Hello everybody out there in farm country. This radio commentary is brought to you by the National Corn Growers Association, CropLife America, and Renewable Fuels Association. They are all friends, supporters, and allies of a healthy farm economy and prosperous rural America. Thank you.
And now for today’s commentary –
Happy New Year – The year 2022 is all but over.
Overall, it was a very good year for farmers, ranchers, and the ag industry. Grain and livestock prices continue to remain reasonably strong. Egg prices are at a record high. I looked at the cost for a dozen in the grocery store. They were over $4.00. That is because bird flu has killed 40 million of our egg-laying hens.
US farm exports set a new record this year at $194 billion. Soybean exports set a record increase of 26% – corn up 12%, wheat up 15%, and cotton, dairy, and meat up 10%. I have always been a fan in support of trade agreements with other countries. That promotes free markets. To this point, the Biden Administration has not been working hard to negotiate trade agreements. Their refusal to cut back on tariffs and their efforts to subsidize some of our companies selling products made in the USA has caused trade tension with some of our trading partners.
Another subject – I think we all are aware that there is serious concern about being able to purchase enough food to feed a growing world population. But at the same time, we have some members of Congress pushing for more money to help organic farming. They say we are not producing enough organic grain to feed the dairy cows, chicken, and meat animals so the milk, eggs, and meat can be labeled organic. The price of a bushel of organic soybeans reached $40 per bushel last April.
My soybeans sold for $15 per bushel. The skyrocketing prices for organic products should be no surprise. Organic farmers cannot use modern technology that has given us good yields and less expensive food at their supermarkets. A US consumer spends 9.5% of his disposable income on food. In Africa, where (for the most part) they don’t use the technology in food production that we do, the cost of their food eats up 60% of their disposable income.
My conclusion is that the only way we can feed a growing world population is to use genetic engineering, fertilizer, and weed-killing products – precision farming.
Until next week, this is John Block reporting from Washington, D.C. If you would like to review my radio shows going back more than 20 years, just go on-line to www.johnblockreports.com.
