Last year an unknown price competition was going on between oil leaders. By increasing production, and thereby lowering the market price for oil, they tried to compete each other out. On November 2016, members of the Organization of the Petroleum Exporting Countries (OPEC) and ten other countries, among them Russia, decreased part of their production. This month the same leaders decided to extend this policy for nine months. The goal is to increase the price of oil, but MarketWatch came up with an interesting thread by looking at history.
This time I would like to share with you my exchange experiences. In fall 2015 I travelled to Texas to study for one semester at Texas A&M University. It is specialized in Agriculture and Mechanics, but there is also an economics department, mostly linked to the agricultural sector. It was a perfect opportunity to focus a bit more on agricultural related issues.
Thursday the 23th of June in the East of Brabant a hailstorm like no one has ever seen before caused damage on cars and roofs. Farmers were also hit by damage of their glasshouses, barns as well as crops. This on top of damage by flooded fields due to heavy rainfall this season makes the crop season 2015 – 2016 a disaster for farmers of the southeast of the Netherlands. The estimated damage, of which part is insured and part is not, is around 500 million euros according to farmer organization ZLTO.
At the first of April 2015, the milk quota was abolished after 30 years. Farmers now have the right to produce an unlimited amount of milk. Many Dutch dairy farmers responded by expanding their farms. Not surprisingly, the livestock has been growing in number of cows these past couple of years. However, this free market system causes new challenges and problems, such as the introduction of phosphate rights.