Tag Archives: agriculture
Koskei: Real estate killing the coffee industry
Agriculture Cabinet Secretary Felix Koskei is asking county governments to go slow on real estate investments in order to save the coffee industry from rapid… Continue reading
Feeding The Planet: Beyond The £250,000 Hamburger
The creation of the world’s most expensive fast food is proving to be a distraction from the real problem facing global menus Share 17 Email Editorial The Guardian , Sunday 11 August 2013 By creating the world’s most expensive hamburger last week , Professor Mark Post and his team also engineered a savoury distraction from the real problem on the planetary menu: how to feed a population fast closing in on 10 billion. It is an issue that gets ever more serious. Consider: Britain, France and Germany produce 12% of the world’s wheat harvest, yet yields per hectare, which have almost trebled in one human lifetime, are no longer rising . These three countries are blessed with rich soil, good rainfall, long summer days, sophisticated agricultural science and all the fertiliser they need, so if yields are no longer increasing, then crops may be reaching their biological limit. In Japan and South Korea, rice yields may also be reaching a plateau. In the Middle East, where agriculture and civilisation began in symbiosis 10,000 years ago, grain yields have started to fall because water supplies have begun to dwindle: Iraq, Syria, Yemen and Saudi Arabia have all seen wells dry, and aquifers depleted. India, China and the United States rely on irrigation to sustain high crop yields but may be depleting groundwater faster than it can be replenished. Altogether, 18 countries may not have enough water to go on growing more and more grain: around 3.6 billion people live in these countries. That is about half the population of the planet . By 2050, the number of mouths to feed will have increased by 2 billion. As food supplies dwindle, and demand increases, food prices will rise: that is how markets work. But 2 billion people already survive on an income of less than $2 a day: almost a billion people go to bed hungry each night right now; 2 billion are, according to UN calculations, in some way malnourished. As food prices rise, so will political discontent. The Arab spring began with unprecedented rises in food prices; riots followed in Tunisia, Egypt and Libya . It is this chronology that enables some to argue that citizens can bear governmental incompetence, corruption and even oppression, as long as they can be sure of their supper. Add to this several other ominous trends. One is climate change: analysts who looked at 21 studies of civil war, ethnic conflict and street violence in modern societies found a consistent link with drought and high temperature in all 21 cases . Since many climate change projections forecast a 2C rise in average global temperatures some time near mid-century, and since crop yields tend to fall with extremes of temperature, this is not good news, for food security or for civilisation. There are other problems. One is waste. About 2m tons of food are lost every year: the crop never gets to the market in the poorest countries, or it is scraped off the plate and into the bins in the richest nations . Another is the switch from food crops to biofuel: in 2011 as gasoline prices rose, 127m tons – a third of the US grain harvest – were diverted to the production of ethanol. For the US farmers, it looked like a bargain: a $2 bushel of corn could be turned into 2.8 gallons of ethanol at $3 a gallon . But the grain to fill the tank of an American sports car just once would be enough to feed someone for a whole year: this is the market economy at its most grotesque. As incomes rise for the middle classes in the developing nations, so does global demand for meat and milk . The switch from staple crops to cheeseburgers signals both a soaring obesity epidemic and higher prices for grain: two disasters for the price of one, three if you chuck in the burning of the tropical forests, the settlement of the savannahs and the extinction of wild species to make new space for livestock. There is a clear need for concerted political action at an international level: to change the direction of agriculture, produce more food more sustainably and distribute it more fairly. That way, everybody is better off. Governments know this, because they see food security as one of the grand challenges of the century. Yet what, actually, are they doing about it? And are they doing enough? Sadly, we already know the answer. Continue reading
Notes from the Kansas City Fed Agricultural Symposium July 2013
August 6th, 2013 This is one of the slides that Mike Boehlje of Purdue showed during the July KCFRB agricultural symposium. There was a global cropland expansion of 147 million acres in the past eight years. Most of these acres came from South America, the FSU, and East Asia, and most of those acres went into growing corn, followed by soybeans. Note that some of the added acres are from double cropping. ********* In mid-July, the Federal Reserve Bank of Kansas City hosted its annual agricultural symposium titled, “The Shifting Nexus of Global Agriculture.” I considered attending but did not, so instead I read the twitter feeds of those who tweeted the event and there are some good nuggets in the (modified) tweets which follow. 1) From speaker Mike Boehlje, Professor at the Dept. of Agricultural Economics, Purdue: • Citing a new report he had just seen in the WSJ, Boehlje said that the IMF had decreased projections for world economic growth for the 4th quarter in a row. He said that this article has huge implications for agriculture including in China, India, and Brazil, too. • Don’t drink the Kool-aid that the agribusiness sector is feeding. Growth in INCOME counts, not population growth. ( K.M. Note: This was my favorite quote from this whole post, as I about go ballistic every time I see that “How are we going to feed… ” headline, which is far too often and gets the question wrong! …there are many other things that count besides growth in income, too, but it most certainly isn’t just about production.) • Boehlje said he’s a pessimist on long-term U.S. livestock industry competitiveness, which was based on cheap feed. The U.S. demand for animal protein is “mature at best and probably declining.” Larger multinationals may well off-shore production. He named 12 things to watch: • EU debt crisis • U.S. economic recovery • changing value of the USD • unpredictable Asian growth • current short crop supplies – weather supply shocks • livestock regulations • increased global acreage for crops • farm policy uncertainty • interest rates • fertilizer, seed, chemical, energy prices (input costs) • farm income and land values • counterparty risk 2) Univ. of Missouri’s Pat Westhoff: • Don’t count on $7 corn “unless the world changes in very fundamental ways.” He sees sub-$5 corn the next 10 years. 3) Gavilon’s Ray Wyse: • The FAO food index has tripled since the RFS was implemented, and land prices have increased five fold. • There are still more acres to be had in the FSU region, and double cropping is growing steadily around the world. • Some people are now looking at the People’s Republic of Congo as “the next Brazil.” • Is it possible to double-crop corn in certain regions of the U.S. as Monsanto develops shorter season varieties? • We will miss our corn export market when its gone. 4) Texas A&M economist Joe Outlaw: • You don’t write a farmbill for the good years, you write it for the bad years. Policy makers have to focus on that reality. 5) Next, are a few tweets about farmland. Sorry, I don’t have all of the sources of the quotes. • In fiscal 2012, Farmers National Company has sold more than 600 farms, for over $450 million. Active farmers continue to dominate the buy-side of the market. • Investors purchased between 25-30% of FNC’s 2012 sales. Traditional investors about half, non-traditional investors growing. • Jim Farrell: A new phenomenon we’re seeing is the 80+ year old cash buyer. He’s doing this since there’s no return on investment in CD’s or other “safe” investments. ( K.M. Note: I’ve also seen this going on with home purchases where I live here in Boulder, Colorado. You’d think 75 year olds would downsize, but instead they upsize – presumably for a place to safely invest with a better chance of return on their investment.) • Joseph Bond: Ag expansion in the Black Sea region will require billions of dollars of investment in modern agriculture techniques. • William Mott: More concerned about infrastructure and logistics costs with international farming operations than cost of production. 6) Informa’s Kenneth Eriksen: • There are “center pivots going up all over the map” in central and southern Illinois. Continue reading