The Human Cost of the Presidency

Mr. Morris has a blog post at the NYTimes interviewing people who took many of the photos of Bush over the years--more or less the expected fare until you get to the last 3 photos, snapped after his last address to the nation. They show the toll, and touch even the heart of someone who didn't think much of him.

The Rice Crisis, Revisited

The NY Times has an article today on the effects of rice prices in Senegal. Last year's high rice prices caused rice farmers there to increase their acreage:

It is a great thing that local growers are finally expanding production, he said, but their investments are incredibly fragile.

“We don’t have any control of the market,” he said. “There is huge volatility, and that makes it very difficult to protect their investments.”

If farmers lose a lot of money this year, they are unlikely to risk planting again, Mr. Ly said, which could prove catastrophic.

In a report released in November, the Food and Agriculture Organization of the United Nations warned that low prices this season could create an even worse replay of last year’s crisis by discouraging planters from producing.

“If prices were to remain depressed in 2008-9 and plantings for next year are affected,” the report said, “a similar, if not more pronounced, price surge may be witnessed in 2009-10, unleashing even more severe food crises than those experienced in the current season.”

In a nutshell, this is the economics of farming field crops. Farmers are "price takers", with no ability to adjust production to meet demand (unless organized into a cartel, like OPEC or the tree crop growers). Good prices one year brings expanded production the next, leading to boom and bust cycles, which are very hard on the individual farmer, particularly the small, young, and/or struggling one.

Problems With Wikipedia

I think there's a systemic problem with Wikipedia's coverage of certain topics: specifically the "hot", gloom and doom topics which bubble to the top of the media. The problem is the people who care most about the topic, and who therefore are most likely to do or edit a wikipedia article, are those whose emotions are stirred by the impending disaster. (In other words, all the young whippersnappers out there who haven't had the experience of ups and downs I've had.) When the disaster is looming, people edit wikipedia. When the disaster fades, the people whose emotions were engaged have moved on to other topics. Or they're reluctant to admit forever they were wrong. My proof:

the latest price for Rice is for April, 2008.
the "2008 global rice shortage"
the 2007-2008 world food crisis.

None of these reflect such data as this from USDA:

Global 2008/09 rice production, consumption, and ending stocks are raised slightly from a month ago, while trade is little changed. The increase in global rice production is due primarily to a larger 2008/09 rice crop in China, which is up 4.2 million tons to 135.1 million, and the largest crop since 1999/00. The increase in China’s crop is due to an increase in both area harvested and yield and is based in part on national and provincial government information. Global ending stocks are projected at 82.7 million tons, up 1.8 million from last month, up 4.0 million from 2007/08, and the largest stocks since 2002/03.

Or this from FAO:

Prices for most agricultural commodities have dropped significantly and swiftly in recent months. World grain prices have fallen by over 50 percent from their record highs earlier this year. International prices for other important foodstuffs, such as vegetable oils, oilseeds or dairy products have also drifted downwards, even if they still remain above their longer term trend levels. Rice is still expensive but prices may follow the path for other foodstuffs as the new crop comes on stream, export restrictions are relaxed and demand shifts further to cheaper alternatives.

or this:

CEREALS

Cereal supplies rise, international prices fall

FAO’s forecast for world cereal production in 2008 now stands at 242 million tonnes (including rice in milled terms), 5.3 percent more than in 2007 and a new record. Among the major cereals, the most significant production expansion is forecast for wheat, up 11 percent from last year, but production of coarse grains is also forecast to surpass last year’s record by at least 3 percent, while rice production is anticipated to exceed the already excellent results achieved in 2007 by more than 2 percent. A combination of exceptionally high prices, which encouraged plantings, and generally favourable weather conditions contributed to the boost in world cereal production this year.

Vilsack Wants Comments?

According to this press release, Vilsack is extending the period for comments on the payment limitation regs, although signalling no change in their provisions for the 2009 crop year. He also talks of his priorities--FSA IT and Pigford among them.

BTW, note the URL has been compressed by tinyurl. (One of my correspondents has mentioned the long length of the USDA's URLs. I haven't regularly used tinyurl.com, but it's useful.)

France and US on Religion

Mr. Beauregard blogs on Sarkozy, the impending strike, and Obama--here's an excerpt:

Put in republican terms; Obama's inauguration speech was filled with religious leitmotifs. Unthinakble in France; Our conception of the republic is resolutely secular. The Republic is a bulwark against religion and the ravages of religion. In the States the Republic protects the Church from the ravages of the state. In the morning, French kids don't salute the flag or sing the national anthem. The French are not a patriotic lot. certainly chauvinistic but not as patriotic as the Americans - and all that shapes internal politics. An American will run the flag up at home, and tell you with a big smile and hand on heart that he or she believes in God. In France, you can be interned for such behaviour. The psycholgy shapes people and shapes politics.

Stimulus and Government

John Phipps has a long post, arguing for stimulus investment in infrastructure as opposed to tax cuts. It's worth reading. Two points he misses, though:

• government spending on infrastructure is highly visible. We can see how FSA spends its millions, and thus judge whether or not it spends them wisely or not, or even spends them timely. We can't similarly see the ways in which tax cuts are used.
  
• there's the assumption that government will be more stupid in its spending than the private sector. Again, because of the difference in visibility, the assumption can't be proved. Suppose a tax cut goes mostly to personal consumption spending, meals out, bigger cars, bigger houses, more vacations, more luxuries. My Calvinistic forebears shout from their graves that's wasteful, not productive.
  

FSA, IT, and Stimulus

Here's an article on Nextgov about FSA and the $245 million. Two of the final paragraphs:

Patrick Hanley, project manager for the program to modernize the farm benefits system, said the agency is working closely with the Office of Management and Budget to make sure the new systems would comply with the federal enterprise architecture, to ensure FSA's systems can share information with other federal agencies. Hanley said the $245 million in the House stimulus bill would allow FSA to stabilize the current infrastructure and initiate modernization efforts. The money would satisfy estimates for the first two years of implementation, Taitano said.

Agency officials also are looking into commercial off-the-shelf software solutions that could help with payment processing, according to Hanley. But the initial focus will be on infrastructure and making sure the back-end servers and network are capable of handling the volume of transactions at FSA, he said.

Many years ago (i.e., 1989) we were working on the cost-benefit justification for the replacement of the System/36's with the idea there would be a big bang, big buy. Like Sisyphus, we kept rolling the rock up the hill, and having it come back and squash us. Best I can tell, in the 20 years since there was a piecemeal replacement of System/36's with AS/400's, a gradual migration of some common functions and certain programs to the Internet, and a bit of integration between NRCS and FSA. (I'm probably biased in my assessment.)

To the extent USDA needs to buy more servers and network hardware, that should be doable within this FY. That is, it may be "shovel ready". I don't know about software development--GAO has questioned USDA's management of the MIDAS project. See my posts here and here

FSA has moved its payment function out of the county offices to centralized processing in Kansas City. That's been operational for a month or so, and hasn't blown up, yet. So I'm not clear on what COTS (commercial off-the-shelf software) could help.

Geithner and Turbo Tax--the Loss of Expertise

Jim Lindgren at Volokh tries to recapitulate Mr. Geithner's experience using Turbotax back when he was an IMF employee and failed to file properly (as self-employed). I think it's an example of the loss of expertise when we incorporate knowledge into our tools. I know when I filed my taxes on paper, I was much more aware of what I was doing than when I answer Turbotax's question. As I told my wife, it's sort of a mindless exercise now (which made her feel very good about the accuracy of our returns).

It's the same sort of thing I saw back when I worked for ASCS:

A district director took me around his district in North Carolina. He told me he tried to have his office managers (i.e., CED's) assign their best clerk to handling "reconstitutions" (i.e., the changing of farm records), because it was complex and important. Some 15-20 years later I found myself responsible for the people who were automating the process, trying (and perhaps failing) to make it simple and easy for any program assistant to handle.

Along the same lines, I remember an employee discussing the new word processor (one of the first with a CRT screen where you could actually insert and cut and paste and see the results of your action). She said it was nice, but she used to be proud of her ability to type fast with no mistakes. And now she was losing it, because the machine took away the premium on not making errors.

Just as, baling hay rendered obsolete the skill of making a good load of hay on the haywagon (i.e., defined as one where you got the maximum of hay on the wagon, placing your fork-fulls so that the hay bound together (i.e., being attentive to the direction the stalks of hay were lying on the wagon). And I suppose now the skill of stacking rectangular hay bales on the wagon or truck is obsolete, as you just use the forklift on the tractor to move the big round bales.

Cheering Thought for Farmers

Brad DeLong posted a link to this old Jared Diamond article, entitled "The Worst Mistake In The History Of The Human Race", which was the invention of agriculture.

There are at least three sets of reasons to explain the findings that agriculture was bad for health. First, hunter-gatherers enjoyed a varied diet, while early farmers obtained most of their food from one or a few starchy crops. The farmers gained cheap calories at the cost of poor nutrition. (Today just three high-carbohydrate plants--wheat, rice, and corn--provide the bulk of the calories consumed by the human species, yet each one is deficient in certain vitamins or amino acids essential to life.) Second, because of dependence on a limited number of crops, farmers ran the risk of starvation if one crop failed. Finally, the mere fact that agriculture encouraged people to clump together in crowded societies, many of which then carried on trade with other crowded societies, led to the spread of parasites and infectious disease. (Some archaeologists think it was crowding, rather than agriculture, that promoted disease, but this is a chicken-and-egg argument, because crowding encourages agriculture and vice versa.) Epidemics couldn't take hold when populations were scattered in small bands that constantly shifted camp. Tuberculosis and diarrheal disease had to await the rise of farming, measles and bubonic plague the appearance of large cities.

So, farmers are the root of all evil.

Early Up, Pigford

Pigford and civil rights is an early topic for Secretary Vilsack. (I like the name--I can remember how to spell it, I could never remember with Schafer whether there was a "c" or not, how many "e's", etc. and I'm too lazy to look it up.) He also in his remarks hits the food issue.