Category: Finance

Many of today’s young farmers (and a good number of older, thoughtful small operators) are committed to farming in a manner that creates minimal environmental harm (I think any human land use, by definition, creates environmental and ecological change to the landscape)…and produces substantial environmental benefits.

Unfortunately, most communities do not provide financial support for these new, small farm environmental benefits. Already in a financially stressed situation, small farmers could realize real improvements in their economy if communities began to 1) value the environmental benefits provided by sustainable small farms, and 2) pay small farmers for the community assets they are creating year after year.

USDA, through its NRCS (Natural Resource Conservation Service), provides incentive payments to farmers. The payments, however, are to address resource concerns…correct an environmental harm or environmental problem (the farmer allows his livestock to pasture in a stream area…NRCS pays for fencing and stream restoration).

With two partner organizations (New Urban Farmers in Pawtucket, RI and the African Alliance Growers Collaborative in Providence, RI) we’ve been working to 1) determine the agro-ecological areas where small farmers are creating environmental benefits, 2) analyze if any of the eco-benefits fit into the structure of USDA NRCS conservation practices and practice payments, 3) if appropriate, expand the payments USDA NRCS is making to small farmers to better align their incentives with the work of small, organic, and urban growers, and 4) examine how other community based agricultural organizations (primarily state conservation districts) might create funds to ‘invest’ in small farm environmental asset building.

From our research, there are six areas where small farmers are creating substantial environmental benefits:

1) Improving the physical, chemical, and biological conditions of soil through compost, mulch, manure, and remineralization practices.

2) Managing nutrients to protect from runoff, improve air quality, and improve production characteristics.

3) Managing weeds and pests with natural methods that improve plant communities/wildlife habitat, enhance the quality of forage, and control pests.

4) Managing water for water control, irrigation, runoff, and water harvesting.

5) Managing farm infrastructure for conservation improvements – tree and shrub establishment, vegetative barriers, etc.

6) Managing farm energy uses to reduce energy use, and improve energy efficiency.

Small farmers are utilizing both novel methods (those developed in the last 30 to 50 years through biodynamic -realizing its’ non-scientific aspects – and permaculture practices utilizing new ecological science) – as well as revisiting old, natural farming processes – to realize their sustainability goals.

These benefits not only increase their farm productivity, they also improve environmental qualities in their communities. They are becoming an increasingly responsible ‘underground’ community of economic asset builders related to those environmental improvements.

At the same time that – across the country – restaurants and thoughtful households are demanding local, nutritious, sustainably-grown food, the economy and financial infrastructure for small farmers is feeble and immature. That is especially true for new and socially disadvantaged farmers.

Changing the small farm financial infrastructure is critical to expanding local food production, improving household nutrition, and reducing healthcare costs. USDA through the Farm Service Administration has rethought the FSA loan program to provide more opportunities for small and new farmers. USDA Rural Development has become much more sensitive and helpful to the needs of socially disadvantaged small farmers.

What else can we do?…a few thoughts and suggestions:

1) Small farmers need routes to ownership for their land (we’re doing a tiny bit here with a RI farmland fund). Communities across the nation need to rediscover their small bank infrastructure and use it to build local farm assets.

2) We should pay small farmers for the environmental goods they produce. I’m not talking about correcting resource problems…I’m advocating for local systems for incentive payments to small farmers that build ecosystem assets for themselves and their neighbors.

3) Communities need to begin rebuilding the small farm services infrastructure that existed until perhaps fifty years ago. It’s not a romantic notion to rebuild small farm economies in every community in America…it’s good economic sense!

4) Eat thoughtfully (I’m borrowing from Wendell Berry on this one). We can be the best advocate for the local farm community by buying food and farm products in a thoughtful manner.

5) Establish the educational infrastructure necessary to use the talents of refugee socially disadvantaged populations – who many times have significant farming skills. Language and business/financial education is critical to the success of these new citizens.

6) Rethink how your savings, investments, pensions, etc. are being utilized. Most conventional investment mechanisms used by Wall Street do little to diversify wealth and expand social equity (many would say today’s financial markets do quite the opposite – they are, in essence, wealth concentrators). Invest 3% of your wealth in local farmers and food enterprises….and advocate that your community’s institutions, foundations, etc. do the same!

7) Resist working in thoughtless environments. If your work is not meaningful and honest, find a local farmer or food provider and hook up!

8) Demand honest, sincere, timely decisions from your government representatives. If they are not honest, sincere, and timely, elect someone else. Our current American governmental institutions resist meaningful, important changes that will make us all healthier and happier…we need to work with our neighbors to demand new social policies and institutions that better ensure opportunity for all!