Farmer Diaries

The truth of the matter is that a deeply integrated economy to the United States is walking away.   First it is important to understand that about half of Canada's exports to the US are natural resources.  Some are mighty critical; oil, gas, electricity, timber and other minerals including Potash, where Canada sells about 90% of all potash used in the United States.   Tourism is another $40 billion.    Now, vehicles and parts are about $40 billion.  It is largely understood that the US's intention is to retrieve these operations from Canada. On the other side of the equation, what Canada imports from the US is foodstuff, vehicles and finished goods (do you know that there are other countries that sell finished goods).  The issue that the Canadian Prime minister raised is that he wants to diversify away from the United States its exports, imports will take care of themselves.   As an aside the Canadian Federal government has given gr...

There have been a number of reports that state that either the country is better off or worse off.  Right now in 2026 it is clearly worse off.   It stands alone with no allies, the dream of the Brexiters was that Britain would stand on its own two feet, and become a middle power courted by Europe and by the United States, plus they could get rid of all these pesky foreigners (which they never met…) The truth is complex, right now Britain is worse no doubt about it.  The economy is slowing faster than Europe and there is no lifeline from the Americans.  However, this is not a game of football, there is no end in sight to the process.  Europe has some massive challenges, already Italy, and Portugal are seeing the ravages of a falling population.  Germany has been better at hiding the impact, but they too face massive problems.  The truth of Europe is that it is highly dependent on the credit of Germany…there are implications going forward.  Ger...

When chocolate bars are no longer made with chocolate.  About a decade ago, I discovered that pringles chips had no potato in its ingredient list.   Yeah, I know considering what the packaging seems to imply.  However, American chocolate manufacturers have begun replacing cocoa and its derivatives with chemicals that are cheaper, they apparently also changed the composition of the "chocolate bar"  it no longer melts… Now, I have long discussed our business model, we focus on the higher end, "organically" grown crops and sell mostly to high end buyers and our own transformation businesses (aka our meat pie business as an example).    Last week an expose was made of the McDonald hamburger that was now mostly if not entirely made out of corn and its byproducts.  Now, I have no idea if McDonalds in the UK does this too, last time I had a big Mac was in the 1990s.   It seems that the American food industry has decided to double down on ingred...

The shares of Truth Social were listed in 2024 and the price quickly rose from the $17 dollar issue price to about $50.  The share price was range bound for nearly a year, when it eventually faced reality and started to fall, as all the vaunted management promises came to nothing.  The truth is that quarterly earnings while not in freefall,  are only above $800k, the management costs do not justify the share performance, which has been consistently negative since it was listed two years ago.    As of June 30th the share price stands just below $7.50 a share, market cap has collapsed to around $2 billion (still a lot if you consider that the operating cash flow is negative).  My guess is that over the next year the price will continue to fall, until it is below $1.00 and joins the pink sheet. Another company did something similar more than a decade ago, it was called the Grill Cheese Truck Company, which at one point had a market value in excess of $100 mill...

A week like this makes you a believer that global warming is an existential threat. Thank God we are not in London, still it's very warm and very uncomfortable for our cattle, especially for our dairy herd.  During the summer they are outside, but now they remain inside the barn away from the sun.   The ventilation systems helps, but still not a very pleasant time for our herd.   The ones that are doing the best are the pigs in the forest.  Chickens not so much, we have tried to place the meat chicken enclosure near the tree lines away from the sun, but we may have to butcher them early, they may die from heat strokes. One unexpected outcome is the increased efficiency of our biodigestors, thank god because our greenhouse fans are operating 24/7 to keep the temperature down in the greenhouses.  One good thing about the early June weather is that the water table is high.  In fact, the sudden heat has been helpful in drying out our fields that saw m...

A few days ago the Space X IPO happened, and two things are remarkable.  One expected, the share price of Space X fell a bit, its down from it $218 peak (issued at $200) down to $156 at closing on the 23rd of June.  The second is that Space X just borrowed a lot of money (actually drew down facilities it already at hand).  The second could (maybe) be caused by the first, it takes a few days for the 75 billion Space X raised to make its way from the various brokers to Space X coffers, so the drawdown could be related to that.  HOWEVER, it seems that SpaceX little mentioned AI foray cash consumption is even higher than anticipated. For Space X the real savior is the inclusion in the NASDAQ index, in particular the QQQ, it got a special one of exception of the two rules for inclusion (be listed for at least six months and profitable).  Space X has been listed for 10 days and is not profitable, nor is there a clear path to profits – the forward looking statements st...

The past four years have shown that the old adage that force projection was everything has been turned on its head.   The early destruction of Russia's tank offensive by Ukrainian drones (and the Russian's own stupidity), had fundamentally changed the power structure.   Until six months ago, the general perception was that the might of the US and of Israel in the Middle East was unchallegable.   Iran, Ukraine and drones proved otherwise. In the middle east Iran has been largely unchallenged in its ability to strike US bases in Kuwait (ok that's next door), Qatar Saudi Arabia and Dubai (a bit further).  Iran has shown a deep bench in terms of drones and its willingness to use them effectively.  It's unclear how much remains in the US munition depots, but it is serious enough that the American government which had sold systems to the Finn have told them not to expect any systems this year or next (and the US has been out of Ukraine for nearly two ye...

Was the departure of Prime Minister Starmer necessary?   In short, yes. He had two years as the leader of a new labour government with a crushing majority to take action.  He did absolutely nothing as if he was still a backbencher in the opposition.  He also made a massive error in inviting Peter Mendelsohn into his government when it was already well known that he had ties with Epstein.  This showed a massive lack of judgment on his part (and he only had himself to blame for that one). Will the new guy do any better, Andy Burnham has been a parliamentarian his entire adult life, from 2008 until 2016, when he became the mayor of Manchester.  Will he be an effective Prime Minister, who knows, the truth is that Starmer has largely been an empty shirt for the entirety of his mandate, he has managed to make the far right look good.   The same way Trump has made Iran's leadership sound reasonable (they are not – actually homicidal maniacs), and China a...

 Out of kindness of my own heart, I never mention the names of the billionaires that have bought property in Argentina. Several months ago, I mentioned that massive farms had exchange hands for millions and millions, and that these were self-sufficient mega mansions owned by some of the richest people in the United States. Well, this week, Peter Thiel indicated that he was moving to Argentina. It’s unclear this stage if this is a full-time thing or if it’s temporary one. Doesn’t really matter, Mr. Thiel has always been known as a right winger, at the very right of Genghis Khan.. I never spent a great deal of time in Argentina. South America is too complicated and too far away for London base businesses. In addition, most of South America has a love affair with the United States. I’ve only been to Buenos Aires three times in my life, twice for work and once for our holiday, a 25 year marriage anniversary gift to my wife and I. In fact, it has been more than a decade since I set foot...

 I am no fan of football. Couldn’t care less about the FA cup for that matter of the game in general. The summer, the Americans are going to host the World Cup. The funny bit of course is that this was all they doing of the President of FIFA and Donald Trump during his first administration. It appears, that FIFA has taken a very Mercantile outlook on this year‘s contest. Ticket price are 3 to 6 times higher than they were in the last World Cup. Granted, it makes sense for them to try to grab any available dollar. What has been even more impressive, is America’s dual message. On the one hand, hotel prices have increased 5 to 6 fold for the month long. Contest. And all the other hand, the Department of Homeland Security, ice, and many other security agencies have made the life of potential participants difficult. For many countries, visitors to America will need to post large bonds, a $15,000 per person. obviously, potential visitors are taking the view that this is looking like a ex...

Président Xi has a measure of Donald Trump. Pump and circumstance that’s all he cares about. So far the American president state visit to China has generated nothing burger. it’s not at all surprising, at the end of the day, Donald Trump wants one thing increase exports of US made goods, of any kind, to China. China, wants one thing, the ability to manage its regional affairs; in plain English take over Taiwan. It’s more than likely that both men will leave disappointed. The fact that Donald Trump talked about a board of trade between the two country, to manage investments and trade, tells you everything you need to know. Create a real or fake organization or Donald Trump can say he has nothing to do with it and ignore the problem, and yet bitch, if the Chinese don’t buy American goods. The roadmap to Donald Trump has now well established. Ignore him, provide good entertainment and reasonable food, smile a lot, and make sure that him and his buddies get back on the plane.

  The Energy crisis The effect of the war in the Persian goes gulf are about to generate critical shortages in our economy. The reality of the United Kingdom, is that our primary energy imports are from the United States, Norway, and North Africa. That means, that none of our energy is sourced from the Middle East. So for the United Kingdom, the problem will not be supply. It will be price.  In its war with Iran, Donald Trump has decided to blockade the straight of Hormuz in order to deny income to the Iranians. In this fight, America is largely energy independent. It produces and exports more than it imports. It’s a net balance, as opposed to true energy independence, that most of the light and sweet crude produced in the United states has to go elsewhere to be processed. America’s refineries were built for heavy sour crude. This shift by America from being the policeman of the seas to Mercantile protector of the interest of North America is a long expected shift, excep...

The stage is set, the American President is about to commit war crimes by bombing civilian infrastructure.  It is amazing that Donald Trump has managed to make the repulsive Iranian regime into anti-heroes.  Pol Pot, Hitler, Stalin and now Trump…   Considering that Trump has fired a dozen generals, and is probably going to fire a bunch more, who probably refused his illegal orders, the stage is set for a pain over the next five years.  Rumors are that Iran has already bombed Saudi Arabian production and transport facilities, that were previously protected by Qatar and Kuwait, the situation could not be more dire. The impact on the global economy and on people's lives cannot be understated.  Poverty, famine and pestilence will be the result of the actions of this madman.  What is truly unbelievable is that there is no one stopping this madman, this is clearly a case of calling for the 25 amendment, but his replacement is as mad, and a religious nut too....

It has been years now, but Americans are crazy, there's no doubt about it.   It is evident that their electoral system is broken (we're not doing that great either) special interests run the place, and if you think otherwise you are lying to yourself.  It is more than likely that the 2026 mid term election will be the most honest in decades, because of the disgust of the population.  I want to be clear the wantonness of the republican party is matched by the wokeness of the Democrats.   The current occupant of the White House is an old kleptocrat, that was elected by an electorate that was so disgusted with the old bunch that they decided to punt for "that guy"  who proved over and over to be not only a bully but an idiot. Things are serious now, the situation has become dire.  Let's be clear, Trump has invaded Venezuela, threatened the same for Canada, Greenland and Cuba.   In addition he has started a war with Iran, that is going so ba...

I have not posted in more than six weeks, mainly because I have no insights to add.  Things in the UK are deteriorating rather quickly, and I am finally impressed with our Prime Minister who seems to have finally found parts of his backbone…  Things on the farm are unchanged, as I said a number of times we are largely unaffected by the moods and changes of the nation, the reality of our business model.   In terms of timing, 2025 we decided with our investment partners to restrict capital expenses on our various businesses, first because the new injections were massive, several of our businesses, if they were to grow further, had to undertake substantial investments, we were by some coincidence at a inflection point for several businesses.   Neither us or our partners were keen on moving ahead, especially with the political and economic challenges.   Boy are we glad to decide to pause our investments now. It would be a huge lie to say that we "knew...

For four years, Trump pushed hard on the prosecution of revelation of the crimes of Epstein & Co.   Considering Trump's own "Grab them by the pussy" comment it is almost certain that Trump did not care what his "friend" was doing.  It is well known that Trump had beauty pageant for the express use of finding pretty women… However, its more than likely that Trump had no idea how debased and appalling his friend's behavior (also of the Prince!).  Rape, torture and murder were common on his Island, and Eptein remain close to trump and his allies all the way to 2019 (AKA meeting with Steve Banon).  Had Trump known the absolutely terrible things that Epstein and his friends did it is unlikely that Trump would have pushed for the revelation of the FBI and DOJ file.   So far Trump's name is in the file more than 37,000 and is rumored to be named more than a million times in the unredacted version of the complete file… Trump and his allies in Congress, the...

From a high of $120,000 to less than $70,000 today, one has to wonder what is going on with Bitcoin.  My favorite are the stories of "Crypto-pushers" who now reveal that despite telling the world to "go big on crypto" have not purchased any bitcoin since 2018 when it hovered around $6k.  The truth of cryptocurrencies is that they behave more like rare paintings than even gold.  The value is entirely driven by what others are ready to pay, as a high water mark, and the cost of extraction, as the low water mark.   Currently the cost of mining a bitcoin is around $70,000 per coin.  The cost of extracting gold is about $1,000.  That means that gold suppliers will "stop" producing gold when the price drops below $1,000 (there is some flexibility there). However, the price of gold right now is around $5,000…so still a very profitable endeavor.  What this means is that most miners will stop mining until the price rises above $70,000.   I am exa...

Once again I am back from the US.   The trip was trouble free because we flew private there and back.  My friend invited my wife and I to join him in Jackson Hole for 10 days of skiing.  The truth is that it's evident that some pigs are more equal than others.  The customs and immigration experience when flying private is very different.  We still needed a visa but no real questions were asked, we landed in Chicago to refuel…and then to Jackson Hole My comment is different, I saw the USA as a billionaire would.  As an example the "cost of leasing a G700" is $32,000 per hour and we used it for nearly 30 hours all in all…you do the math of how expensive the flight was for the four of us.  Our host "borrowed" a 9 bedroom house from a "friend of a friend".   We had special VIP ski passes where we did not wait for gondolas and at only in 3 star restaurants the entire 10 days we were there.  The notional cost of the trip for the four of u...

The US now owns Venezuela…and not in a good way.  America is not known for its nation building skills, and yet it now owns the disaster that is Venezuela.   Starvation and exodus are the natural progression.   In addition it will become a haven for narco-terrorists, more so than it already was. I am sure that Trump and his friends really thought that little attack very well…I guess that he will now attack Iran now.  

2025 has been a strange one.    Our family is stronger than ever, our four kids are doing great and everyone is healthy.   The farm is doing great, and our businesses are doing very well.   Sure we have seen declining demand for our products, but since demand far exceeded supply it really has not hit the bottom line, the only change now is that we have enough stock to meet demand.  It doesn't say anything good about the UK economy, but we are ok for now. Politically, the UK has been an unmitigated disaster, with an incompetent government and an idiot as prime minister.   Granted Brexit is finally starting to hurt, mainly because the EU is hurting and the first to suffer are the outsiders (AKA us…).  However, the incompetence of the government is breathtaking, and the blame must be squarely set at the 10 Downing Street. If someone had told me that America could decline as fast as it did over the past year, I would have called you a liar....