Several weeks ago, a friend and farmers’ market customer
brought someone to the ranch who is interested in starting his own sheep operation
in Mexico. As we were talking about
production practices and animal husbandry, I asked him about how big his ranch
was and about how many animals he expected to raise – he has 5 acres and wanted
to start with 20 sheep. While I’m not
familiar with the economics of sheep production in Mexico, this question turned
the conversation towards the concept of scale.
I mentioned to my friend that I would need to have 600-800 ewes in order
to produce enough net revenue to pay myself $40,000 per year. She was astounded that a California foothills
sheep operation would need to be so large, just to pay its owner the median
annual income for Placer County.
This week, I came across an article from the New York Times Sunday Review entitled "Don't Let Your Children Grow Up to Be Farmers." The author, Bren Smith, a farmer from the
East Coast, has had experiences very similar to mine (and, I suspect, to many
small-scale, direct-market farmers). You
should read the entire article, but here are a few of the highlights for me:
“At a farm-to-table dinner recently, I sat huddled in a corner
with some other farmers, out of earshot of the foodies happily eating kale and
freshly shucked oysters. We were comparing business models and profit margins,
and it quickly became clear that all of us were working in the red.”
“The dirty secret of the food movement is that the
much-celebrated small-scale farmer isn’t making a living. After the tools are
put away, we head out to second and third jobs to keep our farms afloat.”
“And while weekend farmers’ markets remain precious community
spaces, sales volumes are often too low to translate into living wages for your
much-loved small-scale farmer.”
“Especially in urban areas, supporting your local farmer may
actually mean buying produce from former hedge fund managers or tax lawyers who
have quit the rat race to get some dirt under their fingernails. We call it
hobby farming, where recreational ‘farms’ are allowed to sell their products at
the same farmers’ markets as commercial farms.”
“On top of that, we’re now competing with nonprofit farms.
Released from the yoke of profit, farms like Growing Power in Milwaukee and
Stone Barns in Pocantico Hills, N.Y., [or closer to home, Soil Born Farms] are doing some of the most innovative
work in the farming sector, but neither is subject to the iron heel of the free
market.”
“As one grower told me, ‘When these nonprofit farms want a
new tractor, they ask the board of directors, but we have to go begging to the
bank.’”
“The food movement — led by celebrity chefs, advocacy
journalists, students and NGOs — is missing, ironically, the perspective of the
people doing the actual work of growing food. Their platform has been largely
based on how to provide good, healthy food, while it has ignored the core
economic inequities and contradictions embedded in our food system.”
Smith offers
several suggestions for addressing these challenges. Some, like affordable health insurance for
small-scale farmers and programs to turn tenant farmers into landowners, make
sense for our situation in the Sierra Foothills. But I keep thinking that many of our
challenges locally come down to questions of scale.
Fundamentally,
farming is subject to a number of constraints.
An acre of land will only produce so many vegetables (or so much
pasture). One person can only pick so
many tomatoes in a day. I can only sell
so much meat each week at our local farmers’ market – and I can only go to so
many markets each week. In other words,
scale is a complicated question.
Sustainable
agriculture rests on three basic elements – environmental sustainability,
social sustainability and economic sustainability. If we truly desire a sustainable local food
system, we MUST start paying attention to the economic underpinnings of
farming. If 100 one-acre vegetable farms are losing money, is this a sustainable way for a community to grow it's food (compared with 5 twenty-acre farms that are generating profits)? A local food system comprised of farms that can make a living wage for owners and workers alike is more sustainable over the long term - by all measures of sustainability.
We also need to
consider our customers in all of this.
Why don’t more people shop at farmers’ markets? How can we make buying local more convenient
for our customers while maximizing marketing efficiency for individual
farmers? How can we retain the community
feel of a farmers’ market while increasing volume for farmer-vendors? My experience suggests that the answers to
these questions are not quite as simple as we’d like to think. We need to start by being honest about the
economic realities of growing food.
As regular readers of Foothill Agrarian (all four of you!) know, scale and sustainability are recurrent themes in my writing. Here are some links to previous posts dealing with these topics:
- By the Numbers
- Another Way of Looking at This
- No Easy Answers
- Back to Basics
- Do we have the food system we deserve?
- Continuing to Evolve
- Compelled to Farm
- Farmland Fragmentation and Local Food
- Is Farming a Lifestyle or a Business?
- How Big is Small Enough?
As I look over this list, I'm struck by the fact that most of my posts offer more questions than answers. I hope others will join in this discussion - perhaps through conversation we'll begin finding some answers!
How about a permanent space to sell local ag products (like a permanent farmer's market), similar to local art cooperatives, with farmers manning the space like once a month on a rotating basis
ReplyDeleteGreat suggestion, Greg! Do you think Auburnites would frequent such a market if it was located at the DeWitt Center?
ReplyDeleteI'd have to ask Anne, but if we could one-stop-shop local fruits/veggies/meat at our convenience, rather than once a week at the farmers market, I think we would be repeat customers. Dewitt is a little inconvenient, but not bad.
ReplyDeleteWe are trying to deal with this by grouping together. We are now trying a marketing co-op: a few farms that share a geographic area (within 5 miles of each other, in some cases, even closer) have similar production practices, and can communicate well... it is working so far, but the time investment has to equal increased sales and a bigger market share, or we can't keep spending time on something that doesn't return any more than we could each be doing on our own.
ReplyDeletewww.facebook.com/capayvalleymeatgrowerscoop
If you get a chance, go to the original article I cited and look at the comments. The top comment is from Joel Salatin, who suggests that his is the model for small farmers to follow. On my more cynical days, I wonder how much of Joel's "farm" income is from book royalties and $5,000/day speaking fees.
ReplyDelete