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Contact Information:
Hari Trivedi
HTrivedi@trivgov.com
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Agricultural Development:
Greatly enhance Wisconsin's agricultural productivity.
Wisconsin is agriculturally under-developed. Increases in the world’s population, increasing wealth, particularly the rapid increases in wealth of peoples in traditionally under-developed regions, and the frequent decline in production of agricultural goods, has created an explosion in prices of these goods- to the benefit of the farming industry. Though located in the prime growing region of the Midwest, Wisconsin has failed to take advantage of this growing opportunity, due to lack of vision and leadership in this arena.
Some basic facts about the present and future of agriculture. It is quite evident that prices of agricultural produce have nowhere to go but up over time, due to increasing imbalances between demand and supply. The fact is that the world’s population is growing and the world’s economy is expanding (if one considers a long-term view, the present weak growth notwithstanding). Moreover, historically under-developed economies are growing at an enormous rates (China, India, Latin America..and so on) and are creating an explosion in demand. The result is that supply is either unable to keep up or growth of supply is lagging. In a wide range of agricultural products, stocks are at multi-year lows, and prices at multi-year highs. In this scenario, ANY unexpected weather problems in a major producing region and the supply/demand ratio becomes further unfavorable and prices increase. A recent example was the drought in Russia and the Black Sea region last year and resultant sharp increase in wheat prices, benefiting our farmers and exporters. On the whole, the market has reacted to this situation and prices of ALL agricultural commodities are much higher than historic, even though measured stocks seem abundant.
Specific examples are wheat prices at the Chicago Board of Trade are around $6 per bushel though ending stocking in the US are projected to be multi-year highs –the market has recognized that demand is continuing to go up, and any supply threat will severely decrease the supply/demand ratio. Corn prices are at multi-year highs. Recently cotton prices reached all time highs in early 2011 and remain above historic prices. In other words, the supply/demand to price curve has shifted markedly to the right– a much higher price for the same supply/demand. The writing is on the wall that agriculture has a bright future.
However, the government of Wisconsin has failed to recognize the foregoing and promote agriculture in a meaningful way. Though located in the Midwest, Wisconsin grows less than 3% of the country’s corn, soybeans, and wheat. In comparative terms we are surrounded on ALL sides by highly productive neighbors. Minnesota, Iowa, Illinois, and Indiana, with nearly similar weather conditions, are big producers of corn and soybeans, and to some extent wheat. The United States is a major exporter of corn, soybeans, and wheat and increased exports leads to influx of dollars and growth of our economy.
Besides, these cash crops I will agressively promote industrial hemp, a plant with products that can be used in textiles, paper, animal and human food, and fuel. I believe hemp cultivation, as during the days of our founding fathers, can re-vitalize our ecomony beyond what we can ever imagine. See the link on home page related to marijuana.
In summary, one of the first orders of my business will be to develop an agronomical plan to convert Wisconsin into a flourishing agricultural state.
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