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SEPTEMBER
2008
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editor
perspective
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publisher
Perspective
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Feature
story
Water, Precious Water
 As I write this perspective, I am looking out a second-story window watching a torrential downpour in Melbourne, Australia. A land ravaged by years of drought, the rain is celebrated by those around me. The irony of their circumstances in relation to those recovering from the recent U.S. Midwest flooding is not lost on me.
On this trip I have had the opportunity to speak with farmers, men and women not unlike their counterparts in the United States, whose daily struggles as of late have been the rising cost of fuel, the shortage of fertilizer, the astronomical expense of feed, and of course, how to keep going. The conversation here, though, turns slightly darker, as one farmer tells of his best mate committing suicide this past year following his seventh consecutive year of insufficient water supplies.
Like us, farming and ranching is all these families have ever known. The total devastation for some by the same issues we face, coupled with the lack of water, has taken many to the breaking point. According to one rancher, suicide incidents in his local farming community have steadily risen as the drought has carried on; for some, there feels like no way out.
In speaking with another local, they talk about the government’s efforts to step in. In Queensland to the north, proposals have been made for farmers to permanently remove their crops and install government subsidized solar panels. It offers a steady source of income, courtesy of the taxpayer, and adds power back into the grid. After nearly a decade of inconsistent, and even no revenue, it’s a deal many are cashing in on.
The conversations here are a quick reminder that it is not just farming in America that is struggling with change and battling issues. The global agricultural community is coming to grips with challenges and for some, those obstacles feel so insurmountable that taking their own life is their only perceived option.
After interviewing flood-impacted members of the farming community in Illinois, it eases my mind to know that while circumstances may not be ideal, there is not this same sense of total desperation. As we discuss in this month’s issue, the Midwest is slowly regaining their sense of normalcy and beginning to dry out. The government and agricultural community at large have come to their aid. And best estimates so far indicate that the damage may not be as bad as first predicted.
At a time when my conversations with dairy producers back home have been riddled with angst and frustration, I take a small amount of comfort in talking with these Australian farmers. Things may be difficult in the U.S., but really it could be a lot worse. Just ask an Aussie…
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It’s All About the Cost of Fuel; Or At Least It Better Be.
Even T. Boon Pickens weighs in with a plan and it’s not about drilling for more oil.
In July 2006 gas was at or approaching $3.29 and we ran an article which listed our Top Ten recommendations for putting an end to $3.50 per gallon gasoline. We have since seen prices at the pump here in California climb over $5.00 per gallon, averaging now about $4.50, with little expectation of it sliding back to the good old days of 2006.
I still stand by that list. It is exactly what the President should have done then and can do now if there was truly the will to make a difference. We have posted that list on our website and you can see it with the original article from our July 2006 Agribusiness Dairyman – visit www.mydairyman.com/topten.
A lot has changed since then, just 24 months ago. The cost at the pump has reached an unbearable price. No longer can American business afford to absorb the continuing increase in fuel costs. Subsequently everything has increased in cost as a result of the record price of oil.
It is also evident that at least in the short term biofuels will not and maybe cannot ever have the impact hoped for just a few years ago. The argument over whether it is even a viable alternative is somewhat moot, considering it takes as much energy to generate a gallon of ethanol as it provides. Cleaner? Yes. Cost effective? Not hardly. Part of the future mix? Maybe. But at what price…
From all accounts it looked so promising. Renewable, good for the farmers, good for the environment, good for the country. Yet when you compare the impact versus the benefit over the past 24 months, I would likely take it off my list of top ten solutions for two reasons. First, the cost of production versus the benefit and second, the horrific impact it has had on the cost of feed commodities and the trickle down impact that it has had on the cost of food during the same period of time.
Over the last couple days I have heard several ads by T. Boon Pickens providing some interesting perspectives on what to do about our dependence on foreign oil. He calls the $700 billion dollars we pay for foreign oil a hit to our economy we can’t afford. “It is creating a strangle hold on our country we can’t live with,” says Mr. Pickens.
I visited his website www.pickensplan.com. What he presents is clear, easy to understand and apparently very doable. This guy is no dummy. He not only is one of the wealthiest men in the world, but he has done it in the oil industry. Yet he states clearly that drilling is not the answer. He advocates instead the shifting of the way we utilize the resources we now have available to us.
Everyone should visit the site and get a feel for what this man has to say. If he is correct, this shift in the way and how we use air power for electricity production and natural gas to power transportation could cut our dependency by $300 billion dollars per year – nearly half of the total cost of our current foreign oil purchases. Sound good to you? It does to me. So why aren’t we doing it?
We again call upon our leaders of this country and our states to do what needs to be done. It’s time for leadership. It’s time for some backbone. Maybe it’s time to put Mr. Pickens in charge of the problem. I am sure he is not the only one with good ideas. The key is to put someone in charge willing to find and quickly assess our best options and then get it done; that person is certainly not a politician.
Yes, we will elect a new President in November and we better elect one that is smart enough to know that there is no political solution to this and many problems facing the U.S. government and its people. What we need and must require of those politicians is that they put people in place who are industry savvy with proven economic experience, who, regardless of which way is gets done or who’s ox gets gored, ensures it’s going to get fixed.
That is the least we should expect from our leaders. The solutions are here, the people and the ability to get it done are at our disposal. Thank you Mr. Pickens for bringing your ideas to the table.
What I admire most is that not only did he come forward with a new and viable proposal, but he was and is willing to put his money where his mouth is. He paid the cost of bringing his proposal to the national debate and market place. Most Politicians can’t or won’t do that, and that could make all the difference.
That, for me, invokes a whole different level of trust and some hope to go with it. Are you available during convention time, Mr. Pickens? Minneapolis/St Paul or Denver would be fine.
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W-L Research Offers More Choice
In January 2007 Gary seeded WL 625HQ with the Gold Treatment at 32 pounds per acre, side-by-side with WL 625HQ treated with Apron fungicide and inoculant. “There’s more hay in the checks established with the Gold Treatment seed,” says Brazil. “The Gold Treatment stands seem to be lusher and are delivering even higher yields than the standard treated stands as the fields get a little older. The Gold Treatment is helping me achieve better stand establishment under poor seeding conditions,” notes Brazil.
This isn’t the first time Brazil has opted to use coated alfalfa seed from W-L, with the intent to increase yield and improve quality. In 1994 he planted his first coated seed and days later it rained 3 inches. “It just kept raining and we tried to pump the water off, but we couldn’t keep up. I told my brother ‘I think we’re going to lose the stand.’ It came up just fine and I couldn’t believe it performed that well.” Since then, he has been using various coated varieties from W-L and in his experience, has found that pretty much every seed germinates.
And given the increased costs of production, Brazil can’t afford for his seed not to take. Since last year, he’s seen fuel costs double and fertilizer increase over 50 percent. As it is, he figures this year’s input costs will fluctuate somewhere between $500 and $600 per acre. On the flip side, prices are averaging between $210 and $240 a ton, up from last year’s price of $180 to $200 per ton. While he’s getting more money for his product, Brazil isn’t bursting with excitement over the prices. “Don’t get me wrong,” says Brazil, “business is good, but with the cost of fuel and other products out of sight you have to look for every opportunity to save.”
For this grower, W-L alfalfa seed enhanced with the Gold Treatment is worth it. After his first planting, he couldn’t believe the difference. “The color of the hay was unbelievable and it was 2 inches taller,” remarks Brazil. Without a doubt, he plans to continue using the W-L Gold Treatment. The quality of his hay, as well as his increase in yield, have solidified Gary Brazil’s outlook. “If they can get me the seed, I’ll plant it.”
The “Gold Treatment,” a new premium alfalfa seed enhancement, is available for use on all W-L alfalfas in 2008-2009. The Gold Treatment includes five (5) key components:
Optimize Gold with LCO Promoter Technology™, a patented technology applied to the seed that promotes early season seedling vigor, enhanced root development, and improved stand establishment under adverse conditions. With Optimize Gold, the nodulation and nitrogen-fixation processes begin earlier, giving the young alfalfa seedling a boost and enhancing seeding-year yields and nutritional values.
Nitragin® Gold pre-inoculant with industry-leading Rhizobial counts insures that new nodules on young seedlings contain only the best nitrogen-fixing strains of bacteria
Micronutrient package the Gold Treatment includes a significant load of micronutrients (primarily Manganese and Molybdenum) to help insure early nodulation and improved nitrogen fixation, especially on low fertility soils
Apron XL® fungicide protects young alfalfa seedlings from damping –off diseases (e.g. Pythium) that adversely affects successful stand establishment on poorly drained, wet soils
Gypsum (Calcium sulfate) replaces Calcium carbonate (lime) as the carrier (34% coating) for the seed enhancements listed above; gypsum is an excellent source of Sulfur and also promotes successful seedling establishment on alkaline (pH>7.0) soils. The coating material surrounds each seed, providing for better Rhizobia survival, improved seed-to-soil contact, and a higher ratio of seeds to plants.
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