save the family farm

"The farmer is the only man in our economy who buys everything at retail, sells everything at wholesale, and pays the freight both ways." - John F. Kennedy

Six decades later, President Kennedy's observation remains accurate. And it's killing our food system.

The harsh reality is that it’s nearly impossible to make money as a small or mid-sized farmer today. And this isn't just a business problem - it's a threat to our nation's health and food security.

Before the 1960s, America's food system, like most around the world, thrived on diversity and decentralization. These weren't just romantic notions of pastoral life - they were crucial elements of a resilient food system. But that resilience requires profitable independent farmers. Today, that's nearly impossible.

Why? Farmers are caught in a difficult economic vice:

On the cost side, modern farming prescribes the use of expensive inputs. These expenses, for example seeds, which have outpaced inflation by 129% from 1990-2020. On the revenue side, most sell at spot prices that have largely tracked inflation. Its no fun running a business where your costs outpace your revenues significantly.

Additionally, independent farmers are sandwiched between a handful of large corporations that control both inputs and distribution. Millions of farmers, a few giant corporations. Basic game theory tells us how this ends: a race to the bottom, with farmers bearing the losses.

The results are here for us all to see:

• Rapid farm consolidation

• Disappearing family farms

• Weak contracts that with farmers holding all the risk

"But what about Ag Tech?" you might ask. Surely robotics and AI can save us?

Unfortunately, these innovations often accelerate the problem. Productivity improvements disproportionately benefit large farms, speeding up consolidation and hastening the death of independent farming.

This creates a devastating cycle:

• Reduced independent farmer profitability

• → Accelerated consolidation

• → Decreased farming appeal

• → Increased monoculture

• → Reduced food system resilience

• → Lower food quality

• Which all accelerates reduced independent farmer profitability

Breaking this cycle requires systemic action:

• Regulatory reform

• Better market dynamics through improved contracts

• Enhanced price transparency

• Improved market access via better infrastructure

• Stronger regulator protections for farmers

• Reduction of corporate dollars in agricultural policy

• Accelerated transition to regenerative practices

Until then, our independent family farmers will continue subsidizing our food system through passion or duty. They're paying retail, selling wholesale, and somehow keeping going.

So next time you eat, remember: that food on your plate? It might be a final harvest of a dying breed - the independent, American, family farmer.

Continued reading:

• Financing the regenerative agriculture transition in the Midwest: a strategic blueprint for capital deployment (TransCap Initiative)