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Sustainable Farming

Sustainable Farming

Posted by staff writer

 

Sustainable farming has become big business these days as the consumer market is beginning to take far more notice in how the foods they eat and the goods they buy are produced. This type of farming is more intensive as it requires the farmer to work with the land and his crops instead of using artificial means to make the land grow what he wants it to grow. Thanks to the farm bill passed in 1990 and consumer interest there are now organizations such as Food Alliance and Protected Harvest that are setting standards and certifications covering what does and what does not constitute a sustainable crop.


One of the biggest problems facing small scale farmers today is the high cost of actually planting and growing their crops. Typically today in the US it actually costs more to plant a crop and grow it than it will sell for on the open market. To compensate for this, the government compensates the farmer through subsidies that cover the difference and allow the farmer to break even if not make a small profit. This led to industrialized farming and the death of the small farm.


Ultimately the overproduction of certain "high profit" crops has created a problem in the markets whereby the surplus of crops has driven the live commodity prices far below levels that make this type of farming sustainable. What many farmers are now finding is that the only way to survive is to switch to crops that are sustainable. If you look closely at commodities prices today, you will find that those countries producing sustainable crops are earning a much better return on their investment and the market for these goods is steadily growing.


In essence sustainable farming allows farmers to take back their lands and their farms by growing a much wider range of crops instead of concentrating on one. This reduces the need for government subsidy payments and buying commodities such as feed from off the farm. For the commodities market it means trending towards higher priced commodities as some of the more common crops begin to be less available. At the same time it will also mean that other crops will be more readily available from other parts of the world, a situation that can only serve to help smaller countries increase their revenue through exports.
 

For the investor, sustainable farming means having to readjust the way you look at the markets and plan to invest more on the commodities you are used to trading in. It may also mean smaller profit margins on those commodities you are used to trading in, but higher prices on commodities that are becoming very much in demand.
 

 

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