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High Profit Agriculture
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notilltom
Posted 1/17/2009 13:48 (#573995)
Subject: High Profit Agriculture



Oswald No-Till Farm Cleghorn, IA
Greetings,

I remember years ago some articles on a project run out of Koch Agriculture called "High Profit Agriculture". The goal was to produce highly profitable agricultural production pods using a number of market and insurance derivatives and weather models.

I believe the pods were to be distributed around the corn belt with output being a potentially captive input supply to end-users. With geographic distribution, the pods would secure better crop insurance rates.

I believe the model had significant interaction and contracting with cropping input suppliers as well including seed, equipment, fertilizer etal. with a goal of securing better pricing both on inputs and outputs for channeled harvested crops.

I wonder what happened to them. I believe the leader's name was Andreeson. He spoke once at a Midwest Soybean Conference after the yield issues with the 2003 soybean crop. I remember him saying their weather models were "right" but the soybeans didn't yield right.... essentially saying that their incorrect positions that year weren't the fault of the model..... we soybean people need to fix the yield problems with soybeans.... was the message I thought he was trying to send home.

I have to wonder with the financial meltdown where the project is???

Tom
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