U.S. Senator John Cornyn has graciously provided the guest posting below.
Hello Panhandle Poet readers…it’s a privilege to guest post here.
I wanted to touch base with you regarding an issue which is very pressing in the Panhandle, ethanol.
When first introduced to the marketplace, it was hoped that ethanol would help revitalize rural America, lower the price we pay at the pump and reduce our dependence on foreign oil.
That’s a worthy goal, yet the government’s focus on ethanol has produced a problem. There have been unintended adverse consequences to our economy from the focus on ethanol production. Chiefly, since February of 2006 the combined price of corn, wheat and soybeans has increased more than 416 percent.
For this reason and many more, I co-sponsored legislation which was introduced recently to freeze the renewable fuel standard corn-based ethanol mandate at current 2008 levels.
In the panhandle, like other places, the effect of ethanol production has been mixed. While a few have benefitted from it, a great many others have suffered.
As more and more farmers grow corn for ethanol production, cattle feeding ration prices have shot sky high. Mandates, along with the high cost of fuel, are squeezing every bit of profit out of cattle feedlots today.
As consumers continue to see rising food and fuel prices, freezing the corn-based ethanol mandate will allow us to re-evaluate the consequences of using food for fuel and determine the best way forward. Texas will remain a leader as we work to diversify our nation’s energy supply to include alternative and renewable sources, but in the meantime Congress must exercise its oversight role to ensure there are no further unintended consequences. A freeze of the mandate will allow time for necessary assessments and reduce increasing grocery, grain and feed prices.
Last year, the Energy Independence and Security Act (EISA) provided the Environmental Protection Agency (EPA) the authority to waive the mandates, or adjust them as necessary to provide relief for consumers.
Last month, I joined Sen. Hutchison and others in sending a letter to EPA Administrator requesting an update on the pending rule-making process for the waiver of all or portions of the ethanol mandate passed by Congress in 2007. The letter also urged the EPA to consider the sharp rise in food prices as they review the mandate.
Freezing the mandate at its current level for one year is not a long term solution, but it is a good start towards finding one.
My heartfelt thanks go to the Senator for addressing this issue and for providing this post.
Also posted on:
Panhandle's Perspective
Common Sense Agriculture, Conservation and Energy
Saturday, May 31, 2008
Thursday, May 29, 2008
The Wind Blows
Restlessly
Incessantly
Relentlessly
The wind blows
The air is filled
With the tiny grains
That should be held
By growing things
Instead
The wind blows
The sand moves
The tiny stalks with newborn leaves
Shrivel beneath the onslaught
No
Not the Dust Bowl
Just spring
In the southern reaches
Of the Great Plains.
Incessantly
Relentlessly
The wind blows
The air is filled
With the tiny grains
That should be held
By growing things
Instead
The wind blows
The sand moves
The tiny stalks with newborn leaves
Shrivel beneath the onslaught
No
Not the Dust Bowl
Just spring
In the southern reaches
Of the Great Plains.
Friday, May 23, 2008
Senator Cornyn Visits With Bloggers
Yesterday I had the privilege of participating in a conference call with U.S. Senator John Cornyn (R-TX). It was an invitation only call issued to members of his blog roll.
I appreciate the Senator’s interest in keeping the members of his constituency informed through the new medium of bloggers. He closed his call by thanking bloggers for their role in sharing the news of what is happening in the world without the slanted agenda that is often behind the reporting of main-stream media.
The Senator opened the call with remarks about the Supplemental Troop Funding bill which passed the Senate by a 75-25 vote yesterday. He expressed his disappointment that the bill was saddled with an excessive number of non-defense related items that were added by members whose special interests overrode their concern for our troops in Iraq and Afghanistan. They saw the sure passage of the measure as an easy means of adding pork-barrel items with little threat of veto due to the imminent need for the funding.
Also included on the bill was a modernization of the GI Bill-of-rights. He indicated that he believed such modernization was necessary and proper yet did not seem to be fully pleased with some of the provisions in the bill.
The Senator also remarked about the rising cost of gasoline and the impact that it was having on our lifestyles and our economy. It seems that the agenda of many of the Democrats in positions of power is overriding the common sense of developing our own resources in a sensible manner. While recognizing the need for conservation, we must develop domestic oil supplies from proven reserves as well as encourage the construction of additional domestic refining capacity. These items would help alleviate prices through a focus on the supply side of the equation. It will be necessary to expand our domestic supply to help offset the growing international demand from countries such as China whose economy is requiring energy at an increasing rate.
After his opening remarks, the Senator opened the call to questions from participants. The questions ranged from the vote to override the President’s veto of the Farm Bill (voted yes to override), to additional questions about energy (including the impact of the ethanol mandates) and gun-control.
On the question of ethanol, the Senator noted that the mandates were a perfect example of unintended consequences. He especially noted the negative impact to water and land demands and their impact on food prices through competing away acreage from the production of other crops. He also noted the negative impact to livestock and poultry producers through the escalating price of feed. He, along with several other Senators, has requested the EPA to adjust the mandates according to the provision in the original enabling legislation that allows them to do so.
He also noted that the ethanol mandates have caused many to behave illogically. He specifically cited a story released through Bloomberg on Wednesday, about the Postal Service driving ethanol powered vehicles that were 28% less efficient that similar gasoline powered vehicles. They were burning more fuel to travel the same distance.
I appreciate the Senator’s willingness to take the time to visit with the blogging community. I look forward to the next opportunity. If you are interested in joining the Senator Cornyn blogging community, contact Vincent@johncornyn.com.
Also posted on Common Sense Agriculture, Conservation and Energy.
I appreciate the Senator’s interest in keeping the members of his constituency informed through the new medium of bloggers. He closed his call by thanking bloggers for their role in sharing the news of what is happening in the world without the slanted agenda that is often behind the reporting of main-stream media.
The Senator opened the call with remarks about the Supplemental Troop Funding bill which passed the Senate by a 75-25 vote yesterday. He expressed his disappointment that the bill was saddled with an excessive number of non-defense related items that were added by members whose special interests overrode their concern for our troops in Iraq and Afghanistan. They saw the sure passage of the measure as an easy means of adding pork-barrel items with little threat of veto due to the imminent need for the funding.
Also included on the bill was a modernization of the GI Bill-of-rights. He indicated that he believed such modernization was necessary and proper yet did not seem to be fully pleased with some of the provisions in the bill.
The Senator also remarked about the rising cost of gasoline and the impact that it was having on our lifestyles and our economy. It seems that the agenda of many of the Democrats in positions of power is overriding the common sense of developing our own resources in a sensible manner. While recognizing the need for conservation, we must develop domestic oil supplies from proven reserves as well as encourage the construction of additional domestic refining capacity. These items would help alleviate prices through a focus on the supply side of the equation. It will be necessary to expand our domestic supply to help offset the growing international demand from countries such as China whose economy is requiring energy at an increasing rate.
After his opening remarks, the Senator opened the call to questions from participants. The questions ranged from the vote to override the President’s veto of the Farm Bill (voted yes to override), to additional questions about energy (including the impact of the ethanol mandates) and gun-control.
On the question of ethanol, the Senator noted that the mandates were a perfect example of unintended consequences. He especially noted the negative impact to water and land demands and their impact on food prices through competing away acreage from the production of other crops. He also noted the negative impact to livestock and poultry producers through the escalating price of feed. He, along with several other Senators, has requested the EPA to adjust the mandates according to the provision in the original enabling legislation that allows them to do so.
He also noted that the ethanol mandates have caused many to behave illogically. He specifically cited a story released through Bloomberg on Wednesday, about the Postal Service driving ethanol powered vehicles that were 28% less efficient that similar gasoline powered vehicles. They were burning more fuel to travel the same distance.
I appreciate the Senator’s willingness to take the time to visit with the blogging community. I look forward to the next opportunity. If you are interested in joining the Senator Cornyn blogging community, contact Vincent@johncornyn.com.
Also posted on Common Sense Agriculture, Conservation and Energy.
Thursday, May 22, 2008
Attitude
Our attitude determines our response to what life hands us. In many ways, it drives our behavior.
Last week a good friend related to me the story of a two-day trip calling on various beef producers. The trip was designed to include a variety of operations as an educational venture for an executive in his company that had little knowledge of the beef industry. His story illustrates the difference in attitude of each of the producers and how they are responding to the currently trying times in the beef industry. (Disclaimer: Note that either no names are given, or they are changed to protect the innocent and not-so-innocent!)
The first stop on the tour was to an operation that consisted of a small pre-conditioning facility as well as a cow herd and some stocker cattle. This individual had experienced escalating feed costs and had been “burned” by a couple of his pre-conditioning customers. His view was that ethanol was killing the beef industry. To sum it up, he had a “woe is me, the sky is falling” attitude. All he could see was the downside created by escalating feed costs.
The second stop on the tour was to an operation that specialized in buying light weight calves and taking them through a stocker phase before selling them to someone else for finishing. This individual had tried numerous approaches to add value to his cattle but found that “it doesn’t matter what I do, someone else always gets ahead while I just try to survive.” His attitude was one of powerlessness in the face of market realities.
The third stop was to meet with a veterinarian. He felt that although we were currently in a “down” cycle, it would eventually pass. The focus of the conversation with him quickly turned to new technology. He wanted to know what was in development, when would it be available and whether they had considered looking at a list of other possibilities. His attitude was forward-looking and positive.
The fourth stop was to a large cattle feeding operation. The attitude there could be described as “it’s bad but it will be better and this is what we’re doing to make sure we are still in business when it does.” They had a “hunkered-down-in-the-bunker” mentality but saw an improving future. Their attitude was one of “dodging bullets” until it got better.
The fifth stop was to a small pre-conditioning and stocker operation. The owner had experienced a number of setbacks and recently taken a job in town to supplement his income from livestock. He was at the point of feeling “beat up” and not knowing what the future would hold. He realized that much of his predicament was due to decisions that he had made that cost him dearly. It will be a difficult road to recovery, but he was going to give it his best effort. His attitude was one of having been through a fight but not through fighting yet.
The sixth stop was to a small operation that primarily ran stocker cattle. He saw opportunity everywhere. To him, turmoil signaled opportunity. His attitude was one of innovation, forward-thinking and determination to exploit opportunity.
The seventh and final stop was to a large seed stock operation. They felt that things weren’t great right now but were preparing for the future. They were extremely knowledgeable of the global factors affecting their operation and had plans in place to adapt to every conceivable contingency. Their attitude was positive but cautious and designed for what they saw as an uncertain future.
All-in-all, the attitudes were more positive than would be expected given the difficulties the industry faces as it adjusts to the realities of a bio-fuel economy. The operations listed above will be profoundly affected by changes in the beef industry. Their individual attitudes will affect how well they do.
We become what we think – what our minds dwell upon. We react to our surroundings based on our attitude toward the things that we see, feel and experience. Some of the producers in the scenarios enumerated above will survive and thrive. Others will fail. Based on their attitudes, which ones do you think will be the survivors?
Last week a good friend related to me the story of a two-day trip calling on various beef producers. The trip was designed to include a variety of operations as an educational venture for an executive in his company that had little knowledge of the beef industry. His story illustrates the difference in attitude of each of the producers and how they are responding to the currently trying times in the beef industry. (Disclaimer: Note that either no names are given, or they are changed to protect the innocent and not-so-innocent!)
The first stop on the tour was to an operation that consisted of a small pre-conditioning facility as well as a cow herd and some stocker cattle. This individual had experienced escalating feed costs and had been “burned” by a couple of his pre-conditioning customers. His view was that ethanol was killing the beef industry. To sum it up, he had a “woe is me, the sky is falling” attitude. All he could see was the downside created by escalating feed costs.
The second stop on the tour was to an operation that specialized in buying light weight calves and taking them through a stocker phase before selling them to someone else for finishing. This individual had tried numerous approaches to add value to his cattle but found that “it doesn’t matter what I do, someone else always gets ahead while I just try to survive.” His attitude was one of powerlessness in the face of market realities.
The third stop was to meet with a veterinarian. He felt that although we were currently in a “down” cycle, it would eventually pass. The focus of the conversation with him quickly turned to new technology. He wanted to know what was in development, when would it be available and whether they had considered looking at a list of other possibilities. His attitude was forward-looking and positive.
The fourth stop was to a large cattle feeding operation. The attitude there could be described as “it’s bad but it will be better and this is what we’re doing to make sure we are still in business when it does.” They had a “hunkered-down-in-the-bunker” mentality but saw an improving future. Their attitude was one of “dodging bullets” until it got better.
The fifth stop was to a small pre-conditioning and stocker operation. The owner had experienced a number of setbacks and recently taken a job in town to supplement his income from livestock. He was at the point of feeling “beat up” and not knowing what the future would hold. He realized that much of his predicament was due to decisions that he had made that cost him dearly. It will be a difficult road to recovery, but he was going to give it his best effort. His attitude was one of having been through a fight but not through fighting yet.
The sixth stop was to a small operation that primarily ran stocker cattle. He saw opportunity everywhere. To him, turmoil signaled opportunity. His attitude was one of innovation, forward-thinking and determination to exploit opportunity.
The seventh and final stop was to a large seed stock operation. They felt that things weren’t great right now but were preparing for the future. They were extremely knowledgeable of the global factors affecting their operation and had plans in place to adapt to every conceivable contingency. Their attitude was positive but cautious and designed for what they saw as an uncertain future.
All-in-all, the attitudes were more positive than would be expected given the difficulties the industry faces as it adjusts to the realities of a bio-fuel economy. The operations listed above will be profoundly affected by changes in the beef industry. Their individual attitudes will affect how well they do.
We become what we think – what our minds dwell upon. We react to our surroundings based on our attitude toward the things that we see, feel and experience. Some of the producers in the scenarios enumerated above will survive and thrive. Others will fail. Based on their attitudes, which ones do you think will be the survivors?
Wednesday, May 21, 2008
Small-town Texas
U.S. Senator John Cornyn writes about small-town Texas in the post linked below.
More than a Name
Monday, May 19, 2008
By: U.S. Sen. John Cornyn
When pioneers made their way to Texas generations ago, many helped establish towns. From Abbott to Zorn, these smaller communities safeguard the Texas ethic, the values that have made our state great.
If you exit the major highways, you can travel to places such as Cee Vee, Tarzan, Tigertown, Ropesville, Petrolia and Notrees. The way these towns were named often reflects the optimism and good-natured outlook of those who helped settle our vast state.
Even today, the real spirit of Texas can be found in smaller towns across our state. Texas names have...(complete article here).
Don't forget about Happy, Earth, Needmore, Dime Box, Mobeetie, Telegraph, and the hundreds of other anchors to generations of Texans that dot our great state.
More than a Name
Monday, May 19, 2008
By: U.S. Sen. John Cornyn
When pioneers made their way to Texas generations ago, many helped establish towns. From Abbott to Zorn, these smaller communities safeguard the Texas ethic, the values that have made our state great.
If you exit the major highways, you can travel to places such as Cee Vee, Tarzan, Tigertown, Ropesville, Petrolia and Notrees. The way these towns were named often reflects the optimism and good-natured outlook of those who helped settle our vast state.
Even today, the real spirit of Texas can be found in smaller towns across our state. Texas names have...(complete article here).
Don't forget about Happy, Earth, Needmore, Dime Box, Mobeetie, Telegraph, and the hundreds of other anchors to generations of Texans that dot our great state.
Headlights
Straight and narrow
The highway stretches before me.
Although I only see as far
As the light which shines before me
I know the way is straight
Because it has not varied
In its path.
Only a few travel this unwavering road.
I am vaguely aware
Of those who travel other ways
That are filled with darkness.
They zip hither and yon,
Racing toward their destination.
They seek but never find.
They seek in vain.
Storms assail my path but the light goes on before.
Along the way I meet others
Who seek escape from the darkness.
I show them the light that guides me.
Some see the light
And others do not.
I invite them to travel with me
Following the light.
We travel together as the light guides our way.
Psalm 119:105 - "Your word is a lamp to my feet and a light for my path."
The highway stretches before me.
Although I only see as far
As the light which shines before me
I know the way is straight
Because it has not varied
In its path.
Only a few travel this unwavering road.
I am vaguely aware
Of those who travel other ways
That are filled with darkness.
They zip hither and yon,
Racing toward their destination.
They seek but never find.
They seek in vain.
Storms assail my path but the light goes on before.
Along the way I meet others
Who seek escape from the darkness.
I show them the light that guides me.
Some see the light
And others do not.
I invite them to travel with me
Following the light.
We travel together as the light guides our way.
Psalm 119:105 - "Your word is a lamp to my feet and a light for my path."
Friday, May 9, 2008
Character and Persistence
Some days you get hammered
And it's hard to pick yourself up.
You are keyed up
Built up
Psyched up
And disappointed
When it doesn't go the way you wanted.
So, how do you respond?
Do you get down on yourself?
Become disillusioned?
Or, do you bounce right back
And move on to the next project?
Or, better yet,
Take a new approach and try again?
How we respond to what life hands us
Reveals our character.
Weakness is easily defeated;
Strength is in persistence.
What are you made of?
Are you strong, or weak?
Persistent, or easily defeated?
And it's hard to pick yourself up.
You are keyed up
Built up
Psyched up
And disappointed
When it doesn't go the way you wanted.
So, how do you respond?
Do you get down on yourself?
Become disillusioned?
Or, do you bounce right back
And move on to the next project?
Or, better yet,
Take a new approach and try again?
How we respond to what life hands us
Reveals our character.
Weakness is easily defeated;
Strength is in persistence.
What are you made of?
Are you strong, or weak?
Persistent, or easily defeated?
Friday, May 2, 2008
Thinking Toward Progress
To sit and think
Is sometimes a luxury.
We hurry and rush
From one task to another
Without thinking about
What we are doing or why.
But I've found through the years
That a moment of silence
Reflecting on tasks I must do
Helps me to order
My work for the day
So my efforts will multiply.
It allows me to focus
On what is important
Rather than merely reacting
To whatever crisis
Rears its ugly head
As I go through the course of a day.
So instead of being pulled
Hither and yon
Jumping to the whims of others
I stay on the tasks
That are aimed at my goals
And progress along the way.
Is sometimes a luxury.
We hurry and rush
From one task to another
Without thinking about
What we are doing or why.
But I've found through the years
That a moment of silence
Reflecting on tasks I must do
Helps me to order
My work for the day
So my efforts will multiply.
It allows me to focus
On what is important
Rather than merely reacting
To whatever crisis
Rears its ugly head
As I go through the course of a day.
So instead of being pulled
Hither and yon
Jumping to the whims of others
I stay on the tasks
That are aimed at my goals
And progress along the way.
Monday, April 28, 2008
What Food Crisis?
In my wealth
I am concerned
That the price of fuel
Has increased significantly.
In his poverty
He has no money
To buy the food
To feed his children.
If I drove less
And bought less
And paid less
For the things I desire
Would he have
More funds
With which to buy
What he needs?
Sadly, no.
In my compassion
I give of my plenty
To those who would
Feed the needy.
Greed siphons
The compassionate gift
Until the trickle remaining
Is almost meaningless.
What is the answer?
One camp says
That we should
Redistribute the wealth
Among the needy.
The other camp says
That we should
Teach the needy
To feed themselves.
The greedy,
The powerful,
The politicians,
The bureaucrats,
All seek to exploit,
Pushing their own agenda,
While I continue to worry about the price of fuel
And he still can't feed his family.
I am concerned
That the price of fuel
Has increased significantly.
In his poverty
He has no money
To buy the food
To feed his children.
If I drove less
And bought less
And paid less
For the things I desire
Would he have
More funds
With which to buy
What he needs?
Sadly, no.
In my compassion
I give of my plenty
To those who would
Feed the needy.
Greed siphons
The compassionate gift
Until the trickle remaining
Is almost meaningless.
What is the answer?
One camp says
That we should
Redistribute the wealth
Among the needy.
The other camp says
That we should
Teach the needy
To feed themselves.
The greedy,
The powerful,
The politicians,
The bureaucrats,
All seek to exploit,
Pushing their own agenda,
While I continue to worry about the price of fuel
And he still can't feed his family.
Thursday, April 24, 2008
Straw Hat Weather
On a recent trip to Corpus Christi, I acquired a new straw hat. It was during the Texas and Southwestern Cattle Raisers annual meeting and trade show. It was definitely straw hat weather in South Texas although it was prior to Easter – which came early this year. OK, so where am I going with this? Traditionally, in most parts of cattle country, Easter marks the beginning date when it becomes acceptable to wear a straw hat rather than a felt hat.
While felt hats are appropriate at any time of year (especially on formal occasions) straw hats generally are worn only after Easter and prior to Labor Day. Those are the dates that basically define the period of warmer weather when the greater airflow through a good straw hat is more comfortable than the heat generated beneath a felt hat.
Easter came early this year. Add to that the early time change and my clock got off somewhere. It is just now warm enough to start thinking about straw hats rather than felt.
Most of the time I wear a cap to cover my bald head. Caps are easier to keep up with, the brim doesn’t hit the headrest on my pickup seat, and they don’t catch as much wind as a hat. But when it is hot outside, you can’t beat a good straw hat. It keeps my neck and ears from broiling.
Some people wear hats for decoration. I never really bought into that. I wear a hat for shade or to keep my head warm. Some people wear hats to keep the rain off of their head. That’s usually not an issue in the Texas Panhandle. It would be nice if it did rain. Then I could test that particular theory.
People seem to have lost sight of proper hat etiquette over the years. I fear that it is a symptom of the general coarsening of behavior. It is tied to a loss of civility in society.
Some years ago the John B. Stetson Company published guidelines for appropriate hat etiquette. These guidelines are appropriate today – whether the wearer sports a felt, straw or a cap.
* The hat should be removed from the head when the National Anthem is played, when entering a building, when you are being introduced – especially if it is to a woman, at a funeral, or when beginning a conversation.
* The hat should be tipped, or lifted slightly from the head, when a woman thanks you, after getting directions from a stranger – especially if the stranger is female, when you excuse yourself to a woman, when you are walking with a friend and he says hello to a woman that he knows and you do not.
* You are not expected to remove your hat in public buildings, in entrance halls or in elevators. The exception being that it is polite to remove your hat in an elevator if there is a woman present – unless it is too crowded to do so. You are expected to remove your hat in any situation where a show of respect is appropriate. This would include removing the hat in public buildings if the building is a church, courthouse, or state or federal capitol.
* Hats should be removed for meals if there is a safe place to put your hat while eating.
Hat etiquette is something that has been lost. I see hats everywhere. Our kids wear them to school and even to church functions. They think nothing of leaving them on their head unless someone in authority asks them to remove them. They have no concept of the lack of respect that wearing their hat shows – or maybe they do.
It’s springtime. The weather is finally turning warm. I believe it’s time for a straw hat.
Saturday, April 19, 2008
The Portland Head Lighthouse
The rocky ledge runs far out into the seaAnd on its outer point, some miles away,
The lighthouse lifts its massive masonry,
A pillar of fire by night, of cloud by day.
- Henry Wadsworth Longfellow, "The Lighthouse"
This past week I went to Portland, Maine, for business. Fortunately, I was able to have a little time to take a trip out to the Portland Head Light. The weather was gorgeous.
The lighthouse sits on a promontory of rocks jutting out into the ocean. It is adjacent to what was once old Fort Williams.
Construction of the lighthouse was completed in January, 1791. President George Washington appointed Joseph Greenleaf, a Revolutionary War veteran, to be the first keeper. The original keeper's house was of stone. The current Victorian house was built in 1891.
This is a fishing boat returning to port. The photo was taken from the observation area at the base of the lighthouse.
For more on The Portland Head Light click here.
Thursday, April 10, 2008
New Competition for Beef
While traveling in Kansas this past week I had the opportunity to meet with several cattlemen and feedlot managers. The mood among them is somber to say the least. The market doesn’t seem to be adjusting to the realities of the new energy economy very quickly.
Transportation cost is one of the biggest factors impacting every industry across the country -- especially livestock feeding. When trucking companies are dealing with diesel prices in the neighborhood of $4.00/gallon, the cost of moving grain or animals or boxed beef becomes significant. If calves are being shipped from the Southeast to feedlots in the Plains, the cost of transportation must be figured into the price of those calves. The same issue affects corn – if it can be purchased at all.
On the other end of the supply chain we have the consumer. When gasoline prices are at record levels, groceries is one area where household costs are cut. We should be looking at ways to drive less or improve fuel efficiency but instead, we cut back on spending for higher priced food items such as beef. We don’t give up our gas guzzling habits very easily.
The result is that packing plants are looking at cold storage filled with boxes of unsold beef; the feedlots are looking at cattle that need to go to market but the packing plants aren’t willing to give them a price at which the feeder can make any money; cattle feeders are unwilling to buy calves to put on feed – and on and on. It all is driven by fuel in one form or another.
What is driving the fuel prices? I am amazed that our Congressional leaders in all of their wisdom feel compelled to bring the heads of multiple oil companies to Washington to berate them over the cost of fuel. Of course, most of the Congressmen and Senators don’t have much training in economics. In fact, I think they must be trained in anti-economics – or at least anti-free enterprise. Most of the laws coming out of Washington seem to hinder business rather than help. The cost of every regulation and every hair-brained pork-barrel scheme gets passed on to the consumer in some form or fashion. Sometimes it is a direct tax but more often than not, it as an indirect tax created through regulatory action on business.
It is the growing economies in India and China, domestic regulations concerning fuel additives, mandatory targets for bio-fuels, market uncertainty due to political unrest, burdensome regulation on building new refineries and infrastructure, the high cost of building refineries, environmental regulations, closure of certain areas to oil exploration, the devaluation of the dollar, and all of the other global factors that impact the energy business that are driving fuel prices. Why do we think we can solve the problem by making ethanol from corn? Oh, and did I mention the booming economies of India and China? A few hundred million individuals with the most disposable income at their finger tips that has been seen in those countries ever – want to spend it on some of the finer things in life – like automobiles and meat.
Our consumer spending habits are enabling those countries to build thriving economies that produce goods that must be transported to the U.S. by ships burning diesel. I’m happy their economies are growing. We just have to realize that we are paying for that growth.
The current ethanol mandates drive up the price of corn. That’s really all they do for our energy situation. Has the price of gasoline come down? The high price of corn was good for corn farmers – last year. The cost of farm inputs has now normalized (adjusted) due to the higher fuel costs and the margins for farmers will be much slimmer this year. Their business is extremely fuel intensive. Their input costs – such as for fertilizer and diesel – have gone through the roof.
The mandates are hurting cattle producers. They are suppressing demand for beef because now – put this in your pipe and smoke it – beef is competing against energy. The consumer dollar will choose energy over beef because of the need to heat and cool our homes and drive to and from work. In the past, beef competed with pork and poultry. Now it must also compete with energy because the primary cattle feed ingredient is being converted to fuel.
Isn’t it great what misguided regulations do for you?
Transportation cost is one of the biggest factors impacting every industry across the country -- especially livestock feeding. When trucking companies are dealing with diesel prices in the neighborhood of $4.00/gallon, the cost of moving grain or animals or boxed beef becomes significant. If calves are being shipped from the Southeast to feedlots in the Plains, the cost of transportation must be figured into the price of those calves. The same issue affects corn – if it can be purchased at all.
On the other end of the supply chain we have the consumer. When gasoline prices are at record levels, groceries is one area where household costs are cut. We should be looking at ways to drive less or improve fuel efficiency but instead, we cut back on spending for higher priced food items such as beef. We don’t give up our gas guzzling habits very easily.
The result is that packing plants are looking at cold storage filled with boxes of unsold beef; the feedlots are looking at cattle that need to go to market but the packing plants aren’t willing to give them a price at which the feeder can make any money; cattle feeders are unwilling to buy calves to put on feed – and on and on. It all is driven by fuel in one form or another.
What is driving the fuel prices? I am amazed that our Congressional leaders in all of their wisdom feel compelled to bring the heads of multiple oil companies to Washington to berate them over the cost of fuel. Of course, most of the Congressmen and Senators don’t have much training in economics. In fact, I think they must be trained in anti-economics – or at least anti-free enterprise. Most of the laws coming out of Washington seem to hinder business rather than help. The cost of every regulation and every hair-brained pork-barrel scheme gets passed on to the consumer in some form or fashion. Sometimes it is a direct tax but more often than not, it as an indirect tax created through regulatory action on business.
It is the growing economies in India and China, domestic regulations concerning fuel additives, mandatory targets for bio-fuels, market uncertainty due to political unrest, burdensome regulation on building new refineries and infrastructure, the high cost of building refineries, environmental regulations, closure of certain areas to oil exploration, the devaluation of the dollar, and all of the other global factors that impact the energy business that are driving fuel prices. Why do we think we can solve the problem by making ethanol from corn? Oh, and did I mention the booming economies of India and China? A few hundred million individuals with the most disposable income at their finger tips that has been seen in those countries ever – want to spend it on some of the finer things in life – like automobiles and meat.
Our consumer spending habits are enabling those countries to build thriving economies that produce goods that must be transported to the U.S. by ships burning diesel. I’m happy their economies are growing. We just have to realize that we are paying for that growth.
The current ethanol mandates drive up the price of corn. That’s really all they do for our energy situation. Has the price of gasoline come down? The high price of corn was good for corn farmers – last year. The cost of farm inputs has now normalized (adjusted) due to the higher fuel costs and the margins for farmers will be much slimmer this year. Their business is extremely fuel intensive. Their input costs – such as for fertilizer and diesel – have gone through the roof.
The mandates are hurting cattle producers. They are suppressing demand for beef because now – put this in your pipe and smoke it – beef is competing against energy. The consumer dollar will choose energy over beef because of the need to heat and cool our homes and drive to and from work. In the past, beef competed with pork and poultry. Now it must also compete with energy because the primary cattle feed ingredient is being converted to fuel.
Isn’t it great what misguided regulations do for you?
Tuesday, April 8, 2008
Petition in Support of Our Troops
Sign the petition started by Senator John Cornyn in support of General Petraeus and our troops. You can do so at:
http://www.johncornyn.com/petitions/1
Show your support!
http://www.johncornyn.com/petitions/1
Show your support!
Monday, April 7, 2008
Lunch Time
Through the years and various jobs, I’ve had the privilege, or maybe I should say was required, to travel throughout a large portion of this beautiful country. In those travels there has often been the opportunity to strike up a conversation with perfect strangers. In sales, you never know who might provide the next good lead.
It is amazing to me how many times during such conversations, the subject turns quickly to what each of you does for a living. I look at it as an opportunity. It may be a sales opportunity or it may just be a chance to learn more about the local community. It is almost always interesting. It sometimes leaves me a bit chagrined.
A good example of this occurred a few weeks ago in a restaurant in a town which shall remain nameless. I had stopped for a bite to eat.
Most people when traveling tend to stop at places that look familiar. They will stop at chain restaurants or fast food signs where they have a good idea how the food will look and taste. I have traveled enough that my tendency is to stop at the unfamiliar. My favorite restaurants are better described as the local caf̩ Рoften downtown on Main Street America. They provide the best opportunity for sampling the local fare and getting a taste of the local atmosphere.
I will frequently pass up a number of good eateries to find that special hole-in-the-wall where the parking lot is filled with pickups sporting brush guards and cow dogs and dragging stock trailers with saddled horses. It is a sure bet that the food will be good and the conversation at surrounding tables will be interesting.
Often the tables will be set up in a manner that encourages group seating. Why not? Everyone knows nearly everyone else in the place. They frequently come into town in ones and twos and appreciate the company. They may not have had a conversation with anyone but their cow dog all morning. It was in such a place that I met Fred. (Now, Fred isn’t his real name but it will suffice for purposes of my illustration.)
I had been driving for a while since visiting with my last prospective customer and needed sustenance. On the outskirts of town was a run-down looking white board building that had been blessed with numerous additions through the years. The parking lot was full and it appeared a likely place for good food. I walked in and saw only one seat available in the place – at a long table down the middle of the room – across from Fred. So, I asked if he minded if I sit down. The “help yourself” response led me to sit and order a glass of tea and the special – enchiladas.
Fred wore a dirty felt hat that looked like it had seen a lot of use. He had a handle-bar mustache and suspenders that held up faded jeans beneath a belly that was evidence of too much time sitting and not enough time exercising. I’ve lived long enough to learn not to judge a book too hastily by its cover. Often the most successful individuals don’t look the part. In fact, it’s the ones who flaunt their appearance of whom I’ve learned to be somewhat leery. So I thought perhaps Fred might be a local rancher.
Fred didn’t say much for awhile but eventually asked the inevitable, “you just passing through?” My reply of course was yes, which led to further questions of what do you do, etc. Upon learning that I was involved in a livestock related business he began to ask questions more specific to my business. I thought to myself that maybe he might even be a potential customer. I began to ask questions of him.
As the conversation progressed, I noticed an occasional glance from one of the gentlemen sitting just down the table from us. This gentleman was obviously interested in our conversation so I thought to myself, “this is great. I may find lots of business leads.”
My questions began in a very general tone but soon became more specific – such as, “what kind of processing regimen are you using on your calves?” His response left no doubt that he was clueless about processing regimens. I eventually got him to admit that he was a truck driver for an oilfield service company.
When he got up and left I looked down the table at the gentleman who had appeared to express interest in our conversation and just shook my head. He grinned real big and said, “I wondered how long it would take you to find out he didn’t know what he was talking about!” With that I knew it was time to hit the road again.
It is amazing to me how many times during such conversations, the subject turns quickly to what each of you does for a living. I look at it as an opportunity. It may be a sales opportunity or it may just be a chance to learn more about the local community. It is almost always interesting. It sometimes leaves me a bit chagrined.
A good example of this occurred a few weeks ago in a restaurant in a town which shall remain nameless. I had stopped for a bite to eat.
Most people when traveling tend to stop at places that look familiar. They will stop at chain restaurants or fast food signs where they have a good idea how the food will look and taste. I have traveled enough that my tendency is to stop at the unfamiliar. My favorite restaurants are better described as the local caf̩ Рoften downtown on Main Street America. They provide the best opportunity for sampling the local fare and getting a taste of the local atmosphere.
I will frequently pass up a number of good eateries to find that special hole-in-the-wall where the parking lot is filled with pickups sporting brush guards and cow dogs and dragging stock trailers with saddled horses. It is a sure bet that the food will be good and the conversation at surrounding tables will be interesting.
Often the tables will be set up in a manner that encourages group seating. Why not? Everyone knows nearly everyone else in the place. They frequently come into town in ones and twos and appreciate the company. They may not have had a conversation with anyone but their cow dog all morning. It was in such a place that I met Fred. (Now, Fred isn’t his real name but it will suffice for purposes of my illustration.)
I had been driving for a while since visiting with my last prospective customer and needed sustenance. On the outskirts of town was a run-down looking white board building that had been blessed with numerous additions through the years. The parking lot was full and it appeared a likely place for good food. I walked in and saw only one seat available in the place – at a long table down the middle of the room – across from Fred. So, I asked if he minded if I sit down. The “help yourself” response led me to sit and order a glass of tea and the special – enchiladas.
Fred wore a dirty felt hat that looked like it had seen a lot of use. He had a handle-bar mustache and suspenders that held up faded jeans beneath a belly that was evidence of too much time sitting and not enough time exercising. I’ve lived long enough to learn not to judge a book too hastily by its cover. Often the most successful individuals don’t look the part. In fact, it’s the ones who flaunt their appearance of whom I’ve learned to be somewhat leery. So I thought perhaps Fred might be a local rancher.
Fred didn’t say much for awhile but eventually asked the inevitable, “you just passing through?” My reply of course was yes, which led to further questions of what do you do, etc. Upon learning that I was involved in a livestock related business he began to ask questions more specific to my business. I thought to myself that maybe he might even be a potential customer. I began to ask questions of him.
As the conversation progressed, I noticed an occasional glance from one of the gentlemen sitting just down the table from us. This gentleman was obviously interested in our conversation so I thought to myself, “this is great. I may find lots of business leads.”
My questions began in a very general tone but soon became more specific – such as, “what kind of processing regimen are you using on your calves?” His response left no doubt that he was clueless about processing regimens. I eventually got him to admit that he was a truck driver for an oilfield service company.
When he got up and left I looked down the table at the gentleman who had appeared to express interest in our conversation and just shook my head. He grinned real big and said, “I wondered how long it would take you to find out he didn’t know what he was talking about!” With that I knew it was time to hit the road again.
Wednesday, April 2, 2008
Finding Your Voice
I am amazed at how often people become caught up in being what they are not. I don't mean to say that they deliberately put on an act. What I mean is that they become enamored with what others are doing and seek to emulate them on some level.
Writing is one area where I think this is common. Writers want to be read. They want to be popular. They want to be accepted into the realm of recognizable personalities. So, they write about things that they perceive will be popular.
It is a great exercise in learning the art of writing. Typically, though, by emulating someone else, the writer never finds his own voice. He never truly expresses himself. He writes for someone else.
I think great writers are like great artists and musicians. The best are unique. They express themselves through their work in their own unique style. Their work stands out from the crowd because it isn't "cookie-cutter" work; it is apart from the crowd. It stands out. It is the single red shirt in a sea of blue. It is the cowboy hat at the opera.
Writers should write about what they enjoy. If you like history, write history. If you like music, write about music. If you like television, write about television. You get the picture.
The blog world is an area where I think there are lots of pretenders. I believe this is especially prevalent among political blogs. Many political blogs were started because the writer saw that political blogs received lots of attention. The writers really don't have their heart in their work. They struggle with every post. It shows.
I am learning to recognize my own writing voice. It is something that I've struggled with just as do many others. I don't know yet exactly what it is. I believe that it is an evolving thing. I hope that when I find it, it will be recognizable by others.
Writing is one area where I think this is common. Writers want to be read. They want to be popular. They want to be accepted into the realm of recognizable personalities. So, they write about things that they perceive will be popular.
It is a great exercise in learning the art of writing. Typically, though, by emulating someone else, the writer never finds his own voice. He never truly expresses himself. He writes for someone else.
I think great writers are like great artists and musicians. The best are unique. They express themselves through their work in their own unique style. Their work stands out from the crowd because it isn't "cookie-cutter" work; it is apart from the crowd. It stands out. It is the single red shirt in a sea of blue. It is the cowboy hat at the opera.
Writers should write about what they enjoy. If you like history, write history. If you like music, write about music. If you like television, write about television. You get the picture.
The blog world is an area where I think there are lots of pretenders. I believe this is especially prevalent among political blogs. Many political blogs were started because the writer saw that political blogs received lots of attention. The writers really don't have their heart in their work. They struggle with every post. It shows.
I am learning to recognize my own writing voice. It is something that I've struggled with just as do many others. I don't know yet exactly what it is. I believe that it is an evolving thing. I hope that when I find it, it will be recognizable by others.
Tuesday, April 1, 2008
Congressional Earmarks
Senator John Cornyn (R-TX) has posted an interesting commentary on the Earmark Game. Click the link to read the article.
Everyone Loses in the Earmark Game
I agree that many worthy projects are funded through the process of attaching earmark appropriations to spending bills. The problem is exactly that pointed out in the Senator's remarks: "...the system we have now is broken, and it’s not being fixed."
For some time now I have felt that a line-item veto power by the President would be a good method for fixing the problem of Earmarks. I no longer believe it is the appropriate tool. I would like to think that the President would be above wielding such a tool in a political manner, but given the "quality" of the current candidates for that office, I'm not so sure. I can just see a situation in which the political party that holds the White House would receive the benefit of Earmark spending while all others suffer.
I am happy to see that Senator Cornyn is aware that the Earmark issue is one with which the taxpayers and voters at home are concerned. A sincere effort on the part of Congress to stem the abuse and correct the situation would help to begin the process of rebuilding the faith of the American people in our elected officials to represent their best interests.
Everyone Loses in the Earmark Game
I agree that many worthy projects are funded through the process of attaching earmark appropriations to spending bills. The problem is exactly that pointed out in the Senator's remarks: "...the system we have now is broken, and it’s not being fixed."
For some time now I have felt that a line-item veto power by the President would be a good method for fixing the problem of Earmarks. I no longer believe it is the appropriate tool. I would like to think that the President would be above wielding such a tool in a political manner, but given the "quality" of the current candidates for that office, I'm not so sure. I can just see a situation in which the political party that holds the White House would receive the benefit of Earmark spending while all others suffer.
I am happy to see that Senator Cornyn is aware that the Earmark issue is one with which the taxpayers and voters at home are concerned. A sincere effort on the part of Congress to stem the abuse and correct the situation would help to begin the process of rebuilding the faith of the American people in our elected officials to represent their best interests.
Thursday, March 27, 2008
An MBA Mentality
As I dive into this topic, please don’t mistake my attitude toward education. I believe an educated society is crucial to the proper operation of our government, to the advance of society, and to a civil public discourse. However, through my years in business I have found that often, there are attitudes which come with a formal education that are counterproductive to business productivity.
A large portion of my career has been spent in sales or sales related activities. My formal title has never been salesman – it has been manager. Managers should be fully engaged in the sales activities of a business or it is likely the business will fail – whether it is retail, wholesale or a service business.
Many organizations – especially large ones – believe that the best managers have MBA’s (Master of Business Administration). From a logical perspective it makes sense. Find someone who has been formally educated in how to run a business and let them run your business. The problem comes when the MBA manager has no practical experience in the day-to-day function of the business itself. They have the head knowledge, but lack the heart knowledge. They know the tools but they don’t know the business – at least not from the hands-on level. Generally their understanding is conceptual in nature – not practical.
Why do I bring this up? Because it seems that I often spend an inordinate amount of time educating my suppliers on the realities of agriculture.
The MBA manager mentality is often one that is focused on the numbers or benchmarks. It is focused on “objective” measurement of factors which indicate progress in the business. This can be things such as the number of sales calls made, the number of contacts at a Trade Show, the percentage of gross margin -- both average and per sales, and similar easily measurable statistical indicators. They have been taught techniques for handling particular situations that regularly occur in business – like competitive pricing issues – and respond according to the “book” answer. The problem is that they have never walked in the shoes of their sales force or of their customer.
The last item is the key. The most successful people that I know understand their customer. They have either been involved in a business similar to what their customer does, or have spent enough time with their customer to understand their business or situation. They look at their own business through the eyes of their customer. They take time to see what their customer sees and adjust their business accordingly.
Do we do this in agriculture? Do we see ourselves from our customer’s point-of-view? When was the last time you spent time examining your operation from the outside? When was the last time you walked through the grocery store and took a hard look at your product – whether it is beef or cotton or wheat – from the consumer’s perspective? How does the quality of your product compare to competing products? What about price?
We are seeing a number of fundamental shifts in our economy. Fuel prices will soon drive dramatic changes of behavior in how we conduct business and in how consumers allocate their dollars. Transportation costs will force many things to be produced locally that have historically been shipped long distances – such as produce. Are we in agriculture merely riding the tide of the ethanol boom or are we preparing for the inevitable changes that the energy economy will drive?
We are good at managing the numbers. In today’s business environment, if a farmer or rancher can’t manage the numbers he’d better have a second job to support his habit. But, are we good at seeing our industry from the perspective of non-farmers and ranchers? If we educated the public to our business and educated ourselves to what the public truly wants, could we do a better job at providing for their wants and needs? When we can do that, there will be plenty of rewards for the effort. Don’t just focus on the numbers of your business; understand your customer and adjust accordingly.
Also published on Common Sense Agriculture, Conservation and Energy.
A large portion of my career has been spent in sales or sales related activities. My formal title has never been salesman – it has been manager. Managers should be fully engaged in the sales activities of a business or it is likely the business will fail – whether it is retail, wholesale or a service business.
Many organizations – especially large ones – believe that the best managers have MBA’s (Master of Business Administration). From a logical perspective it makes sense. Find someone who has been formally educated in how to run a business and let them run your business. The problem comes when the MBA manager has no practical experience in the day-to-day function of the business itself. They have the head knowledge, but lack the heart knowledge. They know the tools but they don’t know the business – at least not from the hands-on level. Generally their understanding is conceptual in nature – not practical.
Why do I bring this up? Because it seems that I often spend an inordinate amount of time educating my suppliers on the realities of agriculture.
The MBA manager mentality is often one that is focused on the numbers or benchmarks. It is focused on “objective” measurement of factors which indicate progress in the business. This can be things such as the number of sales calls made, the number of contacts at a Trade Show, the percentage of gross margin -- both average and per sales, and similar easily measurable statistical indicators. They have been taught techniques for handling particular situations that regularly occur in business – like competitive pricing issues – and respond according to the “book” answer. The problem is that they have never walked in the shoes of their sales force or of their customer.
The last item is the key. The most successful people that I know understand their customer. They have either been involved in a business similar to what their customer does, or have spent enough time with their customer to understand their business or situation. They look at their own business through the eyes of their customer. They take time to see what their customer sees and adjust their business accordingly.
Do we do this in agriculture? Do we see ourselves from our customer’s point-of-view? When was the last time you spent time examining your operation from the outside? When was the last time you walked through the grocery store and took a hard look at your product – whether it is beef or cotton or wheat – from the consumer’s perspective? How does the quality of your product compare to competing products? What about price?
We are seeing a number of fundamental shifts in our economy. Fuel prices will soon drive dramatic changes of behavior in how we conduct business and in how consumers allocate their dollars. Transportation costs will force many things to be produced locally that have historically been shipped long distances – such as produce. Are we in agriculture merely riding the tide of the ethanol boom or are we preparing for the inevitable changes that the energy economy will drive?
We are good at managing the numbers. In today’s business environment, if a farmer or rancher can’t manage the numbers he’d better have a second job to support his habit. But, are we good at seeing our industry from the perspective of non-farmers and ranchers? If we educated the public to our business and educated ourselves to what the public truly wants, could we do a better job at providing for their wants and needs? When we can do that, there will be plenty of rewards for the effort. Don’t just focus on the numbers of your business; understand your customer and adjust accordingly.
Also published on Common Sense Agriculture, Conservation and Energy.
Wednesday, March 26, 2008
Questions on Monetary Policy
Is federal monetary policy aimed strictly at bolstering the stock market? Is the stock market a reliable indicator of the true shape of our economy? Is the inflationary impact of rising fuel prices being fully accounted for in the economic measures tracked by the government? Are wages keeping pace with the rising cost of goods and services as impacted by fuel? If fuel costs are recovered by businesses in the form of a fuel surcharge rather than through a price increase, is that "fuel tax" being accounted for in statistical measures of economic performance? Are we in fact experiencing inflation at the same time we are seeing a recessionary period? Will we see a tenuous hold on economic stability maintained until a change in administration?
A New Blog in the Blogosphere
Sometimes we wonder if the things that we write about in our blogs make a difference. Senator John Cornyn of Texas has started his own blog because he recognizes that blogs are often the only media source that provide the whole story. We are not bound by the same rules and methods of engagement that seem to control the mainstream media. Check out his blog by clicking on the button on my sidebar or following this link.
Sunday, March 23, 2008
Risen Indeed
Why do you seek the living among the dead?
He is risen!
He is risen indeed!
...And by His blood we are healed.
He is risen!
He is risen indeed!
...And by His blood we are healed.
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