06/15/09 Gaithersburg, Maryland Inflation – rising prices, or a drop in the purchasing power of the dollar – will soon rise to the very top of economic concerns. I can’t understand why there are pundits who insist we can’t have inflation while the economy is weak. There are plenty of examples of weak economies with high inflation. After all, I don’t think they are hitting on all cylinders in Zimbabwe, where inflation is thousands of percent.
Soybean prices hit a nine-month high of $12.50 a bushel. The Department of Agriculture said that inventories would drop to only 110 million bushels – the lowest level since 1976-77, when inventories hit 103 million bushels. There were about 2 billion fewer mouths on the planet then. At today’s 32-year low, we can eat through that stockpile in about two weeks. Not a lot room for error; hence, the nine-month high in prices.
We have a similar tight market in corn. In corn, we’re down to about a four-week supply, the lowest in six years. Corn has rallied also. In fact, the prices of a variety of grains are now at levels not seen since the last food crisis:
During the last food crisis, rice traded for $1,000 a ton and there were riots in different parts of the world. The financial crisis took the headlines away from the unfolding food crisis, but now we are looking at act II.
Crops under stress as temperatures fall
For the second time in little over a year, it looks as though the world may be heading for a serious food crisis, thanks to our old friend “climate change”. In many parts of the world recently the weather has not been too brilliant for farmers. After a fearsomely cold winter, June brought heavy snowfall across large parts of western Canada and the northern states of the American Midwest. In Manitoba last week, it was -4ºC. North Dakota had its first June snow for 60 years.None of this has given much cheer to farmers. In Canada and northern America summer planting of corn and soybeans has been way behind schedule, with the prospect of reduced yields and lower quality. Grain stocks are predicted to be down 15 per cent next year. US reserves of soya – used in animal feed and in many processed foods – are expected to fall to a 32-year low.
There are obviously various reasons for this concern as to whether the world can continue to feed itself, but one of them is undoubtedly the downturn in world temperatures, which has brought more cold and snow since 2007 than we have known for decades.
Three factors are vital to crops: the light and warmth of the sun, adequate rainfall and the carbon dioxide they need for photosynthesis. As we are constantly reminded, we still have plenty of that nasty, polluting CO2, which the politicians are so keen to get rid of. But there is not much they can do about the sunshine or the rainfall.
It is now more than 200 years since the great astronomer William Herschel observed a correlation between wheat prices and sunspots. When the latter were few in number, he noted, the climate turned colder and drier, crop yields fell and wheat prices rose. In the past two years, sunspot activity has dropped to its lowest point for a century. One of our biggest worries is that our politicians are so fixated on the idea that CO2 is causing global warming that most of them haven’t noticed that the problem may be that the world is not warming but cooling, with all the implications that has for whether we get enough to eat.
It is appropriate that another contributory factor to the world’s food shortage should be the millions of acres of farmland now being switched from food crops to biofuels, to stop the world warming, Last year even the experts of the European Commission admitted that, to meet the EU’s biofuel targets, we will eventually need almost all the food-growing land in Europe. But that didn’t persuade them to change their policy. They would rather we starved than did that. And the EU, we must always remember, is now our government – the one most of us didn’t vote for last week.
According to a segment on the Glenn Beck Show on Fox News Channel, theEPA will institute new rules and regulations to control greenhouse emissions by farm animals. During this tough economic time, it is unfair and irresponsible to levy such a tax on family farms, according to conservatives.
Under Title V of the Clean Air Act, farmers would pay a hefty permit fee for animals that emit 100 tons of greenhouse gasses annually, affecting the vast majority of the nation's livestock operations.
Any farm with more than 25 dairy cows, 50 beef cattle or 200 hogs would have to obtain a permit to operate, which, according to the United State Department of Agriculture, would cover 99 percent of New York dairy production, 95 percent of its hog production and 90 percent of beef production.
According to one organization, the New York Farm Bureau, the new permits would cost farmers well over $110 million a year, dramatically impacting the agricultural sector and economy. The tax is estimated at $175 per dairy cow, $87.50 per head of beef cattle and $20 per hog. The added financial burden on already-struggling farmers could force many family farms out of business and lead to a raise in food prices.
While greenhouse gas contributes to global warming -- according to some scientists and liberal-left politicians -- not all emissions are equal. Under this federal proposal, livestock is held as accountable as the industrial and transportation sectors, which is simply illogical. That's essentially saying that a living. Breathing cow is as detrimental to the environment as a coal-powered machine.
"I would advise Americans to buy skis because we are in the precipice of a very slippery slope. The federal government will now begin to dictate what farmers may own and what they must do to keep what they own. In a bad economy, is that the plan of a sane administration?" adds Baker.
"Control the food production and you can control the people. What they are doing is creating starvation of Biblical proportions," said a farmer who wished to remain anonymous.
US Department of Agriculture statistics indicate that the permit requirement and tax would include 99 percent of milk production, more than 90 percent of beef production and more than 95 percent of all hog production in the United States.
In addition, the Environmental Protection Agency has told Maryland's poultry farmers it intends to enforce for the first time federal pollution rules governing chicken manure -- a crackdown that has surprised and angered growers while pleasing environmentalists who've long complained about agricultural runoff fouling
PLEASE sign and do your part to STOP THE TAX HOAX BEING PLAYED ON THE WORLD.www.petitionproject.org............ all it will cost you is a STAMP...!!! If you have time, print some copies off and pass them out for others to sign and send in. If you don't mind being lied to and forced to pay a tax for something that doesn't exist, then by all means, disregard this.