Rural Routes/Margot Ford McMillen

Shutdown Ripples through the Community

When the media contact person for National Family Farm Coalition asked to talk to farmers impacted by the government shutdown, I first answered back that my network of sustainable farmers don’t get government money anyway, so I couldn’t help. Then, curious to see if I was right, I sent an e-mail to a bunch of them asking. “Have you been affected by the government shutdown? How so?”

And, within a day, I heard from several that, indeed, the shutdown is affecting or might affect their ability to pay their bills. One friend, from an extended family of farmers, said, “No business can be conducted at the Natural Resources Conservation Service (NRCS) or Farm Serve Agency offices. Agricultural Risk Coverage (ARC) and Price Loss Coverage (PLC) payments are on hold if they were not processed before the shutdown. Farmers can’t make payments or apply for farm loans. You can’t apply for the safety net programs for grain or pork. Even if you applied, payment is on hold. If farmers had drought insurance through FSA, payments won’t be processed until this is over.”

Then, one of my favorite community-supported ag operators answered that, for her community-supported farm, money doesn’t come to her from the government directly, but from federal employees that buy from her. Those folks, who commit to buy a box of produce every week, are cancelling their CSA contracts and not renewing for next spring. She’s expecting a rough year in 2019.

Another has heard from his main buyer, a restaurant, that their business has slowed due to the shutdown, so they won’t need the burger meat he usually supplies. He, in turn, had to call the beef processor, employer of five or six people, and cancel his appointment. So there’s a ripple effect in my community already. If he decides to sell his cows at the auction barn, his income will be severely impacted and if he decides to sell beef by the half or quarter to neighbors, My income will be impacted because that’s who I sell to, and we’ll be competing for the same pool of buyers.

So far, nobody I’ve talked to has had to go to the bank to borrow money, but I’m just talking to the small, sustainable farmers who survive by making do with minimum inputs and by not owning big equipment, new buildings or commodity contracts. They might have mortgages but probably haven’t borrowed for much else.

Back in the 1980s, the farm crisis started when FSA stonewalled farmers who needed re-financing or new loans. At that time, Farm Aid was one of the few organizations to step up and fill the gap. They raised money, established food banks and sent bags of seeds to farmers in the midwest. They set up hotlines to answer the calls of farmers isolated, scared and even suicidal. It’s starting to feel like we need those hotlines again.

Maybe it’s time for Americans to take a lesson from Africa, where microfinance has moved from a fringe banking system to a major force in bringing people out of poverty. Or, maybe it’s time for us to adopt traditions known by the earliest settlers — people-to-people lending, parent-to-child, uncle-to-nephew, neighbor-to-neighbor lending.

While I was mulling this over and asking others what they thought, I was directed to a couple of websites that set up just that kind of people-to-people system. No! That’s not what I mean! Among those systems, which may lend money to farmers in faraway places are probably some excellent investments with good outcomes for both lenders and lendees, but I’m talking about loans to people you can shake hands with, offer expertise if you have it, and walk with them on their land. In other words, your neighbors.

Is that too embarrassing? Is it too hard to offer help to your friend when you can see that s/he needs it? Well, yeah. If you’re not used to helping out, it will take you out of your comfort zone. But that’s a good thing.

One of the best ideas I’ve heard comes from a friend in the city, who has started an “investment club” with other supporters of her local farmers’ market. The club, which has six members, makes small loans at a small interest rate to those farmers they know. Thus, they keep their own food supply coming and help out the folks that they trust. The loans are competitive, meaning that some folks may get turned down some day (but so far, so good) and they work with a lawyer to get the paperwork done correctly. They look at credit reports and require some kind of security—maybe even a chunk of product in trade. Each loan is negotiated separately, but they range around $2,000 each at 4% interest, she told me.

That may not seem like much, but if you’re looking toward planting, or buying hay in this droughty year, and your cash flow has disappeared, and the government has closed off a chunk that you counted on, well, it can make all the difference.

Margot Ford McMillen farms near Fulton, Mo., and co-hosts “Farm and Fiddle” on sustainable ag issues on KOPN 89.5 FM in Columbia, Mo. Her latest book is The Golden Lane: How Missouri Women Gained the Vote and Changed History. Email: margotmcmillen@gmail.com.

From The Progressive Populist, February 15, 2019

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