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New
Forces in Agricultural Commodities
By
Nate Herendeen, Extension Associate – Crops and Soils
Paradigm shifts: The 176th meeting of
the NY State Agricultural Society provided an excellent look at paradigm
shifts coming in agriculture. So, what’s a paradigm shift and who
cares?
Here is an example. It was 1954 when the number of tractors in agriculture
first exceeded the number of horses being used for power. The number of
horses declined rapidly after that time. Horse power came from feed raised
mostly on the farm where it was used. Tractors require hydrocarbon based
liquid fuels. Those come from crude oil extracted from the earth.
Changing to tractor power freed up land that had been used to grow horse
feed. We will never go back to horse power. That was a paradigm shift.
But, we may go back to growing fuel on the land!
Liquid fuels for agriculture: At this time, the only
alternative source of liquid fuels for agriculture (or transportation)
is biomass. The fuel that is now displacing oil is ethanol. The easiest
biomass to convert to ethanol is corn. People have been making corn alcohol
(liquor) for a long time! Scientific research has shown us how to make
ethanol from cellulosic biomass, but not at a competitive price in today’s
economy.
So, whether it is corn or biomass, we are back to producing power for
agriculture using farmland instead of extracting it from deep below the
surface of the earth. We are growing fuel for power like we did in the
days of horse supplied power.
Tractors and self propelled farm equipment revolutionized agriculture.
They put us into a world wide market for commodities used for food and
feed. That market changed in the 1970s and farmers responded accordingly.
That was a paradigm shift.
The next paradigm shift: New forces are creating a paradigm
shift in crop production and cultural practices. Energy markets are now
influencing the price of commodities. Corn, which is primarily used for
animal feed, is now being priced by demand for corn to be the raw product
for energy production. By-product distiller’s feeds are causing
a major shift in livestock feeding. This trend will continue until cellulosic
biomass conversion becomes a practical process. The by-product corn oil
is becoming one of the raw products for bio-based diesel fuel.
Oilseed crops such as canola, soybean and sunflower are now being priced
not only for oil food value, but also for their value in bio-based diesel
production. So far, the price of cooking oils exceeds the price for diesel
production. In the longer term situation, more oil can be produced per
acre by algae growing in an aquatic environment. Again, the practicality
has yet to be perfected. Watch out when it is perfected.
The other factor creating a major paradigm shift
is carbon sequestration. It will take several generations
before we know for sure if mankind is creating global warming or if it
is all part of a great geological cycle.
In geologic terms, we have had times of cooling
with resulting glaciation that covered all of NY. That ended as recently
as 10 to 12,000 years ago. Before that, there were times of heat and drying
when the Great Lakes Basin was a North American desert and the water levels
were hundreds of feet lower than they are today.
Carbon sequestration setting the agenda:
Currently, political decisions are dominated by the theory that mankind
is creating global warming. We therefore need to sequester carbon to keep
it from becoming part of the atmosphere (Green House Gases or GHG) and
contributing to global warming. Forget that it is essential to photosynthesis
in green plants, trees and algae.
Change: In large and small ways,
these cultural pressures (and economic incentives) are making major changes
in agriculture. One way or another, incentives are available to reduce
tillage, capture methane from manure, plant cover crops, trees or pasture,
incorporate all manure, cut down on use of oil based fuels and many more.
Take advantage of the
shifts and markets for as long as they are available. Then be prepared
for more shifts by the time the next generation of young farmers takes
over. The future will bring change at a faster rate than the past! Makes
me wish I was young again and could be part of the next paradigm shift.
Be ready.
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