When I started thinking about something that will tip someday, I thought of the future reform of production agriculture. Currently there is a huge tread of rapid expansion and outrageous land prices. The increase in the price of land is caused by the expansions of the metro area into rural areas. When the investors who own the land around the city see for big bucks to developers they reinvest that capital in land further away from the metro to prevent it from being taxed. These investors have drastically increased the price of land in Minnesota. They rent out the land they own to the farmer that can pay an outrageous price, causing profit margins for the farmer to decline dramatically. Farmers believe their only solution is to rent more land to make a living. But there is an alternate path being persuaded by many of America’s smaller producers who are becoming proactive in developing change in agriculture. With the us mavens, connectors and salesmen, agriculturalists have been developing alterative ways for small farms to make a living out side of the large scale production agriculture. They are making this happen with produces like natural and organic beef, pork, and poultry. These people have found a market that is on the verge of tipping in to a more main stream market that could make small farmers more profitable then large scale production farms. The farmers that come together to build these small markets are often formed from the same regional areas and are groups of less then 50 people mostly. Current consumer trends show that people are starting to care more about their food, where it comes from and how it was produced. The smaller producer that create the market through producing what the consumers want and make it available to the population, along with some good marketing, that can make their farms more profitable.
Posted by at December 1, 2005 10:29 AMHi Erik - Your post is fascinating and very informative for me. You stated, "They rent out the land they own to the farmer that can pay an outrageous price, causing profit margins for the farmer to decline dramatically." I was very dismayed to learn about this problem - and that some farmers feel their only solution is to "rent more land to make a living." This is certainly a serious problem.
As for the tipping point - yes, there does seem to be a market trend "that people are starting to care more about their food, where it comes from and how it was produced." I think the key now may be to inform the public about the true nature of the problem as you explained it when the trend aims toward careful selection of food based on where and how it was produced. Certainly, it does seem when you look at the growing amount of organically produced fruits and vegetables - that it has tipped. Excellent example, Erik. Fantastic.
Posted by: Aimee at December 11, 2005 3:12 PM