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

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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.

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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.

Agrimoney.com | Butter price surge may ‘prompt fundamental market change’ – Arla

Screen Shot 2017-08-29 at 6.25.36 AMArla boss Peder Tuborgh sees a shake-up, if the rally continues which has, for the first time, made dairy fats more expensive than protein Source: Agrimoney.com | Butter price surge may ‘prompt fundamental market change’ – Arla

I haven’t been talking much about farming lately because not much has really been going on over the last month or so. But butter — good grief. The butter market has gone goofy.

Wholesale butter prices are flirting with record prices in some markets, even surpassing record levels in some areas. Retail prices have been creeping up. Demand for butter has been just about the only thing that’s been keeping farmgate fluid milk prices at a reasonably decent level over the last few months. Around here prices for generic butter is pushing close to $4/lb. while prices for the “premium” brands is in the $4.50 range, with some of the premium brands pushing $5/lb. retail prices. The exception is KwikTrip, which is selling their house brand for $2.99 in their convenience stores around here.

I’m always fascinated by how the public’s attitude towards butter and dairy fat in general has changed over the last few years. Thanks mostly to the marketing claims made by margarine manufacturers, and with little or no actual scientific studies backing those claims, butter and dairy fat was being blamed for everything from obesity, to heart disease, to stroke, to I don’t know what all else, while margarine was being pushed as a “healthy” alternative, when the opposite was true.

I always hated margarine. I hated it’s texture and flavor, I hated how it melted or didn’t melt, hated how it worked when used in cooking. But then I’m weird that way. I have one of those hypersensitive senses of smell and taste, especially smell. I’ve a bit of a reputation as being a picky eater, but I’m really not. The problem is that I smell and taste things most people seem to be unaware of.

But let’s get back to butter…

The item up there from AgriMoney reminded me of the Great Butter War going on here in Wisconsin right now. The picture of Kerry Gold butter up there isn’t just some random butter image, it’s appropriate because at the moment Kerry Gold is banned from sale in Wisconsin along with a lot of other brands of butter.

Before butter can be sold in the state, it has to be graded on taste, texture and color through some state accepted system, by state accepted inspectors. This means that if a butter maker can’t or won’t spend the time and money to put their product through the state’s inspection system because of cost or whatever reason, it can’t be sold in the state, even though it meets all other accepted federal standards.

Consumers didn’t know about this until one day Kerry Gold butter abruptly vanished from the shelves of the grocery stores here in the state not too long ago. It isn’t that the law was just passed, it’s been on the books since the 1950s. It seems that a lot of grocers just didn’t know about the law until fairly recently.

Wisconsin has a long history of laws about butter. It is still illegal for restaurants to substitute margarine for butter without the customer specifically requesting it. It is illegal to serve margarine in state prisons, schools and hospitals except for health reasons. And until the late 1950s it was illegal to sell margarine in the state that had been dyed yellow. Margarine is actually a rather sickly looking whitish color and is dyed yellow to make it look appealing. Margarine makers used to include a yellow dye packet with the margarine sold in Wisconsin so the consumer could dye it themselves.

I should point out that Wisconsin’s butter grading law has nothing to do with food safety. The grading system the state insists on is made up of largely arbitrary standards for taste, texture, smell and appearance. Kerry Gold and the other butters banned from sale in the state meet all USDA and other federal standards for quality. They just haven’t been subjected to these arbitrary tests.

Well, the whole thing is going through the legal system now, and I suspect that sooner or later the Wisconsin requirements will be overturned. But until then you’ll have to order your Kerry Gold online or hop across the border to Illinois or Minnesota to get your fix.

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

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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.

 

Milk Again

Some of you are probably getting tired of me talking about the dairy industry and the

Screen Shot 2017-04-27 at 6.43.56 AM

Cow is angry.

problems it faces, but I ran across an editorial over at Wisconsin Agriculturalist that was really well written and well thought out that talks about the situation the dairy industry is facing. Go give it a look if you have a few minutes.

The writer brings up a lot of points that I’ve talked about myself, or have at least thought about. I wanted to pass some of that along with my own thoughts on the subject. So if you’re sick of me babbling about dairy farming, feel free to skip this one. I won’t blame you at all if you do.

As the author points out, blaming Canada for our overproduction problems down here is just plain stupid. He doesn’t use that word. He’s more polite than I am.

Blaming Canada for our problems and Grassland cutting off some 75 or so farmers from a market for their milk is stupid. Demanding that the government “do something” to change Canada’s milk production and marketing system because of our problems down here is sort of like a kid demanding his parents take away his friend’s Playstation because he doesn’t have one himself.

Canada has a milk production/marketing system that works fairly well. Dairy farmers enjoy relatively stable prices that let them make a reasonable profit. But the price they pay for this is that their production is strictly limited. They have a system in place that permits them to only produce a specific amount of milk. If they want to expand their operation, the only way they can do it is by acquiring the quota of a different farm that is shrinking or going out of business.

This also means that Canada has to put in place import restrictions that prevent outsiders from dumping their surplus product onto Canadian markets at cut-throat prices and destabilizing their whole system.

This, some claim, is “unfair”. Canada, they claim, should simply allow the US to dump it’s surpluses on the Canadian markets so the US can continue to ramp up milk production to make even more product that no one wants and wrecking the Canadian dairy industry just as badly as we’ve wrecked the US markets.

They want a “free market”. But only a market that’s “free” for them, and not for anyone else, it seems. They want a market where they are free to dump their excess on everyone else, but at the same time they want the US to protect them from other countries doing the same thing to us. Hence all of the rhetoric coming out of DC about tariffs on imports, claims that China and Mexican products are “destabilizing” our markets by dumping cheap products on us.

But we should be able to do it to them?

Could the government here ever develop a marketing system that actually works? Sure it could. But it won’t. It can’t.

The problem is that the government is no longer in the hands of elected leaders who represent us. Instead politicians have sold their souls (and ours) for the almighty dollar. Their actions are being influenced not by the voters who elect them, but by a handful of well financed special interest groups that are largely funded by a tiny handful of wealthy individuals and corporations and which pump hundreds of millions of dollars into election campaigns.

The author of the editorial wants farmers to join up with one marketing board or farmers’ organization or other to try to work with the government to get changes made. It’s highly unlikely that will work. It certainly hasn’t worked in the past. Farmers’ organizations attempting to change the system have come and gone by the dozens, and almost none of them have had any real positive influence on things. In some cases, they’ve made things worse.

What’s the solution? The government isn’t going to be any help. That system is largely broken. The government no longer responds to the needs of the people it’s supposed to represent, but only responds to those who can write out six figure checks or own a high priced and well funded lobbyist in DC.

I wish I had an answer. I don’t.

 

 

Milk Wars

Well, the politicians have gotten involved in the dispute with Canada over their change Screen Shot 2017-04-27 at 6.43.56 AM.pngto their milk import policies, and as you might expect, there has been a lot of muttering, tut-tutting, bloviating and ranting, with absolutely nothing being done about anything. The president got involved, appearing in Wisconsin briefly where he said many, many things to try to make it sound like he was going to do something, and as soon as he got out of the state and safely back in DC, the Whitehouse immediately disavowed everything he said, blunted or even eliminated entirely the vague threats, and we aren’t going to do this or that, but oh, even though the dispute is about milk we’re going to put a tariff on Canadian wood…. Wood? Really? Oh, well…

The state’s ag secretary is apparently actually doing his job, trying to help the dairy farms that are being dumped by Grassland. But in the long run there isn’t a heck of a lot that can be done at the state level. Fortunately it seems like most of the farmers effected by this have now found other markets for their milk, but the situation is still very concerning, and I expect things will get worse before they get better.

Blaming Canada for this, as many are doing, is silly. These new rules should not have blind sided anyone. From what I’ve been reading, the rules have been in the works for at least a full year, if not longer. Back in November already we were seeing stories popping up about the change in rules and warnings of how it would effect the markets here. So the processor’s claim that they were blindsided by this is a bit disingenuous. If their management didn’t see this coming, they really should be in a different business.

The real problem is the dairy industry itself and the politicians who keep fiddling with it, not any specific country. And the problem is world wide, not limited to the US or Canada. The problem is that dairy farms are producing way, way too much milk. More than the market can absorb. And instead of trying to deal with the situation, the reaction of the whole industry is to try desperately to come up with some kind of market for the stuff, any way they can, even if it destabilizes some other country’s farming industry. Pressuring politicians to institute still more ways to artificially prop up prices.

Canada has done something no other country has, it has actually been trying to deal with the problem of oversupply. It has a fairly strict quota system on milk production to try to keep the market stable. But in order to make it work, they have to restrict imports of dairy products from outside of Canada or the whole system would fall apart as the country is flooded with cheap imports. (The EU tried a quota system but abandoned it a year or two ago)

Is this protectionism? Of course it is. But you have a choice: Do you protect your businesses at home, giving them a level playing field to work with, restrict production so the farms can be relatively profitable, or do you open up your markets to cheap imports, often cheap because of government subsidies, tax breaks and other things that make it cheaper for them to produce the product than you can?

Then the politicians get involved… Price supports, tax breaks, grants, subsidies, government agencies buying up surplus product to artificially prop up prices, mandates that you have to use certain products (Wisconsin still has laws that force restaurants and food service operations to serve butter, for example), the list goes on and on. The end result is that anyone who thinks there is a “free market” for dairy products is living in a dream world.

What’s the solution to the problem? I really don’t know. My father used to say that the system was so screwed up that the whole thing should be scrapped. All of it. Make it a true free market. No government subsidies, no tax breaks, no marketing boards. Leave the health and safety regulations, testing, etc. But get rid of everything else. Turn it into a real free market that has to respond to normal supply and demand rather than a government supported mess where farms are propped up by various programs and price manipulations that encourage overproduction.

Would it help? I don’t know. But it seems to be about the only thing we haven’t tried yet. It’s obvious that all of the quota systems, price supports, surplus buys and everything else isn’t doing any good.