Corn Commentary

Grocery Manufacturers Have Some Explaining To Do

I sincerely hope Grocery Manufacturers Association is getting interest on their money they have invested with large PR firms to create the Food vs. Fuel red herring that continues to blame ethanol for higher food prices.

Truth is nationwide, food prices continue to trend downward. Retail food prices at the supermarket decreased slightly for the third consecutive quarter, according to the latest American Farm Bureau Federation Market-Basket Survey. The informal survey shows the total cost of 16 food items that can be used to prepare a meal was $46.29, down about 2 percent or $1.12 from the first quarter of 2009. Of the 16 items surveyed, 10 decreased, five increased and one remained the same in average price compared to the prior quarter.

Overall, the average price for the market-basket of foods declined $3.10 or about 6 percent over a year’s time. Retail egg prices dropped 26 percent, milk decreased 22 percent, chicken declined 19 percent and bacon was 11 percent lower compared to a year ago.

Funny, but oil prices are down too.  Maybe sun spots are causing these imaginary higher food prices? I guess that asking for a public apology from GMA would be too much? How about a compromise and put a sock in it!

Obama Cabinet Kicks Off Rural Road Tour

Obama farmPresident Obama announced his National Rural Tour yesterday during an interview with National Association of Farm Broadcasting past president Michelle Rook with WNAX Radio in Yankton, SD. “Over the next few weeks and months, top officials from my administration will fan out across the country to hold a series of discussions on how we can strengthen rural America,” Obama said.

Vice President Joe Biden, Agriculture Secretary Tom Vilsack, Commerce Secretary Gary Locke, and Federal Communications Commission Chair Julius Genakowski kicked off the “rural road trip” today in Pennsylvania, announcing $4 billion in loans and grants to bring broadband internet service to rural communities. Other stops are planned in Alaska, Louisiana, Nebraska, New Mexico, North Carolina, Ohio, Virginia and Wisconsin.

During her interview, Michelle asked the president about renewable fuels. “Obviously, I come from a farm state - Illinois - and ethanol has been a big boon for a lot of rural communities,” he said. “But we also are recognizing the key for us is to move into the next generation of biofuels, how can we use wood chips and refuse and switchgrass and how can we improve the efficiency of first generation biofuels. Farmers are going to be critical to that entire process.”

Michelle also asked President Obama about a number of other issues, including the climate change bill, whether farmers should be concerned about increasing regulations, and how the government might be able to help the livestock industry.

Listen to Michelle’s entire interview with the president here:

A Round of Applause for Urban Lehner of DTN

In ancient times messengers were treated with great respect because they were a vital lifeline regarding world events that could make or break your business or even your nation. Apparently times have changed.

Recently, DTN interviewed the increasingly infamous Michael Pollan, author of “The Omnivore’s Dilemma” who is also featured in the new documentary Food Inc., and the resulting article drew a considerable amount of attention and criticism from the Ag community.

So much so that Urban Lehner, Editor and Chief of DTN, felt compelled to write a column explaining why the Ag-Centered media outlet would provide a forum for such a food heretic.

In his own words, “When DTN writes about such people as Michael Pollan whose views are contrary to those of the majority of our readers, it isn’t because we think all their views are correct. It’s because we think such people have the power to shape the political environment in which agriculture will operate in the future.” Lehner said. “Pollan’s views certainly aren’t those of most Midwestern commercial farmers. Among other things, he sees corn as an agent of evil, responsible for much of what’s wrong with the modern American diet. But when those farmers call him an idiot they make the classic mistake of underestimating a formidable opponent.”

Lehner likened the running of Pollan’s comments to the same reason DTN weathermen predict stormy weather…forewarned is fore-armed. Having been exposed to Mr. Pollan’s message as well as its’ effect on consumers and more importantly on decision leaders in Washington, D.C., I can guarantee you the threat of his growing influence is real.

“The Omnivore’s Dilemma,” the New York Times best seller written by Pollan, is swallowed by many well-reasoned consumers as foodie gospel. DTN and Urban Lehner deserve the industry’s gratitude for alerting us to the hurricane on the horizon. His advice that farmers all should read his book is solid. If you don’t want to contribute to Mr. Pollan’s personal wealth buy a copy and share it with friends…lots of friends.

Corn Farmers Have Done Their Job;

Just another 12 billion bushel crop? It seems to be getting to be a familiar story. Poor planting conditions result in late planting for a significant part of the corn belt, followed by plenty of corn to do business as usual. For the folks that make their money second guessing the crop and hoping for wild gyrations in price and supply this is shaping up to be another example of modern corn productivity.

The June 30 Acreage Report from USDA NASS estimated corn area planted at 87.0 million acres and soybeans at 77.5, for a combined total of 164.5 million acres.The corn area was above market expectations by 2 to 3 million acres. Few anticipated this because of another rocky, wet planting season in a few critical areas.

After the last few years people should be catching on to several things:

1. Farmers are a patient lot, capable of herculean bouts of sustained work…and yes, they have large and modern equipment.

2. Modern seed technology has changed the rules of crop production making it capable of withstanding later planting and the vagaries of weather and insect onslaughts like never before.

3. Farmers love to plant corn. They like the planting and harvesting process itself, the multiple marketing possibilities offered by food, feed, fuel, and other industrial uses.

Granted, many farmers will have a tough year and the crop is not in the bin but with a prospect of a 1.45 billion carryoverthe picture looks a whole lot brighter.

Food Inc.’s Fact Problem

Update: Link fixed.

I went to go see Food Inc. last Friday, even though I do not believe that one must see a film in order to criticize it. Often, the film’s producers give one enough information to make a prudent decision. And there was plenty of evidence going into Food Inc. to know that it played a little fast and loose with the truth.

For instance, one corn grower who is quoted throughout the film on issues related to corn says that 30 percent of the U.S. land mass is planted in corn acreage. Well, there are 2.3 billion acres of land in the United States, of which approximately 442 million acres is cropland of one sort or another, according to the USDA. In 2008, corn growers planted 86 million acres in corn.

The film’s producers loved the sound bite, and had some beautiful footage to show how big a corn field can be. They even put this false factoid into their press kit. But it would have been so easy to check first.

Writing in The New York Times, columnist Nicholas Kristof raved about the film, but found one stat hard to swallow. Were there really 50,000 food inspections in 1972 and 9,164 in 2008? Apparently, not.

Problems such as these reflect a willingness on the part of the producers to accept without questioning any stat thrown out by their obviously biased sources without questioning them. The two biggest entities attacked in the film, Monsanto at one side and the livestock industry at the other, have done a terrific job refuting many of the claims made in the film that pertain to them. I will let them answer for themselves.

What gives Food Inc. emotional power is the quality of its anecdotes. What will give it real power to effect change, however, is its truthfulness. And there, it’s more than a little lacking. Sometimes, the facts do get in the way of telling a good story.

Banner Week For HSUS: High Finance and Higher Education Spell High Anxiety For Real Animal Advocates

Is it just me or have the folks at the Humane Society of the United States launched a full blown assault for the hearts, minds and bank accounts of gullible Americans? Like a bad case of fleas, the animal rights crackers seem to be showing up at every turn.

So it appears to be time to point out a significant distinction: there is a difference between animal rights and animal welfare…a big difference. HSUS spends in excess of $100 million a year trying to discredit people who actually raise and care for animals from domestic livestock , to pets to exotic animals.
Animal welfare is the title that should be reserved for those who actually care for animals and break a sweat tending to the daily needs and comfort of critters from abandoned companion animals (your local animal shelter), to those that provide us with eggs, milk and protein, to those who work to sustain exotic species for educational purposes or to protect them from extinction.
So what is really behind the ever-present puppy eyes and cute kitties used as a front for HSUS? A group that is kindred to PETA (People for the Ethical Treatment of Animals) in its’ goals…No meat. No dairy. No animal agriculture, and apparently no conscience. Period.

The massive donations given each year with the intent of easing the suffering or improving the lot of these creatures, instead goes toward lobbying to pass laws that most Americans would run away from screaming if their intent wasn’t disguised so well. Instead of helping shelters and animals directly, they works hard on eventually removing pets from our homes, meat from our tables, leather goods from our closets and animals from zoos.

Their latest affront is a very public move to expand beyond straight contributions from uninformed consumers to try to get into your wallet on a daily basis. It seems HSUS has partnered with Bank of America on a new World Points Platinum visa/check card and for every $100 you charge, 25 cents goes to perpetuate the HSUS fraud. HSUS is not affiliated with your local shelter so if you want to contribute, do so directly to your local shelter. If you want to let Bank of America know they have been suckered by a slimy corporate con, you can reach them at:

Bank of America Corporate Center

100 North Tryon Street

Charlotte, North Carolina 28255

 

Heard enough? - Well there is more. The world of Higher Education may never be the same. The Humane Society of the United States (HSUS) now has plans to educate the next generation of professional animal rights activists. HSUS has received a license as a higher education degree-granting institution by the District of Columbia Education Licensure Commission to offer a Bachelor’s Degree in Humane Leadership and a Master’s in “Community Leadership.” (Yes, tax dollars will likely be providing them funding soon, just like a real institution of learning).

The curriculum includes advocacy management courses which will help assure the next generation of “minority animal activists” will be even more professional in manipulating and misleading the public. Upon the announcement of the new college animal rights course work one observer asked: “If someone takes the HSUS advocacy management class and advocates against them do they flunk?”

Corn Producers Launch ‘Sustaining Innovation’ Campaign

Building off a campaign conducted in Washington, D.C., by the National Corn Growers Association and several state corn organizations, the Nebraska Corn Board and Nebraska Corn Growers Association have launched a campaign in Nebraska to promote some of the positive aspects of farming today.

corn_truck2Some of the positive messages include the fact that American farmers have slashed the fertilizer needed to grow a bushel of corn by 36 percent in the last three decades and that farmers have cut erosion 44 percent in the last two decades.

“Farmers are also growing five times more corn today than they did in the 1930s but we’re doing so on 20 percent less land,” said Jon Holzfaster, chairman of the Nebraska Corn Board. “Farmers have always and will continue to adapt and improve how they farm. We felt it was important to let the people of Nebraska know.”

Holzfaster said the campaign comes in response to some negative messages about corn production and, in part, corn-based ethanol, that have surfaced over the last year. “It got to a point that we felt some facts about farming today needed to be told,” he said.

The campaign is known as “Sustaining Innovation” because farmers are incredibly innovative and have continuously improved their productivity since humans first placed a seed in the soil. “We strive to do a better job in every row, on every acre, on every farm, every season,” Holzfaster said.

http://bit.ly/dwGWH

Price and Taste Trump Health On Menu Choices

A note to food marketers: Consumers who say they want healthy options are unlikely to actually order off the healthy menu.

Many restaurants are bending over backwards to offer lower-calorie options including KFC, which launched a grilled-chicken platform this spring, according to an article in today’s Advertising Age byEmily Bryson York, but apparently price and taste trump all.

“There’s definitely a dichotomy between what people say they want and what they actually do when it comes to healthy restaurant eating,” Maria Caranfa, a registered dietitian and director at Mintel Menu Insights, said in a statement. “Over eight in 10 adults told us it’s very or somewhat important to them to eat healthy, but when it comes to dining out, most people are really looking for taste, texture and experience.”

According to Mintel, price was also a deterrent in selecting better-for-you meals. As cash-strapped consumers tighten their belts, they’re choosing cheap and tasty comfort food.

Mintel found that only one in five consumers rank a food’s health attributes as an important factor when choosing dinner. But 77% of them thought about “taste,” and 44% considered “hunger satisfaction.” And a particular problem for restaurants: While roughly 75% of those surveyed said they would like to see more healthy options, only 51% order from those selections.

http://adage.com/print?article_id=137490

Food Inc. Undercooked With Angry Bias?

 

food-inc-art1

No matter what your opinion of the Food Inc. documentary might be, my opinion of the latest social media tool – Twitter – took a huge leap to the positive side today. Twitter was atwitter today with one of the liveliest discussions on the Food. Inc. movie or agriculture in general that I have seen in a long time.

Some of the online comments were rude, many were funny or insightful, some were hopelessly naive, and all made you think at some level. And interestingly enough many from the agriculture community from the crop and livestock side were in the thick of the discussion….slow phone line speed and all. You are to be commended. It you aren’t on Twitter, get their quick…. www.twitter.com

Robert Kenner, Food Inc. Director, was featured and online to answer questions.  (Long after Mr. Kenner left the discussion tweets continued…for 4 hours before I stopped keeping track) He may have created a questionable documentary and as one participant in the Twitter chat said today…”food and politics should never be served on the same plate,” but he deserves credit for putting himself out there in such a public forum. And at least this forum, unlike Good Morning America or the upcoming Nightline segment on his project,  allowed both sides to be heard. For a movie reviewer’s perspective go to: http://bit.ly/14IocQ

If you don’t have time here it is in a nutshell:

“The side effect of a well-executed horror film is lack of sleep. The side effect of a well-executed documentary on corruption of our food supply is lack of appetite. Personally? I left “Food, Inc.,” went straight to lunch and had a big ole’ fried-chicken salad.  Unfortunately for this film, one of the most valuable elements of education is learning to separate fact from bias and to seek proof in the form of evidence. “Food, Inc.” seems to cloud the presentation with a whole lot of bias and little proof.”

Now on to some jewels from today’s Twitter discussion:

I loved Variety’s review of Food Inc…it did for supermarkets what Jaws did for the beach.

How do you answer the need to feed a doubling or global population without utilizing any technology? Seems selfish to not look beyond the U.S.

Farmers are growing what they are paid for. We need to create a system where they can make money growing healthier foods.

Going back to how cattle used to be raised would require an added 16.5 million acres of land.

Gotta point this out moviemakers, Roundup soybeans are not insect resistant but herbicide tolerant.

I think we need diversity is Ag which means men and women, big and small, modern and old school. Room for all in Ag

Ag employs 21 million or 15% of the total U.S. workforce. The only entity employing more is government.

CA Should Rethink the Benefits of Ethanol

Gas Prices Soar: Summer Has Arrived

California’s average price for a gallon of regular gasoline topped $3 today for the first time since last fall, driven higher by a rally in the market for crude oil. A rally apparently driven by spastic investors rather than demand. Just one month ago, Californians paid $2.52 per gallon, according to the AAA auto club, and they still should be based on lagging demand.

San Francisco’s average hit $3.09 today, according to AAA. Oakland reached $3.01, and San Jose, $3.02. The oil price wave should push across the U.S. soon but while it batters California, perhaps biofuels supporters should bask in the moment. Who better to get thumped by imported petro prices than the West Coasters who recently ignored science and passed questionable guidelines that have put a chill on the previously burgeoning domestic biofuels industry.

Gasoline prices usually rise through the spring and peak in the summer, as Americans take to the road on vacation. But this year prices are rising despite slower gasoline sales. Last year’s historic price spike reached its pinnacle on June 19, when California’s average price for regular hit $4.61, a record. Then, prices crashed along with the global economy. They have now rebounded as market speculators seek any port in the economic storm.

Since late April, traders have bid up the price of crude oil, gasoline’s raw material. They’re betting that the economy has hit bottom and will start improving this year, driving up the demand for fuel. And with the dollar struggling against other currencies, big institutional investors have used oil as a relatively safe place to park their money.


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