The Cost of Everything
Mar 01, 2024
A post I made a few weeks ago seemed to hit a nerve.
When we first started farming 16 years ago land was $1500-2000 an acre. Cheap by most accounts. It has since gone up 3x to $5000-$6000 an acre.
Meanwhile the inherent agricultural productivity of that land has remained relatively flat. It doesn't magically grow 3x more crops.
When we first started selling wholesale apples they were $1.80/lb. Now they are are little over $2/lb, roughly a 12-15% increase.
At the same time the cost of building materials, supplies needed to build farm buildings and housing, have gone up 100-300%. And some materials (like pvc) much more.
The cost of healthcare and education are up 100% or more. Along with other critical human services. You get the point.
Meanwhile, wholesale apples are still $2/lb.
We all continue to feel the pinch.
I'm not complaining. I get why this is happening. But it's a little like sitting in a soup pot while someone slowly turns up the heat. Hard to notice at first.
It was hard to get started as a first generation farm when we did. But it's even harder now.
I honestly don't have a good solution to this problem. We are all trying to get more creative: sharing access to land, creating value added products, scaling and getting more efficient. Cutting out the middle men and working directly with customers helps, but that comes with its own costs. And another massive learning curve.
I want to see a world where new farmers can flourish. But the money flow seems to continue to consolidate with the biggest players. The cost/access to land is controlled more by Wall St, than agricultural productivity. The idea of starting a farm as a young person to make a living is still fringe at best.
But there are still heart warming examples of people with grit and good fortune, grinding out a new beginning. Creating farms that will last generations. Starting is harder than ever, but we still need to encourage people to start.
Maybe the answer is somewhere in the old parable of the girl on the beach rescuing starfish. One at a time. A thousand tiny actions, mostly unnoticed. Making headway, like the river cutting into the rock.
Building something that can last generations takes, well... generations.
Let "macro-everything" do what it will do. We'll make plans, stay agile, and keep putting the shovel in the ground.
Garrett and the Cider House Crew
When we first started farming 16 years ago land was $1500-2000 an acre. Cheap by most accounts. It has since gone up 3x to $5000-$6000 an acre.
Meanwhile the inherent agricultural productivity of that land has remained relatively flat. It doesn't magically grow 3x more crops.
When we first started selling wholesale apples they were $1.80/lb. Now they are are little over $2/lb, roughly a 12-15% increase.
At the same time the cost of building materials, supplies needed to build farm buildings and housing, have gone up 100-300%. And some materials (like pvc) much more.
The cost of healthcare and education are up 100% or more. Along with other critical human services. You get the point.
Meanwhile, wholesale apples are still $2/lb.
We all continue to feel the pinch.
I'm not complaining. I get why this is happening. But it's a little like sitting in a soup pot while someone slowly turns up the heat. Hard to notice at first.
It was hard to get started as a first generation farm when we did. But it's even harder now.
I honestly don't have a good solution to this problem. We are all trying to get more creative: sharing access to land, creating value added products, scaling and getting more efficient. Cutting out the middle men and working directly with customers helps, but that comes with its own costs. And another massive learning curve.
I want to see a world where new farmers can flourish. But the money flow seems to continue to consolidate with the biggest players. The cost/access to land is controlled more by Wall St, than agricultural productivity. The idea of starting a farm as a young person to make a living is still fringe at best.
But there are still heart warming examples of people with grit and good fortune, grinding out a new beginning. Creating farms that will last generations. Starting is harder than ever, but we still need to encourage people to start.
Maybe the answer is somewhere in the old parable of the girl on the beach rescuing starfish. One at a time. A thousand tiny actions, mostly unnoticed. Making headway, like the river cutting into the rock.
Building something that can last generations takes, well... generations.
Let "macro-everything" do what it will do. We'll make plans, stay agile, and keep putting the shovel in the ground.
Garrett and the Cider House Crew
