Expect the Unexpected
You know the old saying, “The only thing certain is change?” It ranks right up there with
“Expect the Unexpected.” Either could be the title of this commentary as it relates to the
future of agriculture. Here’s why. In the first week of 2008, these are just a few of the
agricultural headlines:
The Dow Jones Index gained 6.4% in 2007 and the S & P 500 was up 3.5%.
• The top three AGRICULTURAL fertilizer companies each gained over 330%!
• CNH and AGCO machinery companies each gained over 120%!
• Lindsay Irrigation was also up 120%!
• Monsanto gained 111%!
• John Deere was up 95%!
Monsanto’s Rob Fraley announced, “We are now seeing the deepest and most compelling research pipeline to date.” Welcome to the second decade of biotechnology!
The National Corn Growers Association’s news release touting that more than two dozen entrants in their National Corn Yield Contest posted yields of more than 300 bushels per acre!
Florida intends to make agriculture the number one economic engine in the state…topping tourism! Florida hopes to become the “Bioenergy State,” eventually producing 30% of the state’s fuel supply.
And in the “are you ready for this category,”… Las Vegas is set to begin development of the world’s first 30-story vertical farm with plan to deliver much of the produce straight to casino’s and local hotels. The $200 million dollar project is designed to produce enough food to feed 72,000 people for a year AND provide yet another tourist attraction. The revenue is expected to be $25 million for produce and another $15 million from tourists---putting the project on about equal footing with profits from a typical casino!
And finally here are a few speculated 2008 headlines from AgriMarketing Magazine:
1. Weather Concerns in the Midwest Push Corn Prices Over $6, Soybeans $15
2. Feedlots Emptying Due to High Feed Prices
3. High Corn Prices Force 15 Inefficient Ethanol Plants to Suspend Operations
4. Cash Rents Up 30%
5. Eight Month Waiting Time for Large Horsepower Tractors, Combines
6. Record Farm Income up 30% in 2008
7. DeKalb Draws Even With Pioneer in U.S. Seed Corn Market Share
So “if the only thing certain is change,” then “expect the unexpected.” Because as someone once said (and this is particularly true about agriculture), “Each new season grows from the leftovers of the past. That is the essence of change, and change is the basic law.” That’s Colleen’s Comment, and I’ll see you soon, the Lord and weather willing.
Sources:
AgriMarketing Magazine
Agri Pulse
email: colleencall@sbcglobal.net
website: www.colleencallahan.com
fax: 309-692-0148
mobile: 309-208-1209