The Farmer’s Mite (Might)

Rural America must survive.

The story of the widow’s mite in the gospels of Mark and Luke illustrates selfless giving for a greater cause. Human history is rife with examples of men and women who became heroes for their selfless, often fatal, gift of themselves for their friends and loved ones. Today in the midst of the world’s effort to slow the spread of the Covid-19 virus we hear of similar examples of bravery and sacrifice by caregivers and fellow infected patients.

The immediate costs are clearly visible and understood, but what underlying costs may remain to be seen and felt? Farmers and ranchers are making hard decisions today that will affect us all in the months and years to come. Auction prices for beef and pork have fallen to all-time lows, and ranchers are holding existing stock and limiting breeding to avoid a glut they cannot afford to feed. Produce prices are so low farmers are destroying crops and dumping excess stock, and dairy farmers are pouring fresh milk on the ground.

But why? Grocery stores are under stocked and prices are high….but the closure of restaurants and schools has devastated the demand for agricultural products. That in turn pressures farmers and ranchers to hold, destroy, or otherwise limit inventory of their goods until prices increase to a profitable level, which will lengthen and deepen the shortages at local grocery stores.

The National Farmers Union (NFU) chart above illustrates the fact that farmers receive less than 15 cents of every dollar shoppers spend on the food they grow/raise. And the rest of that dollar pays for processing, packing, transporting, and retailing the food we eat. The US food chain is highly complex and reliant on the latter, as well as by America’s quality expectations and government regulation to measure and maintain consumer demand for safety and quality.

Since the shut down over COVID occurred, demand for many farm products are down well over 50%, at a time when many farmers are making decisions about spring planting and summer harvest. Would you invest your sweat, toil, and capital for an almost guaranteed loss? Probably not, but most farmers, though they are astute business people, are also deeply loyal to the people they feed. The average farmer feeds roughly 100 people. Without a steady source of food, societies become unstable. With it we can remain hopeful and work toward a new normal. I believe farmers will do their part to provide all they can, and hopefully be supported and heralded by the rest of us for their heroic effort to remain in business in spite of the additional challenges this pandemic has created.  And perhaps all consumers will buy direct when possible, and remember that the food on your table does not come from the grocery store. If you aren’t hungry, thank a farmer.

Doug Beck
Director of Sales/Customer Success, Acuitus Ag