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Not a Drop to Drink: America’s Water Crisis

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Not a Drop to Drink: America's Water Crisis

Not a Drop to Drink: America’s Water Crisis

Almost a year ago, we had wrote about how we are potentially on the path to global Peak Water. Today’s infographic elaborates more on the problem in the United States on a national basis .

Right now, the average American consumes about 100 gallons of water per day both directly and indirectly. This is a problem of conservation and efficiency as much as it is supply, as the aging water infrastructure had its last upgrade during the Reagan era.

In the next 20 years, it is expected that $1.5 trillion needs to be spent on building new infrastructure alone.

At the same time, only 0.3% of freshwater occurs in lakes and streams. With massive droughts occurring in the West of the United States and rivers such as the Colorado River drying up, clearly initial supply is just as much of a concern in America’s water crisis.

To solve the problem of less reliable freshwater supply, countries such as Israel have been turning to desalination. Recently, the government built a megascale $500 million desalination plant to supply up to 20% of the households with regular water supply.

Investors know that with every great problem, there are opportunities abound in companies that can provide solutions. Previously, Sprott Global had outlined three distinct areas that people looking to invest in water management solutions should consider: adaption to water systems to handle changing weather patterns, improving water safety, and managing storm water in urban areas.

Original graphic by: Last Call at the Oasis

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Agriculture

MegaMilk: Charting Consolidation in the U.S. Dairy Industry

This graphic charts the American dairy industry’s shift in milk production from small commercial farms to fewer, larger farms.

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MegaMilk: Charting the Consolidation of the Dairy Industry

Today’s dairy industry looks very different to how it did just 30 years ago.

Milk production in the U.S. has increased by a whopping 50% over that time frame—yet, the total number of dairy farms has dropped by three-quarters.

Fewer and larger farms now have the lion’s share of all U.S milk cow inventory. While they have the ability to produce more competitively priced dairy products and provide more value to consumers, it is causing financial devastation for small farmers.

The graphic above uses data from the USDA to chart the rapid consolidation of the American dairy industry between 1992 and 2017.

The End of the Small Dairy Farmer?

In the U.S., the dairy industry is one of the fastest consolidating industries in comparison to almost all other agricultural sectors.

Between 1992 and 2017, small commercial farms with 10-99 cows saw an average decline of 70%. These farms accounted for 48.5% share of all U.S. milk cows in 1992. In 2017, that number stood at just 12.2%.

Over time, small farm production has been replaced by that of bigger and more consolidated “megafarms”—a move that can be attributed to the many benefits that scale brings, such as lower costs of production and the potential to compete in the international market.

 Share of U.S. milk cow inventory (by year)
Herd size199219972002200720122017
1-9 milk cows0.9%0.7%0.6%0.4%0.4%0.4%
10-49 milk cows19.5%13.8%9.2%6.8%5.9%3.6%
50-99 milk cows29%24.5%19.1%13.8%11.1%8.6%
100-199 milk cows19%18%15.4%12.8%10.6%9.4%
200-499 milk cows13.7%15.3%14.7%13.8%12%12%
500-999 milk cows8%10.2%12.2%12.5%11.3%10.7%
>999 milk cows9.9%17.5%28.8%39.9%48.7%55.2%
Total 100%100%100%100%100%100%

The Need For a Survival Strategy

While small dairy farmers simply cannot keep up with larger farms encroaching on their turf, they also have fluctuations in dairy prices to contend with. Milk prices fell in 2018, narrowing the gap between milk prices and feed costs so much that another wave of farm closures ensued.

To make matters worse, many small dairy farmers are close to retirement age, and according to the USDA, exits are more likely if the farm operator is 60 or older.

Despite the hardship facing small dairy farmers, analysts suggest that consumer backlash against large-scale production could present opportunities for small dairy farmers to create premium artisanal products. However, such initiatives would be entirely dependent on the state of the economy and where consumer’s values lie.

The Wider Implications

With milk production shifting to larger farms, a range of both direct and indirect impacts are being felt across the country.

For example, milk production is now predominantly focused in fewer states such as California and Wisconsin, which together accounted for almost 33% of all U.S. milk production in 2018.

In larger farms, the herds are typically confined to tight spaces— rather than grazing in pastures—making animal welfare an issue for many of these farms. Concern over waste contamination and air pollution also brings the environmental sustainability of larger farms into question as they come under more pressure to reduce their impact on the planet.

Changing Tastes

Looking beyond the production of milk, changing consumer preferences could result in the most transformative effects on both large and small scale dairy farmers.

While rising populations are increasing the demand for dairy, per capita milk consumption declined by 24% between 2000 and 2017 in the United States. Consequently, the largest dairy producer in the country, Dean Foods, filed for bankruptcy in 2019, followed by another major milk producer, Borden Dairy, just two months later.

Experts claim that changing consumer preferences, along with competition from other beverage categories, are responsible for 90% of the total dairy decline.

No Country for Old Farms

The confluence of changing economics and an aging population of farmers has brought the U.S. dairy farming industry to a tipping point, and the near future is likely to bring a fresh wave of dairy farm closures.

I don’t see anything that would give them hope at this point. The best advice I can give to these folks, dairy farmers, is to sell out as fast as you can.

– Joe Schroeder, Farm Aid

As smaller farms continue to disappear from America’s rural landscape, the impacts of consolidation will not only affect dairy farmers, but entire rural communities too.

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Agriculture

Mapped: The Anatomy of Land Use in America

The U.S. covers an immense 3.8 million square miles—what is all this land currently used for, and what does that mean for the future?

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Mapped: The Anatomy of Land Use in America

The United States is not just an economic and political giant on the global stage—the country also has one of the largest land masses at its disposal.

Altogether, the country spans 3.8 million square miles (9.8 million km²)—making it the third largest country in the world. Even without factoring Alaska and Hawaii into the calculations, the contiguous U.S. land mass can fit up to 30 European countries within it.

With this much ground to work with, it raises the natural question of how land actually gets used by America’s economy. For example, what percentage of land is taken up by urban areas, and how much farmland and forests exist in comparison?

Today’s maps from the McHarg Center put America’s wide variety of land uses into perspective.

The Components of U.S. Land Use

As the U.S. prepares to add 100 million more people this century, the “2100 Project: An Atlas for the Green New Deal” provides a snapshot of U.S. land use (as of 2017), aimed at managing resources to support this future.

According to this data, here is a snapshot of land use in the Lower 48 States:

Land typeLand use (%)Land area
Forests27%842,400 mi²
Shrubland24%748,800 mi²
Agriculture17%530,400 mi²
Grasslands and Pasture17%530,400 mi²
Wetlands5%156,000 mi²
Other5%156,000 mi²
Open Space3%93,600 mi²
Urban Areas2%63,400 mi²
Total100%3,120,000 mi²

Let’s dive into the specifics of three types of land: urban areas, forests, and agriculture.

Editor’s note: click on any map below to see a large, high-resolution version, which will open in a new window.

Small But Mighty: U.S. Urban Areas

It’s clear that even a little space goes a long way. Although urban areas take up only 2% of land, an overwhelming majority of Americans call cities their home. As of 2018, urbanites made up over 82% of the U.S. population.

Where people go, productivity often follows. In 2018, it’s estimated that 31 county economies made up a whopping 32% of national GDP. Most of these counties were located in and around major cities, such as Los Angeles or New York.

urban-areas-820px

Although urban areas are a small part of the overall land they’re built on, they’re integral to the nation’s continued growth. According to research by the McKinsey Global Institute, it’s estimated that by 2030, 60% of job growth could come from just 25 hubs.

Seeing Green: America’s Vast Forests

On the flipside, forests account for over a quarter of land in the U.S., divided almost evenly between deciduous and evergreen trees. Many protected national and state parks can also be found in and around forests.

forests-parks-wetlands-820px

On the mainland, California and Oregon are the states with the most forested land—unfortunately, they have also been plagued by wildfires in recent, dry summer months.

Wetlands are also included in the map above, particularly around the southern tip of Florida, where Everglades National Park is located. Over the years, many wetlands were drained to make way for agriculture, particularly in the Great Lakes megaregion. As a result, it’s estimated that their area today is only half of what they once used to be.

Home Grown: Agriculture in the U.S.

Last but not least, the final set of maps show where America grows its food. Agricultural, food, and related industries contributed $1.05 trillion (5.4%) to U.S. GDP in 2017.

agriculture-grassland-820px

Wheat, corn, and soybeans are the major crops grown in the U.S.—and cotton also makes the cut as a profitable non-food crop. Much of these crops feed not only Americans, but other parts of the world too. Soybeans, corn, and wheat are exported across the Pacific mainly to China and Japan.

crop-types-820px

Corn, in particular, is a unique crop with a myriad of uses, from food to fuels. Up to 40% of U.S. corn is turned into livestock feed, with cows consuming over half (56%) of this amount.

At present, the U.S. is the world’s largest beef producer, followed by Brazil. In fact, beef production takes up 40% of total livestock-related land use domestically.

meat-production-820px

Although fewer American consumers are opting for meat in their diets, production has remained at high rates. Further, as incomes continues to increase worldwide, the global appetite for meat is set to rise along with it.

Future Land Use

The U.S. population is set to grow by 100 million more people over the coming decades, raising the pressure on limited U.S. land and natural resources. This pressure will be felt everywhere, from dense urban land to agricultural farmland.

How the land gets utilized will shape the country’s future for years to come.

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