The Lunatic Farmer

View Original

COST ANOMALIES

            One area of policy I admit to being unsure about is free markets, free trade, tariffs, and protectionism.  I don't have an answer.  But I do want to share something that's interesting.

             Polyface is now the sole supplier of beef, poultry, and pork to Ketoned Bodies, a keto whole-meal outfit based in Connecticut.  The founder searched high and low for the best protein and found us.  This is not a cleverly disguised self-promotion ad; hang with me.  He does think we're the best, which is fine, but even more interesting is the fact that he can get pastured meats cheaper from us--even with shipping--than he can from anywhere in New England.

             A handful of folks have vilified me over the last 6 months ever since we began shipping out of our locale.  For years part of my persona was not shipping--that's a large part of how Polyface attracted Michael Pollan's attention and subsequently got into his book, Omnivore's Dilemma.  Local sales have become harder as we lose customers to doorstep delivery and Australian imported grass finished beef.

             What we've learned from this relationship with Ketoned Bodies is that local conditions have a huge affect on pricing.  I know farmers in New England who must contend with much higher taxes, much more bureaucracy, higher minimum wages.  It's just way harder and more expensive to do business there.  Goodness, a farmer in Maryland told me he had to get permits from a dozen different agencies in order to remove a tree that had fallen in his creek.

             Here in Swoope we have extremely low taxes.  New York ran their farmers out of business 20 years ago by saddling agriculture with the costs of urban crime, schools, and infrastructure.  I remember well a busload of farmers stopping by and telling me their taxes were roughly 20 times higher than ours here.  That has consequences.  The consequence is that an area can't compete in the marketplace.

             Should our farm not leverage the low crime, low taxes, more freedom, lower cost of living we enjoy that gives us a competitive advantage over a locality like Connecticut whose policies hamper its farm businesses?  And why should a start-up there be at a market disadvantage in pricing if they can acquire better inputs in a more business friendly locality?

             When sincere-minded folks lobby for more protection, more security, more bureaucratic intrusion, it always pushes business away, creating fragility and vulnerability.  A great case in point is the coronavirus in China glitching Apple's manufacturing ability.  And now the U.S. is recalling pharmaceutical inspectors--how do you feel about all these pharmaceuticals being made in China?  Do you trust them?  Why did all this stuff move to China?  Because of U.S. meddling in business, from health care to hours to pay to workplace safety.  Everything moved to the least cost supplier.

             I can appreciate the horror some may feel at the notion of withdrawing mandates and regulatory oversight in these areas, but it's time to realize there's no paradise this side of eternity.  You either lose freedom or economy.  A government safety net usually turns into a trap.

             I'm grateful that I can price competitively.  While some of that is due to our own personal business savvy, a healthy portion of it is due to living in a place where people mind their own business, accept responsibility, shoot burglars, work hard, and don't ask for handouts.  The sectarianism in our nation is but a microcosm of global commerce and manufacturing.  If an area hates business and capital, it will eventually be completely dependent on far-away places for supplies, creating vulnerability and fragility.

             In my perfect world, I'd be supplying Staunton and Connecticut would supply Connecticut.  But Connecticut drives farm businesses away.  So far, Swoope hasn't, and I hope it stays that way for a long time.

             What policies would make it easier for a farm to stay in business?