Saturday, May 3, 2008

Save the family farm?

The longstanding cry of politicians everywhere is "Save the family farm." We're hearing today in the presidential campaign, and in the halls of election-year Congress, as the windbags try to craft a Farm Bill.

It certainly evokes a Norman Rockwellesque nostalgia for the good old days, and an idyllic vision of another time in America, full of the old time virtues of love, respect and family. All the warm fuzzies are great, but what are the modern day realities?

The economics of the 2000s have dictated large corporate farming. Just about anywhere you want to pick out in the West or Midwest, it's easy to find areas where there used to be 5-10 farms or ranches that are now one, in the hands of wealthy individuals or corporate interests. Those "family farms" that are left have either Mom or Dad with a good job in town, or an oil hammerhead pumping on the back 40. The unvarnished truth is that farming and ranching on a small scale is rarely an economic proposition.

Those who like the rural lifestyle pay for the privilege, either with a job off the farm or a very simple standard of living, or both. It takes capital to operate on a year-around basis in the highly seasonal agriculture business, and that frequently comes from the economies of scale that elude the small operator.

If you own the land free and clear, either through inheritance or outside income, you can make a living off 300 cows or the crops off a 600-acre farm. Anything less than that, and it takes a job in town to subsidize the operation. There is not sufficient income to meet debt repayment. That's the reality of agriculture.

It's not really a question of whether its good or bad, but it just is. American taxpayers don't want to pay, nor would it make much sense, what it would cost to really save the family farm. Just like most other businesses, the profits and wealth go to the innovative, creative and efficient. And it requires a certain scale to attain that.

The farm or ranch is no different.

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