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Food Is Too Cheap

Discussions about the economic and financial ramifications of PEAK OIL

Re: Food Is Too Cheap

Unread postby Revi » Wed 20 Jan 2010, 10:46:10

Here's a story about rice hitting hoarding levels again:

http://business.asiaone.com/Business/My ... 90014.html
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Re: Food Is Too Cheap

Unread postby mcgowanjm » Wed 20 Jan 2010, 11:27:03

$this->bbcode_second_pass_quote('Revi', 'H')ere's a story about rice hitting hoarding levels again:

http://business.asiaone.com/Business/My ... 90014.html


Thanx, Revi. I just did a scan of farm loans.

Things I found out. You'll find almost zero info
on farm loans, farm foreclosures, farm suicides.

And found David Therkelsen is with Crisis Connection, a hotline in Minnesota geared toward agricultural communities. He says many farmers see losing a farm as the ultimate failure. "Any of us can fail at our work. Any of us can lose our job and have financial and self-image trauma that goes along with that," said Therkelsen. "But in farming, if the farm fails, there's a sense that you're failing the three or four generations before you who had the farm, and maybe the generations that would follow you that you expect would keep the farm." Farm advocates around the nation are lobbying federal officials to provide funding for the Farm and Ranch Stress Assistance Network. It was adopted by Congress as part of the 2008 Farm Bill, and mandates a national hotline network and more services for agricultural areas. In the meantime, mental health experts in the region remain watchful as farmers continue to work around the clock, to try to harvest their remaining crop before winter.

Another thing I found out. Past Farm Foreclosure articles
has dates Feb/Mar 1986.

Late Jan/Mar is when farmers find out whether they
farm another year or not. And who's jockeying for
their land makes all the difference. And if you're not
in the game you're not gonna find out til the dust settles.
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Re: Food Is Too Cheap

Unread postby rangerone314 » Wed 20 Jan 2010, 11:36:14

$this->bbcode_second_pass_quote('mcgowanjm', ' ') A reporter asked him why they didn’t just parachute in essential supplies, like food and water, to the desperate survivors who were wandering around the ruined streets of Port-au-Prince quite naturally scavenging anything they could. The politician dismissed the question almost as though some naive child had asked it, and, before quickly moving on answered that if they did that there would be carnage as desperate people fought over whatever was supplied. In other words they’re not supplying immediate relief because that’s in the Haitians’ best interests.

Wtf!

Does "carnage" get much worse than having 200,000 people crushed by an earthquake, bodies rotting in piles, and thousands of others with life-threatening injuries and starvation?
An ideology is by definition not a search for TRUTH-but a search for PROOF that its point of view is right

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Re: Food Is Too Cheap

Unread postby Ludi » Wed 20 Jan 2010, 11:46:49

$this->bbcode_second_pass_quote('mcgowanjm', '
')Google: Food Banks Overwhelmed.



Ok, that's "people too poor to buy food" that's not a food shortage. There's plenty of food, it's just not getting to poor people (except the fat poor people MarkJ knows).

I'm probably nit-picking. :oops:
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Re: Food Is Too Cheap

Unread postby mcgowanjm » Wed 20 Jan 2010, 11:51:17

$this->bbcode_second_pass_quote('rangerone314', '')$this->bbcode_second_pass_quote('mcgowanjm', ' ') A reporter asked him why they didn’t just parachute in essential supplies, like food and water, to the desperate survivors who were wandering around the ruined streets of Port-au-Prince quite naturally scavenging anything they could. The politician dismissed the question almost as though some naive child had asked it, and, before quickly moving on answered that if they did that there would be carnage as desperate people fought over whatever was supplied. In other words they’re not supplying immediate relief because that’s in the Haitians’ best interests.

Wtf!

Does "carnage" get much worse than having 200,000 people crushed by an earthquake, bodies rotting in piles, and thousands of others with life-threatening injuries and starvation?


The answer to your question cannot be pretty.

How about people who aren't desperate aren't as easy to control.

Found this article from DeltaFarmPress:

Right now, “farmers are keeping a wary eye on cotton prices and waiting to make decisions on whether to increase or decrease cotton acres,” he said. “Only about 4,800 acres of cotton was planted in 2009 in Jefferson County.”

According to figures from the National Agricultural Statistics Service, the peak acreage in the county was 102,100 acres in 1976. The statistics service did not record planted acres before 1972.

The statistics service issued a report Jan. 18 estimating production, yield and harvest for the 2009 growing season. It said that Arkansas cotton producers harvested 500,000 acres, down from 615,000 acres during the previous year. Production was 830,000 bales in 2009, compared with nearly 1.3 million in 2008.

This is the lowest production in Arkansas since 1976, the statistics service said.

http://deltafarmpress.com/cotton/harvest-delay-0120/
2009 harvest continued into 2010

Jan 20, 2010 10:13 AM, By Elizabeth Fortune, University of Arkansas

For some Jefferson County, Ark., farmers, the rain-soaked 2009 harvest didn’t end until well into 2010...

And yet we're told Arkansas had a record harvest.
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Re: Food Is Too Cheap

Unread postby mcgowanjm » Wed 20 Jan 2010, 12:01:19

$this->bbcode_second_pass_quote('Ludi', '')$this->bbcode_second_pass_quote('mcgowanjm', '
')Google: Food Banks Overwhelmed.



Ok, that's "people too poor to buy food" that's not a food shortage. There's plenty of food, it's just not getting to poor people (except the fat poor people MarkJ knows).

I'm probably nit-picking. :oops:


But see, Ludi, that's just it. Famine/Starvation in 1st/2nd World,
and even 3rd World, happens from mis allocation of resources
even more than from harvest disaster.

The hint/rumour of disaster(and it's always rumour 'cause the
state will NEVER give anything but the most optimistic POV)
will cause hoarding. See Revi's post above for rice.

The gov't will itself sequester grain elevators to insure city/
state core support is fed. At the same time exports to
'friendly'(has cash, resources, your debt) continue as much to
assure the home state HAS the resources.

The cruel joke becomes the part of the country that actually
produced what there is to hoard/export then starves.
See Punjab/Bengal/Oklahoma/Mekong-

Near Famine in '88, Vietnam Now Exports Rice - The Washington Post ...

for details.
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Re: Food Is Too Cheap

Unread postby Pretorian » Wed 20 Jan 2010, 12:02:46

$this->bbcode_second_pass_quote('mcgowanjm', '')$this->bbcode_second_pass_quote('Ludi', '')$this->bbcode_second_pass_quote('mcgowanjm', '
')By the end of March 2010, in the first Friday of April, the despair
of Flyover Country will be obvious to those who are looking.


I guess I'm still not sure what we should be looking for. No food in the stores? Or what?


Here:

Google: Food Banks Overwhelmed.

http://www.google.com/search?q=food+ban ... =firefox-a

Two things to note:

1) The date-Nov 27/28, 2009
2) the stories are all over the map. Just the first page.

Nothing has gotten better since the above date. The
Worst Xmas(Sears down 13% Same store sales) in
history.

What to look for. Anectodal stories like local farm communities
shrinking. Farmers leaving.

Amidst all the usual terrible scenes of human suffering and tragedy one very brief incident is transfixed in my memory. It was of a news conference with some senior US politician who had something to do with the ‘relief’ effort. I forget who he was – it doesn’t matter: if it hadn’t been him it would have been a clone. A reporter asked him why they didn’t just parachute in essential supplies, like food and water, to the desperate survivors who were wandering around the ruined streets of Port-au-Prince quite naturally scavenging anything they could. The politician dismissed the question almost as though some naive child had asked it, and, before quickly moving on answered that if they did that there would be carnage as desperate people fought over whatever was supplied. In other words they’re not supplying immediate relief because that’s in the Haitians’ best interests. Let’s give that gentleman the benefit of the doubt, and say that he actually believed his own words; so I won’t call it a lie, I’ll simply call it the biggest load of rubbish I’d heard since… I don’t know… the previous night’s ‘news’ maybe.


Haiti again? In this thread? Jeeze
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Re: Food Is Too Cheap

Unread postby Ludi » Wed 20 Jan 2010, 12:04:04

$this->bbcode_second_pass_quote('mcgowanjm', '
')But see, Ludi, that's just it. Famine/Starvation in 1st/2nd World,
and even 3rd World, happens from mis allocation of resources
even more than from harvest disaster.



Ok, thanks for clarifying. :)
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Re: Food Is Too Cheap

Unread postby rangerone314 » Wed 20 Jan 2010, 12:14:36

$this->bbcode_second_pass_quote('Ludi', '')$this->bbcode_second_pass_quote('mcgowanjm', '
')But see, Ludi, that's just it. Famine/Starvation in 1st/2nd World,
and even 3rd World, happens from mis allocation of resources
even more than from harvest disaster.



Ok, thanks for clarifying. :)

Yeah, like the Irish potato famine (a misnomer) where the Irish could not afford to buy the other non-potato crops that they grew (because they were too poor) that got exported to the English who could pay higher food prices.
An ideology is by definition not a search for TRUTH-but a search for PROOF that its point of view is right

Equals barter and negotiate-people with power just take

You cant defend freedom by eliminating it-unknown

Our elected reps should wear sponsor patches on their suits so we know who they represent-like Nascar-Roy
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Re: Food Is Too Cheap

Unread postby mcgowanjm » Wed 20 Jan 2010, 12:19:09

$this->bbcode_second_pass_quote('rangerone314', '')$this->bbcode_second_pass_quote('Ludi', '')$this->bbcode_second_pass_quote('mcgowanjm', '
')But see, Ludi, that's just it. Famine/Starvation in 1st/2nd World,
and even 3rd World, happens from mis allocation of resources
even more than from harvest disaster.



Ok, thanks for clarifying. :)

Yeah, like the Irish potato famine (a misnomer) where the Irish could not afford to buy the other non-potato crops that they grew (because they were too poor) that got exported to the English who could pay higher food prices.


Found this thru Nogger's Blog. First non deCarbonnel/Market
Skeptics take on bogus USDA Harvest #'s:

US beancounters 'may have overestimated' harvests

http://www.agrimoney.com/news/us-beanco ... -1238.html

The data implied a rise of 6.5% in use of corn by US livestock farmers - a "large increase" which was "counterintuitive" given livestock sector woes and increasing competition from distiller's grains, a byproduct of bioethanol plants used as an animal feed.

"The large level of use may imply an overestimate of the 2009 crop," Mr Good said.

Read the entire article.
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Re: Food Is Too Cheap

Unread postby frankthetank » Thu 21 Jan 2010, 01:31:31

So i see grain prices have plummeted (wheat/corn/etc) although sugar is very high...

so whats the deal?

Is the USDA just lying, making up fake numbers? Is there really this much grain around? I've seen hundreds of acres of corn standing in the fields, even this past weekend here in WI (i drove across the state)... and that was just along the interstate.. i know that isn't a fair representation, but it still factors in... i don't know what to believe anymore.

Food is cheap right now, at least around here. I've probably seen the lowest prices i've paid in a couple years on dairy, frozen goods, meat, some fruits...

I understand totally why the government would fudge numbers...its the same with oil...you don't want to encourage hoarding..its just makes everything worse... although, i doubt many could afford to hoard much more then some pasta and potatoes...
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Re: Food Is Too Cheap

Unread postby deMolay » Thu 21 Jan 2010, 10:27:10

Financial Crisis impacts to farming output. http://www.marketskeptics.com/2009/12/2 ... mmies.html
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Re: Food Is Too Cheap

Unread postby MarkJ » Thu 21 Jan 2010, 11:13:00

Many people are spending much less on food these days, but primarily since they're not buying, trading down, shopping at 4/5/6 different stores for the lowest prices, using coupons, buying loss leaders, making fewer impulse purchases, eating out less and ordering less.

Lower food prices at most all stores is just the icing on the free or subsidized cake.
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Re: Food Is Too Cheap

Unread postby rangerone314 » Thu 21 Jan 2010, 12:05:55

By about what date this year will it be obvious we have a serious food shortage issue?
An ideology is by definition not a search for TRUTH-but a search for PROOF that its point of view is right

Equals barter and negotiate-people with power just take

You cant defend freedom by eliminating it-unknown

Our elected reps should wear sponsor patches on their suits so we know who they represent-like Nascar-Roy
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Re: Food Is Too Cheap

Unread postby mcgowanjm » Thu 21 Jan 2010, 12:51:06

$this->bbcode_second_pass_quote('rangerone314', 'B')y about what date this year will it be obvious we have a serious food shortage issue?


"Obvious" means what?

The kids spending all their waking hours online, the Dumbest Generation, ask Mommy/Daddy what's to eat?

And get blank stares in return?

Florida loses 70% of Winter veggies. I would think fruits
like strawberries are gone as well. And:

However, analysts have also warned that the price rise may be a signal that China's 2009-10 crop fell short of the official estimate of 163m tonnes. "The domestic price has risen much faster than we had earlier expected," Li Qiang, chief analyst with Shanghai JC Intelligence, told Reuters, the news agency. "The major reason is because of a lower harvest." The private consulting firm has pegged the crop at 140m tonnes. The US Department of Agriculture has estimated production at 155m tonnes. USDA staff in Beijing have warned over the reliability of Chinese grain data, saying that provincial authorities are "occasionally tempted" by a subsidy regime to overstate production estimates.

That's a 23 MMT difference. Australia will never grow 23 MMT
wheat again.

And every fourth row of soy is going to China (more now that the soy harvest has been downgraded and exports to China increased).

Specifically, the USDA has declared half the counties in the Midwest to be primary disaster areas, including 274 counties in the last 30 days alone. These designations are based on the criteria of a minimum of 30 percent loss in the value of at least one crop in the county.

In this reality, the US farmers have suffered the worst harvest season ever seen.
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Re: Food Is Too Cheap

Unread postby rangerone314 » Thu 21 Jan 2010, 13:36:35

How does that compare to last year?

(In terms of counties that were disaster areas)

It deems a 30% loss or more of ONE crop in a county. So it is mitigated if there are multiple crops grown in one county.

I'm not doubting you, I just want clarification as to how bad it is.

(As in, do I buy 500 lbs of rice and beans at Sam's Club before prices go up dramatically)
An ideology is by definition not a search for TRUTH-but a search for PROOF that its point of view is right

Equals barter and negotiate-people with power just take

You cant defend freedom by eliminating it-unknown

Our elected reps should wear sponsor patches on their suits so we know who they represent-like Nascar-Roy
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Re: Food Is Too Cheap

Unread postby Ludi » Thu 21 Jan 2010, 13:53:27

$this->bbcode_second_pass_quote('rangerone314', '
')(As in, do I buy 500 lbs of rice and beans at Sam's Club before prices go up dramatically)



You can get all that free food MarkJ posts about. :)
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Re: Food Is Too Cheap

Unread postby Revi » Thu 21 Jan 2010, 13:56:27

I think it's time to rotate my rice and beans. I got it maybe a year or two ago, and it's time to get a fresh supply now and give the older stuff to the soup kitchen.

It is still good, but we have only so much room to store stuff.

They will use it within a month or two.
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Re: Food Is Too Cheap

Unread postby Ludi » Thu 21 Jan 2010, 13:59:03

$this->bbcode_second_pass_quote('Revi', 'I') think it's time to rotate my rice and beans. I got it maybe a year or two ago, and it's time to get a fresh supply now and give the older stuff to the soup kitchen.

It is still good, but we have only so much room to store stuff.

They will use it within a month or two.



You don't rotate your stores into your "to eat now" food supply? :?:
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Re: Food Is Too Cheap

Unread postby Ainan » Thu 21 Jan 2010, 17:37:39

I'd like to point out the seriousness of the problem since no one I have talked to IRL has understood the basic principals of what is being discussed here.

Let's say we have two farmers isolated from the rest of civilisation. They can produce one crop a year and they receive no food from the outside. They both need at least 2000kcals a day each to survive. Which means they need 1,460,000kcal worth of crop each year just to survive if we discount seed requirements. What if one year they lose just 5% of their crop? They only had enough crop stored to feed themselves up until harvest time since they gave up storing massive multi year surpluses long ago. They get lucky and manage to survive till next years harvest by starving themselves and drawing on their bodies reserves. The harvest is 5% short yet again. Now they have a choice to make. If they share the crop equally, neither will survive till the next harvest. If the first farmer stops eating enough the second will survive but the first will die. Neither wants to die. The first farmer comes up with a solution... He whacks the second farmer around the head with a seed drill and possibly serves the corpse with rice.

Now scale this up 3 1/2 billion times. Throw in nations, existing ethnic and religious strife, a sprinkling of standing armies, then top it off with a nuclear stock pile.
April 2008 Global Population: 6.8 billion
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