Numbers part 2

  This is a follow up on grain production and USDA reports also noted in my October post.
       Corn production estimate in august compared to actual production in UDSA January report resulted in lowering corn produced by farmers in the 2010 crop year by one billion bushels.  This shortened crop yield combined with reduced yields in other countries has and will continue to impact grain prices.  The USDA national farm price for corn was estimated to be $4.50 per bushel in the August report and today the March contracts are over $6.50 per bushel. 
    How does this effect the world?  Countries like China are competing to acquire adequate supplies to feed their growing population, they have a growing number of people with higher levels of disposable income than the past.  With extra income comes improved diets and higher use of agricultural products.  Feed grain users here and in other countries react to lower supplies by paying more to insure they will not run out of product.  This makes all food prices higher world wide.
  The people we are trying to reach out to in the many Foods Resource Bank Projects do not have the capabilities to compete for these food products.  That is why it is so important that what we do as a group is to teach farmers and villages world wide to supply themselves and their neighbors.  If we were only to give them grain as a hand out, higher prices would mean less grain to give them.  Instead by helping them become self sufficient they regain control of their lives and are not as dependent on world events. 
   As a farmer I know the abundance we produce here will not always reach everyone in need of food.  But by partnering with all our friends in the cooperating churches and combining our resources, we can and are making a real difference one family and village at a time.  Over time those people help the next village and the quality of life will continue to improve.
     On my own farm the winter wheat seedlings have not been under to much stress and I am hopeful they will flourish when warm weather arrives, if they look good nitrogen will be applied in spring and fungicides in the early summer.  Tillage was completed this fall, supplies have been ordered and should arrive soon, and planning for tile improvements are underway.  Farmers around the world will be reviewing what they can do to increase their production to meet the additional demand.  The rule has always been shortages are meet with higher prices which encourage more production.  If I can justify more expenses by the promise of higher yields and more profit I will make those changes.
  Again thank you for supporting FRB.  Dean Lundeen