Is the United States up for sale?

Why is the United States up for sale?

Foreign companies are quietly buying up farmland is the desert southwest to grow crops to send back to their own countries. Is this good for America? Are the United States really up for sale?

We have an awful lot of valuable natural resources in the United States, but there are two I’d like to draw your attention to specifically: Land and water. One we as human beings absolutely cannot live without, and one they aren’t making any more of. I’ll let you puzzle out which is which.

The reason I’m bringing this up is disconcerting to me. I’ve come across many articles online that report farmland in some of our most drought-stricken areas is being very quietly snapped up by foreign countries like Saudi Arabia. I bet you haven’t heard much about that in the national “news media,” have you?

Before you tell me, “You can’t believe everything you read online,” let me point out something: I know that. But let me teach you a little bit of journalism 101. If there’s enough smoke surrounding a story, there’s a fire in there somewhere. You just have to take the time to find it.

The way these companies’ are going about buying the land makes me fearful about the cost of our own natural resources, and let me explain why.

Have you heard of a business in Saudi Arabia called the Almarai Company? According to Reuters, in January of this year, they quietly purchased almost $32 million worth of land in California, a state that is suffering through years of drought. This is relevant because Almarai is the largest diary company in Saudi, and they want to grow alfalfa, one of the thirstiest crops in all of modern agriculture.

That is not good news for a state in it’s fourth year of drought so severe that residents and businesses who actually live and work in the state have to curtail water usage. And did I mention, estimates are the drought cost the state’s economy $2.74 billion dollars? Oh, and farmers had to literally plow under well over a half million acres of land because of dryness and the difficulty of getting enough water to irrigate the land.

The foreign land grab doesn’t just stop in California, either.

Just outside of Phoenix, Arizona, there’s a large farm that Almarai also bought for the purpose of growing hay and sending it back home. National Public Radio said the farm is roughly 15 square miles wide. That’s an acre total in the thousands, all to grow hay to send back to their country’s dairy cattle. So, why the rush to buy our land and use our water, you ask?

NPR reports the thing you may not know is Saudi Arabia used to grow it’s own alfalfa. But they ran into a problem. They used to sit on top of a huge natural aquifer, but due to poor management, it dried up. Ancient spring you may have read about in the Bible dried up. Only 50 years ago, the aquifer still contained enough water to fill Lake Erie.

As a result of mismanagement and greed, Saudi Arabia has drained it’s water supplies, and how they’re quietly buying up farmland in the southwest, right on the Arizona/California border. Tell me why this is a good thing?

Oh, and before you ask about laws regulating water usage, they only apply to local and domestic operations. Plus, it’s rather convenient that many of the areas being bought up don’t have water usage regulations in place yet? Is that a coincidence? If I’m looking for a place to grow alfalfa, which needs a lot of water to grow, I’m looking for places where I don’t have to worry about it. Wouldn’t you do the same?

So, how is this possible? In a word: Greed. And you can’t mention the word greed without talking about Washington, D.C., can you?

Our “leadership” passed an omnibus-spending bill last year. Yournewswire.com quoted Rand Paul as saying it was thousands of pages, “which no one read.” It’s too bad, because there was a little time bomb written into it that made foreign land grabbing even more possible.

Have you heard of the 1980 Foreign Investment in Real Property Tax Act (FIRPTA)? It required all foreign investors to pay taxes on what they acquired in the US. Guess what? Because of that little time bomb, that went away. That used to protect Americans (the people that live here?) from property taxes that went through the roof. It doesn’t do that anymore.

Now that the law is overthrown (not just by the President, either), foreign pension funds can now buy American real estate similar to what their United States counterparts can, and not face any financial repercussions.

So, what does the foreign takeover of these United States lands mean for the little folks like you and me?

I’ve just given you a blueprint on how to takeover a country, and do it legally. You get to the people that make laws in a particular country, you pay them enough to bend the laws to your favor, and you start buying. Okay?

So, if you buy enough land, and water, eventually you start to control the country. And when that happens, we’re in big trouble. The evidence is out there. Our politicians are bought and paid for, and our country is BEING bought and paid for.

It’ll take time, but it’s coming. Call me a conspiracy theorist? Fine. Do the research yourself.

I can’t figure out why this stuff is happening right in front of Americans, but we CHOOSE not to see it? Is that the ostrich gene taking over? Stick your head in the sand, and hope it goes away? It’s not.

Officials from other countries have been quoted directly as saying, “We will use your own laws against you.” They’re doing a bang up job so far.

 

MUSLIM IMMIGRANT: “PRAISE ALLAH! WE’RE GOING TO BE THE MAJORITY SOON!” (VIDEO)

 

What do we do, America?

SE Minnesota farmers have grain to sell

With the current lower commodity prices and no real significant bump in the short-term forecast, careful planning has become more important than ever for farmers to stay in business.

Balancing lower prices for products farmers produce against the fact that input costs to produce those products haven’t come down yet requires more juggling than in recent seasons. Among some of the more significant costs is land rental, which is squeezing the bottom line of renters all over Minnesota and across the country.

Farmers have grain to sell

Lisa Behnken is a crops specialist with the University of Minnesota Extension office in Rochester. (Photo from AgriNews.com)

“Boy, is that a difficult one (to control),” said Lisa Behnken, a Crops Specialist at the University of Minnesota Extension Service in Rochester. “Rents keep going up and it’s very hard to renegotiate to bring those costs back down. It’s certainly a big part of the equation.

The high costs of renting land may lead to some tough business decisions.   Farmers may shuffle some land around, or even let a particular piece of land go back and not rent it anymore.

“We’ll see if people can do that (make things balance out),” Behnken said, “or if they’re going to let land go and back away from it because they can’t afford that. You may see some land changing hands because of the cost.”

With corn and soybean prices in the tank, are there other opportunities farmers may be looking at for profit? What about small grains?

“It all goes back to where their markets are,” Behnken said. “We have a good group with Extension that do workshops on small grains here in southern Minnesota and a good group of core farmers that grow small grains. They’ve got markets that they’re working with and are locked into.”

She added, “It can be successful, but it’s not just something you’re going to jump into. We don’t have the sell-points here. You need to have convenient places where you’re going to market it to. They don’t buy at every single elevator. It doesn’t mean you can’t do it, you just have to get everything in order, from planting it to marketing it.”

Behnken, who received her Master’s Degree in Crop and Weed Sciences from North Dakota State University, said farmers don’t want to be caught with a lot of grain in their bins in the summer and nowhere to take it.

Speaking of grain stuck in bins, farmers in southeast Minnesota still have a lot of grain to move from the 2015 harvest. Low prices at harvest made farmers very reluctant to sell grain that wasn’t forward contracted.

farmers have a lot of grain to sell

While exact numbers aren’t available, Lisa Behnken of the University of Minnesota Extension office in Rochester said there is quite a bit of grain in area bins waiting to be sold. (Photo from brockgrain.com)

“There are definitely crops to be sold,” Behnken said. “Some probably go forward contracted, but farmers don’t forward contract everything. Prices were down at harvest, so farmers didn’t sell right then, so it goes straight in the bin.”

While it’s important for commodity farmers to get their books in order, it’s equally important for livestock producers to watch their costs too, thanks to a recent run of lower prices.

“Cattle prices are softer,” said Behnken, “but the good side of that is they’re feeding animals much cheaper feed. However, they’re end product has also come down in price too.”

Do lower cattle prices mean it’s time for America’s livestock farmers to start expanding the beef herd? She said it all depends on your books and cash flow that your banker sees in those books.

“It’s all about operating money,” Behnken said. “You still have to go to the bank and make this whole thing cash flow. If I’m in the market to buy some feeders, I still have to have the cash to buy those feeders. Even if a farmer is raising his own corn to feed the animals, he still has to have cash necessary to buy the feeders.”

Cash flow. It’s more important than it’s been in many years, and it’ll determine what kind of decisions farmer make this year, and whether or not they stay in business.

“For some, it’s where their debt load is at,” said Behnken. “What’s my percentage of debt? If you have a more solid equity base, that’s a little different than if you’re highly leveraged. Then, it’s a whole different ballgame.”

 

 

 

 

 

Minnesota Farmers Union President looks ahead

2015 was a mixed bag in agriculture, and that might be a bit of an understatement.

On the one hand, production levels were good in many commodities, including a record crop for soybeans and the third largest corn crop on record. On the other hand, the prices for those commodities were not good at all. Those conflicting numbers have brought some tension back into family farming that hasn’t been seen in several years.

Farmers Union President

Doug Peterson, Minnesota Farmers Union President, said agriculture was a mixed bag in 2015, and challenges are ahead in the new year. (Photo from www.myklgr.com)

“Family farming, as a whole, had a pretty good year in 2015 as far as yield,” said Doug Peterson, the Minnesota Farmers Union President. “Prices went to hell in a hand basket, and that puts a lot of edginess back into farming.

“Prices were good for a number of years, but now when inputs haven’t gone down and prices have, that brings challenges in the balance sheets,” said Peterson. “As a result, there may some changes in loaning procedures by local banks because they’re scared.”

Peterson feels the future of agriculture is still good, and the Farmers Union spent some time traveling around the world for a firsthand look.

“We participated in the World Farmer Organization (WFO) General Assembly in Milan, Italy,” Peterson said. “We also took part in a Food, Faith, and Farming symposium as well. We talked about family farming, the environment, and how to sustain the family farm in policy decisions.”

The overseas tour also included a face-to-face with Pope Francis.

Farmers Union President

Minnesota Farmers Union President Doug Peterson meets with Pope Francis Wednesday, March 25, 2015. Peterson and other U.S. farm leaders discussed family farmers with the Catholic church leader. (Minnesota Farmers Union photo)

“We met with Pope Francis and his Secretary of State to talk about his encyclical and making sure that family farmers were part of the focus of the Pope’s message on stewardship in agriculture,” Peterson said. “We also had a chance to speak with leadership of the Vatican about family farms.

“We talked with the leadership about the importance of stewardship and family farms,” Peterson said. “We were told that Pope Francis himself feels all religions in the world should pay attention to the stewardship and the sustainability of family farms. Family farms, and not corporations, are the ones that have the ability to feed the world.”

Vatican leadership, as well as Pope Francis, appears to be very concerned about corporate farming.

“They are very concerned, as we are in Farmers Union, about the corporate takeover of family farms around the world,” said Peterson, “and I’ve done enough traveling to see the dirty hand of multi-national corporations coming in and usurping the family farmers for profit.”

He said Mexico is a good example of the dangers of corporate farming.

“Corporations are farming land in other countries (like Mexico),” Peterson said, “and then exporting it back to their home countries.

“That brings us back to Minnesota, where we have an anti-corporate farming law,” said Peterson, “and we don’t allow foreign countries to own farmland in the state either. There are a lot of other states around us that have lost that law, and the ability to control that in their legislative process.”

The Minnesota Farmers Union and it’s President, Doug Peterson, are very concerned about corporate farming squeezing smaller family farms off their land and out of business. (photo from truthdig.com)

The Minnesota Farmers Union and it’s President, Doug Peterson, are very concerned about corporate farming squeezing smaller family farms off their land and out of business. (photo from truthdig.com)

He said North Dakota is facing a battle over corporate ownership of dairy and pork farms.

“Concentration in farming is going to be one of the top issues in the next 10 to 15 years,” Peterson said. “We need to make sure farmland stays in the ownership of family farmers.”

Vigilance will be the key because anti-corporate farming laws are always under attack, and will be again in 2016.

“Back when I was in the legislature (1991-2002),” Peterson said, “there were moves to get rid of the corporate farming law, and to allow foreign ownership of land.

“In fact, about five years ago, we had an attempt by Goldman Sachs to come to the legislature and asked to have an exemption carved out for them,” said Peterson. “We defeated that. So we’re on top of it in Minnesota. But I don’t care who you are, there’s always going to be a threat.”

He added, “It’s always going to be about other people wanting to own land. It’s no different than outside investors, nature conservancies, or outside investors wanting to come in and own land. You get it from all sides.”

The challenges of transferring land ownership can exacerbate the problem.

“Farmers have to figure out what they’re going to do to transfer their land to others,” Peterson said, “and it’s a very slow and costly process to keep family farmers on the land.”

 

 

 

 

 

 

 

Minnesota Farm Link connects farmer with land

The Minnesota Department of Agriculture is trying to connect young farmers with more opportunities to find land to farm on.

The Minnesota Department of Agriculture is trying to connect young farmers with more opportunities to find land to farm on.

The Minnesota Department of Agriculture (MDA) announces the creation of Minnesota Farm Link, a web-based tool designed to link farmers and farmland. Minnesota Farm Link includes all types of farming, from small fruit and vegetable farms, to large grain and livestock operations. Whether it’s helping someone find a farm, matching an experienced or retiring farmer with a beginning farmer, or exploring mentoring opportunities, the goal is to connect people.

The MDA’s website also features a directory of Beginning and Transitioning Farmer Information: www.mda.state.mn.us/beginningfarming. The directory is a clearinghouse of programs and services for all types of farmers, which includes farmers seeking land, financial assistance and loans, farmer education, legal services, multi-cultural programs, networking, mentoring and transitioning, and succession planning.

The Minnesota Department of Ag website offers several resources for beginning farmers looking for land and the older generation of farmers looking to get out of the business. (Photo from mda.org)

The Minnesota Department of Ag website offers several resources for beginning farmers looking for land and the older generation of farmers looking to get out of the business. (Photo from mda.org)

Minnesota Farm Link and the Beginning and Transitioning Farmer Information are a valuable tool for both retiring and beginning farmers. “We think it’s important to connect beginning farmers who are looking for farmland and/or mentorship opportunities with retiring farmers who want to see their farm continue,” said Commissioner Dave Frederickson.

If you have questions about Minnesota Farm Link, please contact Jim Ostlie at 320-842-6910 or jim.ostlie@state.mn.us. To learn about other beginning farmer resources, contact Becky Balk at 651-201-6369 or becky.balk@state.mn.us.

 

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