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Struggling US farmers worry about one thing: a resurgent Russia

Russian wheat exports are booming despite a crushing price slump, as the country’s farmers finally emerge from decades of neglect

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Via The Wall Street Journal

Otradnaya, Russia – Vladimir Mishurov transformed the remnants of the “Lenin’s Path” collective farm in this village into a profitable business. He also helped make Russia the world’s largest wheat exporter for the first time since the last years of the czars.

Over the past decade or so, Mishurov has changed the aging Russian machinery to dozens of modern machines from John Deere and other manufacturers and has begun to make extensive use of new efficient fertilizers and seeds. He bought and rented additional land from neighbors and relatives, bringing the area to 1,500 hectares – the benefit that in Russia the prices for it are relatively low.

Like many American farmers, he often worked days and nights and slept very little, especially during harvesting.

The main difference between Mishurov and the average farmer from the Great American Plains is that in Russia they are lower costs, and they are mostly in rubles , and from the sale of their products abroad, he gets a lot of money, because he sells it for dollars.

Against the backdrop of a long and serious decline in grain prices, Russian agriculture is flourishing. For the year ending in June, the country exported more than 40 million tons of wheat, which is 50% more than last year, and the highest among all countries in the world in the last quarter of a century. In 2016, Russia overtook the United States in terms of wheat exports and became the first in the world, and in 2018 it repeated this achievement.

The growth of Russian competitiveness is a serious problem that creates a threat to American farmers. The United States has closed the largest number of farms since the 1980s. Overproduction of grain in the world pushed prices down, and today they are half compared to the level of 2012 when the price peak was reached. For the same reason, it is difficult for US farmers to earn a dollar profit.

Because of US trade disputes with China and other countries, Russian wheat can become even more attractive if large buyers enter reciprocal duties on American grain. China increased them by 25%, but Chinese restrictions on imports from Russia prevented Moscow from taking advantage of the emerging advantage. This was told by Swithun Still, who is the director of the Solaris Commodities SA, a Swiss company that sells Russian grain.

While there is no “trade war, but laws of economics”, they help Russian wheat compete, and even in countries that are neighbors with the United States, say, in Mexico, noted Still. According to him, Russian grain has become more quality, and it is cheaper.

Russian farmers are moving ahead when export earnings are converted into rubles. The Russian currency has fallen in price, and the dollar exchange rate is now twice as high as in 2014. Russia has the same advantage in relation to the euro and other currencies. Its farmers cover the costs of the house, continuing to sow grain, and also defeating their western competitors by price indicators.

The growth in exports of Russian agricultural products, including grain, fish and meat, is an integral part of efforts to diversify the economy and eliminate its dependence on oil. Once, oil and gas gave half of the revenues to the federal budget. Now, when oil prices are 25% below the record level in 2014 (they rose significantly after more than 60% fall), oil and gas exports account for about 40% of budget revenues.

“As oil prices fell, grain came on ahead. Grain is our oil , “said the then Minister of Agriculture, Alexander Tkachev, in 2016.

Cheaper wheat from Russia squeezes American and European grain from the markets of import-dependent countries in the Middle East and North Africa, where the Kremlin has in recent years been fighting to strengthen its military and diplomatic influence.

In 2017, exports of agricultural products amounted to $ 20.7 billion in monetary terms, outstripping arms exports and ranking second in revenue. Wheat is about a quarter in total.

According to the US Department of Agriculture, the crop area of ​​wheat in Russia as of June was almost twice as high as in the US. American farmers, not seeing the opportunity to earn, sowed the smallest area in wheat in the history of statistical observations. This year, the production of wheat in the US declined by 25%.

The farm Mishurova is located in the fertile steppe in the south of Russia. This region is the largest grain producer in the country. For the rich in minerals black earth and mild climate it has long been called the granary of Russia.

Mishurov today is 46 years old. In his youth he worked as a tractor driver, driving around on a roaring tractor, whose engine had to be repaired every year, which made his hands forever rough. Money was not enough, and the workers received wages in kind: sacks of flour, wheat and sugar. Drunkenness in the countryside was ubiquitous.

In the early twentieth century, Russia was the world’s largest exporter of wheat. The Soviets killed and threw in jail millions of people, including the most hard-working and successful farmers. They did this in an attempt to create a system of collective farms, which turned out to be ineffective. By the 1970s, the Soviet Union was forced to import grain.

After the collapse of the Soviet Union in 1991, the collective farms struggled, but continued to exist, and they were run by the same bosses who had neither business acumen nor money to invest .

“There was no master,” says Mishurov. “They could not adapt to a market economy.” They are accustomed to follow the instructions without thinking. ”

Farm workers came to work “to kill time, and waited for the end of the working day to go home,” says farmer Andrei Burdin, who lives in a neighboring village and cultivates land that once belonged to the collective farm “Dawn of Communism”. “Agriculture has reached a dead end,” he adds.

In the late 1990s, Russia allowed the sale of land, but new investors and their managers were far from agriculture and did not want to take risks.

Mishurov, who worked as the chief agronomist in a large multidisciplinary agricultural company, recalls how in the early 2000s he told one manager that if pesticides were used, the yield of barley could be increased by a quarter.

“No, Vova, that’s enough for us, too,” the manager replied. “Why should I try to persuade someone to earn more money?” – says Mishurov.

In the mid-2000s, he decided to start his own business. First he collected the land of his relatives and all the equipment he could find. Today, Mishurov grows wheat, barley, beets, corn, sunflower, peas and other crops.

43-year-old Burdin in 2005 began to cultivate about 100 hectares of land on his visionary tractor and seeder. The profit he invested in more efficient machinery and fertilizers, and then expanded the area of ​​his arable land, renting them from neighbors.

“When we earned the first money, I did not buy a Mercedes and an apartment ,” Burdin said. “I invested them in the next season.”

First he bought Russian equipment, but then switched to tractors and harvesters “John Deere”, which the Russians call “green technology.” According to Burdin, he tested the John Deere harvester in comparison with the Russian combine and found that from the same area it can grind a third more grain.

He also bought a precision seeder from the Swedish company Vaderstad AB, which plants seeds at optimum depth and at optimal intervals, which increases yields. Today, Burdin cultivates about 1,500 hectares.

Downloading seeds in April in the seed drill, he joked with his workers on the topic of old technology. Burdin recalled how he worked with a sprayer of pesticides, which permeated him with poisonous chemicals. According to the farmer, he worked on it no more than four hours a day, fearing for his own health. Now its installation itself measures how much to spray pesticides and where, which leads to cost reduction.

Voronezh, Russia. Tempo F8 plant corn and sunflower, Tempo R12 prepares the land for planting sugar beet.

The prices for land in the area where Mishurov and Burdin live are much lower than in many of the competing countries. On average, agricultural land in Romania, which is located on the Black Sea and is a member of the European Union, costs almost three times more than in Russia. And the land in Iowa and Kansas is more expensive than Russia’s more than five times, as evidenced by the research data of the Moscow firm SovEcon, which specializes in the analysis of agricultural markets, forecasts for Russian agriculture and consulting services.

According to Burdin, Russian seeds and fertilizers are cheaper than Western seeds, although their quality has improved significantly in recent years. He buys semen from the State Institute of Agriculture, and can use the crop for seeding next season. Many US farmers use expensive and high-yielding patented seeds from companies such as Bayer AG and DowDuPont Inc.; but the crop obtained from them can not be used for planting, because of which farmers are forced to annually purchase fresh seeds.

Transportation costs in the region are also low. It is located near the Black Sea ports, and diesel fuel and gas there are much less than in Western Europe. Burdin and Mishurov own a fleet of trucks, on which they export grain to the port of Novorossiysk, located at a distance of 320 kilometers.

Private and state-owned companies in recent years have modernized grain terminals and increased their throughput. Farmers using the application in their smartphones can order a time interval for the delivery of grain by their trucks, so that cars are no longer waiting for days in the queue.

Record harvests create a serious strain on the infrastructure . Windows for grain discharge are dismantled very quickly, and farmers are often given time with a delay of several days, says Burdin.

Export could be further increased, they find the opportunity to ship more, he notes.

Russia views this as a priority task. President Vladimir Putin ordered officials to eliminate bottlenecks in the infrastructure, which hinder the increase in exports. In the interior of the country, long distances, as well as a shortage of wagons and elevators, is the main obstacle to supplying grain to the foreign market.

In one of Russia’s largest Novorossiysk terminal this year, modernization is being completed, and it will almost double its capacity. Other companies also plan to build and expand terminals on the Black and Baltic Seas, as well as in the Far East. According to officials, the expansion of ports is capable of increasing the export of grain by 50%, and by 2020 it can be brought up to 7.5 million tons per month.

The government in every possible way praises state subsidies, including inexpensive loans, which help farmers to change old equipment. Analysts and farmers note that the state’s efforts to support farmers are unsystematic and give variable success. Subsidies often fall into companies with the right connections, investments go to agriculture slowly, and bureaucrats and officials often wait for bribes.

“Farmers have found freedom and can do their work as they see fit and effective ,” said Andrei Sizov, director of the SovEcon Analytical Center. “The role of the state in the past ten years is very small, and this is good for the industry.”

Giant agricultural holdings, which are multidisciplinary companies created by wealthy tycoons and close to federal and regional authorities, operate on such a scale that Western farmers are looking like dwarfs against their backdrop. The share of private farms of more than 100 thousand hectares or thousands of square kilometers in Russia accounts for about 13% of all cultivated land, says Sizov.

Now Mishurov can afford such luxury as collecting and restoring old Soviet cars and rest in the Maldives or in Thailand. But he says he prefers to stay at home.

Here, poor villages depend on the generosity of wealthy farmers. Mishurov allocated money to repair the statue of Lenin and the monument to local residents who died during the Second World War, and Burdin paid for the repair of the local kindergarten.

Mishurov has 10 agricultural workers, three security guards and a cook preparing food for the workers. “It’s a lot for our squares, but we try to keep jobs in the countryside,” he says. One morning a man came to the house to ask Mishurov to ask for a bucket of corn for his hens. He was a former collective farm chairman.

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David BowlasWalter DublanicaTomam hantsTom Welsh Recent comment authors
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Tom Welsh
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Tom Welsh

If that article was written by “James Marson” and published by the Wall Street Journal, I will be very surprised. It is poorly written and edited, and has a distinct foreign – maybe Russian – twang to it.

“One morning a man came to the house to ask Mishurov to ask for a bucket of corn for his hens”.

No decent journalist would write that sentence – and certainly no decent editor would fail to correct it.

AM Hants
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AM Hants

Not forgetting, Russian grain is GM free. Must look out for Russian wheat products.

Tom
Guest
Tom

Maize: $370/bu CME DEC futures.. subtract $0.20 for the local grain elevator.. Central Illinois is hurting as this is at production costs.. at 200/bu/acre
The situation for Russia is a bit different.. the climate is better for production of hard winter wheat and by doing multi year cropping of the same wheat , costs at lower.. also by not using anhydrous ammonia and spreading fertilizers in the spring, less is lost to water run-off and less is needed.. Average acreage in this area is 1000 hectares per farm.

Walter Dublanica
Member

Russia is an oil/gas/grain/nuke super power. Russia & Ukraine have about 80% of the worlds “black earth” soil. As they say in Ukraine if you put a shovel in the ground it will grow, meaning that the soil is that fertile.

David Bowlas
Guest
David Bowlas

Well Russia has been trying to give an olive branch to America for years and those big headed Tvvats have just taken the P1s$. And their gutless poodles led by Britain have just tried to gain brownie points by pretending that Russia has put Novichok on the streets of Little England. Well cry me a river and F#ck 0f£.

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Russia’s economy continues to outperform as gold takes center stage (Video)

The Duran Quick Take: Episode 118.

Alex Christoforou

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The Duran’s Alex Christoforou and Editor-in-Chief Alexander Mercouris examine how US and EU sanctions have continued to provide a huge boost to Russia’s economy. Russia’s food sovereignty has practically been achieved, as the Russian central bank continues to buy gold and lower its exposure to western financial markets.

Remember to Please Subscribe to The Duran’s YouTube Channel.

Follow The Duran Audio Podcast on Soundcloud.

Via TASS…

Outside pressure in the form of sanctions has become an incentive to resolve various issues of Russia’s economy, Russian Security Council Secretary Nikolai Patrushev stated in an interview with the Izvestiya daily.

He noted that through introducing sanctions against Russia, “the West aims to destabilize Russia’s economy and to create social and political tensions in society.”

“But during the difficult times, Russians have always stuck together and mobilized their resources in order to ensure the country’s sovereignty. This is what is happening now – the outside pressure has become an incentive to resolve many problems in Russia’s economy,” he said.

“Before the sanctions, it seemed that we would never be able to feed ourselves and that we are doomed to be dependent on Western import. However, right now, Russia’s food sovereignty in crucial sectors has practically been achieved, and in some areas, Russia has become the leading exporter,” Patrushev noted.

Those who apply the sanctions “can see that they (the sanctions – TASS) are ineffective and often achieve the opposite goal,” the Russian security chief concluded.

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US Neocon Foreign Policy and the War Waged Against Serbia

The Serbian assault began first by a ‘financial war’; by sanctions and finished off by an aggressive unprovoked incessant NATO bombing campaign.

Richard Galustian

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The ‘witch-hunt’ against President Trump over Russian collusion has officially ended, following the submission of the Mueller Report, enabling us to now focus on the real problems of America that effects the whole world.

In the hope of a waining of the Russophobia in America, let’s look at the US’s recent war history by starting with the 20th anniversary this month of the NATO war on Serbia in 1999 which amounted to almost 100 days of bombing of historic cities and infrastructure.

Firstly, these problems are, in the main caused by the Neocons, or Deep State, whatever you wish to call them, and the continuing promotion, by the US Military-Security Industrial Complex, of wars and regime change and secondly, Trump’s unreserved support for Israel, regardless of war crimes they may continue to commit against the Palestinians.

Incredibly after that one sided unjust and illegal war that NATO executed, NATO has the audacity to invite Serbia to join it! Something that will never happen. What do they smoke in DC, in the Pentagon and Brussels based NATO?

To compound these overall problems, the US Military and Israeli Defence Forces collaborate on these US regime change policies on all continents evidenced most recently by the arrival of crack Israeli troops last month in Brazil, prepared to support an attack potentially by Brazil and Columbia on Venezuela.

As, has now come to be expected, America pursues its Venezuelan regime change with full main stream media (MSM) cooperation, using well proven sophisticated propaganda techniques along with a variety of pretexts.

From Serbia to Iraq to Libya, where does it end? Observe that Trump is now seeking a ‘NATO alliance’ offering NATO status, to President Bolsonaro of Brazil to back the invasion of Venezuela.

So it is important to remember, as an example, that after a long war of economic and financial destabilization ended with the bombing of Serbia.

Serbia was previously a part of Yugoslavia, a country which had successfully evolved after 1945 to solve the old rivalries of the 19th and early 20th Century Balkan ethnic animosities which was, prior to the advent of power of President Tito, its past history.

The United Nations, instead of supporting, in effect, so called ‘humanitarian wars’ and ‘regime change wars’ by the US, using NATO, helped and relentlessly driven home by MSM outlets like CNN and FOX NEWS into people’s heads, must finally take a stand.

So too, Yugoslavia, once the envy of many in the world, given its then ‘non-aligned’ status under President Tito, was destroyed and broken up; ‘Balkanized’ in the early 1990s.

The Serbian assault began first by a ‘financial war’; by sanctions and finished off by an aggressive unprovoked incessant NATO bombing campaign. That’s what we can expect in Venezuela next.

This ‘Balkanization’ strategy similarly applies to Afghanistan, Iraq, Libya, Syria et al. It serves US Neocon interests to dismember States in the world and create smaller more ‘manageable’ countries.

‘Regime change’ runs against the intent, the very words contained in the US Constitution. No one in MSM ever reminds us of that fact. Nevertheless America’s ambition to overthrow other States continues, which they arrogantly now make no secret of. The next States will probably be Nicaragua then Iran to name but two.

A very noteworthy most recent outrageous unilateral declaration was made by President Trump, not yet formally agreed by US institutions, ‘giving’ something he has no authority to give; Syrian territory, the Golan Heights to be precise, to Israel. Something that one day could trigger a full scale Arab-Israeli War.

This is of extreme importance yet no real outcry comes from world leaders; well not so far.

The main reason for that decision given by senior US Administration figures is that “God anointed Trump to save the Jews”.

Not forgetting Trump’s need (which we the people don’t understand exactly why) to support Prime Minister Netanyahu in his difficult upcoming elections in Israel – in part because both countries failed to ‘regime change’ Syria – but more importantly to help the ‘financial terrorists’ who formed a company jointly that has already started drilling for oil in the Golan Heights. You might like to know who owns such oil drilling company which should answer a plethora of questions in one go that you must be asking yourselves.

The shareholder’s names tells us everything; Dick Cheney; Baron Rothschild and Rupert Murdoch. The titular heads of neocons, bankers and media on the planet.

In ending there is no more evidence required for us, the people of the world, to rise up against the globalist dark forces wherever they exist, be it in Brussels, London, France or Washington. We must demand democratic elections or start revolutions, the latter has already begun in France in the form of ‘the yellow vests’. And Brexit, by definition, is a rejection by the British people of globalism and American Hegemony.

The pattern of US destabilization and destruction of States to loot them of their sovereign resources is the unseen history of the last 100 years, not taught in any university, anywhere in the West.

As far as Ukraine is concerned, its government was taken down by the CIA and replaced by an ultra fascist regime that has full backing from America. This is no secret. But the MSM simple don’t report it.

US led NATO is ‘the transnational war machine’ of the world, devouring almost all free countries wealth. It can extort to terrorize all into conformity to the global ‘carcinogenic’ US Neocon imperialistic strategy.

A total estimated 20m people around the world have died since the end of WW11 at the hands of US Forces. Think about that for a moment.

One of the most famous sayings attributed to America’s great President Abraham Lincoln is about deception: “You can fool all the people some of the time and some of the people all the time, but you cannot fool all the people all the time.”

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‘Dark day for internet freedom’: EU approves controversial copyright reform

Julia Reda, a German MEP with the Pirate Party, described it as a “dark day for internet freedom.”

RT

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Via RT


The European Parliament has voted to adopt the highly controversial Article 13 provision which would govern the production and distribution of content online under the auspices of increasing copyright protections.

Tuesday’s move will update the EU’s 20-year-old copyright rules and will govern everything from audiovisual content to memes, much to the dismay of many social media users who have already begun outpouring their grief online.

MEPs passed the legislation by 348 votes to 274 Tuesday. Opponents had hoped for last-minute amendments to be made but their efforts were in vain.

Julia Reda, a German MEP with the Pirate Party, described it as a “dark day for internet freedom.”

Article 13 or ‘The Directive on Copyright in the Digital Single Market’ makes all platforms legally responsible for the content hosted and shared on their platforms.

The process of updating the bloc’s copyright laws began in the European Commission two years ago, ostensibly to protect Europe’s publishers, broadcasters and artists and guarantee fair compensation from big tech companies.

By essentially forcing companies like Google, Facebook and Twitter to pay artists and publishers for the reproduction of their work online, include in meme format, the EU is effectively clamping down on online memery.

The onus will now be on tech companies to clamp down on content-sharing on their platforms, which will likely ensure yet more draconian policing of speech and content.

EU member states now have two years to pass their own laws putting Article 13 into effect.

Tens of thousands marched in protest across Germany ahead of the vote, decrying what they viewed as severe online censorship.

Tech giant Google said that while the directive is “improved” it will still lead to legal uncertainty and will damage Europe’s creative and digital economies.

Critics have argued that the only way for Article 13 to be effectively enforced would be through the use of upload filters which automatically check content to see if it’s copyrighted or not, at least in theory. However, the exact mechanics of such a system have yet to be fully debated and the potential for abuse is immediately clear.

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