Monday, November 5, 2012

We're all struggling!


What a year it has been! The summer started off with great weather. There have been many ups and downs in agriculture this summer and we are still seeing some.

1) Planting was off without a hitch, then the drought began.  For many, this was a make it or break it year for many.  The drought continued on through the summer, and now, the beginning of November most are completed with harvest.  The drought map below shows how badly the drought really is.


Crop yields will be lower than anticipated when planting began earlier this year; however we will get through this and make adjustments as needed.

2) Not only are we dealing with a drought this year, but there are Governors in several states and members of Congress that are questioning the Renewable Fuels Standard (RFS).  They are claiming the RFS will take corn away from food and it is increasing food prices.  There have been several studies that have been conducted showing that food prices would only decrease a few cents without the RFS.  

One of the co-products from ethanol production is distillers grains.  This co-product can be fed to livestock (beef cattle, dairy, poultry, swine) and used as a replacement for other feedstuffs in rations such as corn, soybean, some forage, and others.  There is a greater feeding value with distillers grains compared to corn.  When distillers grains is fed in the place of corn in a ration, a small amount of distillers grains is needed.  For example, if a ration would normally get 100 lbs of corn but it is being replaced with distillers grains, then only 70 lbs of distillers grains would be used.  So, corn for ethanol production is not taking away from food.  If anything, it is providing more food using less corn.

3) Congress has failed to pass a Farm Bill.  This bill isn't only for "farmers."  It should be called a job bill, food bill, school lunch bill, and more.  The Farm Bill affects every American.  There is still hope for Congress to pass a Farm Bill in the Lame Duck session but, this is a slim to none chance.  

This is just a small glimpse of what has been happening in agriculture the past few months.  We will see what the next couple of months brings!



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