Currently, the words sustainable, local, organic and natural say very little to individuals, families and neighborhoods about long term food security. In my view, food security means better personal health, a more enjoyable social life and a diverse natural environment in urban and rural communities. And although this definition sounds fine, it lacks measurable qualities that will translate into food purchases.

If consumers are to support food security with their food dollars, new "sustainable food brands" will need to offer a value proposition that can be easily quantified and communicated. The goal is to convince millions of consumers to spend their money on truly sustainable (last forever) food systems. My sustainable food value proposition includes:

•  Steady farm profits
•  Living wages, safe working conditions and benefits for field and packinghouse workers
•  Competitive returns to investors and landowners
•  Effective soil, water and wildlife management
•  Healthy, affordable foods 

At first blush, it may seem impossible to add up the costs and benefits of all the items on this list. But environmental economists already have much of the data. For example, it is not hard to count the number of cows that spend their summer days outdoors on pasture, which is much less damaging to soil and water compared to confining the cows and feeding them a steady diet of bailed hay with large amounts of grain. The real problems are in establishing new pastures and starting new organic dairies close to population centers, and then selling the milk - at much higher prices!

Farmer-Retailer Partnerships

As individuals, our nation’s small farmers cannot convert to sustainable methods because they do not generate the cash flow needed to compete with conventional foods. This is NOT to say that small farmers and gardeners have no place in the future of sustainable agriculture, or that direct sales methods are misplaced. In fact, local growers already serve as the public face of sustainable agriculture. Their role should be greatly expanded - with backing from local retailers. Food manufacturers and distributors can also help, but retailers are in the best position to support change because they are in daily contact with consumers. They also have far more pricing power than small growers and cooperatives. Retailers include restaurants, grocery stores and food services – any food business that directly serves the public.

In time, the link between farmers, cooperatives and retailers will be formalized in standard supply contracts that call for pastured cows and free-range chickens, etc. etc. These contracts are essential if urban and rural farmers are to make enough money to care for the land, their families and their communities. These agreements will be supported by bar-coded labels with websites that are backed by on-site inspectors who look at the pastures and make sure that living wages are paid. The National Organic Program already oversees an extensive on-site verification program, although extensive modifications will be needed to accommodate new standards and data.

Local Investors and Economies-of-Scale

But supply contracts and verification are still not enough. Local financing is needed to build economies-of-scale from production through distribution - without undue financial risks to any member of the food chain. One way to achieve this goal is for growers, landowners and investors to form “brand partnerships” that are financed largely by risk capital and income from sales, rather than by loans secured by farm land (see next page).
Private risk capital is essential because government agencies, non-profits and land grant universities are not up to the task of leading on sustainable foods. Conflicts of interest are only part of the problem. While many talented researchers and non-profit managers are genuinely interested in food issues, they frequently depend on grants and donations to do their work.

Further, only the private sector can make and manage supply contracts and finance large-scale operations. By definition, sustainability requires steady profits. And although foundations, government agencies and non-profit organizations can help, sustainable agriculture must learn to earn its profits in large retail venues that serve major cities. There is no economic, environmental or social justification for ignoring the established food system, including warehousing and distribution firms that are capable of tracking products with modern scanning technology and database tools.

Entrepreneurs

Investors will be attracted to entrepreneurial growers and retailers who can develop sustainable brands and rapidly increase sales. These new brands will also require professional marketing and other business services such as environmental analysis and financial accounting.

In closing, Woody Tasch in his Inquiries into the Nature of Slow Money (Chelsea Green) offers a set of essays on money, food and soil that contrasts the effects of unbridled economic power with the potential benefits of food cultures organized along the lines suggested by E.F Shumacher and Wendell Berry. The proposals offered here might well expose these authors to a much wider audience by building on the work of sustainable farming advocates, including my late father Bob Steffen, formerly farm manager for Father Flanagan at Boys Town. The challenge is to find the economies of scale that lie between Small is Beautiful and the realities of the established food system – all without ignoring the real needs of land, labor, capital and management.

End, 08-31-10