Recycling Prices Down in the Dumps

  • (Photo by Julie Grant)

The recycling industry is the
latest to take a hit from the world’s
economic problems. Rebecca Williams
has more:

Transcript

The recycling industry is the
latest to take a hit from the world’s
economic problems. Rebecca Williams
has more:

The bottom has dropped out of most commodity markets: recycled paper,
metals, everything. It’s tied to the collapse of economies worldwide.

Tom Watson is with the National Waste Prevention Coalition. He says
recycling companies’ profits are way down.

“A lot of it is connected with China – and the demand for fewer products
there so they need less of the recycled materials for the packaging.”

Watson says China is buying a lot less of our recycled paper and cardboard
to make packaging, because we’re all buying a lot fewer products from
China.

That means recyclables are stacking up in a lot of places. Recyclers are
starting to talk about charging garbage companies to drop stuff off. And that
might mean we’ll be paying higher trash bills.

For The Environment Report, I’m Rebecca Williams.

Related Links

How Much Help From Offshore Drilling?

  • Oil is a global commodity, so oil drilled in the US would not have to stay here (Photo courtesy of the Minerals Management Service)

There’s been a lot of talk lately
about drilling for more oil off the American
coasts. Rebecca Williams reports that oil
is not required to go to the US markets:

Transcript

There’s been a lot of talk lately
about drilling for more oil off the American
coasts. Rebecca Williams reports that oil
is not required to go to the US markets:

Oil is a global commodity. Oil drilled in the US would not have to stay
here.

But most of it probably would.

Alan Good is with Morningstar. He analyzes the oil and gas industries.

“It would generally go straight to America because it would incur the lowest
transportation costs to get to the United States refineries.”

But Good says it would be at least a decade before that oil would come
online. And even then it’s not clear how much offshore drilling here would
reduce imports from the Middle East.

“It will help somewhat with imports but it’s not likely to make a huge dent.”

And he says it’ll probably have little effect on the price you pay at the pump
because world demand drives oil prices.

For The Environment Report, I’m Rebecca Williams.

Related Links

Investors Driving Up Food Prices?

  • Congress is investigating whether investors are inflating the prices of food and gas for profit (Photo courtesy of the USDA)

The price of food is going up and some
members of Congress want to know why. The Senate
recently held hearings on whether investors in
the commodities market are artificially inflating
prices. Mark Brush has more:

Transcript

The price of food is going up and some
members of Congress want to know why. The Senate
recently held hearings on whether investors in
the commodities market are artificially inflating
prices. Mark Brush has more:

Big investors are moving money out of stocks and other investments and into
commodities.

In the last five years, the amount of money in commodities markets has
increased 20 fold. And there’s a theory that these investors are driving up food and gas
prices.

Timothy Wood says that’s not so. He’s the editor of ResourceInvestor.com.

Instead, he
says you’re paying more mostly because the dollar is worth a lot less these days. He also
says Congressional mandates to turn corn into fuel are driving up corn prices.

“When corn is so much a part of the American food chain, and the global food chain, it is
just a complete and utter farce that this has gone and been legislated.”

Wood says Congress should let the markets sort themselves out. But some members of
Congress wonder if big investors in commodities are getting rich at the expense of
families.

For The Environment Report, I’m Mark Brush.

Related Links

RECONNECTING FARMERS TO LOCAL MARKETS (Part 2)

  • Many of the crops being grown in the U.S. don't end up in the produce aisle. In fact, they usually aren't even sold to people in neighboring areas. (Photo by Rene Cerney)

Some experts think farmers could do a lot better for themselves if they changed what they’re growing. They say growing corn and soybeans subsidized by the government doesn’t do much for the farmer and almost nothing for the local economy. The Great Lakes Radio Consortium’s Julie Grant reports on efforts to change that:

Transcript

Some experts think farmers could do a lot better for themselves if they changed what they’re growing. They say growing corn and soybeans that are subsidized by the government doesn’t do much for the farmer and almost nothing for the local economy. The Great Lakes Radio Consortium’s Julie Grant reports on efforts to change that:


It can be hard to find locally-grown broccoli, milk, or beef in most grocery stores, even in the middle of farm country. In some states, ninety percent of the land is farmed, but ninety-eight percent of food people eat is shipped in from other parts of the nation or other countries.


The local farmers are growing commodities: corn and soybeans harvested for cattle-feed or processed foods, not stuff that winds up in the produce aisle. But ag economist Ken Meter wants to see that change.


“Farmers have doubled their productivity since 1969, and yet, they’re not making more money, they’re actually losing more money after doubling productivity.”


Meter has studied the economics of farm communities. In one area, he found that nearly all of the farm fields there were used to grow corn and soybeans for the commodities market, but farmers were losing money. At the same time, nearly all of the food people bought there was shipped in from other places.


“The economy we’re in right now is extremely efficient at taking any money that you or I earn in our neighborhood or in our daily lives and basically pulling it into a big global network that very efficiently takes that money and helps other people elsewhere make some value from it.”


It hasn’t always been this way. Richard Pirog is food systems researcher at the Leopold Center for Sustainable Agriculture in Iowa. Eighty years ago, he says, most farms grew a lot of different
products and processed them to be sold locally or within the region.


“Iowa back in the 1920’s had fifty-four canneries. We were the canned sweet corn capital of the world in the mid-1920’s. Fast forward to today, there isn’t a single cannery in Iowa. So that infrastructure is gone.”


Pirog says you could tell similar stories in farm areas across the U.S. Back during World War Two, the federal government encouraged farmers to grow commodities, such as corn and soybeans. The government starting paying them subsidies to grow those crops.


These days, Pirog says a lot of farmers wouldn’t even think about risking those subsidies to grow something besides corn and soybeans. Economist Ken Meter says that might be a mistake. He says many farmers don’t realize there’s a growing market for local ag products.


“All of us get focused on whatever we’re paying attention to, and as a farmer you get focused on producing quite well. I’ve spoken with farmers who’ve told me that they really didn’t have any clue that that their neighbors would be looking for different foods, because they just haven’t heard of the tremendous increase in demand we’ve had for things like organic milk or higher quality meats or fresher produce.”


There has been an organic explosion of local farm markets in recent years, because customers want to buy fruit, vegetables, milk, and meat directly from the farmers who produce them. But government policy and farm subsidies mainly still support the commodity production of corn and soybeans.


Richard Pirog hopes that changes, but it’s unclear if growing produce for the new local markets is always economically viable. No one has studied the phenomenon.


“It has to make economic sense for a community and a region. We believe it will, which is why it’s spread so rapidly. But it’s sort of like, the real numbers, the quantification hasn’t caught up with all the growth and explosion and the interest.”


Pirog says he’d like to push the process along. He says it would make more sense for the government to shift subsidies from corn and soybean production to the farms that produce food for their local communities.


For the GLRC, I’m Julie Grant.

Related Links

Commentary – NAFTA Used to Sue Province

Late last month (October) Sun Belt Water of California filed a $10.5
billion suit against the Canadian government under the North American
Free Trade Agreement. The company claims that it has been mistreated
because the province of British Columbia banned the bulk exports of
water. As Great Lakes Radio Consortium commentator Suzanne Elston points
out, the outcome of the suit will probably cost us all a lot more than
money: