Skip to comments.US Grain Reserves Dangerously Low (AAM Concerned with CCC Inventories)
Posted on 06/11/2008 4:39:52 AM PDT by Renfield
WASHINGTON - Larry Matlack, President of the American Agriculture Movement (AAM), has raised concerns over the issue of U.S. grain reserves after it was announced that the sale of 18.37 million bushels of wheat from USDAs Commodity Credit Corporation (CCC) Bill Emerson Humanitarian Trust.
According to the May 1, 2008 CCC inventory report there are only 24.1 million bushels of wheat in inventory, so after this sale there will be only 2.7 million bushels of wheat left the entire CCC inventory, warned Matlack. Our concern is not that we are using the remainder of our strategic grain reserves for humanitarian relief. AAM fully supports the action and all humanitarian food relief. Our concern is that the U.S. has nothing else in our emergency food pantry. There is no cheese, no butter, no dry milk powder, no grains or anything else left in reserve. The only thing left in the entire CCC inventory will be 2.7 million bushels of wheat which is about enough wheat to make ½ of a loaf of bread for each of the 300 million people in America.
The CCC is a federal government-owned and operated entity that was created to stabilize, support, and protect farm income and prices. CCC is also supposed to maintain balanced and adequate supplies of agricultural commodities and aids in their orderly distribution.
This lack of emergency preparedness is the fault of the 1996 farm bill which eliminated the governments grain reserves as well as the Farmer Owned Reserve (FOR), explained Matlack. We had hoped to reinstate the FOR and a Strategic Energy Grain Reserve in the new farm bill, but the politics of food defeated our efforts. As farmers it is our calling and purpose in life to feed our families, our communities, our nation and a good part of the world, but we need better planning and coordination if we are to meet that purpose. AAM pledges to continue our work for better farm policy which includes an FOR and a Strategic Energy Grain Reserve.
AAMs support for the FOR program, which allows the grain to be stored on farms, is a key component to a safe grain reserve in that the supplies will be decentralized in the event of some unforeseen calamity which might befall the large grain storage terminals.
A Strategic Energy Grain Reserve is as crucial for the nations domestic energy needs as the Strategic Petroleum Reserve. AAM also supports full funding for the replenishment and expansion of Bill Emerson Humanitarian Trust.
Disturbing, if accurate...
(This could very well be mis/disinformation from the pro-Farm-Bill Lobby.. Watching for confirmation from a more neutral source...)
US Grain Reserves info; ping.
Commodity Credit Corporation Crop Inventory as of May 1, 2008.
If anything happens between now and September full harvest. . .Good grief!
Overall with the exception of Japan, our allies are net food exporters. Our enemies and the supposed allies like the Saudis on the other hand are for the most part net food importers. Global inflation of food prices because of increased fuel cost and a shifting of grains to bio fuel may not be all bad given that the percentage of our incomes we spend on food vs. the rest of the world is minuscule. This is going to hurt our enemies a lot more than our friend, and balances out the trade equations with “Food for Oil”
My 2 cents.
With huge chunks of the Corn Belt under water and the corn planting season ending in about ten days, we will soon be paying much more for groceries. It is time to quit shipping grain exports, as many countries have been doing the past three months.
Farmer Dean, what is your take on this news?
My remark was in reference to the Strategic Reserve claims made in the article - which, in my reading, was intimating that the current Farm Bill Boondoggle is needed to ‘correct’ the ‘problem’....
Given the apparent bias of the author, I’m suspending judgement on that aspect of the discussion....
(For the record, I’m a proud member of the doom ‘n gloom camp — and I’ve been predicting skyrocketing food prices - and, worst-case, food riots in American urban areas - for a while, now.. ;~))
The moment you restrict where a farmer can sell his crop, you are basically enacting a price control. The price may stay low, but you damage the supply - or force ever-larger farming subsidies.
According to the May 1, 2008 CCC inventory report there are only 24.1 million bushels of wheat in inventory, so after this sale there will be only 2.7 million bushels of wheat left the entire CCC inventory, warned Matlack.
24.1 - 18.37 = 2.7 say what?
Who was the buyer for the 18 million bushels and why was it approved then?
The Mormons have the right idea; build your own food reserve.
Meanwhile, along the Red River area of Oklahoma and Texas the grain storage/shipping facilities are full or filling with the currently being harvested 2008 wheat crop...one source news is never good.
Any starving FReeper can come by and get a bag or two of frozen corn left over from last year. Screw food inflation. I give away at least half of what I grow.
I have lost 1/3 of my planted tomatoes the last two weeks to hail storms. Have one more hailstorm in the forecast for tonight. Still have about 50 tomato plants in reserve, to replace any more loss. Will we still have hail when the globe gets really warm?
A lot of that hard red winter wheat is grown for export, and I suspect the wheat in the grain elevators now is already sold to overseas consumers, just waiting to be shipped.