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.

 

Good Bye Tumbler: Tumblr Tumbles

I finally pulled the plug entirely on my blog over at Tumblr. I’m not exactly sure what Tumblr has become, but it isn’t a blogging platform any more, isn’t a social media platform.

The first blog I had was over at Tumblr and I was fairly active over there for many years. It was wildly popular at one time, and I liked it over there. It was a unique place. It was simple to write short entries, a few paragraphs long, shovel in some photos, and generally talk about anything you wanted with few, if any, restrictions on content. There were no intrusive ads being shoved in your face. There were a lot of thoughtful, interesting people. A lot of them were friendly, supportive. A lot of us using the service made some very good friends among the inhabitants of Tumblr. It had a commenting system that was easy to use, permitted people to respond easily to comments, fostering lengthy discussions.

Yes, it had it’s problems. It had the usual trolls, jackasses, jerks, etc. But generally speaking it was a fun, informative place to hang out. At it’s peak, Tumblr was seeing over 100 million new posts every day, and almost a quarter of a million new blogs were starting up every day. Now the number of new blogs starting up has fallen by more than half, and the number of new posts has fallen to 35 million.

How many people actually use the service? That’s almost impossible to find out. Tumblr seems to not make the number of active users public. Plus what exactly is a “user”? While I still have an account there, I’m not active any more. Haven’t been for some time. The situation is the same for most of the people I followed over there. Their accounts are still active, but they don’t bother posting anything any more. Considering that the number of new posts has dropped by two thirds, I’d suspect that the number of actual users has dwindled considerably as well.

Now, to make things even more interesting, the founder of Tumblr, David Karp, announced he is leaving.

What happened? Well, a lot of us who have seen the service falling apart blame it on Yahoo. Yahoo bought Tumblr in 2013 for $1.1 billion. Yahoo publicly promised it wouldn’t screw things up. But, of course, it did. Well, Yahoo already had a long track record of buying prosperous companies and running them into the ground through mismanagement, starving them of resources, and operating with a ‘profit at any cost’ philosophy that quickly destroyed the popularity of the services.

The problem with Tumblr was that while it was wildly successful, it also wasn’t making any money. Yahoo planned on changing that. They waited a while for the anger over the sale to die down and lull users into a false sense of security, and then started to tinker with things. They injected ads into people’s dashboards, utterly destroyed the comment system while claiming they were “improving” it, destroyed the messaging system, and even worse, enabled the abuse of the system by allowing people to deploy “bots”, automated systems that had the guise of being regular users but which instead were fake accounts set up by porn distributors, advertisers, etc. It’s added “enhancements” which rearrange the material that shows up on your dashboard so that it is no longer in chronological order, but now places what Tumblr considers to be the “best” content first, which means cute GIFs of kittens will be pushed to the top of your dash while the stuff you really want to see is shoved down to the bottom…

The whole atmosphere became increasingly difficult to deal with, even downright toxic. At the point I abandoned Tumblr entirely about 2/3s of my “followers” were bots because I gave up trying to weed them out. It wasn’t worth the effort.

Well, Verizon now owns the thing, and it doesn’t seem to know what to do with it either. With a declining user base the value of the service as an advertising platform is shrinking fast. The only thing that surprises me, really, is that Verizon hasn’t spun it off into an independent company again or sold it at a loss just to get out from under it.

I think the biggest mistake that was made was they tried to monetize Tumblr at the expense of the people who created the content that kept it going. It was the bloggers, the people who wrote the material, posted the pictures, created the artwork, that made Tumblr popular and who attracted new users to the service. And almost everything Yahoo did to “improve” the service seemed to destroy the atmosphere that had attracted the bloggers to begin with. About all that’s left over there now are “blogs” that are really nothing but thinly veiled advertising sites, the bots, and people who endlessly reblog content created by others.

I knew that Yahoo was not going to deal gently with Tumblr. It’s track record with other acquisitions, some of the things it’s CEO and others at the company said when they thought no one was listening, the pressures Yahoo was facing from investors as it continued to fail at pretty much everything it tried to do, everything was indicating that the future was not bright for Tumblr. The only thing that’s really surprised me is that it’s taken this long for it to get this bad over there.

This morning I was scrolling through my dash, and I realized that of all the blogs I followed over there, only about three are left, and they don’t post very often any longer. I was looking at endless re-blogs of other people’s material, photos I don’t care about, and realized this was pointless. I haven’t posted over there in ages. Why am I bothering?

So I pulled the plug, deleted my account, removed the shortcuts, killed the links. That’s it. I’m not going to put up with it any more.

 

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.

Assembly Passes $3B Foxconn Incentive Package | Wisconsin Public Radio

The Wisconsin Assembly approved a $3 billion tax break bill for Taiwan-based Foxconn to build a new display panel factory in the state. Source: Assembly Passes $3B Foxconn Incentive Package | Wisconsin Public Radio

I almost never talk about politics here and I try to refrain from headlining a post with a referral to a news story, but this whole Foxconn deal has me rather concerned.

While the governor’s office and the state legislature are collectively wetting themselves over this deal, and are flooding the airwaves with self congratulatory images and stories hyping this whole thing, if you start to look into the deal itself, if you really look into the details of the whole thing, it starts to look more than a little concerning. There is so much misinformation and outright lying going on over this deal it’s hard to keep track of what’s a fact, what’s hyperbole, and what’s an outright lie.

The whole 13,000 jobs claim is, at best, a wild exaggeration, accompanied by rarely mentioned and even deliberately hidden disclaimers of “if this” and “if that” and “maybe”. The actual number of jobs Foxconn is going to develop is 3,000. And even that number is in dispute because if you read the fine print there are a lot of “maybes” and “ifs” buried in that as well.

Then the governor’s office is claiming that the plant will add 22,000 or even as many as 35,000 jobs in associated support industries. That is a number that is wildly exaggerated as well. If the company ramps up to the full 13,000 positions that the politicians are claiming, it might, might result in the creation of 15,000 new jobs in businesses that support the facility.

The state claims that all of this will be watched carefully, largely by the Wisconsin Economic Development Council or WEDC, to make sure they adhere to the terms of the deal. Well, that’s part of the problem. The WEDC has a long history of being utterly incompetent and there are charges of it being actually corrupt because of it’s dealings in the past. It has “lost” loans that it had given out, gave loans and tax deals to people under indictment on criminal charges in other states, given deals to individuals and companies that donated heavily to politicians or to their PACs, given deals to companies that moved jobs out of the state… The list goes on and on. And while the administration claims it’s all better now, recent audits of the organization’s operations indicate that no, it isn’t. It still has serious problems and if it were a department in a business out in the real world, most of them would have been fired for incompetence or even brought up on charges.

The data I’ve been seeing about the actual financial arrangements don’t look very encouraging either. Not only is the state giving the company exemptions from specific taxes, other tax breaks, free infrastructure and dozens of other deals, there are actual cash payments to the company in play as well. If I’m reading this right, not only is the company going to pay virtually no taxes at all, the state is actually going to pay them up to $250 million a year, depending on the number of people it employs.

Then there is the fact that a lot of those jobs aren’t going to be going to people from Wisconsin. The facility is being built down near the Illinois border, and they’re estimating that as many as 40% of the jobs are going to be going to people from across the border.

Then there is the company itself. Let’s face it, this is not a good place to work. They had to put safety nets around their factories in China because employees were committing suicide because of the working conditions. It’s CEO publicly called the company employees animals and said he hired zoo keepers to train his managers in how to deal with the rank and file employees.

This whole deal — I hope it works out, but nothing about this smells right.

Farm Catch up

Catching up with the past week’s ag/food news

Yoplait Sales Drop

Yoplait sales have fallen by 22% as the brand’s popularity continues to diminish. I have to point out that I hate Yoplait. I dislike pretty much everything about it; the flavor, texture, smell, everything. But then I feel the same way about almost all of the big name brand yogurts. The stuff is mostly inedible, and if you read the list of ingredients on some of these brands you’ll see why.

Drought in Spain

Spain has been having some serious drought issues this year which has been wrecking havoc with it’s farmers. The country has lost almost more than a quarter of it’s soft wheat production this year because of the weather and will probably have to import 40% more wheat than last year. There have been significant losses to the corn and barley crops as well.

The Guadalquivir delta, the Spain’s biggest rice producing area, is having serious problems with it’s water supplies. The aquifer from which water is pumped to irrigate crops is almost completely depleted, with only about 20% of the aquifer remaining, largely because of unregulated and illegal wells being drilled apparently by strawberry growers. There are reports of farmers renting drilling rigs and dragging them out in the middle of the night to or on holidays to drill wells without permits. There are an estimated 10,000 illegal wells in the area. They’ve even built their own reservoirs hidden in the forests in the area to store water they’ve been pumping illegally.

The aquifer is not being replenished because of the drought and increasing temperatures. The river itself is becoming increasingly salty as sea water creeps up into the river. Within a very short time they will have pumped the aquifer dry and put themselves entirely out of business by going after short term profits now and sacrificing the long term existence of their businesses.

China and Pork

The demand for pork in China is showing no sign of slowing down anytime soon. The country just started it’s first government approved pork pricing index on their commodities exchange to  try to help stabilize prices. The pork supply in China is still dominated by small farms that are sensitive to price swings. As the market fluctuated, pork farmers would react accordingly, cutting way back in production during times of low prices and causing a subsequent wild upsurge in prices during the subsequent shortage of pork. Gee, sounds bit like the US milk market, doesn’t it?

The index could also be leading up to the introduction of futures and options contracts which could help stabilize prices as well.

The country is also trying to end urban pig production to get the animals away from waterways and densely populated areas to reduce pollution, the spread of disease, etc. There have been bans on pig production in cities and towns being put in place by local authorities all over the place.

China and Beef

With China now importing US beef (sort of) a lot of people are speculating on what effects the Chinese market will have on the US beef industry.

At the moment, no effect at all, really, because China won’t accept the hormone and drug laced meat that most commercial growers are dumping on the US consumers. Virtually none of the commercially produced beef in this country meets Chinese health and safety standards. The beef now being exported to China is basically just PR fluff so politicians can pose for pictures with thick steaks in Beijing  while pretending they actually did something.

The Chinese market is potentially huge, but it’s going to require ranchers to grow cattle from birth without the use of the hormones and drugs they’ve been using for decades. It will be interesting to see what happens here and if US growers can adapt to the market.

Walmart Goes Angus?

Walmart is facing extreme competition from places like Aldi, Save-a-Lot and newcomer Lidl in the cut price grocery business, and it’s sales have been flat or even shrinking, so the store is trying to improve its image by claiming that all of it’s beef is now “certified Angus“. The store apparently made some kind of deal with Cargill an Tyson to get Angus steaks and roasts at the same price as whatever it was they used to sell before. They’re doing it only for steaks and roasts and not ground beef products.

Walmart might be better served by looking at the quality of it’s stores and it’s whole “shopping experience” than by trying to put yet another marketing scam in place. From unstocked shelves to dirty floors, to untrained employees, to failing to staff the checkouts lanes, to, well, you get the idea. At least three times in the past year I’ve been in one of the local stores to find entire categories of product just — just gone. One day it was sugar. There was literally not a single container of sugar on the shelves. Anther time it was iodized salt. Again, not a single container of iodized salt. Another time it was white flour…

Milk Price Insanity: Nobody Knows What’s Going On

Watching the various agricultural media outlets is utterly infuriating some days. On the very same day, in the very same ag news outlet, I found these two stories:

Milk Prices are Exceeding Expectations

Dairy Prices Fall

Oh for heaven’s sake… trying to figure out what’s actually happening is enough to make one bang one’s head against the nearest wall.

One article claims milk prices are going up, another, often in the exact same news outlet, claims they’re going down. Another claims the future is utterly horrible, another claims the future is bright and sunny…

Does anyone really know what the hell is going on?

Wisconsin Is Cheese

Well, okay, so it isn’t made of cheese, but some days it seems like it around here. Still, Wisconsin is one of the largest producers of cheese in the world, and home to some of the biggest cheese related companies in the world.

The little town of Plymouth, Wisconsin, about 20 minutes from here, apparently handles 15% of all of the cheese produced in the entire country. It’s the home of Sargento, one of the biggest cheese processors in the country. Satori is big, and some privately owned companies like Masters Gallery Foods, all have locations in Plymouth that process, package and warehouse cheese products.

These few companies are a Big Deal around here, employing thousands of people at processing and shipping facilities scattered all over this area. Sargento just put in a huge addition here in the town where I live and there is talk that they’re going to expand the facility again in the next few years. Sargento alone employs over 1,000 people in just Plymouth and hundreds more here in Hilbert.

There Are Consequences When You Piss People Off

Mexico is no longer the largest buyer of US corn. It has spent about $1 billion less when compared to last year. The country is actively talking with Argentina and Brazil to buy corn. Mexico is becoming very nervous about the horrible comments that have been made by this administration about the country and it’s people, and is no longer looking at the US as a reliable trading partner.

You can’t blame Mexico, really. Having your citizens branded as murders, rapists and drug dealers as this administration has done isn’t exactly what you could call a ‘friendly gesture’, now is it?

EPA Approves Chlorpyrifos, Gets Sued

The EPA, against the advice of almost everyone (except the manufacturer), approved the continued use of a rather nasty insecticide, chlorpyrifos.  If you click the word over there to get to the Wikipedia link, you’ll find this is nasty, nasty stuff, causing developmental problems in children, muscle weakness, seizures, coma, vomiting, paralysis, and suffocation from lung failure. Exposure to it is especially bad for children, causing low birth weight and extensive neurological problems.

Like I said, it’s nasty stuff. The EPA was on track to issue an outright ban on it’s use because of the scientific data it had developed in November of last year.

But then we had an election and, well, now Pruitt says no, it isn’t bad, and the decision to continue to permit it was based on “meaningful data and meaningful science.”

And it then refuses to give Associated Press copies of the scientific studies Pruitt claims that determined it is safe.

Editorial Comment: This kind of thing absolutely infuriates me. Study after study that I’ve turned up indicates chlorpyrifos is dangerous at even very low exposure levels, especially to children. Then Pruitt and the “new” EPA come along and claim they have studies that indicate it’s safe, and won’t tell anyone what those studies are, who did the studies, where the data came from, nothing…

 

Farm Catch Up

 

Syngenta Loses Lawsuit

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

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

Still More Dicamba News

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

German Grocery Invasion

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

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

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

Beef Exports to China Begin

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

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

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

“Pink Slime” Case Finally Over?

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

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

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

Ethanol Still Doesn’t Make Sense

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

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

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

Disconnected from Reality?

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

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