I was shocked when I heard a respectable speaker tell an audience of businessmen that we are running out of food because the world’s population is growing faster than our food supply. He really meant that statement and went on to talk about droughts and floods that have added to the problems of food production. In California, which in the past few weeks has gotten some rain, has lost many orchards and perennial plantings like alfalfa, orchards and vineyards due to the long drought and no snow in the mountains. We all take food as a thing we get off the shelf, but he is really concerned about reduced production and more mouths to feed.
We know the drought reduced the number of cattle in the four state area severely. The nation’s cattle numbers haven’t been this low since the 1950s. If you haven’t been to the sale barn, the price of cattle is at an all time high. Cow/calf pairs that brought $2,000 last spring are now double that and even higher now. Calves are bringing a $1,000. One man said, “you should buy 80 head at that price and get them hauled to your ranch and unload them after a high hauling bill, let them out of the corral and in 10 minutes $80,000+ disappears. Then you will know if your heart is still ticking or not.”
No one knows about how long cattle prices can hold up, but it will take four calves at the present price range to even pay for those cows and that doesn’t count interest.
Then Putin said the Russians would not buy more chickens from the USA. I am sure there are some major poultry companies looking hard at that today. But it will cause him inflation, because there is nowhere else to buy poultry meat. Consider Russian house wives when they experience a shortage of protein in their diets, he might have another war to handle. It looks like to me like he has bitten his own hand doing that. The Soviet Union’s economic situation is not that strong. In history class somewhere I heard if dictators get in trouble with the economy they start wars. He may not be an exception.
I have a friend who when the Soviet Union broke up, went to Poland with the USDA to help those people and he wrote me if these Poles ever got good quality seed they will beat American farmers. Russia has no improved seed production like we have in the west. Look at U.S. wheat production, the wheat we grow today is 100 percent better than the old wheat, people used to think 40 bushel yields were good crops, today they produce 90. I saw a report on oats in Idaho doubling the tonnage of the year before.
We better get busy on more things. Walmart is contracting with farmers to grow vegetables. I believe they want large farms. Less people to deal with I am certain, but perhaps they see shortages in the future. Transportation is another high cost. The size and scope of their vast percent of groceries stores any savings is big bucks. I doubt they want to be produce buyers, have to grade it and wait for Joe Blow to deliver it in his pickup. But I see things changing.
If you don’t think things will change price a half-ton pickup truck. I did and bought one two weeks ago. Nice vehicles but expensive. Lots of bells and whistles, but the new smell of a vehicle comes at a hefty price.
Hope you have had some good rains, school starts and I can’t believe they just got them out last week. God bless you and your family and the USA, Dusty Richards
