World Perspectives

Regulation Ruse; FTA’s Needed; Big is Bad

Regulation RuseFarmers in Europe oppose the recently completed free trade agreement with Mercosur, and have long prevented a transatlantic agreement with the U.S. They argue that their competitors in the Americas produce under less stringent environmental and labor standards. That may be true but that is not the primary cause of their struggles with competitiveness. The problem is that the fundamentals of production agriculture in Europe are much higher. The average cost of farmland in France is 50 percent higher than in the U.S. There is a large differential in energy costs, a critical component in farming (chemicals, fertilizer, fuel, lube, electricity) and Europe has by design made it costlier. Europe’s farmers cannot use the latest...

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From WPI Consulting

Forecasting developments in production agriculture

On behalf of a private U.S. agricultural technology provider, WPI’s team generated an econometric model to forecast the movement of concentrated corn production north and west from the traditional U.S. Corn Belt. WPI’s model has subsequently provided quantitative support to a multi-million-dollar investment into short-season corn variety development. WPI’s methodology included a series of interviews with regional grain elevators and seed consultants. Emphasizing outreach and communication with stakeholders who possess intimate sectoral knowledge – on-the-ground insights – is a regular component of WPI’s methodologies, made possible by WPI’s ever-growing network of industry contacts.

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