FOOD INSURANCE
posted on
March 7, 2022
WHAT IS FOOD INSURANCE?
Insurance – a practice/arrangement by which a company provides a guarantee of compensation for specific loss in return for a payment of a premium
Hedge – investment position intended to offset potential losses that may incur; can be constructed as forward contracts and future contracts to establish an agreed upon cost generally immune to market volatility
Food Security – the measure of the availability of food and individuals’ ability to access it
Inflation – a progressive increase in prices of goods and services in an economy; when the general price level rises, each unit of currency buys fewer goods and services; inflation corresponds to a reduction in the purchasing power of money
Food Insurance – a mechanism to establish personal security for food and based on a forward contract (with set premiums) that establishes a set price for goods that is immune to global and regional market volatility, impacts of inflation, and the devaluation of currency.
THE THREAT TO YOUR FOOD SECURITY
The world economy is a vast network of interconnected and dependent parts. Our policy makers over the past several decades created a global economy of interconnected dependence. Majority of goods are made and shipped in from China. With the closing of the Key Stone Pipeline, one of our largest sources of oil is Russia. Our “domestic” automobiles are manufactured in Mexico and Canada and imported to the US. This interdependence places us at risk as evidenced by recent chicken shortages and ever-increasing prices. An event on one side of the globe has profound impact on the conventional system of production, distribution, and availability at your local big box store and grocer. Compound this over reliance with inflation, transportation backlogs, and devaluing of the dollar, you as a consumer are placed in a position where you can buy less with your hard-earned money (inflation).
Over the past two years of COVID, we have seen food shortages (due to government overreach and crony capitalists) resulting from meat packers shutting down facilities and further increasing the cost of chicken and beef in the grocery store. Last fall, we had a “gas shortage.” Today, we see over $4 a gallon for unleaded and $5 a gallon for diesel. The effects of oil affect the cost of your food. Nitrogen fertilizer (being a petroleum product) has increased in cost. This increases the cost of production for the conventional farmer who has an over dependence on fertilizer to produce corn and soybeans. The conventional model of production for meat makes the CAFO (concentrated animal feeding operation) dependent upon cheap gain from starch laden grain (corn & soybeans). The increase cost of producing a bushel of corn is past to the feedlot. The feedlot then passes this cost onto the meat packer, distributor, grocery store, and onto you as the consumer. It’s simple economics.
ACHIEVING FOOD SECURITY INSURANCE
Today you, like the majority of Americans, are dependent and at the mercy of the global network for your food. You need food security and the means to hedge against the cost of inflation, the devalued dollar, and politics.
The convenience of being a small local, regenerative operation is we are relatively immune to the impacts of global dependence. We do not use petroleum-based fertilizer as our livestock do not depend upon grain but feed on the bounty of land. As your local farm, we remain regionally focused. We’re not on a mission to “feed the world” but to feed you as our neighbor. The ever-increasing cost at the pump has limited impact on our operation. We do not use heavy equipment (tractors and trailers) to bring feed to our animals but allow the animals to feed themselves. No tractor – no fuel – no impact from $5 diesel. Being regionally focused, we are minimally impacted by the price of gas at the pump as we are only delivering to the Columbus area - not shipping an animal or product across the country.
We do not have a dependence on grain, diesel fuel, or fertilizer. Our operation has hedged against these overhead costs, which allows us to lock in our prices for the foreseeable future.
To secure your food for the future, at a locked in price, become a private member of Follow Me Land & Livestock.
Farm Private Membership - Follow Me Land & Livestock (grazecart.com)
Only the Best for Your Family and Ours
Why stop here? Discover more!
The Stark Truth: Grain-fed vs. Grass-fed - Follow Me Land & Livestock (followmelandlivestock.com)
Freedom Chicken - The Healthier Choice - Follow Me Land & Livestock (followmelandlivestock.com)
