Give us our cheaper bread

December corn futures fall off the table

In his new Agriculture Online column this week, Market Analyst Ray Grabanski points out that corn prices have fallen by more than $2 in recent weeks, before hitting bottom this week.

Even the crude oil market now appears that it finally formed its high, having dropped from $145 to $124/barrel, Grabanski says. "It's possible we have formed not only our yearly highs, but perhaps even decade highs in crude oil, wheat, and corn in the past few months," he writes.

Wow, think about that--decade highs. And now if commodity prices are coming back to earth, where is the point where prices break for a loaf of bread or a tank of gas?

Farmers, who have been battered by consumers, the media, environmentalists and other activists for participating in these prices, are skeptical. In a Marketing Talk discussion, Great for the country," one farmer comments: " And you can just feel the relief all across America now that corn has fallen 25% and stores everywhere will be marking down the price on nearly all items. As corn was going up, it was rising corn prices that were the root evil cause of nearly every rising cost in the news. Even popcorn at the theatres can come back down now. Woohoo!"

Country rockers & city salsa

Remember that ad a while back for some kind of salsa? A Texas cowboy jumps up in horror to find out that his jar came from New York City. "NEW YORK CITY!" all the cowboys around the camp fire shout in alarm.

Hey, we're kind of feeling like those cowboys that the Farm Aid benefit concert this fall is going to be held out East again, this time in a Boston suburb. Last year the event was held in NEW YORK CITY, and the year before in Camden, New Jersey.

Yeah, the good people of NYC and Boston should be enlisted to support family farms. But, jeepers, most farmers left the poor rocky soils of New England a couple hundred years ago and headed west to homestead.

If Farm Aid wants to keep in touch with most of the nation's mainstream farmers, how about getting back out west of the Hudson River again sometime soon? And the foodie rhetoric is starting to seem like city salsa to me. Tone it down a little at least--we can have a safe, healthy food supply without every portion being organic and boutiquey, can't we?

In announcing the date yesterday, co-founder John Mellancamp said, "New England was built on the strength of independent family farmers. We can honor that independent spirit by joining Farm Aid to grow the movement that is changing the way all of America eats." Changing the way all of America eats? So again, a hot dog will be hard to find at Farm Aid. Corporate sponsors are Silk Soymilk and Horizon Organics.

Mellencamp, Neil, Willie and the boys: When you're done in Boston, come out west and get some mud on your boots again.

Help us figure out the farm bill

This week a group of agricultural economists met in Kansas City to discuss how they were going to explain the farm bill. Does that sound a little ominous?

In his news story about the meeting, Agriculture Online Business Editor Dan Looker referred to the new bill as one that "may be the most complicated farm program yet."

It has some familiar features, he says, including the old safety net of loan deficiency payments, counter-cyclical payments and direct payments.

But there are some new acronyms in the thing, including ACRE, (average crop revenue election) which you can sign up for next year. There is also SURE (supplemental revenue assistance payments) which becomes the new permanent disaster program for farmers. And there is EQIP, and CSP, and so on.

This week USDA said it will allow producers who would otherwise be ineligible for the new disaster assistance programs to become eligible by paying a fee, so that's another new wrinkle. Earlier, we learned that some deadlines are out of synch with SURE, so that a special signup will be necessary.

Head starting to hurt? There's lots of talkage to process through the grinder of clear understanding.

A new poll and discussion gives you the chance to tell us what you most want to know about the new farm bill. Chip in with your vote and comments here: What part of the farm bill would you most like to learn more about?

'Can't get adjusted to these prices'

Smaller equipment getting closer look?

There's a good story in the Agriculture Online Farm Business forum this week:

"Many, many years ago a good friend of mine bought some ear corn from an old farmer. After loading it we went to a local mill to weigh it and pay the old farmer. After getting it weighed the mill employee told the old farmer 'That will be $0.50 for weighing the truck.' The old farmer stood there a minute and grudgingly dug down in his pocket for the money. While doing this and shaking his head he said the words I will never forget: 'I just can't get adjusted to these prices.' My friend and I have laughed about this for many years. Sad to say I now know how the old farmer felt. Prices have changed so much for what we sell and buy that it is almost impossible to feel confident in the decisions you make. "

Funny, sad story, but true, eh? Crop producers are taking it on the chin with input prices, and livestock farmers with feed costs. And, everyone is getting hammered by high fuel prices.

In another discussion group thread, farmers list ways they're cutting back on fuel and other energy costs. The thing that struck me the most about this conversation is how much farmers are changing vehicles--using smaller cars and pickups, motor scooters, and even golf carts to replace bigger rigs for chores and local transportation.

Check out the whole list of tips: Farm Business Talk.

Old tractors as fine art

When I see a well-restored antique tractor it makes me think of a work of art. The farmers and other folks who tend to this avocation of tractor restoration are like artists in many ways--dedicated, visionary, and talented in an almost unearthly way. It boggles my mind to see a before picture of a rusty old hulk of iron drug out of a windbreak somewhere, then restored to a shining beauty of a machine that looks like it just rolled out of the factory.

For example, check out this one, a sweet John Deere A, which I spotted on the Larry Zimbelmann farm, near Milford, Nebraska last month.

Paintings of antique tractors, though, well, I wasn't so sure.... until Linda Welsch, a Nebraska artist, e-mailed me a photo of a piece she's been working on for a friend. That's it above, an Allis-Chalmers, 1940s vintage.

Linda worked from photos provided by the owner, a Nebraska AGCO dealer. "I drew it freehand from the photo in oil paint, let it dry and each night brought it in the house for Rog [that would be Roger, her famous husband] to look at and tell me if all the parts were in the right place, since I didn't know a carburetor from a gas tank. I was only drawing the shapes I saw."

I think you got the shapes right, Linda. Indeed. Thanks for sharing.

Oh, and what does Ol' Rog think? "Tractors aren't so much art, having been manufactured after all, but they ARE artifacts. Linda's painting has turned this one into art."

Some of Linda's earlier works can be seen here: Linda Welsch's art page.

Also, I'm enjoying one of her recent pieces: Loup River.