Agriculture: The New Disruptive Technology
As I mentioned in a previous post, while I was at eHelp my offsite time was focused on researching Energy, Internet Communication Technology (ICT), and beginning in 2004, Agriculture as emerging sectors.
After working intensely with supporting the then-new RoboDemo community, I decided that eLearning and Blended Learning were killer apps which couldn’t be ignored.
So my grand NorCal plan evolved. Take active duty, soon to retire military vets and train them in a California industry - vineyard management. Vets2Vines was born. And now Ag is the new hot trend. Like I could have planned it any better.
Here I am, positioned with both Renewable Energy and 40 acres of prime, irrigation subsidized Northern California property. The agriculture boom is still on - MarketWatch
As oil flirts with $120 a barrel and corn shoots up over $6 a bushel, it’s clear that demand is real for both commodities, and yet there’s also a bit of froth in those prices as well. How much of it is speculation?
…I have been hearing for three years that corn price couldn’t possibly go any higher. I heard that argument at $2.50, $3, $4.50 and $5. Now here at $6.20, the same bearish absolutes are being spouted from all over the place and my indicators tell me that it’s simply not true.
How much is that in real dollars?
The average bushel to acre breakdown is 183:1. Math says this year will be $7.50 per bushel. That’s a little under $50k for the property. Only half to a quarter what winegrapes would bring.
Then again I don’t have to string all those wires and posts for the vines. And wait 4 years with stranded costs while the vines grow. And do forward contracting to lock in the client. Lowers risk if you make money year 1 instead of year 4.
Ethanol is what’s got farmers all excited. And the market’s guaranteed.
It doesn’t have to come from corn, either.
Sugar is the New Oil
Sugar beets were Solano County’s prime source of cash crops twenty years ago. According to a recent National Geographic I read, Brazil’s ethanol comes primarily from sugar cane. Sugar beets, sugar cane… Jimmy Smits says it best: Sugar is the New Oil.
Posted by Charles in 21st Century Farm Project, California | Comment now »





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