FAQ's

So why aren’t farmers taking their own exit?

There are a lot of good reasons.

First, people think multigenerational farms are inherited. They usually aren’t. Adult kids have to buy it off their parents. This gives them a lot of debt to have to pay back so they don’t lose the family farm. Converting farms is expensive. It also means less income while it’s being converted. It’s a big risk with debt. Also, they have to support their families and their farm hand’s families.

On top of that, more and more farmers are getting close to retirement without a next generation that wants to take it over. It makes more sense to them to stick with what they know until they retire.

These things are why Great Basin Green starts with non-farm income. Books, movies, and merch. Donations are helpful too! I won’t be near retirement for another 50 or more years. But avoiding debt is critical to making changes in a timely manner.

How will you make sure the generational problem goes away?

Multiple ways! First, I’ll create a trust that holds conservation easements on the land that limit development and prohibit abandonment without restoration. The trust will be funded by the brands the farms produce.

Next, as the changes to the business model get implemented, the farmhands will earn employee ownership. Instead of the longevity of the farm depending on my kids or grandkids, it’ll depend on there being people wanting to work the farms. Farm hand’s kids will get to grow up farming and earning ownership early. Something only farm owner’s kids get right now.

So what’s with this business model stuff?

The business model is everything to making this successful. Right now, numerous small farms sell a commodity. They’re at the very bottom of the value chain in getting products to consumers. Roughly 75% of the profit gets earned by other businesses after the commodities leave the farm. Plus, it’s every family farm for itself. They’re friends and they’ll help each other out in a bind, but they’re all running separate businesses.

This business structure promotes extraction. Extract water. Extract soil nutrients. Sell the commodity to whoever will buy it.

Great Basin Green consolidates ownership to promote team work, builds brands to sell instead of commodities, and uses the employee ownership to promote value growth instead of value extraction.

On commodities vs brands, think about a famous carbonated beverage brand that uses high-fructose corn syrup. Who has the power to make changes? The big, world-famous brand, or the corn farmer? The brand can do whatever they want. The corn farmer has to find a corn buyer.