A Moneychanger
Interview: Allan
Nation of The
Stockman Grass Farmer WHAT FARMING NEEDS TODAY
Allan Nation
edits The Stockman Grass Farmer, one of the finest and
most practical agricultural publications in this
country. He very kindly made time on November 8, 2001
for me to interview him about what American agriculture
needs. I offer his remarks here without my
questions. Then on November 15-17 my wife Susan and
I attended the Stockman Grass Farmer seminar in Memphis.
All the speakers were good, but a large number of them
conveyed information so valuable that one speech alone would
have paid for the whole trip. The Stockman Grass
Farmer is published monthly in tabloid format. You
can subscribe for $28 a year ($50 for two years) from P.O. Box
2300, Ridgeland, Mississippi 39158-2300 or call (800)
748-9808. Their website is at http://208.55.3.192/cgi-local/shoptmc.pl/SID=022422/page=http://www.stockmangrassfarmer.com.
Farmers don’t take
the initiative to learn on their own, so they are always
over-capitalized. They suffer from “heavy metal
poisoning,” that is, they constantly have to pay for mountains
of equipment they use only infrequently. Their ownership
of land also overcapitalizes them. The land value must
be discounted according to its productive value. Real
estate development has jacked up prices of land with a
mountain top view. That land happens to be out in the
country, so competition from real estate development has
raised land prices so high that agriculture can’t buy that
land and make it pay. [That most farmers must borrow
to stay in business doesn’t help, either. Most are
caught so tight in the usury trap, that they end up working
all year for nothing more than the bank and a new note.
– F.S.]
Farmers today can’t do what their daddies did and
prosper. They’re in a deflation cycle but they are still
playing an inflation game, so they produce too much.
They also want to own land before they have the productive
ability to use it. Before you buy land, you have to be
able to make it pay. It makes far more sense to rent
than to own until you are able to make it pay.
ATTITUDE IS
EVERYTHING
Farmers’ attitudes are the biggest problem, and that’s a
product of years and years of government subsidies. CRP
– Conservation Reserve Program – has functioned as rural
euthanasia. Think about it. The government
rewards those who have destroyed their land. You
let erosion ruin your land? Fine! We’ll give you a
subsidy!
What about the environmental effects of using so many
agricultural chemicals? Plowing destroys organic
matter. The nitrogen you put down as fertilizer doesn’t
go to the plant directly. Rather, it breaks down organic
matter and that nitrogen goes to the plant. Only
putting land back into pasture can rebuild its organic
matter. In the South especially we tend to lose
organic matter because of our high summertime heat.
WHO’S TO
BLAME? The
state of American agriculture is the farmer’s own fault.
He must begin to take responsibility for his own
foolishness. Too often farmers suffer from the Rich
Man’s Son Syndrome: if I get into trouble, Daddy will
bail me out. Farmers say, If I get into trouble, the
government will bail me out. Even farmers don’t
trust farmers, because they know farmers’ attitude is
“Everybody is cheating me so I’ll cheat everybody I
can.”
WHICH WAY
OUT? Once
you go down the high-capitalization farming road you can only
come back through bankruptcy. What is their only
choice? To turn away from it. There is something
at work I call the Law of the Economic Paradox. The
exact opposites of economy work, but they don’t work in the
middle. The Amish can make money farming. Huge
agribusiness can make money farming, but those in the middle
can’t.
GRASS IS
GREENER It’s
not the application of nitrogen that’s hurting but all the
bare ground. Forty percent of all the grain grown in the
wold feeds ruminant animals. Why not pasture?
We’ve bred animals for fast weight gain on grain. Why
not select those that thrive on pasture? Land put into pasture
doesn’t need as muchfertilization. In Argentina they put
land into grain for three years, then in pasture for five to
seven years, and they can grow corn without nitrogen
fertilizer.
High capitalization farming ties up money in things
losing value -- land, tractors, equipment, etc. – as
opposed to assets gaining value – lambs, calves, and
cows. We have to abandon the high capitalization
model for a low capitalization model. Abandoning the
high capitalization model gets around the environmental
problems completely. But it is always easier to change people
than to change people’s minds. The old generation will
have to pass away and make way for a whole new generation to
take over. Old paradigm minds don’t change. Their
psychic and physical investment in the status quo is too
great. Nothing but a radical change will work.
Just like a mature forest, agriculture needs a hurricane to
clear it out and let the trees underneath
grow.
The best course would be for the government to completely
takes its hands off agriculture: benign neglect.
Get the government out, then stand back and let whose who must
fail, fail. As long as the government subsidizes
farming, new people won’t enter.
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