ORIGINALLY WRITTEN BY PAUL PENNER
I am in the business of producing basic food commodities and I believe American agriculture has done a splendid job of providing the consumer with an abundant, safe and reliable food supply.
One may argue the low cost of our food supply, a mere 11 percent of our disposable income, is American agriculture?s greatest achievement, that our nation?s farmers have accomplished what other countries can only dream about. In many countries, people spend one-half to two-thirds of their total income for food.
I have another view, which may seem a bit absurd at first. But before I elaborate, keep in mind that Merriam Webster?s Collegiate Dictionary defines ?absurd? as ?ridiculously unreasonable, unsound or incongruous…having no rational or orderly relationship to human life.?
That said, here?s my view….
American consumers do not care about our agricultural successes. They are pragmatic in their approach to purchasing food. They place three conditions on the basic food supplier: food must be available, at high quality and as cheap as possible. And they do not care whether their food came from Illinois, Kansas or Brazil.
Steven C. Blank, a U.S. Department of Agriculture economist and professor of agricultural economics at the University of California-Davis, suggests it is time to rely on the world marketplace to supply America?s food needs.
In his book The end of Agriculture in the American Portfolio, he states that American farmers are noncompetitive in the marketplace and that a cheaper food supply can be bought for less money than is spent to subsidize American producers and their way of life.
I have only read brief excerpts from the book, so I hesitate to give a qualified critical review, but according to a review published on Barnes & Nobles Web site by Blank?s publisher, Greenwood Publishing Group, Inc., ?Blank states that American agricultural production is destined to end…that the changes leading to the end are a part of the natural process that is making us all better off.?
Blank also ?explores how the decisions of individuals combine to make the end of American agricultural production predictable and rational.?
To most American farmers, Blank?s view is absurd, but I believe farmers should study his rationale and speculate about the reasons he holds such a view.
In my opinion, the No. 1 reason is a change in public behavior. Blank believes his conclusions are merely reflecting what consumers already believe and practice. My observations of society would agree with those findings.
The younger generations of Americans do not have an agrarian heritage, and thus are prone to express different preferences than previous generations.
Their decisions reflect a fundamental shift in thinking about the food supply, and that affects the way the food industry works to meet their demands. This, I believe, is what the publisher referred to as the combined decisions of individuals affecting the predictable and rational end of American agriculture.
For example, if the food quality is questionable, a lower price will not motivate me to buy because I know it is available elsewhere and have the ability to get it.
Or. if the price is higher than I feel it should be, I will do comparison shopping before I make the purchase.
I have almost no restrictions to the choices I can make. I can communicate my demand for food from Mexico, Brazil or any other country with an intentional choice, or I can express my indifference to concerns about the country of origin by buying products solely on price and quality.
Most Americans have no product name brand, store or community loyalty?just give me what I want, when I want it, how I want it and at the lowest possible price.
I believe most consumers think and act as I do. And when our decisions are combined, they have a tremendous impact on the entire food industry, from the farms in America or any other country to the local retail food store.
There is proof that the analogy is correct: large regional food stores already offer for sale fruit, vegetables, beverages and meat products that are produced in foreign countries like Mexico, Brazil, Latin America, the European Union and Canada.
Simple logic tells us that they would not offer this food for sale long if the customer did not like the choice.
Farmers may find these reasons for change to be highly irrational. The question is, can American farmers learn from their urban neighbors and from such prophets of doom like Steven Blank? Can farmers adapt and survive?or will an American agricultural enterprise be a thing of the past?
That’s absurd! Well, maybe….
