Sunday, June 16, 2013

Barley is used in the production of beer, including microbreweries.

This is the commodity price of barley. It is a price based on metric ton.

One metric ton is slightly more than 22 hundredweight. Now that is metric ton and not ton. A ton has less than 20 hundredweight.

So, for 22 hundredweight the price for barley is currently $223.00. That is drop in price over the past year. The Farm Bill price falls short by $10 per hundredweight.

U.S. Commercial Bushel Sizes (click here)

That market price doesn't come close to the cost of producing barley, though.

Below are figures from the USDA regarding barley production from 2010, 2011 and 2012. Due to drought conditions in the USA, yield of crops per acre are down. So under this farm bill, American agriculture is not only caught between a rock and a hard place as far as 'per bushel' prices, they are decreased in 'bushels per acre' production because of climate.

The figures below is from this chart, (click here) which was randomly selected. It could have been any state in comparison to the USA.

Barley          :             :                                                                                 
  Planted       : 1,000 acres :        2,872       2,559       3,637 
  Harvested     : 1,000 acres :        2,465       2,239       3,244 
  Yield         : Bushels     :         73.1        69.6        67.9 
  Production    : 1,000 bu    :       180,268     155,780     220,284

(D) Barley, $4.95 per bushel.

Many of the costs per acre production do not change regardless of the yield. Farmers take the money offered to them by the government, but, it doesn't come close to their losses. 

Below is a chart from USDA for years 2011 and 2012

The Farm Bill is the only place where production costs are compensated for losses in revenue to make 'parity.' 

The loss of parity by the Small Family Farm is what drives them out of business.

The loss of the Small Family Farm allows only 'agribusiness' and not 'agriculture' and the USA is reliant on poor farming practices by large farm operations.

In the chart above one might note the increase in acres of barley planted. There is one reason for that and it is the demand of microbreweries across the country. Demand is up. Now, explain to me why demand is up and yet prices are down. I want to hear that one because it makes absolutely no sense to me. 

American farmers growing barley should develop 'custom production' that works with local contracts with local microbreweries. At least they will be able to get better prices than any subsidy is paying.

Small family farms are the way the USA has and will get QUALITY food products. It is not going to be the huge agribusiness producers. The quality production is the Small Family Farm. 

This chart is dated, but, it makes the point (click here).

The USA needs to return land use for agriculture back to Small Families and stop the insane misuse of crop land. Small family farms make the investment of protecting the land and seek maximum yield from it. The least the American consumer can do is provide parity for their operations.

Large agribusiness does what is PROFITABLE, not what is best. It is doesn't pay to irrigate then Agribusiness won't irrigate. 

Returning crop lands to Small Families will return PROTECTION of the land, not just 'cash efficient' use of it.