Farm Catch Up

Stories you might have missed about food, agriculture, and the ever popular ‘stuff’, along with occasionally snarky commentary.

Coffee Linked To Not Dying!

Screen Shot 2017-07-12 at 2.14.11 PMOoo, coffee — that delightful, delicious beverage that both pleasures the taste buds and enlivens the brain, oh I feel so sorry for those of you who drink tea. (Come on, you tea drinkers know what you’re drinking is lawn sweepings soaked in tepid water, right?)

Anyway, now that I’m done annoying the tea drinkers out there (you know who you are), let’s get on with this.

That headline up there is not clickbait. It’s true. According to a study published actual real live doctors from an actual research facility and published in an actual science journal (not the Flintstone’s Institute for Advanced Studies of Sciency Stuff and Flat Earth Society where most of the congress apparently gets its science information) you have almost a 20% less chance from dying from just about anything if you drink coffee. Well, probably not getting hit by an asteroid or something like that. They mean heart disease, stroke, cancer, that kind of thing. If you click the link it will take you to an article over on The Guardian and you can get the links to the actual study from there.

Missouri Bans Dicamba

Missouri joined Arkansas in issuing an emergency ban on the sale and use of herbicides

Screen Shot 2017-07-11 at 6.29.22 AM

soybeans damaged by dicamba

containing dicamba after it was learned that more than 200,000 acres of non-GM soybeans were allegedly damaged by the product. The Arkansas ban was approved by the Governor’s office and will go into effect on July 11, and is in effect for 120 days. The Missouri one doesn’t seem to have a specific time limit, but the agency involved in Missouri said it hoped the problems could be resolved and the ban lifted yet this growing season.

Dicamba has always been difficult to work with. It turns to vapor and can drift for extremely long distances. Non-GM soybeans are extremely sensitive to the product, and even a tiny amount can damage the crop, so any kind of drifting is a serious problem. Monsanto has claimed that it’s “VaporGrip” version of the product cured the problems when used properly. But it doesn’t seem to be working very well.

So, you ask, what dos Monsanto say about all of this? Glad you asked.

They’re blaming everyone else, of course. In an interview over at CropLife, a Monsanto spokesperson blamed everyone and everything except, of course, it’s product. Farmers spraying at the wrong time of day, having residue from other products in the sprayer’s tanks, not following proper procedures, using the wrong spray nozzles, spraying in windy conditions. And all, of course, without offering any proof that any of this actually happened.

More Chlorpyrifos Controversy

Five states (and I’ve heard several more are in line to do it too) are suing the EPA over it’s decision to permit the continued use of Chlorpyrifos, a very nasty pesticide that is known to cause serious health problems, especially in children.

I mentioned this before. Last year the EPA determined that chlorpyrifos was dangerous, and public health organizations, doctors and other health care professionals have been pushing for it to be banned for years. The EPA was going to ban the stuff at last.

But then along came Pruitt and he claimed the stuff is just fine and dandy and that they had real actual “meaningful data and meaningful science” to prove it. Associated Press, other media, and health officials have repeatedly requested the EPA provide them with the data, but the EPA has refused to respond to any of the requests.

I don’t like being a cynical old bastard, but I get the feeling the EPA hasn’t provided it yet because they have interns locked in a back room somewhere desperately trying to write something sciency enough to fool the average reader into believing this stuff is “safe”.

Oh, I should point out that DOW, which makes chlorpyrifos, contributed $1 million to Trump to fund his inauguration, its CEO is supposedly good friends with him, and it has spent over $13 million “lobbying” various politicians in the past year.

Commodities Markets Are Weird

If you followed my old blog on Tumblr you know I’m fascinated with the agricultural commodities market and how it functions. Or, rather, how it doesn’t function, because it’s often so screwed up it’s laughable. Often what’s going on in the futures markets seems to have little to do with reality. Like right now.

USDA came out with it’s crop status report, and it’s the worst that they’ve issued since the 2012 drought, with only 65% of the corn crop rated at “good” or better, and only 62% of the soybean crop rated “good” or better.

Now during the drought, corn and soybean prices skyrocketed, with corn pushing the $8/bushel range for a time. So you would naturally think that a report that bad would push the prices up, right?

Well, no. After the report came out, corn prices fell by about 5 cents a bushel, and soybeans dropped more than 12 cents.

Apparently what drove the morning price down was that the report wasn’t as bad as they thought it would be.

Bureaucratic Run Around

More on the dicamba front: BASF, which has partnered with Monsanto to produce the special dicamba blend that was just banned in Arkansas and Missouri after enormous numbers of complaints about crops damaged by the herbicide, is trying to pull a bureaucratic end run around the ban by applying for something known as a “special local need label”.  This is a special permitting system that allows the use of a pesticide that normally cannot be used, because no other pesticide would be effective. Basically it was originally intended to help during emergency situations where there was an infestation of some pest that threatened to wipe out a crop, and only a non-registered pesticide would work. If you want, you can read the information about that whole process here.

Considering dicamba has damaged literally hundreds of thousands of acres of crops as it has drifted across the countryside, it seems that problem here is dicamba, not the weeds it’s supposed to control.

What The Hell Is Milk Anyway?

Screen Shot 2017-07-11 at 7.42.36 AMThere is a lot of fighting these days over the definition of the term “milk” when it comes to products being sold to consumers, specifically over the use of the term in describing drinks made with various nuts and beans. I.e. “soy milk” and “almond milk” and that kind of thing. Even USDA isn’t sure, and is using the word “milk” in much of it’s literature when referring to these products.

I can certainly understand why the almond industry wants to use the term. It’s because calling “almond milk” what it really is, isn’t exactly appealing. If they labeled it accurately, they’d have to call it “97% water with a few ground up almonds, emulsifiers, stabilizers, gums, flavoring agents, coloring, added vitamins and minerals and preservatives and you’d get more nutrition from just eating five or six actual almonds than drinking this stuff beverage”.

Try fitting that on the label on the bottle.

Rural Internet Access

For anyone living out in the country internet access is a major problem. There are various schemes and scams floating around that claim they will bring high speed internet to rural residents, but most of them are never going to get anywhere for various reasons.

Why won’t the ISPs connect rural customers? Cost, of course. It would take ages for them to make up the cost of connecting everyone outside of cities and towns. The same thing happened with electricity and telephone back in the day, the providers wouldn’t hook up rural areas until the government pretty much forced them to and paid a lot of the costs associated with it. And in this current political climate, well, a prominent Wisconsin politician (Sensenbrenner) is on record as saying that no one actually needs internet in the first place, thus illustrating that he hasn’t a clue as to what life is like out here in the real world.

The problem with most of these schemes is that they rely on some type of radio communication, either types of cellular networks, microwaves, or some kind of extended wifi system. And the fact of the matter is that we don’t really have the spectrum available to make these schemes work. The radio spectrum is so severely overcrowded now that cellular companies are paying billions of dollars for access to a few frequencies to expand their networks and improve their systems. So exactly where they’re going to squeeze in these new services is problematic.

The other problem is that some of these systems are already being tested or are even already in use in limited areas, and they don’t really work very well and they aren’t really all that fast. We have a kind of microwave system in use around here serving residents that live outside of the wired system, and it has some serious issues. Heavy rain and snow disrupts service, speeds slow to a crawl during ‘prime time’ when many people are trying to use the system, and most of these systems are very expensive, have some very serious data caps, and have lots of other issues associated with them.

Yet another problem is that what the feds are calling “broadband” isn’t really broadband by anyone’s definition. The US has some of the most abysmal internet speeds of any first world country. The ISPs here have been concentrating on throttling back usage, restricting bandwidth, charging utterly ridiculous amounts of money for going over artificially created caps so they can cram ever more paying users into an already overloaded system, and not investing any of that money in improving the infrastructure or in extending their coverage. The result is that US speeds are about half of what they are in the UK, the EU, Japan, Korea, and even the metro areas of China.

The feds definition for “broadband” internet for rural areas is even worse than what it is in urban areas, about 10 meg/second. So you can forget about making that conference call to work if your kid is playing WOW or your dear spouse is down in the basement watching PornHub.

Manure Rules

Wisconsin is finally doing something about the very serious contamination of wells by

Screen Shot 2017-07-12 at 2.45.57 PM

Why is she wearing a mask? If you had to pose in a swimsuit with a bunch of cows, you’d probably wear a mask too.

manure from farming operations. I’ve mentioned before that we have had problems with well contamination from farm runoff, especially in Kewaunee County, were it’s estimated that 30% – 40% of the wells are contaminated. It hasn’t been widely reported, but the problem is so bad that local organizations, schools and others have been giving out drinking water to local families because of the widespread contamination of the wells up there.

The state is going to be issuing new rules that will finally put some restrictions on when, how and where farms can spread manure. Hopefully this will help.

Okay, okay — I know that photo has nothing to do with the story. But if I come across a photo of a person in a swimsuit, wearing a mask, standing with a bunch of cows, I’m going to put it up. I can’t help myself.

 

Farm Catch Up

 

Syngenta Loses Lawsuit

Hundreds of farmers in both class action lawsuits and individual suits, along with Archer Daniels Midland Co. and Cargill are suing Syngenta, claiming that the company misled them into believing that it’s GM corn was accepted for import by China when it wasn’t. They claim that the company cost them billions of dollars in lost sales and shipping fees and caused corn prices to plummet.

One trial just ended last week, and Syngenta lost. It was ordered to pay $217.7 million to Kansas farmers. It’s not over yet. Syngenta is going to appeal, of course, so this Kansas suit could drag on for years yet. And this is just the start. Lawsuits involving 350,000 corn growers plus ADM And Cargill have yet to go to trial. Another suit is scheduled to start in Minnesota in August for more than $600 million. Cargill’s suit is supposed to start next year, and another one is coming up in Louisiana yet this year.

Still More Dicamba News

It isn’t just Arkansas with reports of dicamba drift causing crop damage. Now Tennessee has been hit with problems as well. As of June 26 there have been 27 reports of crop damage caused by dicamba drift. Not many compared with Arkansas, but Tennessee doesn’t get its crops in the ground as early as Arkansas does so it’s still relatively early in that state. No one seems to know yet if this is a problem with the herbicide blend itself or if it is a problem with the application techniques and equipment. Monsanto, of course, is claiming that either A) no such thing is happening at all, B) the product wasn’t used in accordance with proper application techniques, or C) insert your favorite excuse here. I don’t know, maybe fairies are killing off hundreds of acres of beans.

German Grocery Invasion

The Germans are coming. Lidl, the no frills German grocery store chain, is coming to the US. They’re planning on opening 500 new stores over the next five years. They’ve opened 10 new stores in the Carolinas and Virginia. The store is similar to Aldi’s model; no frills, very limited selection of product, lots of private label products at cheap prices, no shelves, just boxes of product stacked up.

Will it survive? My best guess is that they’re going to have a rough time of it. Most of the areas where they want to put stores are already more than saturated with grocery stores, and the chain has little to distinguish it from the other no-frills outfits like Aldi and Save-a-Lot. And it’s going to have a difficult time competing against Walmart which has fairly good prices and much better selection of product.

I have two major problems whenever I go to one of these places. The first is that if you really watch what the prices are, they generally aren’t all that cheap when compared to other stores. If you average out the overall cost of all the products, except for a few loss-leader items you aren’t really saving all that much money. The second is that the quality of the store brand products often isn’t all that good.

Beef Exports to China Begin

Well, sort of. A packing company sold a whopping 40 boxes of ribeyes and other steaks to somebody in Shanghai a couple of weeks ago. And I suspect most of those were eaten by US politicians for photo ops where they were trying to take credit for China announcing it was going to start buying US beef.

There are, of course, some problems. One of the biggest being that the vast majority of beef raised commercially in the US doesn’t meet Chinese health and safety standards. China bans the use of growth promoting drugs and hormones, feed additives, antibiotics and artificial growth promoting tricks US growers use. As the Farm Bureau pointed out, “only a small proportion of commercial beef production would fit the current parameters”. Commercial growers who want to get in on the market are probably going to have to start from scratch, raising cattle from birth to meet Chinese standards. As of right now, it’s going to cost growers more to meet the stringent health and safety requirements than it’s worth for most of them.

The articles I’ve seen on this subject all seem to also ignore the fact that the primary reason China is suddenly interested in US beef is because their suppliers in Brazil are now embroiled in a massive corruption scandal that seems to involve much of the Brazilian government. The scandal included bribing inspectors, shipping out diseased and contaminated beef and I don’t know what all else. The president of Brazil has been formally charged with corruption, allegedly taking $150,000 in bribes from the huge JBS meat processing company. China, like the US and most other countries, has banned imports of beef from Brazil until they get the situation straightened out down there.

“Pink Slime” Case Finally Over?

It seems that ABC has settled out of court with BPI in the slander case BPI brought against ABC for it’s stories about so-called “pink slime”, a heavily processed, treated meat substance made from scraps and trimmings, and then injected into hamburger. BPI was suing ABC for almost $2 billion. With damages and other penalties, ABC could have been on the hook for $5.7 billion if it lost the case.

ABC is claiming the stories “accurately presented the facts and views of knowledgeable people about this product”, while BPI claims it’s product is “safe, wholesome, and nutritious”.

What bugged me the most about the whole thing wasn’t the “pink slime” itself. I’ve eaten raw eel, lutefisk and cheese that smells so bad it wouldn’t be allowed in a landfill. What bothered me about it was no one told me this stuff was in the hamburger in the first place.

Ethanol Still Doesn’t Make Sense

While this was sparked by an article about ethanol production possibly ramping up in the UK, this is more of an editorial comment, so feel free to skip this one if you like.

I’m not a fan of ethanol. It makes no sense at all. At least not the way we’re doing it. If you look at the entire production cycle of ethanol production and it’s overall effects, one could argue that producing ethanol is actually worse for the environment than producing the equivalent amount of energy in traditional fossil fuel. If you trace back all of the energy inputs into the system, the things like transportation costs, fertilizer costs, herbicide costs, the energy used to plant, grow and harvest the crops, it quickly becomes apparent that ethanol, as a “green” fuel, isn’t all that much better than gasoline. Yes, it produces less carbon and pollution when it’s burned, but that is just looking at the end product and its use, and is ignoring everything else that goes into actually making the stuff. When everything is added in, the adverse environmental effects of ethanol production and use is almost as bad as fossil fuels, and according to some studies, actually worse. Go look it up. You got Google. If you ignore the industry funded fluff and nonsense studies and look at the truly independent research, you’ll quickly find that the whole ethanol system is far from being environmentally friendly.

Then there is the economics of the whole industry. Without massive government subsidies, tax breaks, usage mandates, and other taxpayer funded subsidies, i.e. “corporate welfare”, the whole system would fall apart like the house of cards in an earthquake.

Disconnected from Reality?

That’s what I suspect a lot of “experts” are when it comes to milk prices, disconnected from reality. While various experts are claiming milk prices will be pushing $18/cwt “real soon now”, things out in the real world are considerably different. The market has actually been trending down for a while now, with prices on the commodities market falling on the futures market.

Of course the futures market isn’t what farmers actually get paid for their products. What a product trades for and what the farmer is actually paid for the physical product often have no relationship to one another. As a lot of farmers found out when Grassland told them they were going to have to find a different place to sell their milk and some got offers as low as $6/cwt from some processing facilities.

Dicamba – What’s The Problem?

Screen Shot 2017-06-24 at 7.58.59 AMIn the last Farm Catch Up I talked a bit about the herbicide dicamba and noted that Arkansas regulators had already banned Monsanto’s brand Xtendimax of herbicide blend that contained the product and were considering a ban on the other one that was approved for use with Monsanto’s Xtend line of seeds, Engenia. “Procedural irregularities” prevented the Arkansas State Plant Board from passing an emergency ban on June 20, but I should have waited a couple of days because on June 23 ASPB passed a 120 day emergency order banning in-crop use of dicamba.

Someone pointed out to me that a lot of my readers aren’t in the agriculture business and may not know what the whole problem is, and that it would be a good idea to give a better explanation of what’s going on and why this is so important to so many people. So here goes

Super Weeds

That’s where it all starts, of course: super weeds, the ones that have been developing resistance to glyphosate, the active ingredient in herbicides like RoundUp. Everyone knew that as soon as glyphosate and the GM crops developed to work with it were released, weeds would begin to evolve resistance to the herbicide. That’s just the way nature works. Guidelines for usage that would help to prevent this, or at least slow it down, were developed even before the products were released for general sale. But everyone knew it was just a matter of time before “super weeds” started to pop up and spread. The fact that the guidelines and safeguards were largely ignored didn’t help much, either.

So now we’re faced with glyphosate resistant weeds that are spreading all across the country. So a new magic bullet needed to be found, and they picked dicamba.

Dicamba has been around for a long time. It was first discovered back in 1942 and has been used to control brush, legumes and cacti. It was also used along fence lines and roads to control brush. Some formulations have been used for weed control on lawns, golf courses, etc. for decades as well. It was never used on crops because it was highly toxic to commercial crops.

Dicamba has some serious issues, not the least of which is it’s tendency to drift over large areas beyond the treatment area.

Monsanto decided that dicamba was an excellent solution to the problem of weeds that were resistant to glyphosate, and developed it’s Xtend soybean plant, which could tolerate both glyphosate and dicamba. It developed a new formulation containing both glyphosate and dicamba.

Monsanto developed what was supposed to be a complete system, it’s new GM soybean coupled with the new formulation of glyphosate and dicamba. The new formulation was supposed to cure the problems dicamba had with easy volatility and wide spread drifting. The company claimed that if used according to its guidelines and with the proper equipment, the issues with the herbicide would be eliminated.

Well, there was one big problem right off the bat. Monsanto started to sell the GM seed before the government had approved the use of it’s new herbicide blend. This led some farmers to dump dicamba on their fields even though the government had not yet approved any form of dicamba for use on crops. Without the special low volatility formulation and without using the proper equipment, dicamba spread widely, damaging or destroying tens of thousands of acres of non-Xtend soybeans, it is claimed. Oh, and somebody got shot and killed over it, too. A heated argument between farmers over alleged damage to crops ended up with someone getting killed.

Well, the new formulation of herbicide is now approved, and things don’t seem to be doing much better for either Monsanto or the other company that makes the new herbicide. There are reports popping up all over the place that the new herbicide, even when used exactly according to the recommendations, is drifting all over the place. In one case it’s alleged that it drifted more than a mile and a half. In Arkansas alone there have been around 250 reports of damage caused by herbicide drift.

As noted at the beginning of this, Arkansas has already instituted a ban on Monsanto’s formula, and the government is now issuing an outright ban on all dicamba use on cropland because of all the damage reports.

The whole thing is a real mess at the moment. Lots of finger pointing, lots of accusations, even conspiracy theories. I heard one farmer claim that the drift problem is deliberate. He claims that the company knew this was going to happen, wanted it to happen, because it would force farmers to buy the GM seed from the company because even if you didn’t use the new herbicide, drift from neighboring farms that did would wipe out your crop unless you used their beans.

I haven’t seen reports from other states about this situation. If I do I’ll pass them along. Right now it’s a huge mess and the only people who are going to be profiting from any of this seems to be the lawyers.

Farm Catch Up

Farming related news you might have missed, stuff I was curious about, commentary about this and that and all that kind of stuff

Amazon Wants to Buy Whole Foods

On Friday, June 16, it was announced that Amazon is looking to buy Whole Foods for almost $14 billion.

As far as WF is concerned, the company hasn’t been doing all that well. Sales have been flat or even declining and the company seems to have stagnated. Some of it’s major shareholders, particularly a hedge fund called Jana, have been putting heavy pressure on WF to sell itself off in the hopes (they say) of shaking up the company and improving sales and WF’s CEO says they only want to do because Jana would make massive profits. Both sides are correct. WF needs to be shaken up if it’s going to survive, and yes, Jana would make massive profits off the sale. If this goes through, Jana would see about a $300 million dollar profit.

Why does Amazon want an upscale grocery chain that caters to people with more money than brains? Amazon has been trying to get into the grocery business in a big way since at least 2008, and while it’s had some limited success, groceries haven’t worked all that well for the company. Buying WF would give it 430 brick and mortar grocery stores already in place along with the supporting infrastructure, access to WF’s supply chain, etc. It would also give Amazon 430 distribution points that already cater to upper middle class patrons, a very profitable class of consumer.

It will be interesting to see how this one plays out.

Cuba

Okay, why is Cuba popping up in a blog allegedly related to farming? Because we actually sell grain to Cuba, that’s why. Over the last eight months we sold 10 million bushel of corn to Cuba, and it could be a significant buyer of other agricultural products as well.

The current administration is rolling back the lifting of some of the restrictions on Cuba that the previous administration began. It is going to once again forbid travel to the country by individuals, institute new restrictions on trade, and basically try to roll things back to the way they were, despite the fact everyone knows the fifty year old Cuban embargo has done absolutely no good at all.

The thing I don’t understand about Cuba is this — Yes, Cuba is a communist country with a history of human rights abuses. But China is also a communist country with a history of human rights abuses that is, if anything, far worse than Cuba. So why do we have virtually unlimited trade and travel to and from China, but the half century old and totally ineffective embargo against Cuba is still in place?

Lead in Baby Food

A really scary story has been popping up all over the place reporting that FDA testing has found that a large percentage of baby food is contaminated by lead. About 20% of the baby food tested by the FDA over the past ten years or so had lead in it.

The amounts were generally below what the FDA claims is “safe” but you have to remember that modern thinking is that no level of lead is safe for infants and children, and FDA standards for lead are many years out of date.

Even more troubling was that lead seemed to be more common in baby food than in adult versions of the same product. Overall 14% of the adult foods had lead, while 20% of baby foods had lead. Even more strange is that 25% of adult marketed apple juice contained lead while a whopping 55% of apple juice markets for babies contained lead. Makes you wonder what the hell is going on.

Dicamba. Again.

I’ve talked about the herbicide dicamba before and all of the problems associated with it, and the lawsuits going on against Monsanto. Let me recap things: Monsanto released a new GM line of seeds called Xtend that was resistant to dicamba as well as it’s RoundUp herbicide because weeds have developed resistance to RoundUp alone. But Monsanto began selling the seed before USDA and FDA had approved the new blend of herbicide that was intended to go along with the new seed. As a result a lot of farmers illegally used non-approved forms of dicamba, causing damage to hundreds of thousands of acres of crops from dicamba drifting into areas where it wasn’t supposed to go. Dicamba is extremely volatile, evaporate easily, and can drift long distances from where it is being applied unless great care is used. Even when the correct blend of herbicide is used and applied properly, it seems it can cause problems. Arkansas has outright banned Monsanto’s Xtendimax dicamba formulation and may ban all dicamba use under emergency regulations because there have already been almost 100 complaints from 14 different counties about misuse of the chemical

There are widespread reports coming from all over Arkansas about damage to crops because of dicamba use already this year, even when the product is being used exactly according to the instructions. There are indications that even when used with the proper equipment and when following the instructions, there dicamba is drifting over large distances, in some cases as much as a mile or more.

Addendum: Arkansas regulators had a meeting on June 20 to consider a complete ban on all in crop use of dicamba. The ban failed because “Due to a procedural error, the vote to consider a ban on in-crop use of dicamba by the Arkansas State Plant Board will be re-voted on at a later time.” So while Monsanto’s formulation was banned, BASF’s version of the herbicide is still legal to use for now.

Rain and More Rain

We’ve been getting extraordinary amounts of rain here over the last few weeks. It just doesn’t seem to want to stop. And as a result a lot of fields around here look like this:

IMG_0397.jpg

Fields covered in mud, standing water, and corn starting to turn yellow from too much water. And, of course, there’s more predicted for late tonight and into tomorrow morning.

The entire state isn’t like this, though. Weather patterns have been spotty, with one area getting pounded by rain while just twenty miles away they get nothing. There was considerable damage the other day from a storm that rolled through the Appleton area, even a few suspected tornados, while here, 15 miles away, all we got was a bit of light rain.

Eating Habits Changing?

Is the “fat is evil” belief finally beginning to be laid to rest once and for all? Maybe? Consumption of butter is increasing world wide, sales of “low fat” dairy products are being replaced by “full fat” dairy products. (I put that “full fat” in quotes because it implies that the fat content of the milk is not tampered with. It is. Milk straight from the cow has a fat content that can run as high as 5 – 7% while the “whole” milk you get in the store is 3.25%.)

It isn’t just butter, either. For decades we were taught that eating fatty meat will kill us too, so the trend for many years was to trim all of the fat off of meat, to develop types of cattle and diets that resulted in very little visible fat in the meat, etc. That’s changing now as well it seems.  Sales of fattier cuts of meat, bacon, well marbled cuts of beef have all been going up.

The whole “fat free” craze that finally seems to be laid to rest didn’t do us any good and may actually have done us a lot of harm. Especially when food processors resorted to loading up their products with salt, sugar and other crap to make it edible because removing the fat also removed the flavor from a lot of products.

Animal Welfare

Tyson is launching a very extensive system to monitor the welfare of the animals it raises/processes. It claims it is bringing in a third party monitoring company that will use a variety of techniques including video, data analysis and other techniques to make sure that the animals are treated well. While I am pleased they’re doing it and I hope the other big chicken processors do the same, you and I both know that the only reason they’re doing it is because of the public pressure being put on them because of the videos and information that’s been made public by the animal rights groups that have been exposing how badly many of these animals have been treated.

Milk Prices

Just a few weeks ago I saw people predicting milk would be in the mid to high $17/cwt range, with some claiming it would hit $18+. I was skeptic about that at the time because I didn’t see anything to indicate any factors that would push the prices up that much. In fact, we have an enormous surplus of milk on our hands with milk processors actually shutting off dairy farms supplying them milk because they can’t deal with the glut of product coming in. Wisconsin, Minnesota, Pennsylvania and a couple of other states have had incidents of milk processors cutting off dairy farms, forcing them to desperately try to find someone, somewhere, to buy their milk.

Milk on the futures market has plummeted, losing $1.40/cwt in three weeks, and falling by $0.46 just this week alone. Butter fell 4 cents, cheese is down, dry milk is down…

The reason why is simple – too much milk. And production continues to increase. This is going to keep up until there is a major shake up in the industry and dairy farms start to go bankrupt. That seems to be the only thing that will stop this never ending expansion of production.

No Rush On NAFTA

A few weeks ago Sonny Perdue, the ag secretary, was claiming that the administration would re-do NAFTA in just a couple of weeks, illustrating that neither he nor the administration knows anything about how treaties, trade deals or negotiations really work. But apparently someone, somewhere, in the administration does know, and it looks like talks and negotiations will extend well into 2018, a bit more of a rational time frame. Frankly, considering how utterly inept this administration has been in its dealings with other countries, we’ll be lucky if we don’t end up with the administration giving Texas back to Mexico and selling the U.P. to Canada.

Rain, Rain and More Rain

That’s the story around my local area. We had almost three inches of rain Wednesday night. We had two and a half inches last night, when added up with the rain we’ve received over the past week or so we’ve had between 7 – 9 inches of rain over the past week. The ground is saturated, fields have standing water, corn in low lying areas is turning yellow, and anyone trying to get out in the fields around here is pretty much completely shut down if things don’t start to dry out.

My backyard is so saturated with water that the ground makes squishing noises when you walk over the grass, and in the low part of the yard near the property line we have about eight or ten frogs that have moved in. I like frogs, great little critters. But it’s them starting to think that my backyard is a swamp that’s a bit troubling…

 

Farm Catch Up

SNAP Program

The SNAP (food stamp) program has been in the cross hairs of certain parties for ages now. They haven’t been able to entirely eliminate the program because it would generate an enormous amount of public outrage. So they go after it with what I call “Death From A Thousand Cuts” (DFATC). DFATC works by going after a program by deliberately instituting rules and requirements that make it so difficult to apply for and get benefits that people just give up and don’t even try. Of course that’s not how the administration presents these changes. The changes are presented as being “reasonable”, cutting fraud, or even somehow “helping” the recipients.

The latest one to be proposed for SNAP is that the administration now wants to charge retailers fees for being able to accept SNAP that range anywhere from $250 – $200,000 depending on the size of the retailer. The amount would range from $250 for small retailers, up to $200,000 for large retail chains like Walmart. It doesn’t sound like much, but small retailers are already financially stressed, and this would just add even more to their cost of doing business. A lot of them are going to think it isn’t worth the extra cost and paperwork involved and will just drop participation in the SNAP program.

Be Careful What You Ask For

People in the ag industry are getting a wee bit nervous as the date for the administration to “renegotiate” the NAFTA agreement approaches. Mexico is a huge market for US agricultural products, and the administration’s near constant use of Mexico and Mexican immigrants as scapegoats hasn’t been doing much to make Mexico willing to cooperate with us. As the article linked to above says, “Farmers are hoping NAFTA can be updated without blowing up the trade agreement.”

Considering this administration is spending almost all it’s time trying to do damage control as one scandal after another hits the media, and that it it doesn’t seem to understand what NAFTA actually is, doesn’t seem to understand how it works, and doesn’t even seem to understand how trade agreements work, and that it regularly uses one of our NAFTA partners as a scapegoat, calling the people of that country rapists, drug dealers and “bad people”… Well, let’s just say this has the potential of blowing up in everyones faces.

The biggest issue for the US dairy industry is Canada. Canada has a dairy marketing system that actually works relatively well. Granted, a lot of people up there don’t like it, but it has kept Canadian prices fairly stable, kept dairy farmers reasonably profitable, and it has avoided the boom/bust cycle that the dairy industry in the rest of the world has been following for decades now. The US dairy industry would like to see that system totally destroyed, it seems, and force Canada into the same chaos we’re enduring down here.

Don’t get me wrong, the Canadian system has a lot of problems, but you have to admit that the system has kept Canadian dairy farmers largely insulated from the insanity going on in the rest of the world where, it seems, the business model is that if the market is flooded with way, way too much milk, the solution is to produce even more milk.

China to Import US Beef

Back in 2003 China banned imports of US beef because of incidents of Mad Cow Disease (bovine spongiform encephalopathy, or BSE). Although the ban was eventually lifted fairly quickly, China shifted it’s imports to Australia and South America, and the US has exported pretty much no beef at all to China. That looks like it will be changing. China’s imports of beef have expanded massively in the last five years, going from $275 million in 2012 to $2.5 billion in 2016. Needless to say the US beef industry would dearly love to get a piece of that market.

Wally Melons?

For decades we’ve been putting up with fruits and vegetables that pretty much don’t taste like fruits and vegetables. Those California strawberries may look beautiful, but they don’t actually taste much like strawberries. Or pears that are so rock hard you have to boil the bloody things to make them edible. And don’t get me started on whatever the hell it is supermarkets sell as “tomatoes”. I don’t know what those things are. They look like tomatoes, but they have the flavor and texture of drywall. Well, I’ve never actually eaten drywall. I mean that would be silly. But I suspect that if I ever did eat drywall, it would have that… Wait, what was I talking about?

Oh, yeah, melons.

Apparently Walmart’s melons are so bad that even Walmart hates them, and they’ve apparently done something about it. They’ve come up with their own variety of melon.

Wally world apparently worked with Bayer to develop… I was going to make a joke about an aspirin flavored melon, but that would be in bad taste, wouldn’t it… Develop a melon that can handle the stresses of shipping long distances, but still somehow manages to taste like something reasonably close to an actual melon.

It is not genetically modified, but was specifically bred just to satisfy Walmart’s specifications. Is it any good? I have no idea, and I’m not about to try one of the things.

Weather Worries Push Prices Up

Weather concerns in the US have been slowly pushing grain futures prices up on the commodities market. Hard red spring wheat, used for bread, has been hurt by dry conditions in large parts of the US grain belt. And while there is rain in the forecasts, it’s felt that much of the crop is too far along for rain to help much at this point. One of the concerns is the protein content of the wheat. They want a protein content of at least 10.2% and it looks like large amounts of the crop is going to be coming under that level. Hard red spring wheat hit $6.45 at one point, the highest it’s been since 2014, before going to 6.41. From what I’ve seen they’re claiming the spring wheat crop is the worst it’s been in almost 30 years.

Weather concerns have the markets a bit nervous right now as the climate can’t seem to figure out what it wants to do. Here in my part of Wisconsin we’ve been abnormally wet. In other parts of the grain belt it’s been abnormally dry, with parts of the Dakotas going through drought. Corn finally has been seeing some significant movement in prices, pushing up to 3.83 as of this morning.

Mergers and still more Mergers

It seems that every ag company is trying to buy every other ag company these day. The Bayer/Monsanto merger is still in the works, with Bayer trying to sell off bits and pieces of itself so it can claim that its takeover of Monsanto won’t reduce competition. Of course it won’t. (I wish there was a “sarcasm” font, don’t you?) Of course it will reduce  competition. That’s the whole point behind these mergers, to get rid of competition and increase the market share and profits of the new company that emerges after they have merged.

Anyway, Bayer is trying to sell off it’s Libertylink genetic modification trait, it’s glufosinate weed killer, and maybe it’s garlic and pepper seed operations and some other bits and pieces it hopes will satisfy regulators. BASF and Syngenta are supposed to be interested.

Meanwhile Syngenta itself is the target of a takeover. It’s being bought by China National Chemical Co, owned by the Chinese government. DuPont is selling parts of itself off in order to try to merge with Dow Chemical.

Will any of these mergers and buyouts actually help farmers as the companies claim? Of course not. The only people who ever benefit from these mergers are the lawyers, corporate executives who cash in big time on bonuses and stock deals, and a handful of investors.

Glyphosate Study Craziness

Glyphosate, commonly known as RoundUp(TM), was ruled to be a “probable carcinogen” by the World Health Organization, despite the fact that it has been throughly studied for decades by dozens of organizations and scientists and they’ve found no real link between the herbicide and cancer. Even the European food Safety Authority, one of the most cautious and paranoid out there, didn’t find a link.

But WHO and IARC, the International Agency for Research on Cancer which is part of WHO, came to the conclusion that it was “probable”. Why?

This is where the story gets very, very strange. A fellow named Aaron Blair who led the IARC’s review panel on RoundUp, knew of a large study which indicated the herbicide did not cause cancer. If that study had been included in the data given to the IARC it would almost certainly have determined that glyphosate was not a carcinogen.

So why wasn’t that study included? Did Blair not know about it? Well, he did know about it. It was his study. He knew that if the study was included glyphosate would ruled to be not a carcinogen. He admitted that is a sworn deposition, as well as admitting that if that data had been included IARC’s analysis would have been significantly altered.

So why did a scientist deliberately withhold the results of his own study from IARC’s analysis? Because it hadn’t been published yet, he said. And that it wasn’t published yet because it was “too big” to put in a single paper, he claimed.

 

Farm Catch Up

The ag news stories you might have missed this past week

Conagra sells Wesson Oil

Screen Shot 2017-06-05 at 6.45.31 AMConagra is selling it’s Wesson brand of oils to Smucker for about $285 million. Conagra has been going through a reorganization since 2015. Wesson is just the latest part of the business to go on the auction block. The company is trying to change it’s business from selling low profit staples and cheap processed food to producing higher end and higher profit items with fresh(er) ingredients including salsas, organic pot pies and speciality pork and chicken products.

Conagra has sold off it’s private label operations which made products like soups, cookies and other foods that supermarkets sold under their own brand name. The company bought that business in 2012 for $5 billion, never made a decent profit at it, and sold it off in 2015 for half the original purchase price. It even sold of Lamb Weston, the company that’s the french fry supplier to McDonalds and other restaurants. That didn’t make a lot of sense to be because Lamb Weston had had sales of $3 billion and was pretty profitable.

The Wesson brand has been around for more than 100 years. It was originally started by David Wesson in 1899, a chemist who invented a way to refine cottonseed oil to remove bad taste and smell from it so it could be used as a cooking oil.

The acquisition by Smucker is a bit troubling because it already owns Crisco shortening and oils so it’s certainly going to reduce competition in the market. I’ve heard that both products are going to be made at it’s processing facility in Ohio, so basically Wesson oil and Crisco oil are going to be exactly the same product with different labels. I wouldn’t be surprised if the Crisco oil brand (not the shortening) disappears entirely.

Syngenta Lawsuit Goes Forward

Screen Shot 2017-06-06 at 5.34.23 AMBack in 2012 Syngenta released a new GM variety of corn and promoted it heavily. farmers planted it, only to find that they couldn’t sell it to China. The Chinese government had not yet approved that variety of corn for import, and rejected all shipments that were contaminated with it, costing the farmers a lot of money. Grain exporter ADM is also suing Syngenta in a separate suit, as is Cargil.

The claim against Syngenta is that the company knew it’s new corn was not approved for import into China, and was deliberately misrepresenting the approval status of the corn when it was marketing it to farmers so they went ahead and used it. There are other lawsuits going on with more than 350,000 corn growers involved in individual or class action lawsuits against the company, with potential damages hitting $13 billion.

Making things even more interesting is that the China National Chemical Corp, owned by the Chinese government, is in the process of trying to buy Syngenta. So if Syngenta loses, China, which rejected Syngenta corn originally, will own the company.

This particular lawsuit involved 7,000 Kansas farmers, and as noted, others are in the pipeline.  It will be interesting to see how this one plays out.

Home Bakery Ban Overturned

The church/school bake sale is something of a tradition around here. Parents bake up all kinds of goodies and sell them at events to raise money for churches, schools, kids groups, etc. It’s also probably illegal here in Wisconsin. Or at least it was until the ban was overturned recently.

Wisconsin law states that bakery for commercial sale must be produced in a licensed, fully inspected commercial kitchen by staff that are properly licensed. While the state generally has ignored things like school/church bake sales for fund raising, it’s a different story if you try to sell your goodies at farmers’ markets and other places.

Until now. A judge overturned that law, and I’m not really sure if that’s a good thing or not.

While I have some sympathy for the women who were cited for selling their baked goods, there are valid reasons why these rules are in place, and the biggest is food safety.  I’m a stickler for food safety for a couple of reasons.

First because I’ve worked in the food service business, and Mrs. GF is still involved in it, and both of us know how incredibly easy it is for food to become contaminated and cause someone to become very, very sick indeed.

Second, because I’ve been one of those sick people. I was already nearly unconscious, suffering from explosive diarrhea, severe dehydration and I don’t know what all else when the paramedics carted me out of work on a stretcher and rushed me to the ER where I spent the night with multiple IVs hooked to me and wired up like a Christmas tree.

While I’m sure these women feel the state requirements are unnecessary, they are there for a reason. And I should point out that one of the reasons they are there is to protect them. If one of their products makes someone sick, don’t they realize that they are liable, especially if it can be proven that they were making products in a relatively uncontrolled environment like a home kitchen? They could end up being sued and losing everything they own.

Milk Mess

Screen Shot 2017-06-07 at 4.45.45 PMIf you look at some of the data being published in the press about the dairy industry, the markets now actually look pretty good. Sort of. In some parts of the world, at least, the dairy markets seem to be improving considerably, especially down in New Zealand. Prices are going up, in some cases significantly, improving the financial picture for farmers. Butter prices are strong and getting better, even the powdered milk market, which had been hit very hard by China’s cutbacks in dairy imports, is doing better. Milk production in the EU continues to drop, showing a decrease of about 2% or more.

But if you take a closer look at the entire picture, there are some troubling indications. Most of this positive data is coming from GlobalDairyTrade, a trade organization which pretends it is a free market in Australia and New Zealand, but really isn’t. It’s actually owned by Fonterra, the huge dairy co-op, and it sells only Fonterra milk products, so the data coming from it is skewed to begin with. And Fonterra has deliberately manipulated the market in the past by increasing or decreasing the amount of product flowing through GDT. So any time I see anyone taking GDT data seriously I wince a bit because not only are GDT prices easily manipulated, but it also deals with a fairly limited market, China and south east Asia, and a fairly limited supply source. A huge market, true, and a significant one. But dairy is a global business and is influenced by a lot more than just China.

The biggest problem right now seems to be US production which continues to go up despite a glut of milk on the market. Speculation that milk prices are going to improve significantly are pushing a lot of mega-farms to add more production, and new mega-farms are in the works. Here in Wisconsin Grassland, the company that infamously stopped taking milk from some 75 farmers here in the state because they claimed new Canadian trade rules cost them sales, is working to build it’s own, 5,000 cow dairy farm.

UW ag economist Cropps says milk prices could go over $17, maybe even hit $18 by the fall of this year, despite the fact US production could be going up by as much as 4%. But that’s based on the belief that China is going to significantly increase milk imports, that EU milk production is going to continue to decline, and production in New Zealand is going to remain flat or even go down a bit.

Changes Oh My

Well, this is going to take a while to get used to. For the first time in like forever, I’m unemployed. Deliberately unemployed. I submitted my resignation at work and I am retiring. Sort of. I won’t be filing for social security for another four years or so, but we planned for this and the finances are already worked out for this situation and active. But it still makes me nervous, anxious.

Granted, I wasn’t exactly working my tail off the last couple of years. I’d dropped back to part time and actually was only dealing with special events at the theater and filling in when one of the day crew was out or we had an emergency to deal with.

Still, it’s a strange feeling, not having a job to worry about.

Fat Saves Dairy Industry?

That’s what it is starting to look like. About the only bright spot in the dairy industry right now seems to be butter and, to a lesser extent, cheese. Butter sales are up dramatically, largely because the fact that eating dairy fats isn’t going to kill you (at least not any quicker than anything else) is finally starting to filter out into the mainstream.

One of these days I’m going to do an article about food and health, and all of the BS we’ve been told over the years. The amount of pure bullshit that we’ve been fed over the decades is mind boggling. From “healthy” hydrogenated plant fats in margarines and shortenings that were supposed to be “good” for us turning out to be responsible for tens of thousands of deaths, to coffee still being demonized despite the fact it seems to help reduce incidences of some cancers and may help prevent some kinds of dementia, to “juice cleanses” that don’t cleanse anything, to the multi-billion dollar “supplement” industry that is selling us little more than snake oil…

Infrastructure Plan? What Infrastructure Plan?

There’s been a lot of press about the administrations “$1 trillion” plan to rebuild the country’s infrastructure and everyone is going “Oh, goodie, isn’t that wonderful!”

But… Well, sorry, but there pretty much isn’t an infrastructure plan. Seriously. Oh, they’re talking a lot about it but no one is actually doing anything about it because talk is free and bridges cost money, so where’s the cash? There isn’t any. The administration can talk all it likes, but the administration doesn’t hand out the money, Congress does. Congress, not the administration, develops the plan, finds the money for it, etc, not the office of the president. And there is little or no work going on in Congress to do anything pertaining to the administration’s plans.

And some of the things the administration has been talking about are more than a little troubling, especially this “private partnership” thing. Why? Because in most cases these “private partnership” deals end up with things worse than they were before.

There is a reason why we don’t have a lot of toll roads and bridges in this country. It’s because we tried it before, going back 200 years or more, and it was a nightmare. Outrageous tolls, violence, unsafe bridges and roads, no investments in improving the system… One of the reasons we adopted a publicly funded, government owned highway and bridge system in this country in the first place was because the private operators so horribly abused the public, gouged them so badly on prices, that the government had to step in because the private model was destroying the transportation system in the country.

The problem with history is that no one seems to actually remember it.

As for this particular infrastructure plan, well, there isn’t one, as I said. Most of the things the administration is talking about like federal grants to local jurisdictions and all of that? That’s going on right now, for heaven’s sake. The federal government almost never directly funds highways and bridges, it does it through a system of low cost loans, grants, etc. Which is what the administration is claiming is its “new” plan. Oh, please…

And let’s face it, most of the problems we’re facing when it comes to the infrastructure system are our own fault because we don’t want to pay for it. Or, rather, the politicians we elect don’t want to because in order to actually pay for maintenance and new construction and all the rest they might have to raise taxes a few cents and that would make the corporations and lobbyists who bribe them buy their souls [ahem, sorry about that, funny how those typos slip in there] make nice contributions to their campaigns so they can continue the democratic process, a wee bit upset.

But here’s the thing, you are going to pay for it. One way or another. If we don’t pay for it through taxes, we’re going to pay through the nose for it in tolls or user fees. Someone has to pay the bill. There’s no such thing as a free lunch.

4:30 AM? Really???

Not farm related but… This is the third day in a row all three of those stupid cats have been sitting outside the bedroom door yelling at us at 4:30 in the morning. And I come stumbling out of the bedroom in dim light of dawn and stumble over their food dish because they have now gotten into the habit of moving their food dish right in front of the freaking door during the night. How do they even do that? They don’t even have hands much less thumbs and fingers so how do they move a dish half full of kibble all the way across the floor and plant it right in front of the bedroom door???

Oh, very funny, cats. Ha freakin Ha… Good joke. Now stop it!

I don’t know what the world is coming to — cats pulling practical jokes on people…

Just wait, guys. I’m going to find where you’re hiding during the day to take your little 9 hour naps and see how you like being woken up out of a sound sleep…

 

Farm Catch Up

 

Organic: Is it, or isn’t it?

There was a rather troubling item released the other day showing about 40% of organic produce tested was contaminated with pesticides that are not permitted for use by organic growers. The article in Wisconsin Agriculturalist talks about the whole organic situation briefly.

While organic growers in the US are fairly well monitored, the same can’t be said for sources outside of the US. And with up to 80% of organics being sold in this country coming from elsewhere, that’s a bit troubling. USDA doesn’t have the staff or funding to do more than token inspections of organics coming into the US and has to rely on certifications and inspections being done in the country of origin. And considering the horrific stories coming out of places like Brazil involving the meat industry, well, let’s jus say that the inspection systems in other countries are a bit problematic and leave it at that.

And am I wrong in this, or was one of the principals of organic farming supposed to be that food should be grown close to where it’s consumed? Organic isn’t just about growing crops without pesticides. It was a whole philosophy of reducing the use of fossil fuels, producing crops in a sustainable manner, tying to keep food production as local as possible. If you’re shipping “organic” produce 5,000 miles in massive container ships or flying it in via cargo plane, how exactly is that “organic” in the first place?

Canola Oil – The Short Story

I ran across this item over on Wisconsin Agriculturist. It’s a brief little item about how canola oil, one of the most important vegetable oils we produce, was originally developed and how it’s become one of Canada’s most important ag products.

It’s an interesting story. Canola oil didn’t even exist until the mid 1970s when plant scientists bred a type of rapeseed plant that lacked the undesirable traits of the original plants, and processing technologies permitted turning the seed of the plant into one of the most widely used vegetable oils we have. The problem rapeseed had originally was that it contained relatively high concentrations of euric acid, which can be toxic in large amounts. The new plants still have some trace amounts of euric acid.

Then, of course, they had to change the name of the stuff because “rapeseed oil” isn’t exactly appealing for consumers, so they came up with the name “canola” for it. The rapeseed plant’s name has nothing to do with acts of violence, but instead comes from the latin word rapum, which means turnip.

Anyway, go give it a read. It’s a nice little article.

In the “What the Hell Is The Matter With Them” department, we have Illinois

It seems that no matter how bad things get here in Wisconsin, we can always indulge in a bit of schadenfreude by looking at our neighbor to the south, Illinois. No matter how corrupt, inefficient, callous and cruel our political system here in Wisconsin has become, we can always look south and say “well, at least we aren’t in Illinois”.

Illinois is in the middle of a financial hell hole of it’s own making. The state just failed to pass a budget. Again. They haven’t had a state budget in two years, and are well on their way to three years in a row without one. The state is operating largely on a serious of short term spending resolutions, court orders forcing it to pay people, and legally mandated debt payments. Other than that, the state is in financial hell as bills continue to pile up, interest piles up, it’s credit rating plunges, and a bond rating that is just one level above junk bond status. The interest payments caused by it’s failure to pay bills promptly is going to cost it almost three quarters of a billion dollars alone.

This didn’t happen overnight, of course. The state (and the city of Chicago) has a long history of playing fast and loose with it’s bookkeeping practices, using accounting tricks to cover things up, postpone paying things into the future, shortchanging it’s pension funds and basically engaging in practices which, if done in the real world, would have ended with a lot of them going to jail for a very long time indeed. It owes it’s pension fund alone something like $129 billion because of it’s fiscal mismanagement. But since it’s the government and they make their own rules, they’ve been getting away with it

For those of us in Wisconsin who are sitting up here chuckling over the misfortune of the FIBs, well, it can happen here. This administration has been fiddling with the books as well, using accounting tricks that would be illegal in the real world to postpone debt payment, borrowing money to prop up the budget, especially the transportation budget. At the moment about 20% of every dollar going into the transportation budget is being used to make payments on past borrowings because the administration hasn’t been willing to fully fund all of the road projects it has mandated. This budget cycle we’re looking at the state borrowing another $500 million to try to keep it’s road projects going.

If you think Illinois can’t happen here, just remember what happened to the money the state got from the settlement with the tobacco company years ago. Wisconsin got almost a billion dollars to settle up with the tobacco industry. The money was supposed to go to health care, tobacco prevention programs, and programs to help people get off of tobacco addiction. It didn’t, of course. The state just flat out stole it, using the money to plug a hole in the state budget.

Weather Related Crop Failures

I haven’t seen a lot of news items about it yet, but we’ve already seen a lot of crop failures due to unusual weather all around the country. In many of the counties around here we’ve seen an almost total failure of the alfalfa crop, with losses as high as 80% or more. Down in Georgia and South Carolina there is a near total failure of the peach crop, with losses as high as 85%. The blueberry crop down there was hit hard as well. Farmers there are looking at a $300 million loss to the fruit crop. Large parts of the midwest have had significant delays in getting the corn and soybean crops in the ground because of abnormally wet weather. Up in Canada one region has been unable to plant tens of thousands of acres of wheat because of wet weather. Down in Australia they’re having the opposite problem, not enough rain, with significant damage to the canola and garbanzo bean crops.

Curiously enough, the commodities markets seem to have been ignoring all of this and there has been little movement in the futures prices except for the usual thrashing up and down a few cents.

Pink Slime Redux

Remember “pink slime”? You may not. It’s been a while since that scandal story hit the airwaves. ABC ran a story about this stuff, “finely textured beef”, that was made from stuff scraped off the bones of cattle, left over from the trimming process, basically stuff that would have otherwise gone into pet food or be thrown out, which was then ground up, had the fat removed from it, was treated with ammonia, and then injected into hamburger, and then they didn’t tell anyone about it. The stuff is… Well, let’s just say it’s not exactly appealing and leave it at that. Even more troubling was the fact that this was being done without any labeling or any indication that something other than normal beef was in your hamburger.

One of the major manufacturers of the stuff was not happy about the story because their sales plummeted, and they sued ABC and several individuals back in 2012, and it’s finally going to be coming to trial. The company is asking for about $1 billion in damages.

It will be interesting to see what happens with this one. Despite everything the company says, I don’t remember ABC claiming anything that wasn’t absolutely true during the report. But the way things are these days, the outcome of the trial is a coin toss, really. Whatever happens it will probably end up in the courts for years with the losing side appealing.

It’s a sad but true fact that you pretty much don’t know what the hell is in the food you buy unless you’re preparing it yourself.

Grain Facility Explodes

A corn processing facility in Cambria Wisconsin exploded, killing two and injuring more than a dozen others. According to the story in the link above, the facility had a history of safety violations, including failing to properly control potentially explosive dust.

These facilities can be extremely dangerous. Grain dust is not just a fire hazard, it is also an explosive. Until government agencies like OSHA clamped down, grain elevators and other grain processing facilities used to explode every year. There is a mill just down the street from my place and until fairly recently it was a running joke that the place burned down every year, and just a few years ago they had a massive fire that had units from a dozen or more fire departments scurrying down our street to try to get it under control. For an entire day after the worst was over, we had water tankers running down our street every 4 minutes (we timed it) to dump water on the smoldering remains.