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What nobody told me about small farming: I can’t make a living

salon.com

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Re: What nobody told me about small farming: I can’t make a living

#91
post #84

Earlier quoted context omitted.

I read the first link you provided carefully, and it doesn't appear to discuss compliance costs at all, and further refers to cotton farming, not food supply. Can we just stipulate that commodity crops are indeed locked up structurally for giant agribusiness cartels, and keep focused on the small family vegetable and livestock farming this Salon article is talking about? I feel unprepared to discuss the public policy…

"Can we just stipulate that commodity crops are indeed locked up structurally for giant agribusiness cartels" Certainly. I think I've been making that argument all along. And, I guess we'll have to agree to disagree on that being a problem (I think it probably is, if that wasn't clear). "and keep focused on the small family vegetable and livestock farming this Salon article is talking about?" So, we should exclude ev…

I don't know what I think about commodity agriculture and consolidation. We don't have to agree to disagree about it.

But I think many readers would have an intuitive sense that if you're going to try to go into business selling products whose prices are set not by local buyers like restaurants but rather giant exchanges --- and for commodity crops, that's been the case for much of the last century! --- you're going to need all the economies of scale you can get, because your only axis of competition in those markets is "price".

It's for similar reasons that we tend not to be as concerned with the plight of small family oil well operators.

This article isn't lamenting the fate of small family cotton farmers, or even small alfalfa farmers. They're outraged that it's impossible for small vegetable farmers to make a living.

What moved me to comment is that I think they're wrong about that, and, in the fashion of many Salon-featured essays, are substituting the experiences of "mid-20s-to-early-30s" dilettantes for those of family farmers for whom this is a life-defining vocation.

Re: What nobody told me about small farming: I can’t make a living

#92
post #38

Earlier quoted context omitted.

google: 'sugar subsidies''corn subsidies''milk subsidies' In particular, sugar should be taxed like tobacco, with a sin tax, rather than subsidized. But that's not what we do.

Are small farms barred from participating in these subsidy programs?

Sugar plantations are huge, they're well established, there's essentially no one entering that market so you'd call getting into it as a having a high barrier to entry.

Re: What nobody told me about small farming: I can’t make a living

#93

Earlier quoted context omitted.

I suspect that is temporary. The bureaucracy is already very large in the pot industry, and will grow with time...the big players will guarantee regulators stack the deck in their favor. As legalization spreads across the country, growing will be concentrated in a few areas where it grows most easily and with the cheapest labor and most favorable legal climate (just as tobacco is concentrated in a few places). The bi…

I think the marijuana industry will more resemble the wine industry. Large bulk producers will cover the cheap end of the market but there will still be many highly respected small players.

I'm skeptical. Wine makers can differentiate themselves through the process by which they turn grapes into wine. The marijuana growers are more like grape farmers than vintners.

Re: What nobody told me about small farming: I can’t make a living

#94

Earlier quoted context omitted.

I believe you are making the common mistake of confusing what people really want (the desires they act on), and what they say they want. What people say they want is usually "the thing that they want to want" - it's a bit meta. You can call that "lying" if it makes you feel better, but pretty close to everybody does it.

>I believe you are making the common mistake of confusing what people really want (the desires they act on), and what they say they want. In other words drug addicts really want to be addicts. Otherwise they would have given up already. I suppose it's a useful canard if you're trying to justify American pro-corporate agricultural policy.

> In other words drug addicts really want to be addicts.

That is a reasonably accurate definition of the word "addiction", yes. When they no longer want the drug, then they are not addicted to it any more (this is a good example of how hard it can be to really change your desires).

You appear to have some unstated objection to the notion that a dysfunctional desire is still a desire. I don't think this conversation can make any meaningful progress if you continue to avoid stating it.

Re: What nobody told me about small farming: I can’t make a living

#95
post #7

Duh. Do these people just forget about the principle of economies of scale? How do they think they can possibly compete against huge factory farms? I can understand if you're doing a small farm 'for fun', but don't understand how an otherwise intelligent person can think they can (or should be able to) make good money from it. > As the average age of the American farmer neared 65, I knew young farmers were badly need…

I think the danger in our agricultural policy is that large farms are favored (through subsidies, tax breaks, regulation, etc.) to an extent that small farms can't exist profitably, even charging higher prices at market. While there is a minimum viable farm size (given the need for modern machinery to automate the process), most likely, it probably isn't nearly as large as what our current set of incentives enforces.…

Having grown up on a dry land wheat farm, a farm that had subsidies along with everyone else, I think your argument that large farms are favored is flawed.

From the time that my grandfather homesteaded in 1911, productivity of all farms, large and small, increased by almost two orders of magnitude over the next 50 years. Increases in technology, including mechanical, chemical, and electrical drove the price of wheat and other crops down.

So it is simply a matter of scale. It should surprise no one on hn. For me, my parents saw the writing on the wall and sent me off to engineering school. There is some romance associated with "going back to the land" but you know we haven't been there all that long.

What I wonder, in the sense of sustainability, if the ecology of the earth will be able to withstand the savage damage caused by agriculture.

Re: What nobody told me about small farming: I can’t make a living

#96
post #8

I live in Colorado. Lots of profitable small farms here. You just need the right crop :-)

The bottom is going to drop out of the MJ market very soon. Doing the math, you can supply the entire US on a single farm around 10,000 acres (+ or - an order of magnitude) because of how little of it you need to have an effect. Now that the artificial barriers of illegalization have stopped propping up the price, you're going to see drastic, orders of magnitudes drops in prices. Even under the most generous taxation and regulation assumptions, the price of the MJ will end up costing about the same as the rolling paper used to roll it at equilibrium.

Re: What nobody told me about small farming: I can’t make a living

#97

Has the American small farmer ever been able to make a living?

Small time farmers in NL have cash crops growing in their attics. It is quite amazing how many people will consider doing something illegal if it makes enough money. Even people you'd never expect it of suddenly become experts in photosynthesis and hydroponics. Who'd have known that so many people discovered that they had green fingers after all when they can't distinguish a weed from a crop plant under other conditi…

Only because it's still illegal to grow it legitimately. How many of those small time farmers will keep doing it (for the money) when the government finally gives out some licenses to farm it commercially and the bulk marihuana price becomes a hundred to a thousand times lower?

Re: What nobody told me about small farming: I can’t make a living

#98

Earlier quoted context omitted.

Why should sugar be taxed? Why not just eliminate sin taxes altogether? You people that want to tax everything that you feel isn't "good" is just obnoxious. There's something called freedom. Ridiculous nanny state proponents that want to use taxes to discourage behaviors that they consider 'bad' yet like to consider themselves 'pro choice' or interested in 'diversity.' --except when they disagree with those choices.…

> There's something called freedom. There's also something called short-sightedness, which involves people exercising their freedom to predictably do stupid things to themselves and those around them. There's also this concept of "coordination problems", which explains how people choosing out of self-interest what looks like the best for them, when aggregated, end up creating misery for everyone, including themselves…

The problem is that the people making the decision on what to tax don't always have agendas that are altruistic. Elected officials can't be trusted to decide what's 'right' for me to consume or not to consume. Remember, these are the same elected officials that marijuana illegal yet make being fat a 'disability.'

The government has no business telling me what to eat. If it costs 'society' more, then charge people for the actual cost at the time the cost is incurred. Sugar isn't 'bad' any more than alcohol is 'bad.' However if you drink so much that it causes liver failure, then charge people for the liver failure.. Don't spread that cost among the responsible people who don't drink to excess. Higher insurance rates for gay people and alcoholics -- absolutely. Higher prices for alcohol to effectively punish everyone for the irresponsible actions of the few.. Completely anti-freedom.

Re: What nobody told me about small farming: I can’t make a living

#99

Earlier quoted context omitted.

> There's something called freedom. There's also something called short-sightedness, which involves people exercising their freedom to predictably do stupid things to themselves and those around them. There's also this concept of "coordination problems", which explains how people choosing out of self-interest what looks like the best for them, when aggregated, end up creating misery for everyone, including themselves…

The problem is that the people making the decision on what to tax don't always have agendas that are altruistic. Elected officials can't be trusted to decide what's 'right' for me to consume or not to consume. Remember, these are the same elected officials that marijuana illegal yet make being fat a 'disability.' The government has no business telling me what to eat. If it costs 'society' more, then charge people for…

> The problem is that the people making the decision on what to tax don't always have agendas that are altruistic. Elected officials can't be trusted to decide what's 'right' for me to consume or not to consume.

I agree that their agendas are often problematic, but then again people can't exactly be trusted to decide what's good for them either. Regulating food may be too much, but check out things like e.g. vaccines, effectiveness of which depends on everyone who can taking them, whether they like it or not. For the most prominent examples of people who absolutely should not be let to decide what they can or cannot do, see drivers. The flippant attitude to traffic laws is what causes lots of unnecessary deaths and injuries, as well as economic losses in unnecessary traffic jams.

> If it costs 'society' more, then charge people for the actual cost at the time the cost is incurred.

It's complicated. Sometimes charging at the point of purchase is exactly the right way. For instance, taxing fuel is a good idea, because it's directly related to the environmental damage it causes. A CO₂ emission tax would be a great way to internalize the cost of externalities, have the price reflect the true costs for everyone.

Other times, it may be a choice between what's "most free" and what's most effective. You're right that as a responsible person you should not be punished for irresponsible actions of the few. It seems fair to put the cost of e.g. alcoholism on the people who actually suffer from it. But I'd argue that in practice, it's too late. The goal should not be to wait for the irresponsible people to get in trouble, but to prevent them from it in the first place. Prevention is more effective than a cure; not to mention that there's no point in charging an alcoholic extra for treating liver failure - they won't be able to pay it anyway.

By the way, how is the society supposed to know that you are the responsible person and you won't become an alcoholic? It can't. Some people become alcoholics every year and others don't, but we can't tell beforehand who will be in which group. So the simple approach will be probabilistic - assuming that everyone has the expected-number-of-alcoholics/total-alcohol-consumers probability of becoming one, and taxing this fraction of the costs out of everyone. Where to best put that tax? On alcohol purchase directly; that way you fairly exclude people who don't drink at all, and thus will never cause costs to other people because of an alcohol problem. Could we make it "more fair"? Probably, by means of making it more complicated. But complicated means overhead and inefficiency, which is something you want to limit too.

Finally, I disagree with the idea that the government has no business telling you what you can or cannot do. I get that it has to be limited as much as possible for citizens to be happy, but in the end, bossing people around is the sole and only reason we have a government. It's their raison d'être. Solving coordination problems and seeking globally optimal outcomes involves infringing on peoples' individual freedoms - or to turn it around, living in a society involves giving up some of individual freedoms. It's the so-called social contract.

Re: What nobody told me about small farming: I can’t make a living

#100

Duh. Do these people just forget about the principle of economies of scale? How do they think they can possibly compete against huge factory farms? I can understand if you're doing a small farm 'for fun', but don't understand how an otherwise intelligent person can think they can (or should be able to) make good money from it. > As the average age of the American farmer neared 65, I knew young farmers were badly need…

> How do they think they can possibly compete against huge factory farms? As with so many of these things, there's this idea floating around that the factory farms must be "bad" because they are big and wealthy, and that smaller, less efficient farms must be "good" because they are small and poor. Much like with all the other cases, this idea is somewhere between confused and blatant denial of reality. Money is the u…

Thank you, sir, for the awesome comment!
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