Farm Foundation is holding a forum at the National Press Club at this very moment to release a new study offering a comprehensive, objective assessment of the forces driving food prices.
Farm Foundation president Neil Conklin says what the study shows is that today’s food price levels are the result of complex interactions among multiple factors. “However, one simple fact stands out - economic growth and rising human aspirations are putting greater pressure on the global resource base,” Conklin says. “The difficult challenge for public and private leaders is to identify policy choices that help the world deal with the very real problems created by today’s rising food prices without jeopardizing aspirations for the future.”
The study was written by three Purdue University economists. Lead author Wally Tyner says they basically identified three broad sets of forces driving food price increases - global changes in production and consumption of key commodities, the depreciation of the U.S. dollar, and growth in the production of biofuels.
“We made no attempt to calculate what percentage of price changes are attributable to the many disparate causes and, in fact, think it is impossible to do so,” says Tyner. “But examining the interplay of the forces driving food prices gives a clearer picture of what has been happening.”
Read the full report here. There are some very interesting findings here and worth a read. Farm Foundation hopes this will add some reason to the food versus fuel debate which is running high on emotion and low on facts.
We did the interviews with Conklin and Tyner that are posted on the Foundation website. They are also posted below for your listening pleasure.
Conklin interview (runs 4:30)
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Tyner interview (runs 9:00)
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Also, Farm Foundation will host a free webinar on the report, July 30 at 1 p.m. EDT. More information is available on the Farm Foundation web site.
The 9th annual Precision Ag Conference is being held in Denver, CO. The conference kicked off today and will continue through Wednesday, July 23rd. Experts from around the globe will be presenting the latest techniques in precision farming technology. During the reception this evening, I spoke with precision experts from South Africa, India and Egypt. So far, the general idea seems to be that the U.S. is the leader in developing precision technology while the rest of the world puts it to use. We’ll see if that’s really the case.
I’ll be covering the conference in Denver this week. Updates will be posted on PrecisionPays.com, and most of the content will be used for continued posting on the precision ag Website.
I must say, the reception on the 12th floor of the Hyatt Regency boasted spectacular views of the Rockies. A few of us couldn’t tear ourselves away from the stunning sunset over the mountains and foothills.
One of Monsanto’s Mobile Greenhouse “Street Team” representatives is a student from Purdue. Daniel Stauffer is a Field Sales Intern for Monsanto and is one of the experts farmers and growers at the Michigan Ag Expo can grill about Monsanto’s new Roundup Ready 2 Yield soybeans. Daniel says one of the most exciting attributes of Monsanto’s “next generation” soybeans is the “drastic” increase in crop yields. Soybean crops, Daniel says, have maintained flat yields for more than ten years. That is, until now.
Daniel isn’t an expert only in Roundup Ready 2 Yield soybeans though. He’s also contributing to Monsanto’s stress mitigation research on corn and soybean crops, testing traits such as drought-resistance. Daniel says he’s also involved in research with Vistive soybeans and silage corn among a handful of other projects.
I spoke with Daniel at this week’s Michigan Ag Expo. You can listen to my interview with Daniel here:
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Monsanto Summer of Soy Photos
Monsanto’s industry-exclusive Roundup Ready 2 Yield soybeans showcased in the ag company’s new Mobile Greenhouse is proving to be quite the curiosity for many farmers and growers at the 2008 Michigan Ag Expo.
Farmers and growers took the unique opportunity to get a sneak peek at what Monsanto calls its “next generation” soybeans, peering through the glass of a climate controlled greenhouse on wheels to see an up close demonstration of Roundup Ready 2 Yield soybeans at various growth stages. Representatives from Monsanto’s Mobile Greenhouse “Street Team” greeted visitors and educated them on the live examples of what the company claims to be “monumentally” higher yielding soybeans. Visitors could also enter to win one of five Family Dream Vacations valued at $8,000 a piece. The Mobile Greenhouse also featured an informative video on Monsanto’s new Roundup Ready 2 Yield soybeans. Monsanto representatives says the a limited supply of Roundup Ready 2 Yield soybean seeds will be available for the 2009 growing season. The seeds will be commercially available in 2010.
Monsanto Summer of Soy Photos
Michigan’s largest agricultural equipment exposition has more to boast than just equipment. The 29th annual Michigan Ag Expo is underway this week at Michigan State University in Lansing and there’s more to the show than machinery… or even fencing, canopies, turkey legs, honey and free cake batter ice cream from MSU students.
Farmers and growers will also find a 28-foot Mobile Greenhouse on the grounds of the exposition. The greenhouse on wheels is part of Monsanto’s “Summer of Soy” tour. The tour is showcasing one of the ag company’s newest and most innovative crops: its Roundup Ready 2 Yield soybean line. Roundup Ready 2 Yield soybeans are Monsanto’s second-generation of genetically modified soybean crop. Farmers can visit the Mobile Greenhouse to get a first-hand look at Roundup Ready 2 Yield soybeans at various growth stages.
I attended the Michigan Ag Expo yesterday to find out more about Monsanto’s new exhibit and soybean tour and will be posting lots of info from the event here.
Monsanto Summer of Soy Photos
Investment in Africa is spurring economic innovation and growth throughout the continent. There’s no question about that for the U.S. Secretary of Agriculture Ed Schafer.
“Make no mistake about it,” Schafer said. “Investment in agriculture, investment in the structure of agriculture to move food to the market, is an investment in Africa’s future.”
Schafer urged private sector investors to build stronger partners and markets in Africa at the 2008 U.S. Africa Agribusiness Forum Friday. The ag secretary said in order to truly develop a successful farm to market infrastructure in Africa, the private sector must get involved. Schafer pointed out that much of Africa lacks the basic fundamentals needed for thriving agriculture markets. He said things as simple as storage, refrigeration, a consistent supply of electricity, expertise in where to sell and how to sell simply don’t exist in many African regions. (more…)
The energy sector is, as Nigeria’s Honorable Peter Odebunmi puts it, “the bane of our non development.” Peter is a Representative of the Federal Repbulic of Nigeria. He says Nigeria lacks an adequate energy supply, which increases costs and makes domestic goods uncompetitive in the global market. That’s why, he says, President Umaru Musa Yar’Adua plans to declare a state of emergency within Nigeria’s energy sector. The hope, Peter says, is to drive more investment in the country’s energy resources.
Water is one resource of particular importance for Peter. He explains Nigeria is not properly managing its existing dams. Peter says his country needs to develop its water infrastructure because Nigeria’s access to safe water is still considerably low. He adds that a working water infrastructure is key to developing African agriculture and empowering the African people.
The 2008 U.S. Africa Agribusiness Forum is meant to facilitate such development. Peter says representatives from countries all across Africa are met with public and private investors in Chicago to learn how American agribusiness works and apply what they learn in Africa.
Peter says, right now, Africa faces constraints in technology and financing because members of parliament, or Nigeria’s representatives of the people, do not have access to what he calls “elitist” information. Information, he says, that reveals how to attract foreign investment.
Producing surplus and exporting that surplus is one of the key concepts Peter says he has learned more about during the forum. Peter want to take the concept of value-added agriculture to Nigeria, encouraging local, family farmers to produce a surplus so Nigeria can increase its exports.
I spoke with Peter during the forum. You can listen to my interview with Peter here:
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2008 U.S. Africa Agribusiness Photo Album
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Changing the African vision from one of short-term pay-offs to that of long-term success was one of the key issues for panelists at the “Education and Knowledge Building in Animal Agriculture” breakout session. The session was one of fifteen being offered at the 2008 U.S. Africa Agribusiness Forum. The workshop, sponsored by Novus International, featured a panel of experts that addressed the needs and means for improving education and first-hand know-how for creating “robust agribusiness value-chains” throughout Africa.
And, robust agribusiness in Africa is a very real possibility offering real opportunities if you ask Dr. Jerry Nelson. Jerry is a professor of plant sciences at the University of Missouri-Columbia and served as the panel moderator.
“Africa probably has the most agricultural potential than anywhere we’re looking at right now,” Jerry said.
Thad Simons, the president and CEO of Novus International highlighted the ultimate goal: “providing safe and secure food all over the world.” He added that performance and sustainability were critical for realizing that goal.
The panelists looked at how to drive that performance and sustainability in Africa. Sergio Beliver, sales manager for Europe, Africa and Middle East at Novus International, stressed the importance of education. He said Africans need to be educated not only in the processes, management and technology needed for modernizing Africa’s agricultural industry but also in long-term vision. He says farmers need to be taught to recognize the value in a more secure future instead of looking for quick pay-offs in the present. That’s something Dave Harlan, director of Global Animal Health & Food Safety at Cargill Inc. also stressed.
“It’s not about capturing a high price, but locking in a price that people can live on,” Dave said.
Dr. Shaukat Ali Abdulrazak, secretary National Council for Science and Technology in Kenya, also echoed Sergio’s call for more education. Shaukat said his country needs personnel that is both educated and trained in modern farming techniques, management and the development of necessary infrastructure. He conceded that one major challenge is “short-sighted politicians” who only consider programs that fall within the parameters of the term they serve in parliament. He says politicians in Kenya tend to have an agenda that expire when their term expires.
But, Shaukat says Kenya does have government initiatives and national development plans that should attract investors. He stressed that leaders in the public and private sectors of both the U.S. and Africa need to work together to build off of the positives that already exist. Shaukat says leaders and experts need to “make lemonade out of the lemons we have.”
Tasir Olawale Raji, the permanent secretary with Lagos State Ministry of Agriculture and Cooperatives, agreed. He said its crucial for African countries to move with other developing countries throughout the world, so Africa won’t be left behind. And, to do that, Tasir said leaders and experts need to focus on those that are already on the job in Africa, building upon “already acquired experience.”
Jerry highlighted the critical agricultural “lemons” so-to-speak that countries throughout Africa need to work on including land, water, electricity, energy and marketing. Jerry said African countries must develop the needed infrastructures and the continent’s agricultural industries must exists within those infrastructures. The continent should work as a larger unit to develop a strategy planning mission with each country, Jerry said, offering its own unique approach and contribution.
The entire panel discussion is available here on AgWired.com. You can listen to the discussion in two parts here:
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2008 U.S. Africa Agribusiness Photo Album
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There is money to be made in Nigeria. Dr. Isa Yugada, Executive Governor of the Bauchi State in Nigeria assured every potential investor of that at the 2008 U.S. Africa Agribusiness Forum. Isa highlighted Nigeria’s natural habitat for a diverse selection of crops including tomatoes, sorghum, maize, millet, rice, cassava, beans and more. He added that Nigeria possesses poultry, livestock, fish and timber industries and already produces a surplus in certain cash crops including sugarcane, cotton, ginger and sunflower.
Isa acknowledged that there are challenges and risks involved with investing in Nigeria, but he says he believes those risks and challenges are no different than those investors would find in any other country in any other sector.
“I don’t believe that there is any country that does not have risks or there is business that you go into that does not have risks,” Isa said.
Nigeria is also in the development stages of a new dam. Isa said the dam that his country is currently planning would be the biggest dam in Africa at eight km in length. He said this dam would make over 140,000 hectares of land available for farming through irrigation.
Isa urged investors to take advantage of the opportunities Nigeria has to offer in agribusiness. He assured businesses of both the public and private sectors that Nigeria is an emerging environment for investment and agriculture.
You can listen to Isa’s remarks here:
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2008 U.S. Africa Agribusiness Photo Album
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Stock exchanges provide a platform. A platform that Chris Sturgess, assistant general manager of the Agricultural Products Division of the Johannesburg Stock Exchange, says helps with price discovery and price risk management. He says Africa needs such platforms. At the same time though, he stresses that stock exchanges do not set prices.
Chris presented at the opening session of the 2008 U.S. Africa Agribusiness ForumYou can listen to Mbaye’s remarks here:
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Mbaye Diop Sarr represents the West African business sector as the general administrator for the West Africa Commodity Exchange. For Mbaye, direct market access for producers is critical for the development of African agribusiness. He says Africa needs to drive competitiveness to fulfill industrial needs. He adds that Africa needs to embrace commercial partnerships among the various countries within the continent.
Mbaye presented at the opening session of the 2008 U.S. Africa Agribusiness Forum. You can listen to Mbaye’s remarks here:
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There are a lot of issues that need to be addressed in African agribusiness and Ian Goggin, CEO of the Agricultural Commodity Exchange for Africa, wasn’t afraid to highlight each and every one. Among the negatives in the African agribusiness sector Ian identified during the 2008 U.S. Africa Agribusiness Forum:
- Very little reliable data on trade flows
- Lack of competition
- Poor communication
- Lack of transparency
- No enforceable contracts or dispute resolution
- Lack of trust in the current system
Ian even pointed out that some have called Africa’s ag industry: “the most inhospitable climate in the world.”
Ian’s straightforwardness is not meant to discourage, but simply to identify where the industry needs improvement, so those in the business find the best way to develop and modernize. If anything, Ian’s blunt presentation of where African agribusiness stands is meant to inspire both African and American ag industry leaders to initiate needed change. He stresses that “exchange is an agent for change.”
You can listen to Ian’s remarks here:
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2008 U.S. Africa Agribusiness Photo Album
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The CME Group claims to have ideas that change the world. And, that’s precisely what CME Group Vice Chairman Terrence Duffy says the 2008 U.S. Africa Agribusiness Forum is helping to facilitate: ideas that are changing the world.
The CME Group is a combined exchange entity formed from the 1997 merger of the Chicago Board of Trade and the Chicago Mercantile Exchange. Terrence spoke at the forum introduction this morning in Chicago, discussing how to shape the future of African Agribusiness.
“This venue provides an important opportunity to discuss the forces that are reshaping the development of ag markets around the world including in Africa,” Terrence said.
Terrence reminded attendees that increased demand for food at a time when food is in limited supply is pushing up world commodity prices. And that, he said, highlights a global need.
“Higher commodity prices are telling us one important thing: the world needs more food,” Terrence said.
Calling for investment, innovation and infrastructure, Terrence stressed his belief that despite marked challenges in the African agricultural industry, there are tremendous opportunities to develop the continent’s ag community and bring it to a global level.
Last year, agriculture generated one third of Africa’s gross domestic product, yet, Terrence pointed out that Africa is a net importer of agricultural commodities. Terrence says Africa needs to develop local markets and gain access to global markets. He adds that now is one of the most exciting times to be involved in agriculture. But, he says, the U.S. and Africa need to work together to improve the agricultural industry on a global level.
“At a time when the world needs more from agriculture, we need africa to reach its potential and become a partner in the global commodity production,” Terrence said.
You can listen to Terrence’s opening remarks here:
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2008 U.S. Africa Agribusiness Photo Album
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Agriculture is an industry in Africa that’s poised to flourish… if the U.S. would simply get involved. That’s what the Corporate Council on Africa believes and that’s why it’s hosting the
2008 U.S. Africa Agribusiness Forum in partnership with the World Trade Center Illinois.
CCA President and CEO Stephen Hayes says his organization has been the voice for the vision of American and African commerce for 15 years. Often times, Stephens says, his organization has been the lone voice. Established in 1993, the CCA now consists of 180 major corporations that represent more than 85 percent of all U.S. foreign direct investment in Africa. But, Stephen explains, the CCA is not just made up of large corporations. A third of the companies involved with the CCA are small businesses involved in Africa.
Now, Stephen says, its time for America and Africa to work together in developing and modernizing the agricultural sector within Africa.
Stephen’s opening remarks officially kicked off the activities of the first U.S. Africa Agribusiness Forum. You can listen to Stephen’s introduction here:
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2008 U.S. Africa Agribusiness Photo Album
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People from all walks of life, as World Trade Center Illinois Agribusiness Director Chuck Hartke puts it, are gathering in a first-of-its-kind forum in Chicago this week in an effort to grow agricultural exchange and commerce between the U.S. and Africa. Chuck says the 300 participants of the 2008 U.S. Africa Agribusiness Forum have come together to explore how America can play a key role in developing rural agriculture in Africa.
African countries are asking for help and Chuck says the American Midwest, particularly Illinois, possesses the resources to help. Chuck says the top of the line production facilities, quality food products, machinery and equipment available in the Midwest are an example of what’s needed and what’s achievable throughout Africa.
Chuck explains that a continent that’s four and a half times the size of the U.S., with ample fertile land, has the untapped potential to not only solve its own hunger issues, but become a global player in food commerce.
Right now, though, Chuck says the reality is a continent of 900 million African people who, as a majority, aren’t even able to feed themselves. But, he says this forum is meant to spark dialogue and courtship that spans the Atlantic Ocean.
Chuck says Africa represents a huge portion of land that’ s not contributing to the global food source and its time for the U.S. and Africa to work together to capitalize on the economic opportunities for agribusiness between the two nations.
I spoke with Chuck during a break from this morning’s sessions and workshops. You can listen to my interview with Chuck here:
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2008 U.S. Africa Agribusiness Photo Album
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The Corporate Council on Africa wants U.S. investors to realize their potential in African agribusiness opportunities. That’s why the CCA is showcasing the African food value-chain at the 2008 U.S. Africa Agribusiness Forum. The CCA wants public and private sectors alike to cross borders and bring “farm to fork.” I’ll be covering the forum here at the Hyatt Regency in Chicago throughout the day Thursday and Friday.
Highlights of the Forum will include industry-specific sessions, panels to address cross-cutting issues, such as finance product innovation, pharmaceutical and biofuel industry growth, carbon trading, production technology, and certification; as well as networking opportunities. Industry experts will share best practices and the latest trends in the field.
These are a few examples of how the 2008 U.S.-Africa Agribusiness Forum will help companies gain the competitive edge on investing in Africa by becoming more knowledgeable about the African agribusiness marketplace.
2008 U.S. Africa Agribusiness Photo Album
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Willie Nelson is sending out pleas for help. He’s calling for donations to help family farmers that are being devastated by severe weather and flooding in the Midwest.
Severe weather in nine Midwestern states is devastating family farmers. Disastrous floods in Iowa and Wisconsin have hit farmers especially hard–more than 30 counties in Iowa alone have already been declared federal disaster areas. More areas are expected to be threatened by rising flood water in the next few weeks.
Farm Aid is working now with local farm groups, churches, and rural organizations to get emergency funds out quickly to flooded farmers. This week, we made our first grant of $10,000 to a local Iowa farm organization to provide emergency assistance to farmers in need right now.
Farm Aid has a long history of helping farm families survive disasters — but we need your donation to do it. Can you help by making a tax-deductible donation of $25, $100, $500, or $1,000?
When major disasters like this strike, desperate farmers and farm organizations call Farm Aid. With your help, Farm Aid can help by providing emergency funds for families to buy food and cover living expenses and by supporting emergency hotlines and organizations that provide legal, financial and emotional counseling to farm families in need.
Please make an emergency contribution to Farm Aid’s Family Farm Disaster Fund right now and we will rush your funds to the stricken area.
Stay Strong and Positive,
Willie Nelson
Wisconsin’s largest outdoor farm show now has ample seating for attendees. As part of a lesson in mass production, Wrightstown High School Tech produced 50 park benches in one day. The benches will be used at the 2008 Wisconsin Farm Technology Days held July 15-17, 2008, at Country Aire Farms.
“These benches were hand made out of treated lumber – 2 x 6s and 5/4-inch deck boards,” explains Youth Committee Chair Marty Nackers. “The park benches will be used during Farm Technology Days for seating in the stage area of the Youth Tent.”
Each bench is for sale as a fund raiser for the Brown County show organizers. The cost is for $50 per bench and they must be picked up the last day of the show, Thursday, July 17, between 4:30 p.m. – 5:30 p.m. Orders will be filled while supplies last and payment is due on or before July 10.
Those interested in ordering a park bench can download an order form from the 2008 Wisconsin Farm Technology Days web site. Click “Brown County,” then “Park Benches.”
This is not something you want to see in your corn field. River driftwood.
Actually that’s not the only thing wrong with this picture near Eddyville, IA. The water in the background is supposed to be the rest of the field, not the Des Moines River. It was an eye opener of a drive up to Newton, IA today. The worst flooding and fields I saw were in Iowa. Even fields with some very good looking corn had huge areas of dead or very yellow plants where it looked like water had pooled up for a while.
At least the sun was shining most of the way up. However, I did drive through a line of showers right after getting into Iowa earlier this afternoon.
Citrus growers will soon have a new employment option: robots. Energid Technologies is developing a robotic citrus harvester for bulk fruit removal.
Energid Technologies Corporation has been funded by the U.S. Department of Agriculture under the Small Business Innovation Research Program to develop a new robotic citrus harvesting system. This system will combine the intelligence of robotics with the efficiency of bulk fruit removal to reduce harvesting costs to the citrus grower.
Most citrus today is harvested by hand, throughout the U.S. and the world. The resulting high costs, especially high in the U.S., are a significant part of the total cost of producing an orange or grapefruit for consumption. The new system being developed will reduce the cost of citrus products to the consumer while maintaining grower profitability.
Most past attempts at automated harvesting have focused either on conventional robotics, multi-link arms, or on bulk removal, such as trunk and canopy shakers. Energid is developing a unique system that combines the best of both approaches. (more…)
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Digital cattle news pioneer, Rob Cook, is now working for Vance Publishing after the company acquired CattleNetwork.com.
