Tag: farming

Farm Catch Up

 

Organic: Is it, or isn’t it?

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

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

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

Canola Oil – The Short Story

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

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

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

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

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

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

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

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

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

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

Weather Related Crop Failures

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

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

Pink Slime Redux

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

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

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

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

Grain Facility Explodes

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

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

 

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.

 

 

Farm Catch Up

Ah, it’s about that time again, so here’s some of the agricultural news for the past week

 

Budget Pain

Well, I think we all knew that the new administration’s budget was going to be painful, and it is. Well, unless you’re a defense contractor, run a private prison, etc. You people will do pretty good. The rest of us? Not so much.

If you’re a farmer or involved in agriculture in any way, the budget is indeed going to be painful. There are huge cuts to USDA, cuts in the crop insurance program, new fees for inspectors, cuts in research… The list is too long to put here.

In addition to that, there would be massive cuts to the SNAP food assistance program, cuts to the WIC program, cuts to the school lunch program and school nutrition services, all of which would have long term consequences for the agricultural sector.  And even worse consequences for the people who depend on those programs. Even the venerable and highly praised meals on wheels system would be hit hard.

You can read a brief article about the agricultural implications of this over at AgWeb here, and if you spend a couple of minutes on Google you can find out more quite quickly.

Hay Crop almost Total Loss

Here in Calumet County, in neighboring Manitowoc and in other counties nearby we’ve seen nearly a total loss of the hay crop. Inadequate snow cover, coupled with February temperatures that spiked as high as 70 degrees during the day, then plunging into the 20s at night, coupled with extremely wet and cold weather this spring, have decimated the hay crop around here.

To make things worse, the almost nonstop rains we’ve had this spring are making it difficult to get into the fields and do anything. A lot of farmers will try to put in peas and oats to try to get some kind of forage crop off the fields, but it’s going to be a rough year.

Pigs Take Over World

Feral pigs are becoming a major problem in the US and even in Europe. It isn’t a huge problem here in Wisconsin, but the population is growing and becoming a concern. The DNR is putting bulletins into it’s hunting publications about what to do if you find one (basically shoot it). In other parts of the country it’s such a big problem that it’s become a public health issue and they are causing massive amounts of damage to farms.

Feral pigs are very aggressive, smart, reproduce quickly with the average sow producing two litters per year with 6-12 piglets per litter, and they’ll eat anything. If it has any kind of nutritional value at all, and they can eat it, they will. They cause huge amounts of damage to crops and property, kill and eat small animals, and yes, they are physically dangerous towards people. Boars can get to be several hundred pounds, with tusks like razors. And they carry a host of diseases and parasites and spread them over a wide area. Most states have adopted an aggressive policy towards pigs in the wild. A lot of states advise hunters to shoot them on sight.

Ah, well, yummy free pork, then? I wouldn’t eat one. Some states are advising hunters that if they do shoot one, let it lay there. They can carry some very nasty diseases and parasites, many of which can be transmitted to people.

New Herbicide Mix Not So Hot

There was a lot of hype surrounding Monsanto’s introduction of seed varieties that were resistant to both Roundup and dicamba in an effort to control weeds that were becoming resistant to Roundup alone. The biggest problem is pigweed, where a Roundup resistant variety has been spreading widely.

But the new systems don’t seem to be working all that well according to early reports. Early indications are that multiple sprayings are going to be required, and perhaps even resorting to additional types of chemicals. The manufacturer recommends pigweed be no more than 4 inches tall, but since pigweed grows at up to 3 inches per day, trying to time things right is almost completely impossible.

I’m not going to get into debates about the health safety of GM crops. But I will point out that GM plants seem to be, ultimately, a complete failure. At least in their current form. The only commercially successful GM plants right now are those that have been engineered to resist herbicides or insects. And that resistance is rapidly becoming worthless as weeds and insects become resistant to the herbicides or the traits that resisted the corn root worm. These GM plants really have no other desirable traits except that. They do not increase yield, aren’t nutritionally superior. So in the long run, these commercially available GM plants are a failure.

Politics Rears Its Ugly Head

The administrations proposed budget could have widespread and devastating effects on the entire agricultural sector, and cause ripples through the whole economy. There would be big changes to the crop insurance program which could hit some farmers pretty hard. Everyone has probably heard about the cuts to the funding for the Meals on Wheels programs that serve the elderly and disabled. It looks like USDA itself would be hit hard. If I’m reading things right USDA would be looking at losing about a full third of it’s funding.

There would be huge changes to the SNAP program, i.e. “food stamps”. In addition to large cuts in funding, states would have to contribute more money to the program themselves, and would be given more control over how the programs work, who gets help, etc. It would also allow states to institute work requirements.

I don’t really understand the work requirement thing. The vast majority of people in the SNAP program can’t work. They are disabled, the elderly, or children. About two thirds of the people who get assistance through the program fall into one of those three categories. Of the remainder, most of them already do work, but make so little money they qualify for help through the program.

It’s Hard To Be Small If You Raise Meat

The big trend these days is the whole “farm to table” thing where people try to connect directly to farmers to buy food rather than rely on the big commercial processors and distributers. I’m very much in favor of these ideas. Connecting with your local farmers to buy food is generally a good thing for many reasons.

But it isn’t easy to be a small farmer. Agriculture in general doesn’t seem to like small farmers. At all. It’s hard to buy equipment designed for small farms, difficult to find ways to market your products. And if you raise meat animals, well, it’s even more difficult because it’s almost impossible to find a government inspected, licensed slaughter facility to deal with the animals. Bloomberg has an interesting article on the issue, and it’s one that’s turning up all over the country. (Warning, Bloomberg has one of the most bloody awful websites around, loaded with auto-play videos you can’t get rid of that have nothing to do with the story you’re trying to read, along with other annoyances.)

The US market has become such a monopoly that only four companies supply 90% of the meat sold in the country, and the independent meat processors that used to dot the countryside are long gone.

So while the demand for organic, free range and local meat has increased dramatically over the last few years, places where farmers can get that meat processed have become almost impossible to find in many areas of the country. Some are forced to truck their cattle for three, four hours or even more to get them to a processor.

And the government doesn’t want to make things easier. Inspection rules, processor rules and regulations are all geared to the huge meat packing facilities, not the small processors.

Some people in congress are trying to get the rules changed to make it easier for small farmers to deal with this situation, but it’s being fought hard by the big processors, as you might expect.

A Nice Gesture But…

An organization called Dairy Pricing Association put out a PR piece the other day about how they bought and donated 42,000 pounds of cheese to the Hunger Task Force. It’s a nice, feel good kind of item. DPA makes itself sound like it’s doing farmers a favor and that the buy will help push up milk prices. And certainly the Hunger Task Force can use the help. They have over 85,000 people using it’s food pantries and other forms of assistance in Milwaukee county every month.

I hate to sit here and frown at people who are trying to do something, but it’s PR fluff, really. The people at DPA are helping people who badly need food, yes. And that is a good thing. But claiming this is somehow going to help the milk price as some of the statements imply is just silly. It won’t.

That 42,000 pounds sounds impressive until you learn that is half of a single truck load of cheese. Go down to the Sargento plant about 20 miles from here and they crank out dozens of truckloads of product every single day. From one plant.

They removed “23 tanker loads of milk from the market” in 2016. That sounds like a lot until you do the math. Let’s say a tanker holds, oh, 8,000 gallons of milk. That’s 184,000 gallons of milk. A lot, right? Well, no. A 5,000 cow mega-farm puts out up to 30,000 or more gallons a day. So that 23 tankers of milk is only 6 days of production from a single farm.

It’s a nice PR piece, sounds good, and certainly it helps feed people. But boost milk prices? No. Not even a blip.

Farm Catch Up

Catching up with the week’s farm news

Local Alfalfa Die Off

The weather this spring has caused significant damage to the hay crop around here. I’ve been seeing large areas of stunted and even bare ground in a lot of the hayfields here in this county and in Manitowoc county when driving around. But you know it’s really bad when it makes the AP news. According to one report Manitowoc County has lost 10,000 acres of alfalfa, well over half of it’s hay crop due to the weather. From what I’ve seen around here I wouldn’t be surprised if we were almost that bad in this county. The main culprit was February daytime temps climbing into the mid 60s, then plunging down to the low 20s at night.

Addendum: After writing the above new info has been coming out that indicate the losses are as high as 80% here in Calumet County and in neighboring Manitowoc Cty. When you add everything up; increased labor costs, poor milk prices, and now a severe hay shortage, it doesn’t look good for the dairy industry around here, alas.

Manure, Manure everywhere and not a drop to drink

Kewaunee County is trying desperately to find a fix for it’s well contamination problem. Dumping massive amounts of manure from CAFOs (mega-farms) has polluted almost half of the wells in the county. The geology of the county is such that contaminants quickly flush through the soil, through the cracked bedrock, and into the groundwater in the area.

The county is proposing a new ordinance that could change how the farms are allowed to spread manure. Right now they can dump manure only in the spring and fall.

Some have been using high-pressure irrigation systems to spread manure, basically something similar to giant lawn sprinklers. There has been a huge stink about this. Literally, because this stuff doesn’t exactly smell all that appealing. There are also health concerns about the practice because the locals are afraid the vaporized cow poo could also be causing pathogens to get into the air as well.

The county is thinking of changing regulations. The new rules would forbid using high pressure irrigation type spraying of manure, but allow low pressure spraying, under the canopy of plants. It would also allow spreading manure over a 6 month period of time rather than restricting it to just spring and fall.

Will this do any good? Well, maybe??? If farms can spread out the application of manure over six months rather than having to dump all of it in just a few weeks, it might help.

In the long run though, no. It won’t. The problem is too much manure in one area.

When you have grazing cattle on pasture, the situation is entirely different. When a cow drops a pile on grass, it doesn’t just sink into the ground. It sits there on the surface. Insects lay eggs in it, insect larvae burrow through it. Birds and small mammals dig through it to eat the larvae, scattering the manure over a wider area. It naturally rots and decays and it gradually gets absorbed by the soil to be taken up by plants. It takes many days to go through this process, and almost none of the material ends up in the ground water.

But the process CAFOs use? The manure from thousands of cows is dumped into pits, liquified, churned up, allowed to bubble and ferment and cook for months, and then all of that muck is dumped on fields, at one time, tens of thousands of gallons of it dumped in just a day or two… It isn’t surprising we have problems. What’s surprising is that the situation isn’t far, far worse.

US Regains Beef Export to China

In 2003 China banned the import of US beef because of a case of BSE. It didn’t import US beef even after the ban was lifted a year ago. But a new trade deal may change that. In exchange for being allowed to ship cooked chicken to the US, China is going to allow the import of US beef, apparently starting in July.

China has seen a large increase in the consumption of beef in the last decade or so, but most of it’s beef imports have been coming from South America and Australia.

While the beef industry in the US is delighted, exactly how much China will import from the US remains to be seen. China, like the EU, bans the import of meat that was raised with the use of hormones and other growth promoters, a practice that is widespread in the US. It is unlikely China will change this requirement and, at the moment anyway, the production of hormone free beef in the US is very limited and it’s unlikely that will change very  much.

Donkeys? Really???

In the WTF department, I ran across this item over at AgWeb reprinted from Bloomberg. Donkeys are really popular in China. Not as pets or work animals or even for food, but for something called e’jiao. They take the skin of the donkey and render it down into a gelatin that some believe will enhance… Oh, come on, really? That? They think it does that?

Yeah, they do. “Libido enhancers” as the article delicately puts it. Or as those of us who are a lot less delicate would put it, dick pills.

Apparently the demand is so strong that it’s decimating the donkey population in some parts of the world.

I have two basic questions:

First of all, what idiot first said “Hey I’m going to rip the skin off that cute little donkey and boil it down and eat it and I bet it’ll turn me into one of those porn star dudes.”?

And second, who the hell is dumb enough to actually believe that first idiot up there?

Well, apparently a lot of people do believe, to the point where it’s having serious economic impacts on some communities in Africa where work animals are being sold off to be boiled down to make dick pills for impotent rich.

Anyway, if you want to know more click the link up there and read the article over at AgWeb.

What the hell is the matter with people? I mean, really? Boiling down donkeys, killing rhinos for their horns, cutting out bear gall bladders and I don’t know what all else, just so some fat, balding, aging jerk with an overinflated ego can…

No, I won’t go on or I will descend into vulgarity.

Got Milk? Increasingly the Answer is No

Sales of liquid milk for drinking have been falling for years now despite heavy advertising and marketing by the dairy industry. A brief but informative article over at NPR’s The Salt goes into the history of milk in the US and it’s worth clicking the link and taking a couple of minutes to read it.

Milk, as a beverage, has been falling out of favor for decades now. In the 1970s, as the article says, average consumption was about 30 gallons a year. Today it’s about half of that. If you go into the history of milk marketing in the US, it’s fascinating how the dairy industry turned a product that no one really needs, into an “essential source of nutrients”. And it is. If you’re a calf. Yes, milk does provide necessary nutrients, but it doesn’t offer anything that you couldn’t get from other foods.

The problem is that often milk is being replaced by stuff that’s a hell of a lot worse; soft drinks, juices, stuff that looks like juice but is really a blend of sugar water and fruit flavorings. Or with expensive and useless products like water fortified with vitamins you don’t need or herbal concoctions that have never actually been tested for safety.

Probably a more accurate slogan for marketing milk would be something like “Milk: It probably won’t kill you, but some of the other crap your drinking could.”

NAFTA

It’s official. The administration has formally announced it is going to renegotiate NAFTA. But before you get all giddy with anticipation, or full of dread or whatever your opinion is on the subject, don’t hold your breath waiting. From what I’ve been seeing going on in DC I get the feeling that this administration doesn’t have a clue as to how government actually works, doesn’t know what it itself is doing most of the time, and doesn’t understand how treaties like this actually work. Perdue’s earlier claim that the administration would completely renegotiate NAFTA in just a couple of weeks is especially troubling, giving more indications that they don’t know what they’re doing over there in DC.

 

 

70 Percent Chance Dec. Corn Futures Hit $4.40-$4.50 – Corn – News | Agweb.com

As

Source: 70 Percent Chance Dec. Corn Futures Hit $4.40-$4.50 – Corn – News | Agweb.com

I read this item over at Agweb twice and I still don’t understand why she thinks there’s a 70% chance corn could go over $4.40. She doesn’t give any data to actually back up that statement in the article. I hate items like this where some “expert” comes along and makes a specific statement, and then the report doesn’t give any reason why.

As of right now I don’t see any indication corn is going to go that high barring some kind of significant weather event or similar wide spread problem. We have massive amounts of corn still in storage from last year’s harvest, planned corn plantings for this year are down only slightly from last year… There basically is no pressure at all on the market to move the price up significantly.

At the moment, China has drastically cut back imports of corn to try to draw down it’s own stocks, and has increased production. There seems to be no increased demand for US corn anywhere, really. Ethanol production is relatively flat, we have grain storage facilities full to bursting with last year’s crop, weather has been relatively good… There doesn’t seem to be any reason for corn to go up almost $1 a bushel over the next few months. So why does she think it’s going to go up? Don’t know.

Farm Catch Up

Looking back at ag news over the last week

NAFTA

The new ag secretary, Perdue, gave a speech in which he claimed the administration was going to renegotiate NAFTA within the next six months. He said, “We’re not talking about this taking years to do, but weeks…”, thus clearly indicating that neither he nor the administration he works for knows what NAFTA is in the first place, or even how trade negotiations work. If they think they can do something as complex as renegotiate NAFTA in a few weeks… Oh, brother, we’re in trouble.

Ag Immigration

With the ag sector in a near panic over the potential loss of much of their labor force due to the policies of the administration, some administration officials have been trying to calm things down. Perdue was out and about again and said in a speech that he had been assured that the administration was not gong to target employers, was not going to raid farms, and that the ag sector should calm down because the administration was not going to go after it’s immigrant labor force.

And then just a couple of days later ICE did exactly that, raiding a Pennsylvania mushroom farm and hauling off nine of it’s employees. So it goes.

Other anti-immigrant activities by politicians and law enforcement have done nothing but make the panic in the ag sector even worse. Texas just put in place a law that permits police to demand proof of citizenship during routine stops and would jail police chiefs and sheriffs who do not cooperate with federal immigration officials. Arizona has passed a similar law. Basically these laws allow, or even require, police to demand proof of citizen ship from anyone they suspect is not a citizen which, in a lot of jurisdictions basically means anyone who is not white.

Some politicians are trying to do something about this. Ag businesses and others that depend on immigrant labor are having serious problems already. There is a bill in Congress that would provide a “blue card” to farmworkers who have worked in agriculture for at least 100 days. That bill will almost certainly go absolutely nowhere. Wisconsin and some other states are trying to cobble together a “state visa” program that would give states more control over immigrant rights to prevent their labor force from being deported. Wisconsin is hugely dependent on immigrant labor and employers are already having problems finding people to work. That proposal will go nowhere as well. Even if it did go through at the state level, it would be over ruled by federal law and possibly would even be unconstitutional because the federal government, not the states, has control over immigration.

Water Wars

Wisconsin has a serious problem with water quality, especially ground water. Because of contamination by huge CAFOs (mega farms) caused by the dumping of millions of gallons of liquid manure on the ground, wells all over the state are being contaminated. Up in Kewaunee county about 40 miles from here it’s estimated that 35% – 50% of the private wells in the county are contaminated. And almost nothing is being done about it. A story in the May 10 issue of the Milwaukee Journal Sentinel (I can’t put in a link because I read MJS on Kindle, but you can find it with Google if you want) discovered that the problem is so serious that the Algoma school district is giving out water to students and families, some farm organizations are giving out drinking water, and even the DNR may be getting into the act, providing drinking water. And almost no one has heard about the story. I’m not a conspiracy nut, so I don’t think that they are deliberately trying to bury the story. I think it is just getting swept aside because of far more important issues. Kewaunee County is a rural area and not very affluent so news organizations tend to ignore it unless something makes a big stink.

Kewaunee County is also problematic because it is bordered on one side by Lake Michigan, and by the Bay of Green Bay (yes, I know it sounds redundant, but that’s what they call it) on the other. The Bay of GB has been suffering from dead zones, areas where nothing but algae grows, because of contamination by fertilizers, phosphorous, nitrates; the same contaminants that are getting into the wells.

Wisconsin isn’t the only state with this problem. Iowa, Indiana, California… Anywhere where large scale agriculture is going on is suffering similar problems. And the politicians are listening.

But, of course, not to the people who are finding their water polluted. Here in Wisconsin they’re ramming through new rules and regulations which would allow mega farms and irrigation systems to draw virtually unlimited amounts of ground water form high capacity wells, even in areas where the draw down has been so bad rivers and lakes are literally drying up because of it. The “new” DNR is doing nothing about the issues in Kewaunee and is working on “voluntary” solutions. And in California they tried to push through a bill that would forbid people from suing suspected polluters, giving the general public no recourse at all if they find their wells contaminated. And at the federal level some members of Congress are trying to push through a similar measure. You can read about that here over at The Hill.

Who Owns What?

One trend that I find troubling is farm land being snatched up by investment companies. Farmland Partners is perhaps the best known of these, but it isn’t the only player in this. FP now owns around 154,000 acres of farmland, and it’s expanding it’s holdings every year.

Perhaps I’m a pessimist, but when I read stories like this I tend to think of how this can be abused and misused. I get nervous whenever an essential item like farmland is being concentrated in the hands of people who don’t give a damn about anything except maximizing their profit. Yeah, I know the companies talk about preserving farmland, protecting our resources, saving the environment, protecting agriculture and all that. But when it comes down to it, the only business FP is in is to make money for it’s stock holders. Period.

Unpasteurized Milk

Consuming unpasteurized milk has become a fad in the “natural food” world. From ridiculous claims that unpasteurized milk can cure everything from rashes, to baldness, to cancer, to claims that pasteurizing milk somehow destroys it’s nutritional content, the internet abounds with utterly absurd claims alleging health benefits from it that simply do not exist.

One thing that unpasteurized milk can do, though, is make you sick. According to a new study published by the CDC this week, 96% of all illnesses linked to milk products were caused by unpasteurized milk, even though only about 3% of the population drinks unpasteurized milk and even fewer eat cheese made with unpasteurized milk. You can read about it here over at Consumerist.

I know this sounds kind of ridiculous from a former dairy farmer, but the fact is that you don’t need milk at all. You can easily get the calcium, protein and other nutrients in milk from other sources. There are studies out there that indicate that contrary to what the milk marketing boards are trying to claim, drinking milk does nothing to improve bone density nor does it do anything that can’t be gained by eating other foods. There are even some studies indicating that drinking milk may be related to some of the very things the marketing people claim it helps.

[Addendum: May 12. I added this edit after someone who read this told me that you need to drink milk to get vitamin D. Yes, D is an essential nutrient and a lot of people don’t get enough of it, but you don’t get vitamin D from milk itself. The only reason D is in milk is because milk processors are required to add it. They basically grind up a vitamin pill and throw it in the jug. ]

Cheese… that’s a different story. Ooo, yummy yummy cheese… I think I have some of that gorgonzola left in the fridge…

Say it with me now — cheese….

 

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.

Farm Round Up

Lettuce Shortage

MrsGF works with the state’s various food service operations, including monitoring food purchases, and she tells me that the state’s prime food vendor has put out a warning that it may not be able to fulfill orders for lettuce because of adverse weather in California. Those poor buggers out in California — first a years long drought, then they get so deluged with rain that they can’t get their crops planted on time…  They just can’t seem to get a break. She’s put out warnings to the state’s food service operations that they’re going to need to change menus, switch to different types of greens, etc. until the situation is resolved. Kale and cabbage haven’t been hit quite as hard, but they’re seeing some serious shortages for various types of lettuce. Apparently it’s hitting the consumer market hard as well and prices are going up fast at the retail level. The Chicago Trib had a story about it just the other day here. (warning: may be paywalled) I was just at the local grocery store this morning and noticed iceberg lettuce is now around $2.50 a head, a dollar a head more than what it was what it was a couple of weeks ago, and they’ve put a limit of 2 heads per customer on purchases. Romain lettuce has also shot up in price. Pre-cut salad mixes containing lettuce have also gone up in price.

If you’re really desperate for leafy greens, fresh spinach looks like a bargain, going for about one third of the cost of lettuce at our local store. It also tastes better and is significantly better nutritionally than iceberg lettuce.

Over Supply

The biggest problem with agriculture right now seems to be over supply. There’s just too much corn, soybeans and milk being produced. Here in the US I’ve heard of co-ops, large farmers and grain dealers renting abandoned airport runways to pile up corn because they don’t have anyplace to put the stuff. Corn prices on the futures market are sitting at around 3.63 right now, and haven’t moved more than twenty cents up or down for months. And with the US looking at a seriously huge corn harvest in 2017, barring some kind of disaster, about the only direction that price is going to go is down.

Low soybean prices have made farmers in Brazil hang on to their crop, storing it rather than selling it in the hopes of higher prices. But now the corn harvest is going to start in June, and with the bins full of beans, there’s no place to store the corn. The Ukraine is predicting a huge increase in corn production to further destabilize things.

And as for the milk market, oh brother… The market is so glutted right now, especially in the US, that they don’t know what to do with the stuff. I’ve heard of processors pouring milk down the drain because they can’t deal with all of it.

The ag industry is going to have to get a grip on the problems with over production or the whole system is going to come crashing down around our ears.

Herbicide Resistance On The Rise

Weeds resistant to commonly used herbicides are becoming a massive problem. Glyphosate resistant waterhemp, a type of pigweed, has been spotted in at least 17 counties here in Wisconsin, and its cousin, a resistant Palmer amaranth, has been spotted in the state as well. Pigweed is especially difficult to deal with because it produces massive amounts of seed.

This is just another indication that we really need change the way we deal with weed problems. We can’t just keep trying to come up with ever more toxic chemicals to kill off weeds and GM modified crops. That scheme will always result in weeds eventually developing resistance to the herbicides and the cycle starting all over again.

Climate Change

It’s interesting to note that while we have an administration that continues to deny climate change, everyone else seems to have just accepted it and is trying to deal with it. Even Wal-Mart, which isn’t exactly known as a bastion of liberal policies, is trying to deal with the situation and is putting pressure on its suppliers to do likewise. While the politicians bluster and bluff and bloviate and grasp at straws to try placate whoever writes them the biggest check that week, out in the real world a lot of major companies have realized that if anything positive is going to get done, they’re going to have to do it themselves. Even some of the oil companies have started to admit that something has to be done.

GIPSA Rules Delayed

I don’t blame you in the slightest if you don’t know what the GIPSA rules are. If you raise poultry or pigs for one of the big meat packers, you know all about this and are quite possibly pulling your hair out. But almost no one outside of the business does.

The rules were intended to protect farmers who contract to raise meat animals for a meat packing company from abusive and discriminatory practices. “because the processors own the birds, the feed, and other inputs, they can unfairly disadvantage or preference one grower over another as a way of forcing the growers to do things against their will or shut down dissent.” is how critics put the behavior of the processing companies in one article. The basic idea is that the rules would have given farmers who raise animals on a contract basis some minimal rights without having to jump through a lot of hurdles that are basically impossible to jump. The rules were changed by court interpretations about ten years ago so farmers now have to prove that a company’s actions harmed not just them, but the entire market, before they can try to take any kind of legal action against the processing company. As one representative for farmers put it: “We can’t overstate the level of fear and intimidation felt by poultry growers that contact us or our partner organizations,” says Harvie. “If they choose to speak up, they risk everything—their contract, their land, their homes.” You can read that whole story here.

The administration has delayed the implementation of the rules and right now it looks like they will be eventually be abandoned entirely and the meat packing companies are already celebrating a victory.

Vomitoxin

A nasty name for a nasty mycotoxin. Vomitoxin is nasty stuff and it seems to be getting more common in US corn. It is a toxin caused by mold in corn, and generally hasn’t been much of an issue in the US, but it seems to be getting worse, especially because of wet conditions during last year’s corn harvest. The toxin makes corn unfit for consumption, even as animal feed.

It isn’t even suitable for use for ethanol, because the ethanol makers depend on dried distillers grain (DDG) to make a profit. DDG is what’s left over after the ethanol making process. It’s a fairly high protein cattle feed. The ethanol making process concentrates the mycotoxin, making the resulting DDG even more toxic than the corn originally was.

 

Catching Up

Brazil Scandal

I haven’t heard much about the meat scandal going on in Brazil on the main stream media but it’s been all over the ag press since the story first broke. According to reports, Brazil’s meat exporting companies have been involved in bribery scheme where government inspectors and auditors were bribed to permit the companies to ignore sanitary regulations and inspections, falsify medical records and certificates, and ignore tampering with products to disguise problems with the meat. It’s also alleged the producers used ascorbic acid and other chemicals to disguise rotten meat, injected water into meat to inflate the weights. It’s just nasty. The whole story sounds like something straight out of “The Jungle” by Upton Sinclair.

There are now reports of large numbers of arrests as the government tries to do damage control. Brazil is the largest exporter of beef and poultry in the world, and the scandal has decimated the industry. Many countries instituted outright bans on importing Brazilian meat and meat products or instituted much stricter inspection protocols. Things are slowly starting to get back to normal, but the Brazilian meat industry really took a hit on this one and it could take some time for it to recover.

The really scary part about this is that meat processing companies had allegedly been bribing the country’s federal meat inspectors for years before this was discovered.

Does No One Remember?

Does no one remember what things were like before the EPA came along and environmental laws were finally brought on-line? It seems not, judging from the stuff I’ve been hearing coming out of the “new” EPA and the new administration. If you read the laundry list of things the new administration is planning on doing when it comes to the environment, it seems none of them do.

And what’s up with this fixation on coal that this administration has? Pruitt just put on a staged event with coal miners in full gear standing around him to try to spin how the gutting of environmental regulations is going to somehow create massive “economic growth”. All things considered, coal is a very, very minor cog in the energy machine. For many years coal has been becoming increasingly irrelevant in the energy world, and not just for environmental reasons. It’s expensive, dangerous, dirty, inefficient, produces huge amounts of waste material when burned, it’s hard and dangerous to mine, and the coal industry doesn’t really employ all that many people.

When I remember what it was like back in the 1960s, and think that we might be going back to those days of cities being entombed in clouds of toxic smog, rivers that were so polluted they actually caught on fire, where if you fell into a river you’d probably die from poisoning before you drowned, and all just so a few politicians can pose for pictures with a handful of miners from an industry that was starting to fail even before they were born, it makes me wonder what the hell is going on.’

Rather than spending all this time, energy and government money propping up the coal industry allegedly to “protect” the jobs of a few thousand miners as the politicians claim they are doing, wouldn’t it make more sense to invest those resources in training the miners for other types of work, giving different types of businesses incentives to move into those areas, etc?

Canadian Dairy Fights Back

The Canadian dairy industry is pushing back against claims that it and the Canadian government are at fault in Grassland cutting off 75 dairy farms here in the state. As I pointed out previously, the story being pushed out by the company about why it abruptly cut off 75 farms, forcing them to scramble to try to find new processors to buy their milk, seems to be a bit disingenuous. Especially when Grassland is claiming it had to cut off those farms because it can’t sell the milk while the company itself is seeking permits to build it’s own 5,000 cow dairy farm.

The Canadians are pointing out that the real culprit is the US’s overproduction of milk. And they’re right. The market for dairy products is utterly saturated. Despite an increased demand for butter, the US domestic market has been flat for years, with some sectors, such as consumption of liquid milk, actually declining despite heavy marketing and various gimmicks. And while demand is shrinking, prices falling, the diary industry responds by drastically increasing production?

Even one of the farmers dropped by Grassland agrees as is noted in the story linked above.

One of the biggest problems with the whole dairy industry in the US is government intervention in the market. Political manipulation of the market has resulted in a maze of rules, regulations, laws, marketing schemes, surplus buys and I don’t know what all else, that has left us with a marketing system that is convoluted, irrational, and so outdated that parts of it go back 75 or even a hundred years.

There is More on the Dairy Farm Story

I mentioned previously that a short time ago Grassland Dairy Products here in Wisconsin, which makes mostly butter, sent out letters to 75 dairy farmers telling them that as of May 1 Grassland would no longer be buying their milk. This left those farmers in a terrible situation. They now have no place to sell their milk. And the way the market is right now, finding a new processor to sell to is almost impossible.

In it’s press releases and comments to the media Grassland blames Canada. Canada, according to Grassland, changed their dairy import policies almost literally overnight, making it impossible for Grassland to continue to sell almost a million pounds a day of ultra-filtered milk, used in cheese making, to Canada. According to some of the information that came from the company, they received only two days notice before the change was implemented. The company had no choice but to cut back on the amount of milk it purchases. Grassland claims that it cut off those farmers that the company felt would have the best chance of finding a new market for their milk elsewhere.

But some people started to do some digging, and as is often the case, what’s been coming out in the press releases and statements from the company seems to have some problems. I ran into an op-ed piece over at Wisconsin Agriculturist that points out numerous problems with the whole story as it’s being presented by Grassland, and if true, there is a lot more going on here. You can read it here.

First of all, allegedly Grassland was not blind sided by this as they seem to be claiming. This didn’t happen overnight as the press releases seem to claim. This has been in the works by Canada for a long time. Grassland allegedly knew about this back in November already, and may have known as much as two years ago according to the editorial piece. Governor Walker actually wrote a column about it back in November.

Then there is the issue of which farms they cut off. The company claims it picked farms that it believed would best be able to find markets for their milk. But almost all of the farms being cut off are the ones that are the farthest away from the company’s processing facility in Clark County. Cutting off the farms that are the farthest away from their processing center would save the company a small fortune on shipping costs.

There there is this little tidbit: At the same time the company is cutting off 75 dairy farms, it is trying to get the permits to build it’s own 5,000 cow company owned mega-farm.

There’s no doubt that the company lost significant sales of product to Canada, but there seems to be a lot more going on here than just a trade squabble with Canada.