Not A Good Week For Ag In WSJ

The Wall Street Journal editors must have eaten some tough beef last week, judging from two of their articles. First, on Aug. 27th was “U.S. Biofuel Boom Running on Empty.” Then a day later, it was “Recession Finally Hits Down on the Farm.”

Regarding the first, the paper says that because of the oil glut, lower oil prices and the delayed government rules on changes in fuel mixtures, two-thirds of U.S. biodiesel capacity now remains unused. Additionally, investments are hard to come by in the production of alternative fuels from nonfood renewable resources.

The second article reiterates that USDA is now predicting a 38% decrease this year in net farm income. Much of this is due to the tough year dairy and livestock farmers are having. Lower commodity prices are also threatening the ag industry which, so far, has defied the general recession.

Just thought we’d pass along a little something to cheer you up!