Category Archives: Agriculture

Agriculture

Farmland Acerage Decreases in Charlottesville Area

The Charlottesville region lost nearly 8 percent of its farmland in only five years — a rate that outpaced the rest of Virginia. Statewide, Virginia lost roughly 6 percent of its farmland during the same period.

Between 2002 and 2007, the total quantity of local farmland fell by 56,836 acres, according to the 2007 Census of Agriculture. Despite the loss of acerage, the overall number of farms grew slightly in every local county, with the exception of Albemarle, which lost 24 farms between 2002 and 2007.

The average size of farms dropped in every county by a rate as high as 20% in Louisa County and as little as 6% in Madison and Orange counties.

[Read](http://www.dailyprogress.com/cdp/news/local/article/farmland_dwindles_in_area/35436/ “Read the Article”) (Charlottesville Daily Progress)

Grain Piles Up In Ports

The credit crisis is spilling over into the grain industry as international buyers find themselves unable to come up with payment, forcing sellers to shoulder the losses.

Before cargoes can be loaded at port, buyers typically must produce proof they are good for the money. More deals are falling through as sellers decide they don’t trust the financial institution named in the buyer’s letter of credit.

“There’s all kinds of stuff stacked up on docks right now that can’t be shipped because people can’t get letters of credit,” said Bill Gary, president of Commodity Information Systems in Oklahoma City. “The problem is not demand, and it’s not supply because we have plenty of supply. It’s finding anyone who can come up with the credit to buy.”

So far the problem is mostly being felt in U. S. and South American ports, but observers say it is only a matter of time before it hits Canada.

[Read](http://www.financialpost.com/story.html?id=866522 “Read the Article”) (The Financial Post)

Small Farmers Struggle to Meet Large Demands

Small-scale farmers are experiencing growing pains as they adapt to the country’s expanding diet for locally grown foods and the exacting demands of high-volume distributors of their produce.

Companies such as Sysco, Whole Foods, and Wal-Mart want things like guaranteed volumes, set prices for an entire season and the ability to trace produce back to its source in the event of a food-related health scare.

Such standards, and other formal trappings of the business world like contracts, attorneys, technology, often conflict with the ethics, and practical considerations, of small-scale farmers, especially those who are deeply religious.

[Read](http://www.theday.com/re.aspx?re=15fd4cbc-e77c-4c49-b42c-3c855664dc33 “Read the Article”) (TheDay.com)

Mideast Facing Choice Between Crops and Water

For decades nations in the Mideast and North Africa have drained aquifers, sucked the salt from seawater and diverted the Nile to make the deserts bloom. But those projects were so costly and used so much water that it remained far more practical to import food than to produce it. Today, some countries import 90 percent or more of their staples.

Now, the worldwide food crisis is making many countries in this politically volatile region rethink that math.

Economists say that rather than seeking to become self-sufficient with food, countries in this region should grow crops for which they have a competitive advantage, like produce or flowers, which do not require much water and can be exported for top dollar.

[Read](http://www.nytimes.com/2008/07/21/business/worldbusiness/21arabfood.html “Read the Article”) (New York Times)

Worries Mount as Farmers Push for Big Harvest

In a year when global harvests need to be excellent to ease the threat of pervasive food shortages, evidence is mounting that they will be average at best. Some farmers are starting to fear disaster.

American corn and soybean farmers are suffering from too much rain, while Australian wheat farmers have been plagued by drought.

At a moment when the United States’ corn should be flourishing, one plant in 10 has not even emerged from the ground, the Agriculture Department said Monday. Because corn planted late is more sensitive to heat damage in high summer, every day’s delay practically guarantees a lower yield at harvest.

[Read](http://www.nytimes.com/2008/06/10/business/10planting.html?partner=rssnyt&emc=rss “Read the Article”) (New York Times)

Food Is Gold, So Billions Are Being Invested in Farming

Huge investment funds have already poured hundreds of billions of dollars into booming financial markets for commodities like wheat, corn and soybeans.

But a few big private investors are starting to make bolder and longer-term bets that the world’s need for food will greatly increase — by buying farmland, fertilizer, grain elevators and shipping equipment.

One has bought several ethanol plants, Canadian farmland and enough storage space in the Midwest to hold millions of bushels of grain. Another is buying more than five dozen grain elevators, nearly that many fertilizer distribution outlets and a fleet of barges and ships. And three institutional investors, including the giant BlackRock fund group in New York, are separately planning to invest hundreds of millions of dollars in agriculture, chiefly farmland, from sub-Saharan Africa to the English countryside.

The investors plan to consolidate small plots of land into more productive large ones, to introduce new technology and to provide capital to modernize and maintain grain elevators and fertilizer supply depots.

These new bets by big investors could bolster food production at a time when the world needs more of it. But some traditional players in the farm economy, and others who study and shape agriculture policy, say they are concerned these newcomers will focus on profits above all else, and not share the industry’s commitment to farming through good times and bad.

[Read](http://www.nytimes.com/2008/06/05/business/05farm.html?_r=1&partner=rssnyt&emc=rss&oref=slogin “Read the Article”) (New York Times)

Corn Farmers Prosper But Others Lose Out With Ethanol Use

As corn prices have risen with demand for ethanol in recent years, corn farmers are prospering. But others, such as hog farmers who rely on corn feed, are facing tough times, and some critics blame ethanol demand for rising food prices worldwide.

[Read, Listen and/or Watch](http://www.pbs.org/newshour/bb/science/jan-june08/ethanol_05-15.html “Read the Article and/or Listen or Watch the Report”) (PBS)

As economy stumbles, gardeners turn to yard-grown produce

High prices at the pump and the produce aisle have sent home gardeners into their yards with a mission: Grow-it-yourself dining. Sales of vegetable seeds, tomato transplants and fruit trees are soaring as enterprising planters grow their own food. Burpee, the nation’s largest seed company, has sold twice as many seeds this year as it did last year, with half the increase from new customers.

Interest in growing fruits and vegetables picks up during economic downturns, people in the industry say. Seed companies say a dime spent on seeds yields about $1 worth of produce. Bad economic times can also mean more time to garden — people who cancel their summer vacations are around to water their tomatoes.

[Read](http://www.usatoday.com/money/economy/2008-05-20-grow-your-own-food_N.htm?csp=23&RM_Exclude=aol “Read the Article”) (AP via USA Today)

Where Industry Once Hummed, Urban Garden Finds Success

Amid the tightly packed row houses of North Philadelphia, a pioneering urban farm is providing fresh local food for a community that often lacks it, and making money in the process.

Greensgrow, a one-acre plot of raised beds and greenhouses on the site of a former steel-galvanizing factory, is turning a profit by selling its own vegetables and herbs as well as a range of produce from local growers, and by running a nursery selling plants and seedlings.

The farm earned about $10,000 on revenue of $450,000 in 2007, and hopes to make a profit of 5 percent on $650,000 in revenue in this, its 10th year, so it can open another operation elsewhere in Philadelphia.

[Read](http://www.nytimes.com/2008/05/20/us/20philadelphia.html?_r=1&partner=rssnyt&emc=rss&oref=slogin “Read the Article”) (New York Times)

Sticker Shock in the Organic Aisles

Shoppers have long been willing to pay a premium for organic food. But how much is too much?

Prices are rising for organic food, which typically costs 20 percent to 100 percent more than a conventional counterpart.

Rising prices for organic groceries are prompting some consumers to question their devotion to food produced without pesticides, chemical fertilizers or antibiotics. In some parts of the country, a loaf of organic bread can cost $4.50, a pound of pasta has hit $3, and organic milk is closing in on $7 a gallon.

The price of organic animal feed is so high that some dairy farmers have abandoned organic farming methods and others are pushing retailers to raise prices more aggressively. Several organic manufacturers worry that sales may slow as consumers cut back.

[Read](http://www.nytimes.com/2008/04/18/business/18organic.html?em&ex=1208664000&en=f666e740e6b9ce5a&ei=5087%0A “Read the Article”) (New York Times)

As Prices Rise, Farmers Spurn Conservation Program

Thousands of farmers are taking their fields out of the government’s biggest conservation program, which pays them not to cultivate. They are spurning guaranteed annual payments for a chance to cash in on the boom in wheat, soybeans, corn and other crops. Last fall, they took back as many acres as are in Rhode Island and Delaware combined.

Environmental and hunting groups are warning that years of progress could soon be lost, particularly with the native prairie in the Upper Midwest. But a broad coalition of baking, poultry, snack food, ethanol and livestock groups say bigger harvests are a more important priority than habitats for waterfowl and other wildlife. They want the government to ease restrictions on the preserved land, which would encourage many more farmers to think beyond conservation.

[Read](http://www.nytimes.com/2008/04/09/business/09conserve.html?_r=1&ex=1365566400&en=abce8dd5fe71a83b&ei=5088&partner=rssnyt&emc=rss&oref=slogin “Read the Article”) (New York Times)

Food Prices Rise, Farmers Respond

Faced with strong worldwide food demand and the accompanying higher prices, American farmers are beginning to respond to the signals of the market.

In a new government report, farmers said they would make significant cuts in corn acreage this year in favor of soybeans. Farmers said they would plant 18 percent more acres of soybeans. If they carry through with their intentions, the resulting additional soybean oil could help alleviate global shortages of cooking oil that have led to sharply higher prices, hitting poor countries hard.

But a smaller corn harvest would most likely raise prices for that crop, which could also increase the prices Americans pay for meat. Most corn is used as animal feed. Higher corn prices may also compound the difficulties of companies that use corn to produce ethanol as a motor fuel.

[Read](http://www.nytimes.com/2008/04/01/business/01crop.html?ex=1364788800&en=ded789b1801c23af&ei=5088&partner=rssnyt&emc=rss “Read the Article”) (New York Times)

Odd Crop Prices Defy Economics

Economists note there should not be two prices for one thing at the same place and time. Could a drugstore sell two identical tubes of toothpaste, and charge 50 cents more for one of them? Of course not.

But, in effect, exactly that has been happening, repeatedly and mysteriously, in trading that sets prices for corn, soybeans and wheat — three of America’s biggest crops and, lately, popular targets for investors pouring into the volatile commodities market. Economists who have been studying this phenomenon say they are at a loss to explain it.

Whatever the reason, the price for a bushel of grain set in the derivatives markets has been substantially higher than the simultaneous price in the cash market.

These disparities also raise the question of whether American farmers, who rely almost exclusively on the cash market, are being shortchanged by cash prices that are lower than they should be.

[Read](http://www.nytimes.com/2008/03/28/business/28commodities.html?ex=1364356800&en=090041d284408c21&ei=5088&partner=rssnyt&emc=rss “Read the Article”) (New York Times)

The Coming Agricultural Revolution in Africa

International aid agencies, which during the 1980s and ’90s essentially abandoned support for agriculture and encouraged Africans to develop light industry and services, finally realized the folly of their approach. As the World Bank admitted in late 2007, “Agriculture has been vastly underused for development.”

After decades of mistreatment, abuse, and exploitation, African ­farmers—­still overwhelmingly smallholders working family-tilled plots of land—­are awakening from a long slumber. Because farmers are the majority (about 60 percent) of all sub-Saharan Africans, farming holds the key to reducing poverty and helping to spread prosperity.

Over the longer term, prosperous African farmers could become the backbone of a social and political transformation. They are the sort of canny and independent tillers of the land Thomas Jefferson envisioned as the foundation for American democracy. In a region where elites often seem more committed to enjoying the trappings of success abroad than creating success at home, farmers have a real stake in improving their ­turf. Life will still be hard for them, but in the years ahead they can be expected to demand better government policies and more effective services.

[Read](http://wilsoncenter.org/index.cfm?fuseaction=wq.essay&essay_id=359819 “Read the Article”) (Wilson Quarterly)