by Jo-Ann Johnston, The Tampa Tribune
Skooter is a fine-looking steer, but when he goes to the beef auction at this month’s Pasco County Fair, he just won’t be able to deliver the same kinds of profits his bovine brethren fetched last year.
His owner, Pasco High School student Melissa Roehrig, is shelling out about $200 more in animal feed this year than she would have last year. In fact, all of the youngsters raising livestock for area agricultural fairs are investing more money in feed this year.
The auction bids – what buyers will pay per pound for the meat – are not expected to increase accordingly, though. So the FFA and 4-H Club members likely will make less profit this fair season.
“Eight hundred dollars would be great,” said Roehrig, who will use the money for college next year.
Last year, Skooter, a Limousin-Angus crossbreed, probably would have netted Roehrig $1,000, said her agriculture teacher, Ed Dillard.
Ranchers and farmers are feeling the same pressures, which trace back to a single problem: increased demand for the nation’s corn supply.
Corn is the primary ingredient in all animal feeds, including feeds for dairy cows, hogs, horses and poultry, and influences the prices of the other important ingredients, including soy.
“Everyone Wants Corn”
In recent years, though, growing interest in alternative fuels has attracted more buyers and driven up prices.
“Everyone wants corn for ethanol production,” explained John Arthington, a cattle expert at the University of Florida.
Ethanol is one of the most popular biofuels being discussed as a possible alternative to petroleum fuels in gasoline engines. The demand for corn-based ethanol, in fact, probably will consume one-fifth of the nation’s upcoming corn crop, according to the U.S. Department of Agriculture.
Corn prices have reached record highs, with growers fetching an average $3.20 per bushel as of Friday, according to the USDA. Last year, the average price was $2.60 a bushel. In turn, livestock feed prices at local stores are up noticeably.
Roehrig figures she’s invested about $575 in feed for Skooter.
Families have reported spending about $200 in feed alone for each hog they are raising this year.
“Nobody’s happy,” about the price increases, said Bill Burnette, owner of Harold’s Farm Supply store in Dover.
Yet, there’s nothing retailers can do. Burnette tells customer they’re buying biofuels these days, not just plain old corn or feed.
In the short term, it doesn’t make sense for farmers or youths raising animals for market to shift to cheaper feeds; they need to ensure the quality of the meat they’re raising.
At least for now, Dillard said, meat producers will have to absorb the higher production costs. He figures his students will receive an average of $3 per pound for their steers, the same as last year.
Across the country, meanwhile, economists are tracking food prices carefully to see whether consumers will be paying more for cereals, meats and sodas.
As for the underlying problem of finding enough crops for food and fuel needs, some are hoping farmers will plant more corn to meet the increased demand in the short term.
Other Crops May Be The Answer
Researchers are trying to identify what other crops could be harvested for alternative fuels. Wood products and sugar cane, for instance, can be used to make ethanol.
Florida Agriculture Commissioner Charles Bronson is a big proponent of alternative fuels, including ethanol. Bronson repeatedly has said Florida farmers can benefit from the increased interest in ethanol and other biofuels, as Midwest corn growers are now.
To demonstrate how biofuels work, Bronson has directed two of the state’s forestry districts to use biodiesel fuel.
Environmental concerns and fluctuating crude oil prices are spurring increased interest in developing alternative fuel sources as a way of reducing the country’s dependence on petroleum.
While these widespread changes are taking hold, Roehrig and her classmates are learning how economics shapes agriculture and land use. Somehow, there has to be enough corn and animal feed produced to allow Florida livestock farmers to stay in business, they say.
“Ethanol has a bright future,” Roehrig said. “It’s going to help the country. But we still have to preserve land for Florida agriculture.”
Published: February 12, 2007
