Aquaculture: Soybeans and Corn Under Water
A report from Kevin Kerr...on "aquaculture" in Iowa, and why corn is so high. Unnecessary background - the Associated Press reports that Iowa has 2 million acres of soybeans and 1.3 million acres of corn under water...16 % of the state's tillable land:
"There is little chance of farmers switching now to soybeans as seed and fertilizer are not 'readily available' and they would cost a fortune even if it could be obtained," Kevin tells us.
"Even more of a problem is that June 10th is really the cutoff for soybeans to get in the ground. Why?
"Well soybeans thrive off daylight, (they are diurnal). It is simple math really, the soybean plants need so many days of sunlight to mature and 'pod' by a certain date. The pod stage is critical, and if it fails...so does the crop.
"I think many farmers will simply opt for 'Plan B' and call it a year. That means taking the government insurance money; if they try and plant something else they won't get that money, and the crop may fail anyway.
"At the end of the day I think 2009 will see surging dairy, cattle, hog and produce prices. Key grains will also be in high demand, but I am leery of corn at these levels and also feel a major shift form corn based ethanol to sugar based ethanol is coming. The next administration will need a scapegoat...and corn and 'wealthy farmers' will be it."
Bill Bonner
The Daily Reckoning Australia
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- Farming Cattle is Out; Farming Soybeans is In
- Farmers Feel Consumers Blame Them for High Food Costs
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- The End is Neigh for Ethanol
About the Author
Best-selling investment author Bill Bonner is the founder and president of Agora Publishing, one of the world's most successful consumer newsletter companies. Owner of both Fleet Street Publications and MoneyWeek magazine in the UK, he is also author of the free daily e-mail The Daily Reckoning.
Comment by David Muzzo on 19 June 2008:
Take a look at rural Indiana - It is just as bleak down there. Corn fields are soaked, and soy bean plants are small. This area had a large manufacturing base 20-30 years ago. There is nothing left but farming and WalMart... Small towns are boarded up, houses, schools, and factories are crumbling. The only people living out there are farmers, service/retail employees and older retired factory workers.
Comment by christina on 19 June 2008:
If everything is underwater, maybe they could plant seaweed in it then. Seaweed is a food. You can eat it, you can even make noodles out of it.