Economics and Farmland Prices Dominated Conference
Even though world population will rapidly expand in the next 90 years, United Nations Food and Agriculture Organization population estimates cannot be completely accurate. The Nigeria, Africa, estimate of 1 billion people in 2100 would mean that Nigeria will have 8 ½ times the population density of today’s China.
There has been a sustained decrease in demand for U.S. ethanol from 2007 to today. The U.S. has been exporting a large volume of ethanol, and production of corn ethanol plants will continue to produce biofuel although they might be converted to various other feedstock.
At higher prices, corn farmers are pulling out the stops to increase per acre production faster than almost every other country in the world, except Brazil. “We take it for granted that we are going to set the price in so many markets, but as others grow their supply in a per capital basis, they either exclude imports or they grow their ability to export. The cumulative change has a big impact.”
The group of newly accredited farm managers present at the ASFMRA award night are front row (left to right) Matthew Wyss, AFM; Adam Gore, AFM; Benjamin Price, AFM; Patrick Gooding, AFM; Jeffrey Hignight, AFM; and back row (left to right) Eric Wilkinson, AFM; Matthew Clarahan, AFM; Luke Worrell, AFM; and Steve Diedrich, AFM. Enhancing farmland can be a better investment than going out and buying new farmland to increase income. He says too many farmers are taking the easy way in increasing their production by buying land instead of relying on technology and their management. “If you go back and look at the cost to tile, level, irrigate or soil enhance an acre today versus 2005 or 2006, the actual cost per acre is not substantially different than what it was back in that period.”
ANGUS SELBY, SENIOR PRINCIPLE FOR AGRICULTURE WITH THE CANADA PENSION PLANT INVESTMENT BOARD
Angus Selby The Chinese population is expanding at an unbelievable rate. In 1990, there were 10 cities in China with more than 1 million people and there were 10 cities in the U.S. and about 35 cities in Europe with 1 million people. “Today, there are still 35 in Europe, and there are still 10 in the U.S., but by estimate more than 120 cities in China have more than 1 million people.”
China is unable to be self-sufficient with the water, land productivity and inability to keep adding enough new technology. “China is pretty much at its maximum output production at the moment. Despite several decades of self-declared policies of self-sufficiency, they are ultimately going to have to look at more of an import policy.”