Money

“That natural farming” he said, “It might be good for nature, but it’s just not economically viable” I was recently informed by a farmer as we sipped pints of beer. I swayed my head side to side in a contemplative manner. But of course he was right, my farming friend. Regenerative farming simply will never be profitable. Not until he believes it can.

“Whether you think you can or you think you cannot, you’re right.” - Henry Ford

I’ll come out and say it: Regenerative farmers are doing it for the money! Those greedy so-and-sos! Yes indeed, I will do the whistleblowing; those sneaky nature-first farmers are making more money than the rest of us. Phew, it feels good to get that off my chest.

I recently heard it said: “you can’t be green if you’re in the red”. How true this is. The first element of being a sustainable business is making money. We’re all here for a finite amount of time and being alive costs money. 

I believe that the metaphorical house of regen farming has several different doors from which to enter from. Indeed, many people have entered from a passion for ecology and natural processes. Some, a desire for good, sustainable food to eat. But the front door, the big white wooden one with the knocker, is always open, and it’s money.

The three timescales of economic projections in farming:

• Short term:

From what I’ve seen, it has actually been the case for the majority of regenerative farmers that they have been somewhat forced to make change as their conventional practices just weren’t stacking up. I’m talking about balance sheets literally in the red. Minus figures on the year-end accounts. Farmers toiling away day after day to simply lose money. This isn’t unusual; most published data on the economics of farming will show you just how few farmers make a real profit. Why do you think we have been forced to ‘diversify’?

So yes, making short term projections is usually pain motivated; the ‘stick’ not the ‘carrot’. Very few people are seeing dollar signs at the thought of growing all-organic crops in under 12 months. It’s scary and it takes a real paradigm shift to change.

• Mid term:

This is where the real business minded farmers sit. I admire these guys. Thinking mid term is about projecting where our business could be in 5, 10, 20 years time. Within our careers. These farmers are sitting down, crunching numbers and usually concluding “let’s work with nature today, and reap the rewards in a few years time”. It takes humility and bravery to do this, to go against the status quo.

• Long term:

Often reserved for the young or the old. The young have many decades left and want to still be in business when they’re older. The old are beginning to think about legacy and handing their assets, businesses and practices down to younger generations. Either way, the result of long-term thinking is always the same: sustainability is key. In farming, it comes down to working with nature and building our soils. In the short and mid term, we can make progress by improving efficiency, technology, marketing etc. Some decisions might even degrade our soils for a quick profit or solution. But long term, this won’t fly. Want a prosperous career for the next 50 years? Build soil. Want to hand a working, profitable farm down to your grandchild? Build soil. 

It’s audacious of us to think we can beat nature into submission and enjoy a profitable business in the meantime. Nature keeps score and she bats last. I’ve said before: every farmer on the planet will farm regeneratively one day, the smart ones will choose when that day is.