Silicon Chip Shortage Leads To Food Shortage: Dealers Halt Equipment Shipments To Farmers


This is what happens when we depend in “Just in time” delivery. In this case we look at the semiconductor shortage and I see no easy fix. We are so concerned about energy independence and so we should, but how about other necessary products that make are economy roll? I have seen little reporting and any effort to fix the issue. Semiconductors are what is necessary for our economy to keep going round. It could make a gas shortage look tame. Not only that, it is a feeder into what could prove to be inflation the likes of which we have not seen since Carter. Shortages are everywhere now. Whether it be lumber or now potato chips. Here tis:

Zero Hedge:

The shortage has caused Reynolds Farm Equipment, one of Indiana’s largest John Deere dealers, to inform customers that order times are unknown at the moment because production for specific equipment has been disrupted because of the lack of chips.

“In the U.S., we love our quick-fix solutions, which usually involve federal government bailouts. This time, however, that solution will not work to solve the shortage,” said Hoosier Ag Today. 

Intel’s CEO Pat Gelsinger has been the latest in a chorus of voices to warn about the ongoing semiconductor shortage that will last for a “couple of years.”

Gelsinger said U.S. dominance in the chip industry had dropped so much that only 12% of the world’s semiconductor manufacturing is made in the U.S., down from 37% about 25 years ago.

“And anybody who looks at supply chain says, ‘That’s a problem.’ This is a big, critical industry and we want more of it on American soil: the jobs that we want in America, the control of our long-term technology future,” he said.

Readers have been briefed on the ongoing semiconductor shortage that may last a “couple of years.” The auto industry has grabbed the spotlight as the hardest-hit industry, with some of the world’s biggest manufacturers restricting production.

According to a new report, the worldwide chip shortage is impacting the agriculture industry that may last for a couple of years and has already impacted the price of potato chips.

Hoosier Ag Today reports, “The biggest factor impacting the ability of US farmers to produce the food we need has nothing to do with the weather, the markets, trade, regulations, or disease. The worldwide shortage of computer chips will impact all aspects of agriculture for the next two years and beyond… farm equipment manufacturers have halted shipments to dealers because they don’t have the chips to put in the equipment… not only have combine, planter, tillage, and tractor sales been impacted, but even ATV supplies are limited. Parts, even non-electric parts, are also in short supply because the manufacturers of those parts use the chips in the manufacturing process. As farmers integrate technology into all aspects of the farming process, these highly sophisticated semiconductors have become the backbone of almost every farming operation.”

Read more at Zero Hedge here.

Not just farm equipment. Here is what is happening in the auto industry.

Chip shortage: Ford trucks piling up at Kentucky Speedway

CARROLLTON, Ky. — The stands have been empty at the Kentucky Speedway for months but its parking lot tells a different story. The lot is packed with thousands of Ford Super Duty Trucks. “We noticed them putting the trucks in there about three to four weeks ago and wondered why,” Pat Roeder said. “As of last week, it’s overwhelming – you can’t believe there’s that many trucks.”

The trucks were made at Ford’s Kentucky Truck Plant and are ready to be sold, but lack semiconductors. They are the small computer chips that go inside the vehicles. A global shortage due to the pandemic is impacting Ford and all other automakers. The shortage has changed schedules and even shut down the plant in Louisville at times. The lot shows they are still making the Super Duty trucks as they wait for parts.

The best of the swamp today.

28 Responses to “Silicon Chip Shortage Leads To Food Shortage: Dealers Halt Equipment Shipments To Farmers”

  1. Lael Hammerle Says:

    Nice blog post.😎 😃 2021-06-21 04h 02min

    Like

  2. Gidget Deroven Says:

    Great blog post.🤠 😏 2021-06-21 03h 29min

    Like

  3. China Joe counting on other countries for electric vehicle materials | BUNKERVILLE | God, Guns and Guts Comrades! Says:

    […] Silicon Chip Shortage Leads To Food Shortage: Dealers Halt Equipment Shipments To Farmers […]

    Like

  4. Steve Dennis Says:

    We are not even 6 months in, so far it is going well don’t you think? 😉

    Liked by 1 person

  5. Linda Says:

    Sigh…just.never.ending. is it? Totally agree on KidMe commment.

    Liked by 2 people

  6. Mustang Says:

    Few people realize how fragile our supply chain is. The semiconductor issue is a good example of that. My best analogy is the automotive industry, which I believe best explains why so many industries have relocated to third-world countries for their labor. It goes far beyond “cheaper labor.” How many miles of electrical wire do you think you will find on a single automobile? Rubber products? Plastic parts? If workers in any of these ‘supply point’ industries walk off the job, the automotive assembly plants go into ‘full stop’ mode. So, if we credit labor unions for anything at all, it is that they drove industry out of the Republic. So now we look at the cost of globalization … and it seems to me that you have career politicians with degrees in English literature and political science, who never worked in the real world, who frankly do not understand these relationships, making imbecilic decisions that affect the whole. We can only blame the voter for so much; we ought to wonder why we only get to vote for dumb or dumber in our national elections. If ever there was a good argument for term limitations, this could be it.

    Liked by 2 people

    • bunkerville Says:

      The best example is when my employer– healthcare- went to “just in time” delivery and did away with our store rooms…so we kept little if anything in reserve and trusted that placing the order the night before would be delivered the next day….
      Drugs were a constant problem with shortages – that was some years ago. I cannot imagine now.
      Tomorrow I will report on the Primary election here in PA…. as bad as it could be. Phila will have Soros backed Krasner for another 4 year term as crime and the murder rate skyrockets. Yes, the voters apparently want him to continue.

      Liked by 1 person

  7. Sparky Says:

    “They” are going to have us back to riding horses, wearin’ animal skins, chunkin’ spears for food, and sittin’ around the campfire at night to stay warm and safe before this is all over. If that’s they’re goal, it will also lead to their undoing.

    Liked by 3 people

  8. markone1blog Says:

    So, can I accept a standard transmission, chipless Truck for delivery? Can I accept a standard transmission, chipless tractor with the old-fashioned power takeoff?

    Liked by 3 people

  9. kidme37 Says:

    So why is there a chip shortage? Looking around I see 2 reasons – Covid which I call BS on and this:

    “The U.S.-China trade war: Trump’s trade war with China is the final factor. And it’s one the Biden administration has inherited. Just before Christmas, the U.S. Department of Commerce blacklisted the largest Chinese semiconductor manufacturer, Semiconductor Manufacturing International Corporation (SMIC), from acquiring U.S.-based parts and tech that are required to produce chips that are 10 nanometers and smaller. As most smartphones and gadgets use 10-nanometer and smaller semiconductors, this supply-chain constriction meant companies lost easy access to products from one of the biggest semiconductor manufacturers in Asia.”

    I call BS on this too. When has China cared about “US tech” or Intellectual Property or anything that would constrict their ability to turn out whatever they want.

    IMO, this is China putting the squeeze on the US. Since the two cardboard cutouts in the White House, and/or whoever is controlling them (China?) have no intention of doing anything in America’s interest, it’s not going to get any better.

    The US only manufactures a small portion of chips, something like 25%.

    Liked by 4 people


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