by bulletproof » Mon 06 Mar 2006, 17:57:58
Everyone who is looking at the effects of peak oil and the after-the-crash economy should look at food production. The production of food, ala the model of people like Joel Saladin and Booker Whatley, is an excellent business to get started with now to position yourself for the coming changes to the economy.
If one uses the model of a Pick Your Own operation, it can be started slowly and turned into a nice business that's almost immediately profitable. I knew one woman where we used to live in Kentucky (a school teacher) who planted an acre of strawberries and regularly made about $5000 each year while on summer break. She branched out into blueberries, grapes and asparagus, and if she wanted to she could quit teaching and still make a decent living. She continues to teach for the health care benefits and pension plan.
I know a few professional market gardeners, and while it's good money... it's also a full-time business. The most difficult part is to develop customer relationships. If located within walking distance or a short drive from a small town, the market is made. It only takes a few hundred regular customers to make a decent living, depending on what you're growing/raising.
Saladin advocates pastured poultry and rabbits (eggs and meat) and I know others who make a decent living selling raw milk directly to the customer. For the milk thing, a creative legal arrangement has to be implemented- usually selling the customer an equitable interest in the cow and then charging the customer a maintenance and management fee that's tied to the milk. Each gallon of milk will have a maintenance charge of maybe $2.00 per gallon. This way the farmer isn't selling milk, but rather charging for housing, management and milking the cows that belong to the customers. The customers get healthy raw milk and the farmer gets a much better price than if they sold it to the commercial buyers.
Whatleys book "How To Make $100,000 Farming 25 Acres" is dated, but it's right on the money as far as the basics of how to set the farm up and operate it. The secret is to give the customer what they want at a good price and develop positive relationships with the customers. People really want to know where their food comes from and what's been done to it.
As far as the seasonal produce issue, it's something that Americans have been spoiled with. Everyone is used to getting all manner of exotic fruit year-round, which is a global business. When we lived in Kentucky, we were buying apples from Chile. Living in Venezuela, we get apples grown in Washington... go figure.
Anyway, for anyone who wants to have a local business that has loads of upside in a post-peak-oil environment, being a local food producer is a good bet. Growing and raising the stuff is not the difficult part... marketing and sales is the difficult part right now. When prices rise because of increased transportation costs though, you'll have a captive market and the ability to undersell your competitors.