Note: Wednesday Editions of “In the Bigger Picture” tend to focus more on general and business information about agriculture.–K.M.
1 . TREND SPOTTING: More and more, institutional investors are owning farmland and its production. Sectors such as almonds, livestock, corn, soybeans, ethanol, and greenhouses are all increasingly owned by institutions. This article is but one of many revealing this trend, and I fully expect this trend to continue.
Today, there are 3 links related to ETHANOL which, as usual, is facing new challenges both in Congress and economically.
2a . ETHANOL EXPORTS: Strategies are being developed to gain ethanol export markets to deal with corn surpluses. $500,000 has been budgeted for export market development in 2015. For example, Peru is being approached because its sugarcane-based ethanol’s low-carbon rating is attracting European buyers, and that spells opportunity for Peru to import ethanol from the U.S. As you can see, this is not an efficiency contest.
2c . 28% CANADIAN CORN TO ETHANOL: Canada is one of the U.S.’s ethanol importers, although it burns 3.25 MT of its own corn [out of 11.5 MT, or 28%] and 1 MT of its wheat [out of 25 MT, or 4%] in its own domestic ethanol production program. (Percentages are according to my own calculations.—KM)
Today’s links include 2 on FARMLAND prices and rents.
5 . INPUT COSTS/PROFIT MARGINS: This farmer offers first-hand data (in charts) which compares GM versus non-GM corn and soybean profits, as well as her explanation for why their farm discontinued organic corn production.
These links were selected by Kay McDonald. For continually updated news about agriculture, please utilize the news feeds on the right sidebar here, and on the “Latest Ag News” tab above.