John Phipps: The Silver Lining of the Surplus of Supply Shortages

John Phipps is experiencing many of the supply shortages crippling various industries across the industry. However, there may be a positive change that comes from so many issues with sourcing supplies.

This has been a cool spring and we have been in no rush to open the pool. To begin with, we’ve learned to wait until the helicopter seeds from the surrounding silver maples have petered out. More importantly when you get up every morning and put on a flannel shirt, that’s not prime swimming weather. But with the crops planted and no other good excuse, I pulled off the cover and vacuumed. Jan began managing the pool chemistry, all in hopes of barely tolerable water temperatures when grandchildren visit at the end of the month. No – I will not pay for LP to warm it up in May when the water gets too warm in August.

I had been reading about possible shortages of chlorine which we use to kill the bad stuff in the water. Jan had plenty left over from last year, but the shortage has turned out to be real. We’re hunted some down like it was toilet paper. But it’s looking like 2021 will be the year of “we can’t get that”. The reasons are varied: the pandemic when manufacturers slowed production and shippers idled ships and trucks; the freeze in Texas, where much of our feedstock chemicals are produced; a fire in a Louisiana chemical plant; continuing effects of the trade war; shifts in consumer demand toward online retail requiring more packaging material and shipping; the pandemic spike in India, which has crippled major ports for this important source for many of our imports; hackers shutting down a pipeline (bet you didn’t have that on your bingo card); and trickle down effects of the microchip shortage, which we are only beginning to grasp.

The result is a whack-a-mole collection of seemingly unrelated shortages. From chlorine to ketchup packets to chicken to pickups – it is almost impossible to predict which thing we want to buy won’t be available. This gets us to the Tragedy of the Toilet Paper – today’s version of the Tragedy of the Commons. Prudent actions by individuals like stocking up on suspected soon-to-be-hard-to-find items can create those very shortages and impose unnecessary burdens on all consumers. If we all just buy what we need, yadda,yadda.

One good thing may come out of this – the practice of waiting until the last minute to buy crucial supplies is over. Aaron is making sure planter upgrades for next year are in our shop. I’m bringing forward planned computer upgrades and some tool purchases. OK, that’s a bad example since I was thrilled for a powerful excuse to do so. And we’re all pondering what product shortage of would impose a huge burden in the near future.

AgWeb-Logo crop
Related Stories
Iowa State research reveals PI 88788 resistance is losing effectiveness at 2% per year, with yield losses potentially reaching 9 bushels per acre by decade’s end if management practices are unchanged.
NASDA and the National Agricultural Law Center say a new project tracking both Chapter 11 and Chapter 12 filings offers a more complete view of agricultural bankruptcies — with California, Arkansas, Georgia and Iowa leading the initial dataset.
New research builds on growing state and federal scrutiny by asking what these laws could mean for land prices and productivity.
Read Next
Pro Farmer Crop Tour scouts discovered a corn crop that didn’t live up to expectations, with Pro Farmer pegging the national yield at 173.2 bu. per acre, well below USDA’s 180.7 current estimate.
Get News Daily
Get Market Alerts
Get News & Markets App