Global Change Impacts the Home Front

Recently I was in Prince Edward Island in the Atlantic Province of Canada. I conducted a number of media interviews along with a rousing seminar sponsored by Royal Bank of Canada for key producers.

I shared with them that a drought in a key production area in China that was dependent on hydroelectric energy has impacted world oil prices by as much as $5.00 per barrel in the short run.

The Canadians are very hopeful that the borders will open within six months for live beef products. This will impact beef prices 5-10 cents per pound in the U.S. The dairy industry could be the recipient of 150,000 replacement heifers, with most going into large farms in the Northwest. This could also result in a decline in milk prices.

A recent national bankers conference speaker indicated that fertilizer prices would be quite erratic because of demand in other areas of the world.

These points illustrate that anyone who is planning for the future needs to conduct best, worst, and average case scenarios with a to 10-15 percent variation to account for these global factors

Cell Phone Use
Recent data released by the Toronto Globe indicated that worldwide, people who own cell phones spent an average of 27 minutes daily on the phone. Canadians spend 47 minutes, and, you guessed it, Americans are tied to their cell phones on average 63 minutes per day.

If you are conducting seminars, this is a major nuisance, along with checking e-mail on the laptop during speeches!

My e-mail address is:sullylab@vt.edu

Editors' note: Dave Kohl, The Corn and Soybean Digest Trends Editor, is an ag economist specializing in business management and ag finance. He recently retired from Virginia Tech, but continues to conduct applied research and travel extensively in the U.S. and Canada, teaching ag and banking seminars and speaking to producer and agribusiness groups.

To see Dave Kohl's previous road warrior adventures type Dave Kohl in the Search blank at the top of the page.

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