Sunday, August 06, 2017

Dairy in NZ and US

That Forbes article I referenced earlier? Turns out it's wrong--NZ has experienced a significant decline in farm numbers under their current free-market regime.  See this graph.

I hasten to add that the decline in the U.S. has been more severe over a longer time.  As this Congressional Research Service report summarizes:
"Increased dairy cow output and advances in dairy farm technology and management have led to a sharp reduction in the number of dairy farms (Figure 3). Annual losses averaged 96,000 operations in the late 1960s and 37,000 in the 1970s. In recent years, the annual drop in dairy farm operations has slowed to about 2,000 to 5,000 farms per year. Operations totaled 65,000 on December 31, 2009."
I've not really looked at the comparative size of the dairy farms in the two countries.  In both there's been consolidation, but I don't have the data on how much and the productivity of cows.  It's worth noting that in NZ the total number of cows has increased slightly; in the U.S. the number has decreased by a lot. The dairy industry in the U.S. sells in the domestic market while in NZ they export. I'm sure that makes a difference in discussing dairy support programs, but I don't know how.

8 Years for Adoption of New Technologies

From a review on H-Net:  "After noting the first military use of aircraft in the Italian-Turkish War of 1911..."

Saturday, August 05, 2017

Americans Won't Do This Work?

That's the common refrain among business owners and farmers, ranging from Trump's Mar-a-Lago operation to a medium size dairy operation.  Liberals like me tend to buy the statement, because we're usually in favor of immigration, so the statement operates as justification. 

When you think about it, though, it's unusual for liberals to trust Trump or other business owners.  :-)

Why should we think the statement is true, why are immigrants willing to work off-hours and the worst jobs?  I think one reason is found in reference group theory, which is the sociologist's jargon for saying "everything is relative".  Immigrants compare their work and working conditions in the U.S. with what they faced in their home country and find it not so bad.  The American-born compare the same jobs with other jobs, and know they're the worst. 

There's also the relativity of compensation: immigrants will find that the salary and possibly fringe benefits far exceed that of their origin country.  I suspect there's a human tendency to focus on the rewards and not the cost of living.  The American-born will find the salary toward the bottom of the scale. 

There's also the standard of living: an immigrant can see  crowded living conditions in a less-desirable neighborhood as still being a step up from home.  The American-born would likely find the conditions among which some immigrants live as not desirable.

And finally there's the time frame:  the American-born looks at the less desirable job as a dead-ender. The immigrant can view it as a step up for the future, whether it's moving from dishwasher to prep work to sous-chef or simply saving money to buy goods to take back home (see Sam Quinones "Dreamland").

Among those who want to reduce immigration the standard reply to the statement is: "raise your pay."
I think that's wrong, pay being only one of the factors which makes a bad job acceptable to an immigrant.  My advice to those who would reduce immigration is this: look to the military.

The military is a case where they offer bad jobs (I'm talking basic training, which is likely worse than any normal "bad job") and attract people to them.  An E-1 gets about $17,000 a year, before taxes.  How do they attract people?  Basically it's the promotion and the fringe benefits, the retirement and education benefits.  So immigration restrictionists should come up with a program where the government provides good benefits and the possibility of advancement to the crap jobs.  Tell the high school drop out, spend x months doing this job and you'll earn tuition for college, have health insurance, etc. etc.    Is that proposal naive?  Perhaps, but I'd like to see it tried.


Friday, August 04, 2017

USDA Statistics Suck

You'd think having spent my career in USDA I'd have a good grasp of how to navigate the USDA statistics.

You'd be wrong.  Perhaps the problem is increasing senility.  I prefer to believe the problem is that USDA's statistical apparatus is stuck in the middle of the last century, pre-computer.

What's most recently teed me off is dairy (see my previous post).  I'm looking for a relatively simple set of figures: the historical number of dairy farms, 190xx to present; the number of cows, and total production for the same period.  Then I could match trends to the New Zealand figures.

USDA has two main statistical agencies: NASS (National Agricultural Statistics Service) and ERS (Economic Research Service).  In addition, if you're looking for figures on foreign ag, FAS (Foreign Agricultural Service) might come into play.  If you're looking for some figures on farm programs, FSA comes into play.

Problem is I've yet to figure out how to get these figures.  The NASS data seems tied to censuses. The best I've done is this ERS document

I think the basic problem is the statistical series have developed in close conjunction with users in the colleges and industry, so satisfying the needs of John Doe Public was a low priority.  Back in the days of paper, before the internet, people wouldn't be coming to the agencies just to satisfy their curiosity.

Thursday, August 03, 2017

Sharecropping and Sharemilking

I read a Forbes article suggesting the end to farm programs, pointing to New Zealand as an example of that policy.  One of the effects was the claim: "The effects? New Zealand retained 99 percent of its farms."  That raised my contrarian hackles.  In trying to find substantiation I ran across this interesting concept: "sharemilking".  The farmer owns and milks the cows, and moves them from one farm to another on "Gypsy Day".

I assume by separating land ownership and cow ownership the capital requirements are lowered.  I haven't heard of this before, but I suspect there may be such arrangements in the U.S., particularly as part of a succession plan.

As for the Forbes article, while it claims support from an "academic study", in fact the article, while by an academic, is more of a blog post; itself supported by only one article.  I'm suspending judgment on the issue--perhaps I'll get the ambition to do more research.

Wednesday, August 02, 2017

Marx, Jefferson, and Jesus

From a piece on the prohibition movement:
"Prohibition was not solely an evangelical movement, but rather an economic, political and cultural coalition of Marx, Jefferson and Jesus."
 Read the whole thing.

Monday, July 31, 2017

The Deer from My Window

I'm not the photographer Kevin Drum is, but I do have wildlife I can see from my living room window, much to the detriment of our hostas.


Sunday, July 30, 2017

Clovis Piece

Politico has a piece on Sam Clovis, which is surprisingly positive.

Improper Payments and Election Fraud

GovExec has a piece on a proposed commission to look at steps to reduce improper payments.  It's good, but I'd like to make a connection to another issue: election fraud.

The piece includes this sentence: "The example he recommended is easing the current restriction in the Social Security Act that prevents the Treasury Department’s Fiscal Bureau from readily accessing the Death Master File for privacy reasons."  It goes on to note that IRS uses its databases to vet 87 percent of all federal payments.

A major problem in improper payments is knowing when your intended payee is dead. Perhaps the payment should go to the estate  (usual in the case of farm programs) or should not be paid at all.

A major problem in keeping voter eligibility files current is knowing when the previously registered voter has died.

By improving the IRS process by allowing access to the Death Master File (as opposed, IIRC, to using less accurate data from SSA) and using that process for both payments and voter eligibility we kill two birds with one stone.

Saturday, July 29, 2017

Electric Cars Don't Need More Generating Capacity?


From a Technology Review piece skeptical of Elon Musk's ambitions:
A 2007 study by the Pacific Northwest National Laboratory found that without adding a new plant or transmission line, the U.S. grid could reliably charge 84 percent of the nation’s cars, pickups, and SUVs.
Without reading the study I understand the logic: lots of 24-hour generating capacity goes unused at night.  The cost would be for the fuel, coal or natural gas, to run it, but not the capital expense of building new generators.  (Though a 10-year old study might be somewhat out of date.)