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Posted by Truth About Trade & Technology
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Friday, 06 June 2008 |
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There’s been a great deal of focus on issues surrounding agriculture in the mainstream media lately. The recent UN Food Summit in Rome discussing rising food costs and hunger, the US Farm Bill and the WTO, and the debate on biofuels to name a few. Without question all are critical issues.
But while the politicians jostle for media headlines, farmers across the American Midwest are battling basic issues with Mother Nature. Rains have saturated the region damaging or delaying the planting of corn and soybeans. A Reuters article on June 6 quoted a Chicago Board of Trade trader saying “It’s weather, weather, weather” and “It’s getting serious now for both corn and beans, and for some wheat, too” as the commodity prices rose in anticipation of tighter supplies. Comparisons are being made to 1993 when the Mississippi River flooded and farmers and crops struggled.
There’s been plenty of video footage on television of tornado damage. But what we haven’t seen is adequate coverage of the struggle farmers are having with their fields - lost seed and crop plantings, fertilizer applications, and the cost of lost time and fuel in a farmer's ongoing effort to feed the world. This is something we have to consider and be prepared for as more acres have gone underwater in recent days.
There’s no question there’s been a boom in agriculture in recent years, but higher prices don’t mean as much without a crop to sell. Supply and demand ultimately determines the market, and producers still have to deal with surprises from Mother Nature.
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