Farm Focus 2008

United Nations Secretary-General Ban Ki-moon this week called for a 50 percent increase in world food production by 2030, saying that failure to feed the world's growing population will mean civil unrest and starvation. New agriculture technology could lead the way to helping ease that situation caused by rising

food costs. Coming in July, is one of the best platforms for showcasing new developments in agriculture. Brown County, Wisconsin is host for Farm Technology Days.

I went to Mark Hagedorn, University of Wisconsin Extension Agricultural Agent for Brown County, and asked him his thoughts about several subjects regarding agriculture and its current status in our country. The following are his thoughts:

Question: Economists have predicted the economy would deteriorate into recession in 2008. Some say we're in one, others are just attempting to predict the future. Mark, what effect has the economy had on ag business in Northeast Wisconsin?

Hagedorn:“Right at the moment, we're seeing agriculture probably at almost an all time high in Northeast Wisconsin, particularly Brown County. Milk prices have been good, people growing corn, wheat, soybeans, these kinds of commodities are really pleased with how they're being reimbursed for their efforts. So, obviously input costs for producing all these commodities have gone up likewise. So, the bottom line isn't maybe quite as rosy and cheery as what you would anticipate with the proceeds they're getting for these sales. I think probably we're gonna have to wait and see just how commodity prices hold...the ethanol aspect, and even the state of Wisconsin, where we don't grow as much corn as what we see in states such as Illinois and Iowa. But, it is still impacting, and as we start to get cow numbers increasing in this county, we've got to find the agricultural base acres to take care of the manure that these animals produce. Then, how the environment, and agriculture and our urban agricultural interface works too, all of these factors have a big impact on what we are dealing with, but I think we can be cautiously optimistic.”

Question: President Bush championed an economic stimulus package earlier in the year. With the public starting to cash the government checks this month, what effect do you see that having on agriculture?

Hagedorn: “There may be a little trickle down effect from consumers buying more dairy products or other food items at the grocery, but how consumers are going to spend this small windfall we have yet to see. Obviously, some will make its way back to the farm, but you take a look at the scale and the scope of these funds, and it takes a while for those monies to impact farmers say with milk being sold from herds with 500 to a 1,000 to 1,500 cows to filter through the system and have an effect returning to the farmer's pocket is a long process. We just hope we get even a small jump start from this injection into public and ag business. Maybe it can benefit all of us.”

Question: What do you see in your crystal ball as the financial forecast for farming 2008, not from Ban Ki-moon's perspective, but your vantage point near the halfway point in the year?

Hagedorn:“I think people out there, and myself included, are still cautiously optimistic. Milk prices have backed off a bit, and obviously that's the fuel that motors the engine for Northeast Wisconsin and Brown County. We've 17 milk processing plants in this county, and we are very, very heavily involved in dairy production. Things are continuing to go positively as long as input costs stay parallel with what we're receiving milk check wise, and commodities value when you go to the market, I think we're gonna be okay. The only real potential downside is if we see the bottom fall out of the milk market, and say corn prices drop radically (not likely considering recent Midwest flooding), and our input costs, which are really high, a couple to mention are diesel fuel over $4.00 a gallon, and nitrogen over $500.00 a ton. If those stay up, and the values of our commodities go down, then it could be a time for reckoning. At this point in time, I think things are holding in there pretty well.”

Question: You mentioned a concentration on dairy, and Wisconsin used to be known as America's Dairyland, and now have fallen behind California and Texas.

Do you see them struggling to get back on top again?

Hagedorn:“Oh c'mon! Wisconsin is still America's Dairyland. Uh, we may not have the most numbers of cattle in the country, but we still do a real good job with our milk cows. We are the number one cheese producer in the country, and these things go hand in hand. I think a lot of what the dairy industry in Wisconsin hangs its hat, is the quality of the product that we produce, and the way we produce it, and what good stewards of the land we are, here. And, there may be some bragging rights going back and forth as to which state has the most cows, or which state produces the most milk, but I think things look good for the state of Wisconsin, and I'm certainly proud to be part of it.”