Lester Spell, Jr., D.V.M., Commissioner

Farm BureauJune 16, 2008

Statewide

• $$6.4 Billion6.4 Billion farm valuefarm value

• $$26 Billion26 Billion economic impacteconomic impact

• Employs 1 out of 4 citizens, either directly Employs 1 out of 4 citizens, either directly or indirectlyor indirectly

• Over 42,000 farmsOver 42,000 farms

• Over 11 million acres of farm landOver 11 million acres of farm land

• 18 million acres in forest land18 million acres in forest land

Mississippi’s Top 5 CommoditiesMississippi’s Top 5 Commodities

Source: Mississippi State University

Field Crops

2006

Acres Planted

2008

Acres Planted

Wheat 85k 450k

Rice 190k 180k

Corn 340k 670k

Cotton 1,230k 420k

Soybeans 1,670k 2,050k

Mississippi Historical Crop Data

Source: Chicago Board of Trade

Shared Concerns of AgricultureShared Concerns of AgricultureThat That Impact all Americans

1. Farm Bill

2. Diseases and Pests

3. Increased Farm Input Cost

4. Energy Needs

5. Safe Food

6. Extremists

7. Labor

8. Truth about Increased Food Costs

Shared Concerns of AgricultureShared Concerns of Agriculture

1 – 3 years

Country of Origin Labels

Permanent Disaster Provision

1. Farm Bill1. Farm Bill

BSE (Mad Cow)

Avian Flu

Cogongrass and Soybean Rust

2. Diseases and Pests2. Diseases and Pests

-Chokes out native vegetation

-Changes natural habitat

-Creates fire hazard

-Threatens endangered species

- Expensive to Control

COGONGRASSCOGONGRASS

Distribution of Cogongrass In USDistribution of Cogongrass In US

Cogongrass Control Demonstration Program has been operating 5 yearsCogongrass Control Demonstration Program has been operating 5 years

10,200 acres of cogongrass has been treated.

1,086 landowners have been provided

herbicides.

Have over 400 landowners on a waiting list for

assistance with herbicides.

Cogongrass has been found in 63 of our 82

counties.

SOYBEAN RUSTPhakopsora pachyrhizi

Soybean Rust Observation - 2008

Soybean Pest SurveyDr. Billy Moore and Dr. Jim Hamer

• Soybean Pod Borer• Soybean Rust

• Survey statewide • ~30 S.M.A.R.T Fields (Soybean

Management with Applied Research &Technology)

• Soybean Sentinel Plots

• May through September

• Weekly surveys

3. Increased Farm Input 3. Increased Farm Input CostsCosts

Diesel Prices Since Hurricane Katrina

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

Aug-0

5

Nov-05

Feb-0

6

May

-06

Aug-0

6

Nov-06

Feb-0

7

May

-07

Aug-0

7

Nov-07

Feb-0

8

May

-08

Month/Year

Val

ue

Input Cost Analysis 2006 2008

Diesel/Gallon $2.26 $4.50

Fertilizer/TonNsol $218 $370

Urea $305 $680

Cottonseed/Bag (including technology fees) $461.95 $472.10

Generic Glyphosate (4lbs. Per Gallon) $13.75 $30.75

Brand Glyphosate (6lbs. Per Gallon) $16 $53.00

3. Increased Farm Input Costs3. Increased Farm Input Costs3. Increased Farm Input Costs3. Increased Farm Input Costs

Source: The Delta Council

• “Monsanto profit jumps, raises 2008 forecast”– Reuters, January 3, 2008

• Agricultural company Monsanto Company said on Thursday its quarterly profit nearly tripled, helped by strength in its corn seed and herbicide businesses, and raised its 2008 forecast.

• Net income rose to $256 million, or 46 cents per share, in the first quarter ended November 30 from $90 million, or 16 cents per share, a year earlier.

3. Increased Farm Input Costs3. Increased Farm Input Costs

1970s Oil Embargo – We learned nothing

Middle class Americans pay 15.26% of income for gasoline

90% of world’s oil owned by different governments

Use all energy resources available• Wind• Coal - Lignite• Ethanol (various sources)• Biodiesel (various sources)• Water• Nuclear (1978)• Solar• Natural gas• Fossil Fuels (CO2 Recovery Offshore Alaska)

4. Energy Needs4. Energy Needs

Food trace back (Farm and animal ID)

• BSE (Mad Cow)

• Hamburger recalls

• Spinach

• Tomato

5. Safe Food5. Safe Food

• Timber harvest

• Horse slaughter for human consumption

• Meat animal production and poultry

• Livestock shows/rodeos

6. Extremists6. Extremists

• Adequate legal labor force essential – Approx. 70% of Ag workforce undocumented workers

• Need universal personal identification that cannot be counterfeited

• Border security

7. Labor7. Labor

8. Truth About Increased Food 8. Truth About Increased Food CostsCosts

“General Mills profit jumps on sales rise” - USA Today, March 28, 2008

• General Mills Inc. said its profit climbed 61 percent in the third quarter as strong demand and higher prices led to a big rise in sales.

• The earnings for the maker of Cheerios and Wheaties cereals were above Wall Street expectations……

8. Truth About Increased Food 8. Truth About Increased Food CostsCosts

• “Sales lift Kellog”– The Associated Press, October 29, 2007

• The world's leading cereal producer earned US $305 million, or 76 cents per share, in the July-September period, up from $281 million, or 70 cents per share, a year earlier.

Farmers Share of Retail Food Dollar

Product Retail Price Farmer’s ShareMulti-Purpose Flour (5lbs.) $2.89 $1.05

Bread (Wonder, 1 lb. loaf) $2.79 $0.21

Wheaties, (15 oz.) $4.95 $0.16

Beer, Miller Lite, 6 pack $5.05 $0.11

Soda (Corn) 2 liter cola $1.49 $0.09

Milk ( 1 gallon, fat free) $4.48 $1.44

Potatoes ( Russet, 10 lbs.) $3.29 $0.88

Potato Chips (Lays Classic 13.5 oz) $3.29 $0.08

Cheddar Cheese (1 lb) $5.49 $1.76

Boneless Ham ( Per lb) $4.29 $0.41

Bacon ( 1 lb.) $3.29 $0.41

Top Sirloin Steak (1 lb.) $7.99 $0.85

Eggs (1 doz. AA-L) $3.99 $1.03

Carrots (fresh. 2 lbs.) $1.89 $0.52

Lettuce (head, 2 lbs.) $1.79 $0.42

Farmer’s Share of Retail Food DollarFarmer’s Share of Retail Food Dollar

Source: USDA/NASS

““Heaven help the nation that Heaven help the nation that does not have him does not have him (the farmer)(the farmer)

to support it.”to support it.”

- Paul Harvey- Paul Harvey

““Heaven help the nation that Heaven help the nation that does not have him does not have him (the farmer)(the farmer)

to support it.”to support it.”

- Paul Harvey- Paul Harvey

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