Thursday, February 10, 2011

The Use of New Technology

I wonder how well and fast some innovations penetrate society.  For example, I guess you can assume everyone who uses a PC these days knows how to use a mouse. Remembering Windows 2.0, that was not something you could assume. (The first PC's FSA provided had Windows 2.0 on them.)  So maybe it took 10 years or so for us to convert to a Windows WYSIWYG environment?  But how about sneakier stuff, the bells and whistles software types add on.  Does anyone use everything in Word?  How about Google Maps?

The reason I ask is I just realized this week that the Street View in Google Maps could be used to see where in Ireland my great grandfather lived before he emigrated to the US in the 1820s. Apparently Google hasn't done Germany yet.

Crop Insurance and the LA Times

Via Farm Policy, the LA Times had a long article on crop insurance, using the hook of fraud in the program to include some more serious discussion.
The program ballooned, thanks to insurance industry lobbying and federal rules that make it tough for farmers to go without coverage. Although the amount of acreage covered remained relatively stable, the value of insured crops climbed to $78 billion in 2010 from $36.7 billion in 2001. Premiums, tied to the volatility of the commodity futures market, jumped in price. Agents' commissions, which are tied to crop prices and premiums, have tripled over the last decade.

The trouble, critics say, is that private insurers and their agents reap most of the benefits while the public still picks up the losses.

In 2009, taxpayers shelled out nearly $4 billion to the 16 insurers involved in the program, according to the USDA's Risk Management Agency, which administers the program. Of that, $1.5 billion was paid in commissions to an estimated 15,000 insurance agents. Because there were more gains than losses, the USDA said it retained $1.4 billion, some of which came from farmers' premiums.
 Must be nice to have one's income triple in a decade.  Although it's probably true that many crop farmers have done equally as well in the new century.

A Coming Glut of Almonds and Pistachios

That's my prediction, based on these figures from Chris Clayton:

Speaking of which, all you rolling in the money corn and soybean farmers, figure this math out. Last year, some of these guys in the valley got about 4,000 pounds an acre off their pistachios, and sold them at $2.50 a pound. Production costs for a pistachio crop is about $2,000 an acre. And it's a wonder why private investors are willing to pour money into pistachio or almond orchards that won't make a crop until three to five years.

Wednesday, February 09, 2011

USDA Farm Cuts

House Appropriations Committee is proposing the following cuts in 2011 FY (the next continuing resolution):

"Food Safety and Inspection Services -$53M
· Farm Service Agency -$201M
· Agriculture Research -$246M
· Natural Resource Conservation Service -$46M
· Rural Development Programs -$237M"
 No detail on what's involved. No cut to SNAP (food stamps) but WIC takes a $738 million hit.  Not sure why it's better to fund the poor instead of women and infants.

NY Dairies Can't Win

Not only have corn prices gone through the roof, but the roof is falling, at least in Saratoga and Washington counties, NY on several farms.

A couple comments, which sound hard-hearted:
  • I suspect many of the roofs which succumbed to the snow load were on buildings erected during the last half of the last century.  I doubt either the old-old-fashioned barn on my childhood farm, or the old-fashioned hip-roofed barn which was the standard when I was born would have suffered so.  Their roofs were steeper in pitch than the more modern barns I've seen.
  • I'm not sure why FSA should be involved.  Surely the farmers were carrying insurance on buildings and herd.  If they had insurance and the insurance covered barn collapses because of snow, FSA should not be involved.

Tuesday, February 08, 2011

Sic Transit Gloria: Ken Olsen

Back in the day (whoops, did I use that already) Once the Digital Equipment Corporation was high in the sky.  I remember using the DEC All-in-one system to communicate with Kansas City, writing requirements and discussing schedules.  This was the mid-80's. In DC we had started our word processing with the IBM Magnetic Tape/Selectric Typewriter, changed to the CRT-based Lexitrons, briefly to Wang, and then to the DEC terminals with their email, wordprocessing and rudimentary spreadsheet package.  (The spreadsheet was an attempt to compete with Lotus 123--I remember using it for some computations, maybe on wheat allotment in the runup to the 1986 farm bill.) 

Anyhow, it was on the DEC that I first learned the golden rule of email: black and white type does not convey your meaning, particularly when you're joking, sarcastic or whatever.  (Early days of smileys.)   All this reminiscing is triggered by the death of Ken Olsen, one of the cofounders of DEC.

It's a cautionary tale, matched in later days by the AOL/TimeWarner saga, Alta Vista, and maybe Yahoo, and Ebay.  Who knows the future?

Cotton Price Supports

Back in the day, Oxfam was waging war against US cotton farm programs on behalf of the African cotton growers (in Burkina Faso, etc.). The argument was the program encouraged US farmers to produce at lower prices, making it impossible for African growers to make a profit.  This was when the cotton price was $.55 or so a pound.

Today, according to this piece by Philip Brasher (hat tip Farm Policy) Oxfam's man in Africa is seeing possibilities for African growers:
Cotton isn't a food crop, but farmers in places such as Mali or Senegal in west Africa could do quite well if cotton prices hold up, Hazard [Oxfam representative] said in a phone interview from Dakar, Senegal. A jump in world cotton prices last year came too late to really benefit farmers as much as it could have, because they have their crop under contract by the time they plant, he said. The world price of cotton shot from 90 cents in August to $1.68 in December, according to the National Cotton Council.
Some west African farmers may switch some of their land from food production to cotton to take advantage of the prices, Hazard said.
 Elsewhere in the piece Hazard notes high food prices may force the poor to cut back on their consumption.

Two observations, after I admit I'm no economist:
  • Last I knew the US cotton program wasn't significantly changed.  Matter of fact Brazil won compensation from us via the WTO. So this big turnaround for cotton means there's other forces at work, stronger forces at work, than simply bad, no-good, unwise, even evil US farm programs.
  • If the high cotton prices will elicit more cotton production from African growers, so eventually might the high rice, etc. prices elicit more rice production.

Women in Special Ops

Special Ops is the glamour branch of the services.  Think of the Delta force operatives in Black Hawk Down.  So it's with some surprise I got towards the middle of this post on Tom Ricks blog and found that women are successfully infiltrating even Special Ops. You can't keep a good woman down, I guess.

Monday, February 07, 2011

Schadenfreude on Disaster

I spent long enough in FSA working on disaster programs (not disastrous programs, though opinions may differ, but programs to aid farmers who suffered a disaster) to feel some schadenfreude (wicked enjoyment at the misfortunes of others) at reports such as this.

It's a true fact: any program, public or private, which puts money on the table is subject to scams and fraud.  Different programs have different vulnerabilities.  Whether it was the compensation for 9/11 victims and families, or Katrina, Pigford, or just a simple scheme to fake an accident, burn down one's factory building for the insurance, or claim a whiplash, you always have fraud.

Of course everyone knows we ourselves are innocent, so only a weak-minded blind bureaucrat would treat us as someone to be suspected, someone whose claims must be verified and whose word should not be taken at face value.

Sunday, February 06, 2011

Limiting the Use of SSN's

Nextgov had a post a while back reporting the Navy was limiting the use of Social Security numbers. It ends:
The eventual goal is to have a unique Defense Department ID replace Social Security numbers across all the services. Defense expects to begin removing Social Security numbers from bar codes on service member ID cards by 2012.
 There's a gain to using organization-specific (DOD) IDs instead of nation-specific IDs (SSN's), I suppose. My personal prejudice is for using applications which don't require an ID number at all. After all, if you need to distinguish among the multiple Bill Harshaws who live in the world, a combination  of data works.  Just use the Whitepages application and do a search for a last name and a town.  They'll respond with a list of people with the last name and provide the first names, often the ages, and often the other people in the household.  Usually that's good enough for what you want.

Granted there may be some instances in which the organization needs greater certainty.  For example, consider an ID card.  My VA drivers license used to have the SSN on it, but now it's got a customer ID number.  That's what store clerks write down, or they used to, when they ask for ID for a check or a purchase. Such requests are infrequent now; I'm not sure whether it's because businesses have figured the info is not worth the hassle or what.  The better solution would be a picture of me and my card, which they may be getting.

I'd hasten to add that there needs to be an ID card number, which identifies the ID card itself, but which doesn't identify the person. If I lose my license, VDOT needs to reissue one, and know which actual card was lost and which I should have.  That way, if the lost card pops up in someone's possession they can tell the difference. I don't know VDOT's business processes, but it looks as if they do have such a card number on the license.

Finally, if needed, any organization these days should be able to rely on an email address, which is what they do online. Unfortunately not everyone has one, which is a subject for another day.