By Dr. L. Tim Wallace (auth.)
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Additional resources for Agriculture’s Futures: America’s Food System
If the strategic reserve is to be mobilized quickly in an oil cutoff, pumps, pipelines, and refineries have to be in place and dedicated to such emergency use. T. Wallace mine their ability to meet absolute shortages of liquid petroleum fuels. However, there has been little concern about the reserve and its management in the early 1980s, so it may not be fully able to meet an emergency situation. Though farmers do not completely trust the government's ability to manage an emergency situation, they are also skeptical of the free market's ability to do so without extracting high market prices.
One possible concern is the extremely high cost of new generating capacity and consumer reaction against the cost of the current overcapacity in the electricity industry. It is possible that these factors will lead the electricity industry to be less willing to build or maintain much excess capacity. Thus, if electricity plants are not able to gain flexibility through improving load management, we may face some power shortages when the current excess capacity is fully utilized. An important perspective is that as we consider Farm Production Inputs: Future Changes the impact that energy prices have on agriculture, we may be deluded that agriculture has more effect than it does on national energy use and that energy price changes are more critical than they are in decision making within the food system.
However, overcapacity has motivated many foreign governments to increase protection of their own fleets. More than a third of the world's merchant marine fleet was surplus in 1985. ) as well as institutional pressures (locked-in labor contracts; different unloading, handling, and loading contracts at various parts; differences in country-to-country shipment costs; and the effects of truck and rail deregulation). Increasing competition for markets will force increased managerial pressures for cost cutting to include transportation.
Agriculture’s Futures: America’s Food System by Dr. L. Tim Wallace (auth.)