Farm Catch Up

It’s been a long time since  I did one of these, so let’s see what’s been going on in the farming world.

Bayer Acquisition of Monsanto Wraps Up — As of Aug. 17, Bayer had finished divesting itself of various businesses to satisfy regulators so it could complete the buy of Monsanto and it will fully acquire the company and Monsanto as an independent company will disappear. Bayer actually bought all of Monsanto back in June, but could not fully integrate the company until it satisfied the conditions set by various governments.

One has to wonder if Bayer is thinking this might not have been such a good idea. Monsanto just lost a $200+ million dollar lawsuit in California which claimed glyphosate caused someone to develop cancer and I’ve heard that there are many, many more lawsuits in the pipeline over the herbicide. And if that isn’t bad enough, Monsanto’s dicamba blend herbicides could actually end up being banned because of continued wide spread damage being caused by the herbicide drifting long distances and harming other crops, gardens, trees, bushes, etc. Despite stringent application requirements the problem has not gone away and there is a lot of pressure to ban the stuff entirely except as a pre-emergent herbicide that can only be used prior to planting. That would pretty much destroy Monsanto’s sales of dicamba resistant seeds.

You have to remember that the lawsuit mentioned above was in California where apparently just about everything causes cancer, even coffee. Which it doesn’t. Coffee, I mean. The slight correlation between drinking coffee and cancer appears to be due not to the coffee but to the temperature of the beverage. There seems to be a link (a very slight one) between drinking drinking hot beverages over 140 degrees and esophageal cancer and some others.

Milk Labeling Controversy Continues — The argument over what products can use the label “milk” continues. Despite the fact that FDA has, for decades, had an official, legal definition of what “milk” is, defining the term as the secretions of the mammary glands of animals, various makers of nut, grain and plant juices have been using the term “milk” in their labeling for years. Protests about the mislabeling and demands for enforcement of the existing regulations have been ignored for decades. But it seems the FDA is finally going to do something about it because of increased pressure, and it looks like the agency might actually start to enforce it’s own regulations in the fairly near future. I’ve talked about this before so I’m not going to repeat that.

The interesting thing is that a couple of senators tried to slip an amendment into an unrelated spending bill that would have kept the FDA from actually enforcing it’s own rules by prohibiting “the use of funds to enforce standards of identity with respect to certain food.” The amendment would not have altered FDA’s definitions, but would have kept the agency from actually enforcing it’s own rules. Exactly why these two tried to slip this through I don’t know. I’m sure they didn’t get, oh, large campaign contributions from people or organizations linked to the nut “milk” lobby. (Here is where I wish we had a sarcasm font)

Anyway, the amendment was shot down in flames by the Senate. The vote was something like 14 for, 84 against.

I’ve long believed that what we really need is a better definition of the term “bribery” and a law enforcement agency willing to enforce it.

Wisconsin Loses 382 Dairy Farms In First Half of Year — That number should give you some idea of how bad the dairy industry is doing right now. Last year Wisconsin lost about 465 dairy farms. If the attrition continue at this rate, we’re on track to lose more than 650 farms this year. It’s easy to look for scapegoats, of course. The dairy industry itself is a primary contributor to the problems thanks to massive over production. This administration’s nasty little trade war isn’t helping, of course. I’ve seen estimates that this trade war has knocked about $1.50 off the price of milk as countries that used to import our dairy products are now looking elsewhere.

Tariff Relief Program — USDA announced at the end of July it would be starting up a tariff relief program to try to make the hit farmers in the US are experiencing a bit less painful. It announced $12 billion would be funneled to farmers in one way or another using existing relief programs. The exact details are a bit muddy, and USDA seems to be in utter confusion about exactly how this is going to work, so if you’re a farmer who’s been hurt by this, don’t expect any kind of relief any time soon. Considering Perdue, the Secretary of Ag, claimed well over a year ago that the administration would renegotiate NAFTA in just a “few weeks” and they’re still fighting over it today with no end in sight, I wouldn’t count on seeing any actual money coming out of this program for some time.

Another big question is exactly where this $12 billion is going to come from because Congress hasn’t authorized any spending for this program.

Almond “milk” Recalled Because It Has Real Milk In It — HP Hood, makers of Almond Breeze nut juice, is recalling more than 145,000 cartons of it’s product because it may have actual real milk in it instead of it’s nut juice stuff.

Still More Tariffs — The administration will begin to levy 25% import duties on still more Chinese imports soon. This time it’s going to be mostly industrial products like chemicals, plastics and machine parts. China has promised it will strike back dollar for dollar by putting it’s own penalties against US products in place. And it could get worse fast, with the US apparently considering tariffs on an additional $200 billion of Chinese products. The administration has uttered threats of putting tariffs on all Chinese imports.

What a lot of people, especially those who blindly back what the administration is doing, don’t seem to realize is that this while this may hurt China a bit, the ones who are really paying for it are us, and not just in lost sales to China. A lot of these products that are being imported from China simply aren’t made anywhere else, or are made in such small quantities that the domestic makers can’t even come close to meeting the demand.

Let me point out one thing that people don’t seem to understand. That 25% tariff isn’t being paid by China.

That tariff is being paid by the people who buy the product here in the United States. We pay it. If a manufacturer makes a product that includes parts and materials that can only be sourced from China, it has to pay that extra 25%, and that’s what’s happening right now. Yes it will cut back on the amount of purchases from China, but in a lot of cases there is no choice. You pay that 25% tax or you can’t make your product.

That extra cost has to be accounted for somewhere. At the moment a lot of manufacturers are absorbing that extra cost in the hopes that this situation won’t last long. But eventually they aren’t going to be able to keep that up and they are going to have to increase the prices of their finished product. So in the long run, the people who are paying that tariff are us, the consumers.

Lost Valley Farm Saga Continues — A mega dairy in Oregon called Lost Valley Farm is in the news yet again. The farm has only been in existence less than two years, and it has already racked up an impressive list of operational violations that is unprecedented in my experience. Illegal manure disposal, illegal pumping of water from aquifers, illegal generation of wastewater, failure to obtain proper permits, violations of permits… The list goes on and on according to the Oregon Dept. of Ag. (ODA). Most recently the farm was ordered to produce no more than 65,000 gallons of waste water per day to meet permit requirements, but allegedly has continuously violated that agreement by producing as much as 375,000 gallons in excess of the limits.

Meanwhile, the farm’s bank has been going after them. They took out a $60 million loan from Rabobank to start this thing up and the bank is not exactly pleased with things. The farm agreed to sell off the cattle to try to pay down debt.

And then declared bankruptcy the day before the sale was supposed to happen to prevent the sale and keep the bank from foreclosing.

The attorney for the owner of the farm claims they are doing everything the ODA is asking, that they’ve made significant progress in meeting the requirements, etc. ODA counters by pointing out the farm has been in almost continuous violation of of the deal. And the judge handling the case is considering contempt charges against the owner.

Drinking Straw Bans — Oh, brother… Just about everyone seems to be jumping on this call to ban plastic drinking straws. Using data allegedly developed by a nine year old kid, everyone seems to now think that plastic drinking straws are killing the planet and have to be banned right now. Almost every time I look at a media outlet I’m seeing yet another article about some restaurant or town or university or some organization banning plastic drinking straws.

Look, has anyone actually thought about this? Hmm? I’m not sure about the exact numbers because they bounce all over the place because no one seems to know the actual facts, but it seems that straws account for something like 0.0002% of the plastic waste being generated by people. I’m all for reducing waste, especially plastic waste, but there are a heck of a lot more serious sources of plastic waste to go after than drinking straws.

Some places are talking about going to reusable straws made of stainless steel or some other substance that can tolerate cleaning. Have you ever tried to actually clean and sanitize a straw? Basically, you can’t. If put in a dishwasher, the water isn’t going to actually get inside of the straw to clean it. Some might trickle through it depending on how it’s oriented inside of the washer, but not enough to do a thorough job. And as for hand washing, you can run water through it, but that isn’t going to actually remove anything clinging to the inside of the straw. Or you can get, oh, a tiny, tiny brush and wash each one individually, but of course no one is going to do that. Then you’re going to have to try to sanitize it, perhaps by soaking it in some kind of bleach solution. But water is a tricky thing. Because of things like the surface tension of water, you can get air gaps in small spaces…

Do you really want to be drinking out of a straw that’s been used by someone with, oh, hepatitis, for  example, or norovirus?

Well, that’s enough for now. You’re probably getting as bored as I am. And the way the garden looks outside MrsGF and I are going to be busy processing tomatoes for a while. They’re starting to come on fast right now.

Just What Is “Milk”?

South Mountain Creamery in Maryland is in something of a bizarre situation. The farm has it’s own bottling plant and sells milk directly to consumers, and it has the FDA going after it because it’s 100% real pasteurized skim milk is, well, 100% real skim milk and nothing else.

That’s right, the FDA claims the creamery cannot label it’s skim milk as “skim milk”. It is trying to order the creamery to label it “imitation milk product” or “imitation milk” when, well, when it absolutely is not imitation anything. The FDA claims it has to be labeled “imitation” because the product does not contain artificially added vitamins.

Now, a bit of background here. The milk you buy in the grocery store is not actually pure milk. Pretty much none of it is. It has vitamins A and D added to it. Basically the bottling plant throws a ground up vitamin pill in it. Why? Because once up on a time about 90 or so years ago, we had problems with vitamin deficiencies so the government began to mandate adding extra vitamins to milk. But the fact of the matter is that this hasn’t been necessary in, well, half a century, really. And there is actually a risk of getting too much A and D. Most European countries actually ban adding adding them to milk because of the risk of overdose. Too much D can cause heart arrhythmia and other problems and too much A can be seriously toxic as well.

And in any case, the amount of A and D being added may not even be what it says on the label to begin with as the New York Times discovered back in 1992 when  independent testing of milk samples found that the actual amounts of vitamins in the milk being sold varied wildly, and in at least one case back in 1992 the level of vitamin D was so high it was dangerous causing medical problems for at least eight people.

Now I’m not going to get into the debate about whether or not D and A should or should not be added to milk. I just want to talk about this whole labeling nonsense because, well, according to the FDA’s own regulations, the agency’s actions in this case seem to be just wrong. Here is how FDA defines “milk”:

[Code of Federal Regulations]
[Title 21, Volume 2]
[Revised as of April 1, 2017]
[CITE: 21CFR131.110]

 

TITLE 21–FOOD AND DRUGS
CHAPTER I–FOOD AND DRUG ADMINISTRATION
DEPARTMENT OF HEALTH AND HUMAN SERVICES
SUBCHAPTER B–FOOD FOR HUMAN CONSUMPTION

PART 131 — MILK AND CREAM

Subpart B–Requirements for Specific Standardized Milk and Cream

Sec. 131.110 Milk.
(a) Description. Milk is the lacteal secretion, practically free from colostrum, obtained by the complete milking of one or more healthy cows. Milk that is in final package form for beverage use shall have been pasteurized or ultrapasteurized, and shall contain not less than 8 1/4 percent milk solids not fat and not less than 3 1/4 percent milkfat. Milk may have been adjusted by separating part of the milkfat therefrom, or by adding thereto cream, concentrated milk, dry whole milk, skim milk, concentrated skim milk, or nonfat dry milk. Milk may be homogenized.

(b) Vitamin addition (Optional). (1) If added, vitamin A shall be present in such quantity that each quart of the food contains not less than 2000 International Units thereof within limits of good manufacturing practice.

(2) If added, vitamin D shall be present in such quantity that each quart of the food contains 400 International Units thereof within limits of good manufacturing practice.

(c) Optional ingredients. The following safe and suitable ingredients may be used:

(1) Carriers for vitamins A and D.

(2) Characterizing flavoring ingredients (with or without coloring, nutritive sweetener, emulsifiers, and stabilizers) as follows:

(i) Fruit and fruit juice (including concentrated fruit and fruit juice).

(ii) Natural and artificial food flavorings.

(d) Methods of analysis. Referenced methods are from “Official Methods of Analysis of the Association of Official Analytical Chemists,” 13th Ed. (1980), which is incorporated by reference. Copies may be obtained from the AOAC INTERNATIONAL, 481 North Frederick Ave., suite 500, Gaithersburg, MD 20877, or may be examined at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202-741-6030, or go to: http://www.archives.gov/federal_register/code_of_federal_regulations/ibr_locations.html.

(1) Milkfat content–“Fat, Roese-Gottlieb Method–Official Final Action,” section 16.059.

(2) Milk solids not fat content–Calculated by subtracting the milk fat content from the total solids content as determined by the method “Total Solids, Method I–Official Final Action,” section 16.032.

(3) Vitamin D content–“Vitamin D–Official Final Action,” sections 43.195-43.208.

(e) Nomenclature. The name of the food is “milk”. The name of the food shall be accompanied on the label by a declaration indicating the presence of any characterizing flavoring, as specified in 101.22 of this chapter.

(1) The following terms shall accompany the name of the food wherever it appears on the principal display panel or panels of the label in letters not less than one-half the height of the letters used in such name:

(i) If vitamins are added, the phrase “vitamin A” or “vitamin A added”, or “vitamin D” or “vitamin D added”, or “vitamin A and D” or “vitamins A and D added”, as is appropriate. The word “vitamin” may be abbreviated “vit.”.

(ii) The word “ultra-pasteurized” if the food has been ultra-pasteurized.

(2) The following terms may appear on the label:

(i) The word “pasteurized” if the food has been pasteurized.

(ii) The word “homogenized” if the food has been homogenized.

(f) Label declaration. Each of the ingredients used in the food shall be declared on the label as required by the applicable sections of parts 101 and 130 of this chapter.

[42 FR 14360, Mar. 15, 1977, as amended at 47 FR 11822, Mar. 19, 1982; 49 FR 10090, Mar. 19, 1984; 54 FR 24892, June 12, 1989; 58 FR 2890, Jan. 6, 1993]

If you can wade through the legalese up there, you will note that “milk” is specifically defined, and it says things like “if” vitamin A is added, and “if” vitamin D is added, they must be at certain levels. But it doesn’t say they must be added for the product to be called “milk”. Nor does it say anything about a requirement to label milk as “imitation” if they are not added. So if this is accurate, FDA’s claim that this creamery’s skim milk must be labeled “imitation” is not in keeping with FDA’s own regulations.

Now there may be some regulation, somewhere, that requires milk to have added A and D in order to be called “milk” but I haven’t managed to find any regulations that state explicitly that in order to label something “milk” it must have A and D added to it.

This isn’t the first time this issue has come up. About a year ago there was a case in Florida where the state claimed the Ocheesee Creamery couldn’t label it’s skim milk as “skim milk” and had to call it “imitation skim milk”, despite the fact it was 100% skim milk. The state lost and lost badly, ending up with the 11th US Circuit Court ruling against the state and Florida having to pay almost half a million dollars.

The other thing I find curious is that despite the fact that the FDA has a rather strict definition of the term “milk”, i.e. “Milk is the lacteal secretion, practically free from colostrum, obtained by the complete milking of one or more healthy cows.”, it doesn’t seem to have a problem with various nut and legume juices and extracts labeling themselves as “milk”, such as soy milk and pea milk and almond milk.

As Milk Prices Decline, Worries About Dairy Farmer Suicides Rise : NPR

“The nation’s dairy farmers are facing their fourth year of depressed milk prices. The outlook is so bleak, it’s increased worries about farmer suicides. One recent outreach effort drew criticism.”

Source: As Milk Prices Decline, Worries About Dairy Farmer Suicides Rise : NPR

The situation for dairy farmers in 2017 was not good. A lot of diary operations are running right on the edge, trying to stay profitable at a time when there is ever shrinking demand for liquid milk for drinking, and a glut of other dairy products like cheese, butter and powdered milk. This story above from NPR illustrates just how bad the situation is getting. Go read the article if you have the time. It isn’t very long.

If you don’t have the time, here’s a brief summary: A dairy co-op in the north east US, Agri-Mark, has seen three of it’s farmer members commit suicide in the last few years. Agri-Mark makes Cabot cheese among other products, and has about 1,000 members. In February when it sent out the milk checks, it included a chart showing just how bad the dairy market was looking for the upcoming year, and a list of suicide prevention hotlines. The reporter talked with Will Rogers, who milks 75 cows in Massachusetts, who is having a difficult time keeping above water. Even more upsetting is the fact that his own father who used to own the farm, killed himself because of financial problems.

While the letter from Agri-Mark was probably well intentioned, it certainly added to the stress a lot of it’s farmers are already facing and Rogers says in the article, it might push some farmers so far that they think “there’s no point in going on.” Agri-Mark certainly could have done a better job of trying to communicate with it’s farmer members.

And as if dairy farmers don’t have enough problems, they are increasingly worried about being able to sell their milk at all. Dean Foods just told at least two dozen farmers in Pennsylvania, Indiana, and four other states that Dean will no longer take their milk as of May 31, leaving them scrambling to find a milk processor they can sell their milk to.

The same thing happened here in Wisconsin last year about this time when Grassland rather abruptly dumped a group of farmers, leaving them to desperately try to find a market for their milk.

The article at Dairy Management about Dean seems to be trying to blame Walmart for Dean’s decision. Walmart used to buy it’s in-house brand milk from Dean, but Walmart is building it’s own milk processing facility in Indiana which will come on-line in May, so Dean is going to be losing a significant amount of sales as Walmart switches to product coming from it’s own production facility.

Certainly there is enough blame to go around, but everyone is ignoring the fact that the real reason behind almost all of the money difficulties dairy farmers are having is over production. They are producing more product than the market really wants, which is pushing prices down lower and lower.

There are various marketing boards, government agencies and others trying to help the situation, but almost all of them are focusing on one thing, trying to increase sales of a product that increasingly people don’t really want, and shouldn’t be eating much of. At at time when a recent study just found that 75% of the people in this area are overweight, we have government agencies and marketing boards trying to convince food makers to shovel ever more cheese into their products.

Seventy-five percent. Think about that for a moment. We are facing a national health crisis due to people eating too much of what is bad for them, with government agencies and others trying to figure out how to help people get their weight under control, and at the same time other government agencies and marketing specialists are trying to get food manufacturers to drastically increase the amount of cheese they use in their products.

 

Farm Catch Up

I haven’t done one of these in a while, so let’s take a look at what’s been going on in agriculture. And since this is January 2018, maybe take a peek at the crystal ball (I actually use an old tennis ball because, well, have you seen what a good crystal ball costs these days?) and see what might be going on in the upcoming year.


Dicamba has been in the news again. This time the Arkansas state legislature has weighed in on the issue. It’s legislative council has approved the Arkansas plant board’s ban on the use of Dicamba from April 16 to Oct. 31. The board put the ban in place after receiving almost 1,000 complaints of Monsanto’s new “no-drift” blend of the herbicide doing exactly that, drifting, and damaging thousands of acres of crops in the state. The company has released the hounds lawyers, is filing for court orders, is threatening to sue everyone in sight, has launched attacks against at least one individual member of the plant board, and it’s getting nasty real fast.

Meanwhile other big soybean growing states have instituted new, much stricter controls on the use of the new herbicide after hundreds of thousands of acres of crops were allegedly damaged by the new blends. Even the feds have gotten into the act, instituting stricter rules and usage regulations about using the stuff.

Monsanto and it’s partners that are selling these blends claim that the drifting isn’t their fault, and that it’s the farmers and people performing the applications that are to blame. The clam is that they’re using the wrong equipment, spraying at the wrong time, at the wrong temperature, and even using not Monsanto’s patented product, but straight dicamba that they’re purchasing elsewhere that volatilizes much more easily. But in order for this much damage to be caused that way, a huge number of farmers and applicators would have to be breaking the law, and I don’t believe that. Commercial applicators won’t risk it. They could lose their licenses, get huge fines, be sued, basically be put out of business if they didn’t apply these products in the proper way. And farmers who apply these products themselves would face similar penalties.


A2 Milk – I don’t recall now if I’ve talked about so-called “A2” milk before, but if you haven’t heard of it yet, you will in the near future. I suggest you go read the Wikipedia article on it which goes into extreme detail, and which has a plot like a soap opera, complete with bankruptcies, threats, untimely deaths, utterly ridiculous health claims including that it cured diabetes, cancer, etc., bogus marketing scams and I don’t know what all else before it finally became “legit”. I just re-read it and– oh brother, it’s a mess. The thing you want to remember about A2 milk is that it is, well, milk. The only difference is that the casein in the milk has a slightly different chemical makeup than A1 type milk. Nor is A2 milk entirely free of the A1 type of casein. Despite all of the hype, it is still just milk, and there seems to be no real basis in fact for any of the health claims being made for it. If you want to drink it, fine. But for heaven’s sake, don’t pay more for it than you’d pay for regular milk because it doesn’t cost any more to produce the stuff than it costs to produce A1 milk.


Dairy – There doesn’t seem to be much good news for the dairy industry for 2018. Thanks to continued overproduction and a projected increase in production during 2018 of 3% or more, milk prices look like they’re going to be heading down, with some people predicting the price could drop to $13/CWT or even lower. A dairy economist over at UW Madison thinks prices could climb as high as $16 in the second half of the year, but he seems to believe that production and demand are going to start to balance out, and frankly there doesn’t seem to be any real reason to believe that.

Some people think China is going to dramatically increase imports of milk products, but there’s no real reason to believe that, either. China has had a moderate increase in imports, but not to the point where it is having much effect on milk prices.

Don’t look to NAFTA for any help, either. If anything, the NAFTA negotiations are doing little more than making Mexico and Canada increasingly irritated. But more about that lower down on the page.

About the only good thing that’s happened in the dairy industry is that cattle feed prices have remained fairly low. But while that’s good news for dairy, it’s bad news for grain farmers.


Corn – Corn prices don’t look like they’re going to get much better either. Despite predictions that farmers are going to be planting less acreage in corn in 2018, the amount of grain actually produced isn’t going to be shrinking much because of improvements in yield, and as a result the price of corn on the commodities market has remained at or near the $3.50 level, where it’s been for months now. Demand for corn appears to be relatively flat.

As is the case with milk, there is hope that China will start to ramp up imports of corn, but there seems to be no real proof that is going to happen any time soon. The biggest buyer of US corn used to be Mexico. In 2017 Mexico curtailed it’s purchases of US corn, and has been talking to sellers in Brazil and Argentina. Increased sales to Japan has made up for some of that loss, but the way things are going in the political arena, don’t look for any improvement in grain exports any time soon.


NAFTA – The trade agreement that administration officials were claiming would be done in just two or three weeks back in mid summer of ’17, wasn’t, of course. Negotiations are still going on, and despite public statements by the administration indicating things are going just fine, they aren’t. Behind the scenes reports from the proverbial “unnamed source” indicate that things are definitely not going well. And when one considers that the ruling party in DC can’t even negotiate with it’s own members to keep the government funded and has to depend on the opposition to get enough votes to keep government offices open, that shouldn’t be surprising.

The question isn’t when a new NAFTA will be negotiated, the question should be is there going to be any kind of NAFTA at all. Right now I’d say that the chances of NAFTA being successfully renegotiated are around 50/50.

Farm Catch Up: What’s going on in Agriculture.

Screen Shot 2017-11-29 at 6.48.45 AMLet’s catch up with what’s been going on in agriculture.

Let’s lead off with this odd little item. So, here’s the scenario: You’ve just survived a hurricane. Your house has been flooded, your whole neighborhood has been destroyed, you’ve lost everything you own, you’re trying to cleanup and rebuild. You desperately need money, building supplies, cleaning supplies, drywall, lumber, shingles, plywood… So you’re sitting there staring at the ruins of your neighborhood and you think, “Wow, what I really need is a big hunk of cheese…”

That is apparently what some people in Wisconsin thought when they shipped 45,000 pounds of cheese to the hurricane ravaged areas of the country. Yep, they thought, what they need isn’t money or building supplies or cleaning supplies or anything else that might actually be, well, useful. What they need is forty five thousand pounds of cheese

Screen Shot 2017-11-30 at 6.25.07 AM
Little known fact: Cows are one of the few animals that can pick their noses with their tongues.

Dairy/Milk: All things considered, the dairy business wasn’t totally horrible this year. Not great, but not terrible. The average price for Class III milk (the kind that’s used for cheese and butter) for the year was in the $16.10 to $16.20 range for 2017. That’s considerably better than 2016 when the average price was about $1.60 lower. The price seems to have been propped up largely by demand for butter and cheese, which has remained fairly strong through a large part of the year.

But the ever present specter of over production is once more haunting the dairy business. Production in the US was up around 2.5% over the year, and production has been going up in other dairy producing areas of the world as well, and the market is showing signs of strain. Butter prices on the Chicago Mercantile have dropped from 2.65 to around 2.21, butterfat exports have fallen, cheese prices have dropped about 10 cents and cheese in storage has increased almost 6% over last year.

Mexico is one of the biggest purchasers of dairy products from the US, but it is actively seeking other sources of supply because, well, would you be comfortable dealing with a merchant who called you a drug-running murdering rapist? It has cut it’s purchases of nonfat dry milk from the US by around 20%, and is getting it from Canada and the EU.

Throwing a monkey wrench into the works is NAFTA, which the administration is supposedly renegotiating. Does anyone except me remember that the Ag Secretary, Perdue, was proudly claiming that the administration was going to renegotiate NAFTA in just three weeks back in early May? Sigh… I try to keep politics out of this, but it’s hard sometimes.

The end result of all of this is that the future for the dairy industry doesn’t look very good. Between over production, declining demand, declining exports, well, right now it looks like 2018 is going to see milk prices dropping by at least $1/cwt, down to the $15.50 range, and they could even get lower than that.

Screen Shot 2017-11-30 at 6.33.21 AM
This was a pasture before the pigs got into it

Wild Pig Population On The Rise: Wild pigs are a huge problem. It’s estimated that there are 6 to 11 million wild pigs running around out there, and according to the National Feral Swine Damage Management Program they are responsible for up to $1.5 billion in damage every year.

They’re trying to get approval for a poison based on sodium nitrate called “Hoggone” which would apparently be placed out in the field in “a species-specific feeder”.

The problem with that kind of thing is, of course, that other animals other than that target species often consume the poison because these “species-specific feeders” often aren’t all that specific. Then there are problems with poison residue left in the carcass being consumed by predators and scavengers. And if you read the article tagged up there you’ll see that some of the experts don’t think poisoning is going to do all that much to cut down the size of the population.

Can you hunt them? Hell yes. You need to check the regulations in your own area for specifics, but most states strongly encourage hunters to take wild pigs, and have few restrictions and no bag limits, and no restrictions on size, gender, no specific season.

Can you eat ’em? Ah, well… Here’s where I get a bit nervous. A lot of DNRs encourage people to eat them. But that’s because they hope you’ll go out and shoot a lot of the buggers. I know people who wax poetic about the joys of eating wild pig. Me? I wouldn’t touch one. They carry a lot of diseases, many of which are infectious to humans and pretty nasty. A lot of them are infested with parasites… No, I wouldn’t eat one.

Cranberry Glut: We are growing way, way too many cranberries. We have so many cranberries already in storage that even if we’d lost the entire 2017 crop, we still would have had a surplus.

The Cranberry Marketing Committee is trying to get USDA to issue a marketing order that would require cranberry growers to produce 25% less cranberries than market demand.

The problem with cranberries is that except for the holiday season, there is really little demand for them. Despite efforts by marketing companies to boost demand, consumption of cranberries in any form has been shrinking. Cranberries, at least by themselves, just don’t taste very good. They are so sour and so bitter on their own that they are virtually inedible unless you add a huge amount of sugar to them, or use them only in very small quantities as a flavoring agent.

What The Heck Is Actually In That Stuff?  You might like to think that manufacturers are required to list the ingredients in a product on the label, but there are all kinds of loopholes in labeling regulations that let them refuse to tell us what exactly is in the products we use. But California has passed new legislation that will lift the veil from at least one category of products, cleaning chemicals. When you see that term listed, it means that chemicals have been added to make the product smell nice. But what exactly is “fragrance”, or the ever popular “cleaning agents” that are listed on the labels? Turns out “fragrance” can contain one or more of thousands of different chemicals, some of which, it seems, are highly toxic, and even are known to be carcinogens. Some labels don’t tell you anything at all. This will will help a bit, but the law doesn’t really go far enough. It only covers cleaning products, for one thing.

Note: The article at Mother Jones that I’ve linked to here seems to be focused on fragrance for some reason, while the bill itself (yes, I’ve read the thing) does not seem to be restricted to chemicals added for fragrance alone. Fragrance is specifically mentioned in the bill, yes, but the bill seems to cover all chemicals in a product not just those used as fragrances.

 

Farm Catch Up

I haven’t done this in a while, so let’s see what’s going on out in the farming world.

Screen Shot 2017-08-29 at 6.25.36 AMButter Tumbles In Europe:  Wholesale butter prices have plummeted by almost 10% from September in the EU, and have dropped by 20% overall from the high point. The market for butter and butterfat was the only thing that was driving improved farmgate milk prices in the EU. There was a very modest reduction in milk production, but that quickly reversed as milk prices began to improve, and from what I’ve been seeing milk production is on the rise once again.

Butter prices in the US dropped a bit, but are still pretty strong, about 20% or so higher than they were a year ago.

I’ve been hearing the price on powdered skim milk in the EU has dropped precipitously because they can’t get rid of the stuff.

Basically it looks like a return to the old boom/bust cycle. As soon as prices start to get even a tiny bit better, dairy farms begin to ramp up production, glutting the market with product, and pushing the prices back down again.

Screen Shot 2017-10-27 at 8.58.56 AMSargento Expansion: The company is expanding again locally. It’s adding another 40,000 sq. feet to it’s facility here in Hilbert after a major 70,000 sq. foot expansion just a year ago, and will be adding another 150 jobs here. Sargento is privately owned, employs about 2,000 people, and produces cheese, snacks, sauces and ingredients for the food industry. It had net sales of well over $1 billion last year. Starting wages for most jobs are going to be in the $18/hr range I’ve been told.

Screen Shot 2017-06-24 at 7.58.59 AMDicamba Battle Continues: Monsanto and it’s partner in the dicamba herbicide controversy, BASF, continue to claim that thousands of acres of crops that were damaged by dicamba drift wasn’t their fault. Arkansas alone had more than a thousand complaints of crops damaged or killed by dicamba drifting away fro the sprayed areas into fields that were often hundreds, even thousands of feet away.

This situation has been going on ever since Monsanto and it’s partner in this, BASF, brought their dicamba blend herbicides to market to use with Monsanto’s dicamba resistant soybeans. Dicamba has always had a problem with volatility and drifting, meaning the product goes into vapor form very easily and can drift far beyond the point of application. These new formulations were supposed to cure that problem, but the problem with drift seems to still be a serious issue. Ever since these products came to market there have been reports of tens of thousands of acres of crops and ornamental plantings being killed or damaged by the herbicide.

Both companies have been blaming everything but their products for the problems. Arkansas banned Monsanto’s version of the herbicide and only BASF’s was permitted for use in the state, and the reported damage is so bad some states are thinking of banning the product completely. Monsanto is currently suing Arkansas over the ban. Monsanto is also criticizing scientists who are coming forward to point out problems with the product that date back to the first tests of the dicamba blends, and claim that the company’s testing of the product was seriously flawed and failed to point out the dangers of the herbicide.

Now BASF is claiming that the damage is because farmers have been using illegal forms of dicamba, and not it’s product at all. The company claims that it only sold about half the amount herbicide that would be needed to cover the acreage that was actually sprayed.

The whole thing is a complete mess, with lawsuits either in the works or already heading for the courts, lots of finger pointing, bizarre conspiracy theories, and even one murder attributed to the issue.

Not So Great Pumpkin Controversy: If you’re the FDA, a squash is a squash is a pumpkin. Its all pretty much the same. So that orangey brown gunk you dump out of that can to make your pumpkin pie isn’t really, well, pumpkin. Pumpkin is Cucurbita pepo while what you’re mostly getting in that can is Cucurbita maxima, a different variety of squash. The problem is that real pumpkin doesn’t really work very well for a lot of the things we eat, like pie.

Personally I can’t stand the stuff, the pumpkin pie fillings and all that. I love squash. There’s nothing better than a slow roasted butternut or acorn squash with a bit of, oh, apple baked with it, a little brown sugar, some butter, a touch of salt. It is amazingly good. But pumpkin? No thanks. I’ll pass on that pumpkin pie and head straight for the mincemeat. Although come to think of it mincemeat doesn’t really have meat in it either any more, does it?

And don’t get me started on the abomination that is “pumpkin spice”.

That’s it for now. Well, actually there’s probably more but I’m getting bored and MrsGF is making deep dish apple pie and I need to go peel apples.

As always, comments are welcome or you can email me at old.grouchyfarmer@gmail.com

If I got the email address right this time.

 

Farm Catch Up

I haven’t done one of these in a while, so let’s take a look at what’s been happening in the farming world.

Dicamba Herbicide Fight Continues: The fighting over the new Dicamba blends of herbicides continues. BASF and Monsanto continue to argue that their newly approved blends of herbicides containing dicamba are completely safe and aren’t a problem at all, while the farmers who have had thousands of acres of soybeans ruined by the herbicide after it drifted long distances, argue that it isn’t safe for use.

Arkansas is pushing for a ban on all dicamba use except for those uses that were permitted before the new blends came on the market. The ban would last until October, 2018, and would halt the sale and use of both Monsanto and BASF’s new dicamba based products, and probably halt the sale of Monsanto’s dicamba resistant soybeans as well because if the herbicide can’t be used, there’s no point in paying a premium for Monsanto’s new beans, either.

Monsanto is, of course, not happy about any of this since they stand to lose millions of dollars in sales of both their herbicide and seed. The company is blaming anyone and anything for the problems that have been going on, claiming that there is no “scientific” basis for the ban, that “scientists” have discovered that even if their product does drift outside of the application area, it doesn’t really hurt anything anyway, that some of the experts testifying in favor of the ban are prejudiced against the company, blaming the people who apply the herbicide, blaming the equipment used.

It isn’t just Arkansas that’s having problems. In Missouri it’s estimated that up to 22% of the soybeans planted in the Bootheel area were damaged by dicamba drift, along with acres upon acres of tomato, watermelons, vineyards, pumpkins, organic vegetables and even trees, shrubs and people’s home gardens. The product isn’t just moving a few yards, in some cases there are indications the herbicide is drifting for miles according to the Missouri Extension weed specialist Kevin Bradley.

Farmland Partners Makes Major Buy: Farmland Partners is an investment company that buys up farmland for no reason other than to rent it to actual farmers. The company now has about 160,000 acres of farmland. They just bought over 5,000 acres of nut orchards for $110 million from Olam, a Singapore based company that ventured into the nut business.

My feelings about this kind of thing? I find it extremely concerning. Companies like this are, well, to put it bluntly, parasites. They insert themselves into the process, competing against actual farmers for a scarce resource, farmland. They artificially inflate demand for that resource, driving prices up. They rent the land back to the farmers at ever increasing prices because the shareholders demand ever increasing profits, and at the same time the company itself provides absolutely no value at all to the whole process. It exists only to skim off profits from the whole system while contributing nothing itself, while at the same time destabilizing the whole system and actually degrading its health through it’s manipulation of the market.

Seed Terminator: Combines are great at two things; harvesting wheat, corn, soybeans, Screen Shot 2017-09-26 at 5.53.30 AMetc., and spreading weed seeds all over your fields. The problem is that a lot of weeds are coming ripe at around the same time as your crop. So when you combine your crop, you’re also combining the weeds and blowing the weed seeds out the back of the combine and scattering them all over the field. A lot of people have worked for a very long time on this problem, with various attempts at a solution.

This one which is now going into production it seems, adds a screening system and high speed flails that pulverizes the weed seeds before they get blown back onto the field. If you click the link up there you’ll jump to the article about it. Apparently it works pretty good, and I’m always in favor of anything that helps farmers reduce the need for herbicides.

The problem is that this puppy costs about $70,000. Even when we’re talking about combines that cost a quarter of a million dollars or more, that is a pretty significant amount of money. Is it worth it? No idea.

Pork Cheap, Beef getting more Expensive: Beef prices at the consumer level haven’t been all that good for some time now. Pork is almost ridiculously cheap right now. Pork futures have fallen like a stone since July, dropping some 30%. Pork bellies, where we get bacon from, dove straight into the dumper, falling 60%. Although I note that hasn’t helped the price of bacon in the store. That keeps going up and up, it seems.

Beef on the other hand… Sheesh. Prices on some cuts have moderated a bit, but not by much, and they’re claiming prices are going to go up significantly over the upcoming months. We generally buy a lot of beef from MrsGF’s brother and sister, but because of logistics issues they aren’t going to have any ready to go for probably a year now. So MrsGF and I are looking into seeing if we have enough freezer space to get a quarter or half of beef from the local butcher because we can get that dressed, cut, wrapped and frozen, for $3.90 a pound which is less than what hamburger is going for in the grocery stores around here.

Syngenta Lawsuit Settled: Syngenta, a seed company, was sued a while back over one variety of it’s corn. The corn, a GM variety, was heavily marketed by the company and a  lot of farmers planted it. Only to find that when it came time to actually sell their corn to China, the country rejected it because Syngenta allegedly hadn’t told told the farmers that China had not approved that type of corn for import. In addition, it was alleged that the company deliberately misled farmers by claiming the corn variety had been approved by China when it had not.

Farmers, grain shipping companies, etc. lost millions of dollars on the deal and sued. Syngenta claimed they had told them that China hadn’t approved it. Lots of lawyers paid for their kids’ college education out of this one, raking in millions in legal fees, and the final result is Syngenta and the plaintiffs are apparently now going to settle out of court. I haven’t heard yet what the settlement will be, but you can expect that the company is going to have to pay a huge amount of money to make this one go away.

Addendum: Just ran cross another story that had more details. Syngenta is apparently going to cough up $1.4 billion to make this lawsuit go away. The company already lost a $218 million jury trial to a group of Kansas farmers about three months ago. There are still lawsuits pending in Canada against the company that will not fall under this agreement and will be thrashed out in the Canadian courts.