Farm Catch Up

Spring has finally arrived! Well, sort of. At least according to the calendar if not the weather. It’s been too wet and too cold to be able to do much of anything outside except cleaning up the flower beds and yard. So let’s take a look at what’s going on in the ag industry since the last time I did one of these.

Dean Foods For Sale

If you’ve ever had a hankering to own one of the largest dairy processors in the world, now is your chance. Dean Foods, once the largest dairy processor in the U.S., is apparently trying to sell itself off. The company has been having a difficult time of it. It’s been forced to close processing facilities, it lost a major contract with Walmart, and its efforts to rebrand some of its products and buy into other businesses haven’t been successful, or at least not successful enough to prop up the company’s dwindling sales. It’s been missing its sales targets for something like two years in a row now, and there are no signs things are going to get any better. Supposedly Canadian based Saputo, the 8th largest dairy company in the world, is interested in acquiring Dean. If successful this would be just the latest in a wave of mega-mergers among agriculture related businesses in the last few years.

If you find these mega-mergers to be troubling, well, you should. Despite claims to the contrary, these mergers are resulting in the creation of huge, multinational companies that dominate their markets and often they have virtual monopolies on the product lines they sell.

Bayer Stockholders Angry

Speaking of mega-mergers, Bayer’s management is facing repercussions from stockholders over it’s acquisition of Monsanto. It was expected that a lot of large stockholders were going to disapprove of the board of directors’ and management’s acquisition of Monsanto at the annual general meeting of the company. While this doesn’t change what management has done, it does indicate that a lot of stockholders are very angry over the decision to buy Monsanto, and the subsequent legal problems over the lawsuits about the adverse health effects from RoundUp, and most importantly, Bayer’s plummeting stock value.

Frankly, buying Monsanto was a really bad idea from the beginning, and if the executives at Bayer didn’t realize it, the company’s lawyers sure as hell should have. Even back when the negotiations for the purchase started Monsanto was already facing thousands of lawsuits over the alleged cancer risks of glyphosate. Now there are about 13,000 lawsuits in the pipeline concerning the herbicide. No, that was not a typo. Thirteen thousand.

And that isn’t the end of Monsanto’s legal problems. There is the whole dicamba fiasco to be concerned about as well. The lawsuits over the damage the company’s dicamba based herbicide has done since it was released a couple of years ago, along with lawsuits over Monsanto’s marketing tactics for it’s dicamba resistant soybeans, are starting to pop up now and are only going to get worse. Basically Monsanto is a legal nightmare and it is dragging down Bayer with it.

Beef Industry Lawsuits

While I’m on the subject of legal problems, the beef industry has been hit with two separate but related lawsuits alleging the four biggest beef packing companies, Tyson, JBS, Cargill and United Beef Packing (together they control 80% of the US beef market) conspired together to manipulate the price they paid to cattle growers and the prices charged to consumers. Basically it’s another claim of monopolies using their lock on the market to manipulate prices. Just those four companies control about 80% of the beef market in the US. Anyway, I won’t go into depth on this one. I’ll leave it to you to follow the link and sort out the details if you’re interested.

Walmart Gets Into Beef

I mentioned Walmart briefly when I talked about Dean Foods. Dean lost a huge contract to make Walmart’s house brand liquid milk not long ago when the retailer decided to experiment with eliminating the middleman and become its own processor. It built a large milk processing facility, cut deals with dairy farms to supply milk, and cut Dean Foods out completely in one district.

Walmart is now trying to do the same thing with beef. It is developing its own end to end supply chain to supply beef to some 500 Walmart stores. This won’t take care of all of Walmart’s meat. Most of it will still be supplied by Tyson and Cargill. But it does indicate a troubling trend where these big companies are trying to develop a complete monopoly over not only sales, but supply as well. Costco is doing something similar with chicken, developing its own supply chain that will supply about 40% of its needs.

Trade Wars Continue: Updated 5/6/19

I had this section all wrapped up and ready to go when the you-know-what hit the fan and… Okay, here’s what’s going on.

I really want to talk about the China situation, but let’s deal with something closer to home first, the new NAFTA treaty, USMCA, the US-Mexic0-Canada-Agreement. The USMCA negotiations finished some time ago, a treaty was agreed to, and all is well and good now, right? (Side note: Am I the only one who thinks USMCA is the title of a Village People song?)

Well, no. Yes, the treaty was negotiated, but everything is most definitely not good because not only are we still operating under the old NAFTA treaty, the administration has still left the punitive tariffs in place that have been causing disruptions of the economies of all three countries.

So what the hell is going on? We have the new treaty, so why are we still operating under the old NAFTA and why are the tariffs in place yet? Because before a treaty can go into effect it has to be ratified by the US Senate, and the US Senate has been doing what it does best, acting like a bunch of petulant, spoiled brats who are more interested in back stabbing each other and playing at politics and dabbling in personal attacks than they are in actually doing their bloody jobs. Supposedly one of the reasons why the tariffs are still in place is because the administration is trying to use that to goad the Senate into doing something. And since that hasn’t worked, the administration has threatened to cancel the existing NAFTA treaty, which would cause utter chaos, if the Senate doesn’t get off its ass and actually do its job for a change.

Now let’s move on to China. Now if you haven’t really been following what’s been going on there, you can be excused for thinking that all is sweetness and goodness and we’re all well on the way to being best buddies and all of this trade war nonsense will be over soon and, well, no. Sorry, but no.

As you’ve probably found out in the last couple of days, despite all of the positive PR fluff that’s been released by both sides over the last few months, things have most definitely not been going well with the negotiations. While both sides have been putting out positive sounding press releases, there have been issues, as they say. Behind the scenes things have been more than a bit testy.

Yes, China did a soybean purchase, but that was more PR than anything else. While the amount they purchased sounds quite large to the average person, in actual fact it was little more than a token purchase to indicate good faith on their part.

Things did sound positive for a while, though. Both sides were stating that things were going well and that they were on the verge of coming to an agreement. But then something happened. I’m not sure what, exactly, but whatever it was put a definite chill on the whole thing. There are a lot of rumors flying around. One is that the Chinese are very much aware of the legal and ethics issues the administration is involved with here in the US and as a result they just don’t trust anything the White House says.

Anyway, we suddenly had the administration muttering vague threats that it was considering pulling out of the negotiations entirely. Then the administration started threatening to ramp up the trade war to new heights, doubling the cost of the tariffs and including even more Chinese products in the tariff war. Then the Chinese started threatening to pull out of the negotiations… Oh, brother…

As I write this (May 7, 2019) things look tense, and the effects from this little tiff are rippling through the economy. The stock market is down. Commodities prices have fallen. Corn is down to 3.55, soybeans are down to 8.20… Sigh…

Even more disturbing is the fact that statements being made by the administration indicate that the administration doesn’t really know how tariffs work in the first place. One statement implied that the administration believes that China is paying the tariffs and that they are actually good for our economy. If the administration really believes that, it shows a fundamental ignorance about what tariffs are. Let me explain.

A tariff is intended to discourage the importing of a particular product into the US by increasing it’s cost to the importer. Let me emphasize that by repeating it: “increasing it’s cost to the importer.” Not the country of origin, but to the person or company that is importing the product. So for the most part, China doesn’t pay anything extra on products it exports to the US (except indirectly through lost sales). The people who pay the tariff are the US companies that are importing the products. And that cost is passed along directly or indirectly to us, the consumers.

Let me emphasize that: China doesn’t pay the tariffs, we do.

This is one of the reasons why tariffs are generally a bad idea except under extreme circumstances. It causes as much economic pain or more to the country importing the products as it does to the country exporting them.

It also makes the stock and commodities markets very, very nervous, especially in this situation because they don’t know what the hell this administration is going to do next. The markets like stability. They like predictability. And this administration is providing neither of those things at the moment.

Well, I’ve been babbling along for far too long already here, so let’s wrap this up.

Hopefully in the very near future I’ll have some new radio equipment to talk about. I’m seriously considering going QRP and I’ve been looking at mag loop antennas and the Yaesu FT-818ND QRP transceiver. We’ll see how that goes.

Catch Up: Monsanto Ceases to Exist, Heat, and Stuff!

IMG_0935
A picture of a rose because, well, why not?

That heading up there is not a typo. Monsanto ceased to exist as of June 7 when the merger with ag giant Bayer was completed. The name “Monsanto” will be retired completely within a few months, the company will no longer exist, and all of its business will be conducted under the Bayer name. The complete acquisition will take a few months longer. Bayer still has to sell off some of its business parts to satisfy the DOJ’s requirements for approval of the acquisition, but it’s pretty much a done deal.

If you don’t find these mergers concerning, well, you should. As the saying goes, “the only thing we learn from history is that we learn nothing from history”. The claim that these “mega-mergers” improve the efficiency of a company, reduce prices to consumers, etc., is pure nonsense. There were valid reasons for the rise of the “trust busters” in the late 19th and early 20th century as the abuses of the monopolies became so great and so obvious that not even their wealth and influence could prevent the outrage that caused the development of the anti-monopoly laws, lawsuits and legal actions that broke many of them up back then.

Trade Wars

Oh brother… I could go on and on about this nonsense. I won’t. I try to stay away from politics here because, well, why bother? You get flooded with enough of that nonsense in other forums. However, I find it more than a little ironic to have you-know-who here in Wisconsin celebrating giving away more than $4 billion in taxpayer money to a Chinese company to lure it to Wisconsin while at the same time engaging in never ending tweet-storms about unfair trade practices by that country.

Oh, I should add that the company quietly announced that, to paraphrase them, “oh, by the way, the factory we’re going to put up is going to be a fraction of the size we said it would, isn’t going to make the product we said it was going to make, and we’re only going to hire a few hundred people not the 13,000 we said, but that the big factory will be put up “real soon”. Maybe.”

What remains to be seen is where FoxCon is going to find any employees. The unemployment rate in the state is under 4%, and in some parts of the state it’s under 3%. Employers have tried hiring bonuses, improving benefits, even upping starting wages. Several companies here have now even dropped the high school diploma requirement.

How Hot Is It?

In a word, very. It hit 97 F here yesterday (Friday), with very high humidity. Heat index was up around 107 the weather people said. It’s supposed to be even worse today with a heat index pushing 110. It was already 83 when I got up at 5:30 this morning. Basically no one goes outside in this weather unless they absolutely have to.

I remember what it was like milking cows in this kind of weather. Dear lord, it was bad. The cows were miserable, we were miserable, the cats were miserable, the dog was miserable…

IMG_0925
I don’t know what in the world made me think taking this photo was a good idea. MrsGF makes me wear the dopey vest. Make it easier for the police to find my body when I get hit by a truck, I guess.

While I looked at the poor bike sitting there in the garage behind the car, and was momentarily tempted, not even I am crazy enough to go out on the back roads and trails on a bicycle in this kind of weather.

I’ve become addicted to biking, though. Whenever the weather is even close to being decent I want to get out and put at least a few miles on. Being addicted to biking isn’t a bad thing, of course. It’s healthy, fun, relaxing.

But definitely not when it’s this hot and humid.

Amateur Radio Stuff

Okay, I have to admit it, I’m a bit bored with the FT8 mode. Don’t get me wrong, I’m not agreeing with the curmudgeons who think FT8 is ruining amateur radio. FT8 is just one of a long line of technologies that was going to “destroy amateur radio” according to the GOBs (good ole boys).  If you get on some of the amateur radio forums like QRZ and listen to some of these people ranting, you’d think FT8 was the harbinger of the apocalypse, for heaven’s sake.

But dam, FT8 does work if you want to make contacts under bad conditions and with less that ideal equipment.

Speaking of the QRZ website, I don’t know what’s wrong with some of the people who stalk the forums. And I do not use the term “stalk” lightly. That’s what they seem to do. They haunt the forums just waiting to pounce on anyone they think they can get away with insulting. Newcomers to the hobby are the natural prey of these jackasses. The most innocuous question will result in them pouncing on them without mercy with snide remarks, sarcasm, insults, accusations of them not knowing what they’re doing.

It’s a shame, really. QRZ has some great resources and there are a lot of people in the forums who are genuinely willing to help when you run into problems or are looking for information. But this handful of jackasses really ruin things. The moderators really need to step up and shut this kind of crap down. Right now QRZ has become so toxic because of some of these people that I have started to tell newcomers to avoid it completely and when my current subscription runs out next year I might not renew it.

Astronomy Stuff

Screen Shot 2018-06-30 at 8.01.13 AM
my 11 inch Celestron set up in the driveway. I must confess I don’t use it very often because the thing is almost impossible for one person to set up. Just the optical tube goes about 70 pounds.

Newcomers to this blog or whatever it is may not know I’m also an amateur astronomer because I haven’t talked about that in a long time here. I have two telescopes, the big 11 inch Celestron shown here, and a 3 inch Meade. I’ve been fascinated with astronomy since I was a kid. But as much as I love astronomy, there are aspects of it that I find more than a little tiresome, the main one being so-called scientists who claim life is everywhere out there.

It seems NASA spokespersons and even a lot of professional astronomers have gone right off the deep end with this. Mars could have life. Or may have had life billions of years ago. Moons of Jupiter and Saturn could have life. Hell, according to some of these people, Pluto could have life because they think there may be liquid water under the crust. Venus, which is as toxic a place as you can imagine with temperatures of 700+ degrees and sulfuric acid rain could have life, they tell us. And…

well, it’s all BS. I’m sorry, it just is.

As the Fermi paradox points out, if life out there is as common as some people claim, where the heck is it? Fermi pointed out that, given the number of stars in the galaxy and the age of the universe, if there was any intelligent life out there, there should be some kind of evidence that it exists that should be obvious to us by now. So where is it?

Despite the PR fluff pieces coming out of NASA and from astronomers who really should know better, there is no evidence of life anywhere outside of the Earth. The SETI project has turned up nothing but a few questionable signals that could be from natural sources or from man made sources. The Mars rovers have turned up some interesting results,  yes, but any sign of actual life either now or in the past? No. A lot has been made of the presence of methane on Mars and they’re attempting to link that to some kind of life. But there are other, far more likely explanations for the presence of methane.

We have no evidence at all that there is life out there. None. All we have is speculation, theory, beliefs, claims, and no actual evidence.

A study by Oxford scientists Sandberg, Drexler and Ord that came out a short time ago, examined the Fermi paradox and the Drake equation and other factors with an unbiased eye and, well, the results aren’t good for the proponents of life being common. They found huge margins for error in the calculations and that the “evidence” presented to support wide spread life in the universe is little more than wishful thinking.

The Drake equation is pretty much worthless. The parameters assigned to the equation are, well, flat out guesses. No one knows for sure. The parameters are often wildly optimistic, failing to take into account known facts.

If you look at the actual facts, the results are less optimistic. As the authors said in their report, “When we take account of realistic uncertainty, replacing point estimates by probability distributions that reflect current scientific understanding, we find no reason to be highly confident that the galaxy (or observable universe) contains other civilizations.”

“When we update this prior in light of the Fermi observation, we find a substantial probability that we are alone in our galaxy, and perhaps even in our observable universe.

“‘Where are they?’ — probably extremely far away, and quite possibly beyond the cosmological horizon and forever unreachable.”