wheat have actually had the opposite effect. Farmers are electing to forego income from stocker cattle in the hopes of harvesting even more wheat from their planted acres. This is a purely economic decision on the part of the farmers who often lease their land to cattlemen for grazing.
My point is that in spite of the potential for ethanol production taking acreage away from wheat production, it has not in fact occurred due to other market factors. If allowed to operate, free enterprise will allocate resources in the most efficient manner possible. Rising food prices are certainly a part of that mechanism, but they are not the driving force. Fuel prices are driving the issue and they are a function of many factors. (see this post)
How Countries Worsen the Food Price Crisis
By Kent Garber
Since early 2007, when food prices began marching noticeably upward, there have been violent riots in more than a dozen countries, growing malaise in developed areas, including the United States, and a fluid debate about the origins of the spike. On the last point, a consensus has emerged. A slew of factors--record fuel prices, ethanol production, unprecedented demand, the effects of climate change--have been blamed, creating a sort of perfect storm for the world's food supply.
Although each merits attention, another culprit must now be added: the human reaction to the crisis.
Since the first of the year, additional jumps in food prices have bred not only uneasiness and widespread fear but also...(complete article here).
Traditionally, in the U.S., corn is primarily destined for cattle feed. In the southern part of the wheat growing areas of the country -- such as Texas and Oklahoma -- cattle often graze wheat pasture (stocker phase) prior to entering the feed lot for finishing. The cattle are removed from the wheat pasture at an early date so that the wheat can continue to mature and produce grain. These are complementary enterprises. With the high prices for corn due to competing demands from ethanol production, it would be assumed that cattle would remain in this stocker phase of production longer -- thus taking the wheat acreage out of harvest for grain. High prices for wheat have actually had the opposite effect. Farmers are electing to forego income from stocker cattle in the hopes of harvesting even more wheat from their planted acres. This is a purely economic decision on the part of the farmers who often lease their land to cattlemen for grazing.
My point is that in spite of the potential for ethanol production taking acreage away from wheat production, it has not in fact occurred due to other market factors. If allowed to operate, free enterprise will allocate resources in the most efficient manner possible. Rising food prices are certainly a part of that mechanism, but they are not the driving force. Fuel prices are driving the issue and they are a function of many factors. (see this post)
How Countries Worsen the Food Price Crisis
By Kent Garber
Since early 2007, when food prices began marching noticeably upward, there have been violent riots in more than a dozen countries, growing malaise in developed areas, including the United States, and a fluid debate about the origins of the spike. On the last point, a consensus has emerged. A slew of factors--record fuel prices, ethanol production, unprecedented demand, the effects of climate change--have been blamed, creating a sort of perfect storm for the world's food supply.
Although each merits attention, another culprit must now be added: the human reaction to the crisis.
Since the first of the year, additional jumps in food prices have bred not only uneasiness and widespread fear but also...(complete article here).
Thursday, April 10, 2008
Blowing in the Wind -- Mega-growth
Positive news.
Wind Power Growth Blows Past Projections
Washington, D.C.-Global wind power capacity rose 27 percent in 2007 to more than 94,100 megawatts, led by capacity additions in the European Union, the United States, and China, according to the latest Vital Sign Update from the Worldwatch Institute.
New wind installations were...(complete article here).
Wind Power Growth Blows Past Projections
Washington, D.C.-Global wind power capacity rose 27 percent in 2007 to more than 94,100 megawatts, led by capacity additions in the European Union, the United States, and China, according to the latest Vital Sign Update from the Worldwatch Institute.
New wind installations were...(complete article here).
House Farm Bill Conferees
It's about time....
House Agriculture Committee Chairman Announces Farm Bill Conferees
WASHINGTON, DC – Agriculture Committee Chairman Collin Peterson today announced the list of Representatives appointed by the Speaker of the House of Representatives to participate in the conference committee that will negotiate the 2008 Farm Bill.
“The Members serving on this conference committee have...(complete news release here).
House Agriculture Committee Chairman Announces Farm Bill Conferees
WASHINGTON, DC – Agriculture Committee Chairman Collin Peterson today announced the list of Representatives appointed by the Speaker of the House of Representatives to participate in the conference committee that will negotiate the 2008 Farm Bill.
“The Members serving on this conference committee have...(complete news release here).
New Competition for Beef
While traveling in Kansas this past week I had the opportunity to meet with several cattlemen and feedlot managers. The mood among them is somber to say the least. The market doesn’t seem to be adjusting to the realities of the new energy economy very quickly.
Transportation cost is one of the biggest factors impacting every industry across the country -- especially livestock feeding. When trucking companies are dealing with diesel prices in the neighborhood of $4.00/gallon, the cost of moving grain or animals or boxed beef becomes significant. If calves are being shipped from the Southeast to feedlots in the Plains, the cost of transportation must be figured into the price of those calves. The same issue affects corn – if it can be purchased at all.
On the other end of the supply chain we have the consumer. When gasoline prices are at record levels, groceries is one area where household costs are cut. We should be looking at ways to drive less or improve fuel efficiency but instead, we cut back on spending for higher priced food items such as beef. We don’t give up our gas guzzling habits very easily.
The result is that packing plants are looking at cold storage filled with boxes of unsold beef; the feedlots are looking at cattle that need to go to market but the packing plants aren’t willing to give them a price at which the feeder can make any money; cattle feeders are unwilling to buy calves to put on feed – and on and on. It all is driven by fuel in one form or another.
What is driving the fuel prices? I am amazed that our Congressional leaders in all of their wisdom feel compelled to bring the heads of multiple oil companies to Washington to berate them over the cost of fuel. Of course, most of the Congressmen and Senators don’t have much training in economics. In fact, I think they must be trained in anti-economics – or at least anti-free enterprise. Most of the laws coming out of Washington seem to hinder business rather than help. The cost of every regulation and every hair-brained pork-barrel scheme gets passed on to the consumer in some form or fashion. Sometimes it is a direct tax but more often than not, it as an indirect tax created through regulatory action on business.
It is the growing economies in India and China, domestic regulations concerning fuel additives, mandatory targets for bio-fuels, market uncertainty due to political unrest, burdensome regulation on building new refineries and infrastructure, the high cost of building refineries, environmental regulations, closure of certain areas to oil exploration, the devaluation of the dollar, and all of the other global factors that impact the energy business that are driving fuel prices. Why do we think we can solve the problem by making ethanol from corn? Oh, and did I mention the booming economies of India and China? A few hundred million individuals with the most disposable income at their finger tips that has been seen in those countries ever – want to spend it on some of the finer things in life – like automobiles and meat.
Our consumer spending habits are enabling those countries to build thriving economies that produce goods that must be transported to the U.S. by ships burning diesel. I’m happy their economies are growing. We just have to realize that we are paying for that growth.
The current ethanol mandates drive up the price of corn. That’s really all they do for our energy situation. Has the price of gasoline come down? The high price of corn was good for corn farmers – last year. The cost of farm inputs has now normalized (adjusted) due to the higher fuel costs and the margins for farmers will be much slimmer this year. Their business is extremely fuel intensive. Their input costs – such as for fertilizer and diesel – have gone through the roof.
The mandates are hurting cattle producers. They are suppressing demand for beef because now – put this in your pipe and smoke it – beef is competing against energy. The consumer dollar will choose energy over beef because of the need to heat and cool our homes and drive to and from work. In the past, beef competed with pork and poultry. Now it must also compete with energy because the primary cattle feed ingredient is being converted to fuel.
Isn’t it great what misguided regulations do for you?
Transportation cost is one of the biggest factors impacting every industry across the country -- especially livestock feeding. When trucking companies are dealing with diesel prices in the neighborhood of $4.00/gallon, the cost of moving grain or animals or boxed beef becomes significant. If calves are being shipped from the Southeast to feedlots in the Plains, the cost of transportation must be figured into the price of those calves. The same issue affects corn – if it can be purchased at all.
On the other end of the supply chain we have the consumer. When gasoline prices are at record levels, groceries is one area where household costs are cut. We should be looking at ways to drive less or improve fuel efficiency but instead, we cut back on spending for higher priced food items such as beef. We don’t give up our gas guzzling habits very easily.
The result is that packing plants are looking at cold storage filled with boxes of unsold beef; the feedlots are looking at cattle that need to go to market but the packing plants aren’t willing to give them a price at which the feeder can make any money; cattle feeders are unwilling to buy calves to put on feed – and on and on. It all is driven by fuel in one form or another.
What is driving the fuel prices? I am amazed that our Congressional leaders in all of their wisdom feel compelled to bring the heads of multiple oil companies to Washington to berate them over the cost of fuel. Of course, most of the Congressmen and Senators don’t have much training in economics. In fact, I think they must be trained in anti-economics – or at least anti-free enterprise. Most of the laws coming out of Washington seem to hinder business rather than help. The cost of every regulation and every hair-brained pork-barrel scheme gets passed on to the consumer in some form or fashion. Sometimes it is a direct tax but more often than not, it as an indirect tax created through regulatory action on business.
It is the growing economies in India and China, domestic regulations concerning fuel additives, mandatory targets for bio-fuels, market uncertainty due to political unrest, burdensome regulation on building new refineries and infrastructure, the high cost of building refineries, environmental regulations, closure of certain areas to oil exploration, the devaluation of the dollar, and all of the other global factors that impact the energy business that are driving fuel prices. Why do we think we can solve the problem by making ethanol from corn? Oh, and did I mention the booming economies of India and China? A few hundred million individuals with the most disposable income at their finger tips that has been seen in those countries ever – want to spend it on some of the finer things in life – like automobiles and meat.
Our consumer spending habits are enabling those countries to build thriving economies that produce goods that must be transported to the U.S. by ships burning diesel. I’m happy their economies are growing. We just have to realize that we are paying for that growth.
The current ethanol mandates drive up the price of corn. That’s really all they do for our energy situation. Has the price of gasoline come down? The high price of corn was good for corn farmers – last year. The cost of farm inputs has now normalized (adjusted) due to the higher fuel costs and the margins for farmers will be much slimmer this year. Their business is extremely fuel intensive. Their input costs – such as for fertilizer and diesel – have gone through the roof.
The mandates are hurting cattle producers. They are suppressing demand for beef because now – put this in your pipe and smoke it – beef is competing against energy. The consumer dollar will choose energy over beef because of the need to heat and cool our homes and drive to and from work. In the past, beef competed with pork and poultry. Now it must also compete with energy because the primary cattle feed ingredient is being converted to fuel.
Isn’t it great what misguided regulations do for you?
Wednesday, April 9, 2008
Mountain Lions in Texas
This is an interesting article about mountain lions from Texas Parks & Wildlife magazine.
In Search of America's Lion
People are seeing more mountain lions than ever in Texas. Has their population increased or are they just running out of room?
By Wendee Holtcamp
Golden sunlight dances through the agave and sagebrush of this desert ecosystem as I catch my first glimpse. Big Bend National Park preserves...(complete article here).
I have seen one mountain lion in my life and it was at a distance. I saw it while visiting a wilderness area on the western slope of the Rockies in Colorado. There have been numerous sightings of lions in the area in which I live. There are a handful of reports of lions attacking livestock on a few ranches but they are rare. There is certainly habitat in the area that could harbor lions. It is remote and large enough that lion-man encounters are very unlikely.
In Search of America's Lion
People are seeing more mountain lions than ever in Texas. Has their population increased or are they just running out of room?
By Wendee Holtcamp
Golden sunlight dances through the agave and sagebrush of this desert ecosystem as I catch my first glimpse. Big Bend National Park preserves...(complete article here).
I have seen one mountain lion in my life and it was at a distance. I saw it while visiting a wilderness area on the western slope of the Rockies in Colorado. There have been numerous sightings of lions in the area in which I live. There are a handful of reports of lions attacking livestock on a few ranches but they are rare. There is certainly habitat in the area that could harbor lions. It is remote and large enough that lion-man encounters are very unlikely.
Monday, April 7, 2008
Beef or Fuel?
The message is finally reaching beyond beef producers that making ethanol from corn is not the best solution to our energy issues.
Dueling demands for corn
Cattle feeders say the growing need for it in ethanol is driving up the price and threatening their livelihood
By BRETT CLANTON
Copyright 2008 Houston Chronicle
TULIA — Ask John Van Pelt his thoughts on ethanol, and he's likely to pull out his adding machine and let the numbers speak for themselves.
Van Pelt, the manager of a cattle feedlot in this town 50 miles south of Amarillo, is now paying $215 a ton for cattle feed — double what he spent just three years ago. With 20,000 cattle in his yard, that works out to about $25,000 per day, just in feed, and what could become several million dollars in added costs this year.
Van Pelt blames...(complete article here).
Dueling demands for corn
Cattle feeders say the growing need for it in ethanol is driving up the price and threatening their livelihood
By BRETT CLANTON
Copyright 2008 Houston Chronicle
TULIA — Ask John Van Pelt his thoughts on ethanol, and he's likely to pull out his adding machine and let the numbers speak for themselves.
Van Pelt, the manager of a cattle feedlot in this town 50 miles south of Amarillo, is now paying $215 a ton for cattle feed — double what he spent just three years ago. With 20,000 cattle in his yard, that works out to about $25,000 per day, just in feed, and what could become several million dollars in added costs this year.
Van Pelt blames...(complete article here).
Friday, April 4, 2008
Rice Prices at Record High
Rice is the basic staple food for much of the world.
Shortage drives rice prices to record high
Alia McMullen, Financial Post
Published: Friday, April 04, 2008
The global rice shortage has forced prices of the grain to record highs, pushing one of the world's most important staple foods out of reach for those that depend on it most.
"The international rice market is currently facing a particularly difficult situation with demand out stripping supply and substantial price increases," Concepcion Calpe, senior economist for the Food and Agriculture Organization of the United Nations said in Rome.
The FAO predicts...(complete article here).
Shortage drives rice prices to record high
Alia McMullen, Financial Post
Published: Friday, April 04, 2008
The global rice shortage has forced prices of the grain to record highs, pushing one of the world's most important staple foods out of reach for those that depend on it most.
"The international rice market is currently facing a particularly difficult situation with demand out stripping supply and substantial price increases," Concepcion Calpe, senior economist for the Food and Agriculture Organization of the United Nations said in Rome.
The FAO predicts...(complete article here).
Spanish Water Woes
Global water woes are expanding.
Spanish region may ship water to relieve drought
MADRID (Reuters) - Spain's northeast Catalonia region will need to import water by ship and train from May to ensure domestic supplies if the current drought persists, the regional government said in a report.
The report, sent to Reuters on Friday, said rainfall in all but one of Catalonia's 15 river basins was below emergency levels for the year so far.
"Forecasts show that...(complete article here).
Spanish region may ship water to relieve drought
MADRID (Reuters) - Spain's northeast Catalonia region will need to import water by ship and train from May to ensure domestic supplies if the current drought persists, the regional government said in a report.
The report, sent to Reuters on Friday, said rainfall in all but one of Catalonia's 15 river basins was below emergency levels for the year so far.
"Forecasts show that...(complete article here).
Thursday, April 3, 2008
Border Enforcement
This is another issue that is important to all sectors of the economy. Senator Cornyn speaks some good common sense in this press release.
Cornyn: Federal Government Must Do More To Help Border Law Enforcement Personnel
Wednesday, April 2, 2008
WASHINGTON—At a hearing on Capitol Hill today, U.S. Sen. John Cornyn, a member of the Senate Judiciary Committee, pressed Department of Homeland Security Secretary Michael Chertoff on the need for the federal government to do more to aid border communities struggling with the costs of illegal immigration.
“I have heard from a number of...(complete press release here).
Cornyn: Federal Government Must Do More To Help Border Law Enforcement Personnel
Wednesday, April 2, 2008
WASHINGTON—At a hearing on Capitol Hill today, U.S. Sen. John Cornyn, a member of the Senate Judiciary Committee, pressed Department of Homeland Security Secretary Michael Chertoff on the need for the federal government to do more to aid border communities struggling with the costs of illegal immigration.
“I have heard from a number of...(complete press release here).
Cornyn Pushing for Farm Bill Action
It's time for the logjam to break on a Farm Bill. I hope Senator Cornyn can get it to rolling. It is very important to his constituents -- even those who don't realize how important agriculture is to the economy of the state of Texas.
Cornyn Seeks Action On Final Farm Bill
Provides Texas Farm Bureau Members with Legislative Update on Capitol Hill
Wednesday, April 2, 2008
WASHINGTON—U.S. Sen. John Cornyn met with members of the Texas Farm Bureau on Capitol Hill today and said that he continues to advocate...(complete news release here).
Cornyn Seeks Action On Final Farm Bill
Provides Texas Farm Bureau Members with Legislative Update on Capitol Hill
Wednesday, April 2, 2008
WASHINGTON—U.S. Sen. John Cornyn met with members of the Texas Farm Bureau on Capitol Hill today and said that he continues to advocate...(complete news release here).
The Cost of Infrastructure in the New Energy Economy
It takes infrastructure to make it all work. Otherwise the wind generators are just throwing money to the wind.
Texas sees higher costs to reap wind power
HOUSTON (Reuters) - The price tag to build new power lines to bring plentiful wind power to Texas' biggest cities could range from $3 billion to $9 billion, the state's electric grid operator said in a report filed with regulators on Wednesday.
Following legislation passed in 2005, the Texas Public Utility Commission began working to speed up construction of high-voltage transmission lines to tap into abundant supplies of renewable power.
Texas leads the nation by...(complete article here).
Texas sees higher costs to reap wind power
HOUSTON (Reuters) - The price tag to build new power lines to bring plentiful wind power to Texas' biggest cities could range from $3 billion to $9 billion, the state's electric grid operator said in a report filed with regulators on Wednesday.
Following legislation passed in 2005, the Texas Public Utility Commission began working to speed up construction of high-voltage transmission lines to tap into abundant supplies of renewable power.
Texas leads the nation by...(complete article here).
Wednesday, April 2, 2008
Cuban Reforms?
OK. What they need to do is let the farmers own the land and create a free market system. The Cuban brand of communism doesn't work -- just like it didn't work in the USSR -- and just like it isn't working anywhere! Even China is easing toward capitalism and the results can be witnessed in their explosive growth.
Cuba lending farmers state land
Cuba has begun lending unused state land to private farmers and co-operatives as part of efforts to boost agricultural output.
Officials estimate about half of all arable land in Cuba is currently underused or fallow.
The government has already started to...(complete article here).
Cuba lending farmers state land
Cuba has begun lending unused state land to private farmers and co-operatives as part of efforts to boost agricultural output.
Officials estimate about half of all arable land in Cuba is currently underused or fallow.
The government has already started to...(complete article here).
Worldwide Water Problems Fast Approaching
I'm happy to see the scientists agree with me! Water, water everywhere but not a drop to drink. Water: in the right place, at the right time, in the right form will be critical for the future.
Sandia researchers say worldwide water shortage on horizon
Concerns expressed in Nature article
ALBUQUERQUE, N.M. — A crisis is looming over water shortages worldwide. By 2025 more than half the nations in the world will face freshwater stress or shortages and by 2050 as much as 75 percent of the world’s population could face freshwater scarcity.
So say Mike Hightower and Suzanne Pierce, water experts at Sandia National Laboratories, in an article they wrote that appeared in a recent issue of Nature.
Sandia is a National Nuclear Security Administration laboratory.
“This growing international water crisis is...(complete article here).
Sandia researchers say worldwide water shortage on horizon
Concerns expressed in Nature article
ALBUQUERQUE, N.M. — A crisis is looming over water shortages worldwide. By 2025 more than half the nations in the world will face freshwater stress or shortages and by 2050 as much as 75 percent of the world’s population could face freshwater scarcity.
So say Mike Hightower and Suzanne Pierce, water experts at Sandia National Laboratories, in an article they wrote that appeared in a recent issue of Nature.
Sandia is a National Nuclear Security Administration laboratory.
“This growing international water crisis is...(complete article here).
Tuesday, April 1, 2008
Congressional Earmarks
I try to stay away from political posts on this blog but, Congressional Earmarks is an issue that afffects all of us and every industry. Please take a look at my post on Panhandle Poetry and Other Thoughts concerning the issue. It includes a link to Senator John Cornyn's (R-TX) post on the subject.
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