The quick of it: 1) Diversify your income 2) Downsize if you have to 3) Pay down debt 4) Be frugal
The other day, when I saw William pull out all the maple syruping equipment, I got to thinking about how diversified we are here at Lake View Organic Farm. Thank God we sell more than just you-pick sunflowers, or we'd be broke!
Sure, we could still live off the farm as subsistence farmers, but we wouldn't have the dollars needed to pay for inputs, taxes, insurance, utilities, fuel, equipment repair and off-farm groceries and fun. With income from only one part of the enterprise, we'd still need to scratch up enough money to pay our property taxes and electricity, but if we had to, we could scale way back in order to live off very little. Out here where the mortgage is paid off there's comfort when scary WHAT IF thought patterns arise.
I've been worried lately (as are many of you, I'm sure) and follow all sorts dark paths into WHAT IF thinking. What if I had a job then lost it suddenly? What if the stock market crashes? What if there is no Social Security when I need to retire? What if I don't have health insurance? The historical uncertainty of the day drives me into deep concern, but also inspires ideas and resourcefulness. I push away the worry and instead look to increase resiliency and double down on the backup plans. That is, after all, the farmer way.
We've learned from history here in the United States when times get tough, farmers lose the farm. In our short season (a couple hundred years) of "farming" on this land, people learned that weather, pests, weeds, illness, economics or political maneuvering can destroy a farm in short order. For a time, farmers had heavily diversified operations and they were closer to subsistence than the paycheck of a commodity market. A farmer with a few dairy cows, pigs, chickens and a vegetable patch could at least keep the family fed...at least until they lost the farm to the bankers. Once farmers had their farms paid off, as long as they remained diversified and knew how to squeeze a nickle, they could survive.
Of course, all the glitter that is not gold of our modern western society caused many farmers to follow the dollar. Those guys bought more milk cows, bigger planters, more land and often took off-farm jobs as well. They either survived or sold when markets shifted and economics swayed. In fact, farmers are often the first to feel the effects of shifting politics, economics and climate crisis. Farmers felt the tremors of the Great Depression years ahead of the actual collapse when a climate and economic crisis collided. Later, they felt the impact of trade partnerships suddenly opening or closing (embargos) as politicians used food as a "diplomacy" tool. They felt belts contract when cheap food prices (US pays 11%-15% household income for food compared to 40-70% in the rest of the world) didn't increase farm salaries. Commodity prices have never kept pace with the cost of machinery, fuel and fertilizer. Now, on top of all that we face tariffs and new trade embargos that could really rock the farm boat.
Lots of farmers over the last decade have learned to expand their niche markets because the commodities market doesn't pay enough. Some diversified farmers have moved into the "value-added" market where they are able to be price makers and not just price takers. Niche markets and Direct Marketing have opened new pathways for many US farmers to stay afloat.
That tremor farmers feel prior to upheaval is again in the works. William and I can feel it, and we're making adjustments. William, the good contrarian that he is, recognized a couple years ago that if fertilizer and seed prices continue to increase as they have, he would prefer to downsize his "conventional"row crop operation. Fertilizer costs in particular are already way too high and this before potash from Canada comes with a 25% tariff. For the past fifteen years or so, William rented and ran about 200 acres non-organic, "conventional farming" they call it. Last year's commodity prices were so low and input prices so high, he decided to pivot. It just doesn't make sense to keep that price-taker piece of the farm pie as big. This year he cut out half of his conventional farming and will only run about 100 acres in corn and soybeans. William's organic operation includes the home farm of 160 acres and two neighboring farms (another 80 acres) where he grows mostly hay, rye, sunflowers, barley, oats, maple, cattle, eggs and vegetables. It seems an in-tuned farmer understands that downsizing an enterprise is one way to build resiliency.
Another lesson of resiliency from the farmer is the old adage, "Don't put all your eggs in one basket!" We know that a crisis can strike without a moment's notice. Because William remained diversified and didn't go into large industrial scale mono-cropping, we have a varied income. If one component of our farm enterprise tanks, hopefully other ventures will keep us afloat. We have income from: 1) Commodity Row Crops, 2) Livestock, 3) Hay & Straw, 3) Machine Repairs 4) Big Equipment Jobs 5) Hauling and Delivery 6) Farm Store Sales 7) Maple Syrup 8) Wood and Lumber 9) Agritourism Experiences 10) The DREADED (oops, filter broke. I said that out loud!) Dumpster Business...the list goes on with all sorts of random opportunities that pop up. William isn't just a farmer. He takes on gig jobs here and there, too.
The final farm lesson about resiliency is to know that frugality is not old-fashioned. In fact, it's cool, hip and the wave of the future. Heck, frugality is fun! And, it's easy to do once you cut yourself off from all the misinformation of wanting and having. I'm a homebody. I like life best in and around my home, and where I live, out here on the farm, I am rarely influenced by wants. I can go for a long time without spending money. Moving away from Minneapolis I've disconnected from mainstream economics in many ways and live more sustainably now. Instead of gleeful spending and living paycheck to paycheck, I gave up the paycheck, work for myself and have a greater appreciation for the dollars I have (that's code for I learned how to squeeze a nickel!). When the dollars don't roll in like clockwork every two weeks, one realizes that to weather any storm, one must have a strong financial buffer. Watch squirrels cache nuts and copy with your dollars. Sorry Fed. I know inflation rises the less we spend, but we've got to look out for ourselves right now.
Lots of you are making statements with your wallet today (Feb. 28th Economic Blackout Boycott) and I am with you! A wallet-wielding choice to support small local producers may just help remind the BIG guys of what we truly value. I suspect the boycott will need more than just the one day, however. Spend wisely, friends!
Sending love from the farm,
Sarah