It’s been a while since I did one of these so let’s see what’s been going on in the agriculture industry.
I’d be willing to bet there are a lot of people over at Bayer who are wishing that they’d never thought of the idea of buying Monsanto. Before Bayer completed its purchase of the company, it was already involved in a lawsuit in California claiming that RoundUp ™ caused the plaintiff’s (a school groundskeeper) cancer. The company lost and was hit with a $289 million dollar judgement against it. Bayer is trying desperately to get the judgement voided, claiming that there is little or no evidence to prove the product causes cancer and a lot of evidence proving it doesn’t.
This is just the tip of the iceberg. Bayer, which now owns Monsanto, is facing dozens of similar lawsuits. There are apparently about 8,700 people in the US who directly blame the herbicide for their cancer, so Bayer could be in court for a long, long time over this unless the company can figure out a way to get out from under this.
Note: The day after I wrote the above item a judge in San Francisco has indicated she is inclined to set aside a $250 million punitive damage judgement against Monsanto and even reopen the case. In a preliminary statement the judge said the plaintiff’s lawyers did not present clear and convincing evidence of malice and suppression of information by Monsanto.
The Farm Bill – The farm bill has turned into more or less a very unfunny joke over the last few decades. It has less and less to do with agriculture and more and more to do with social welfare programs, especially SNAP (food stamps). Something like 80% of the funding in the so-called farm bill actually goes to the SNAP program, not to agriculture. So while the collection of laws and regulations that has become known as the “farm bill” does indeed deal with things like crop insurance, ag subsidy programs and other ag related programs, the vast majority of the money involved is funneled into the SNAP program.
This means that when it comes time to redo the bill, the political bickering gets intense and it’s gotten harder and harder to get the thing passed. It is currently bogged down over, surprise, disagreements over the SNAP program, and doesn’t look like it’s going to pass any time soon. You aren’t going to see any action on the FB until after the November elections, and there’s a good chance it could be pushed off into next year, which means the whole bill would have to be rewritten and the whole mess would have to start all over again.
One of these days I should really write an article about what the “farm bill” really is and how it was transformed from a collection of programs to help agriculture into a program where 80% of the funding goes to non-ag related support programs, and why there is so much resistance to splitting off the welfare related parts of the whole mess and making the farm bill really about agriculture again.
Sales of the abomination that is “American Cheese” are declining according to an article from Bloomberg over at AgWeb. As a friend of mine once said when confronted with so-called “American cheese” for the first time, “I don’t know what the hell that is, but it isn’t cheese.” A lot of people have said even less flattering things about the stuff, with some justification. With a list of ingredients that reads more like a chemistry lesson than something you should see in a food product, the muck was invented back in 1916 and was canned (yes, canned) and sold to the US government to feed soldiers during WWI. I’m not sure why sales are declining. Perhaps it’s because people are finally finding out that it doesn’t really taste like, well, much of anything, really. Except salt. Certainly it doesn’t taste like actual cheese. Perhaps they’re concerned about the fact that a lot of those ingredients in it shouldn’t be anywhere near any kind of product you put in your mouth. Or perhaps it’s just a trend. But whatever the reason, restaurants and even the fast food joints are moving away from the stuff and switching to actual real cheese for their products, and have been for quite a while. Except for McD’s and a few other fast food places, restaurants switched to using real cheese some time ago, substituting cheddar, swiss, asiago or blends of different cheeses for their cheeseburgers, grilled cheese, etc.
Sears Files for Bankruptcy. The Sears bankruptcy didn’t really surprise anyone. We’ve seen that coming for years now. The only really surprising thing is that it took them this lon to do it.
Why talk about Sears in a post about farm news? Well, if you grew up on a farm in the 60s like I did, Sears was the place you went for just about everything from work clothes to hand tools to car batteries to household items. I’m sure there will be (if there aren’t already) books and scholarly papers written about the decline and fall of what at one time was the biggest retailer in the country.
It is popular these days to blame Amazon for the failure of retail stores, but even as early as the 1980s the company was showing signs of serious problems. The quality of the store branded products it was selling began declining. Craftsman hand tools which had been of good quality and came with a lifetime warranty, became less polished, less well made, and that famous lifetime warranty which had always been a major selling point for them, disappeared. The company seemed to lose focus. It moved into areas that made no sense. It started selling glasses. Portrait studios began popping up in the stores. The stores started to look more and more shabby as the company tried to cut costs, and Sears’ reputation declined rapidly. The only thing its cost cutting measures did was drive more and more customers away. And the worse its financial situation became, the more strange the decisions of management seemed to become.
The purchase of Kmart (I’m not really sure who bought who, if Sears bought Kmart or Kmart bought Sears. Not that it really matters) was pretty much the last nail in the coffin, really. Who in the world thought that a failing company buying a retail chain that was in even worse financial shape than it was made any kind of sense at all?
Weather – Up here in the midwest the weather has been, well, odd. By Oct. 9 we’d already had more rain than we normally get in the entire month, and it still hasn’t stopped. We’ve had rain every day for the last 14 days or so and we’re getting a bit tired of it. Soybean harvest should be almost done by now, but a lot of fields are still standing because the farmers can’t get their equipment in the fields without burying their combines in mud.
Over in the Dakotas they got hit with a snowstorm that dumped 5-9 inches of snow on them right in the middle of soybean harvest.
E-15 On The Way – The administration announced it was going to approve the use of E-15 fuel (15% ethanol blend) during a campaign rally in the midwest. While it’s been approved for limited distribution during certain times of the year already, it will, apparently, now be available all the time. While some corn farmers (and the ethanol makers, of course) are cheering the decision in the hope it will boost corn prices, a lot of other people don’t think it will have much of an effect, if any, on corn prices in the long run.
There are a lot of problems with the whole ethanol fuel idea. It isn’t a very good fuel, it isn’t really very “green” as far as the environment is concerned, it’s a government mandated program so it can be ended overnight at the whim of congress, and, when it comes down to it, it’s a dead end technology. The future of the automobile appears to be electric. Once Tesla proved it was possible to make a vehicle with a realistic travel range at a fairly reasonable cost, the big car makers began to jump on board and now just about all of them have at least one EV or they’re going to be coming out with one soon. I suspect that the next vehicle I buy will be an EV. I’d probably already have a Tesla if they had a normal dealer network where I knew I could get the thing serviced.
Dicamba Lawsuit Coming Up – Monsanto put it’s dicamba resistant seed line on sale a year before the government approved the dicamba blend herbicide Monsanto intended to be used with the new seeds. Apparently that didn’t stop some farmers from using regular dicamba with the new crops, resulting in widespread damage to adjacent crops and other plants. The problem with dicamba is that it vaporizes easily and can drift over very long distances, causing widespread damage. So, of course, there are lawsuits. The first of these is coming to trial in October of next year. The plaintiff blames Monsanto (now Bayer) for the damage, claiming that the company should have known that as soon as it started selling the dicamba resistant seeds, farmers were going to use unapproved mixtures of dicamba on the crops.
While I think Monsanto should not have started selling the new seed lines until the herbicide blend was approved, as far as I can tell the company did indeed warn farmers, seed dealers and herbicide applicators that there were no legally available dicamba blends approved for use at that time with the new seeds. The damage was caused by growers and applicators who illegally used dicamba blends that were not approved for that use at that time. So I don’t know how Monsanto can be held responsible for that damage.
But that being said, there are serious problems with even the approved dicamba blends of herbicide. Even the approved blends seem to be drifting over long distances, damaging tens of thousands of acres of crops. While the company continues to claim this is due entirely to improper use by the applicators, states and the feds are putting ever increasing restrictions on the use of the stuff, and some states are thinking of banning it entirely.
Well, that’s enough of that. You’re probably getting as bored as I am already😜