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| Howard Cowden. I met Howard when he was older. For the youngsters on this forum, Howard was instrumental in forming CCA as a way for agricultural producers to purchase inputs as a group. I think it started with paint. Some folks viewed him as controversial but I thought he had some sound thoughts. In later years, when I fed some cattle in a couple of feedlots in the Southwest, I ran into his brother who was just as bright, and maybe even a little more aggressive; as I recall, he operated out of Phoenix. Homer Young replaced Howard & eventually became Farmland Industries. Howard, as we occasionally talked on the phone & enjoyed a couple of personal meetings, long had advocated agricultural producers figure out methods to add value to commodities versus just marketing a commodity. He would be very excited about ethanol. Every one of us should be excited about ethanol, bio-diesel and the other varieties of producing energy. It is not the perfect solution, or product, but it is a least one alternative to the energy situation.
As I see the ag-energy situation, the distribution & marketing will be addressed over time but ground work for the real battle has already been laid & that is the consumer concern over the impact on food prices. Mr. & Mrs. Consumer, down the road—maybe not so far…may well have to make new choices between the new SUV every couple of years, DVD players & all of the toys—as their fuel bill may not go down much..but THEIR FOOD BILL IS HEADED HIGHER. That is not going to be popular.
If you study your history, when the farm programs were initially introduced they were sold as a method to assist agriculture. And they did. However, in operation, as time proceeded, some of these features served to keep a lid on prices…CCC corn sales based on ‘out of condition’ corn & etc when prices advanced a little bit too far. String-pullers and politicians know we can overproduce in a heartbeat—in the past.
I was by no means close to Earl ‘the Pearl’ Butz, but my few conversations with him went along these same lines…by controlling acreage through regulations and incentives, a consistent food supply at low prices was always assured.
The situation is changing!!!
We may well be in the situation where every few years there may be a price fight in the marketplace over how many acres will be consumed by each crop. We’ve stepped into a new world and are now just getting the first taste. Sure, there will still be boom and bust, but maybe from different price levels.
Most of these studies I have read in regard to ethanol, haven’t read the 170 pages yet, address the costs…I take a slightly different tack..ethanol producers are selling alcohol, and by-products…the ethanol is supposed to track the gasoline market..the by-products influenced by livestock prices..add natural gas markets & the corn market---therefore, the profitability of ethanol operations will be affected by many factors other than just the price of crude oil or the price of corn.
Hope you have all noticed what the politicians and media do to make the oil folks the bad boys.
How are they going to view you, when and if, a gal. of milk costs $6, bread $5 a loaf for multi-grain & the consumer shakes with fear and anxiety when approaching the meat counter.
In my opinion, agriculture is entering a phase whereby Public Relations with the consumer should be a new consideration on a new level by farm groups-it could get to be a testy situation down the road. We need to evidence a 'corporate knowledge & professionalism' even though family farms, (might be a bad choice of words back there) and efficiency in producing a healthy product to feed the world (which we do). Have to get these farm groups and politicians representing agriculture atune to thinking 5 to 10 years down the road.
Edited by SeniorCitizen 1/5/2008 16:26
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Adding Value
