Parity Principles
Parity simply means equality—which is why it’s consistently vilified by free-market agriculture economists and in agribusiness publications. If you believe income inequality and abuse of our ecosystem and natural resources—along with governments that are perpetually strapped for tax revenue to provide important programs—is just the natural order—then stick with the free market, neoclassical, or neo-liberal economic theories that many of us learned in school and are the foundation of most economic discourse in the media. If not, and you realize that today’s agricultural system, and the system of valuing resources and labor in general, is serving no one but multinational corporations and their wealthy owners who hide anonymously behind corporate logos, law firms, and PR wizards, then rules of the economy based on parity is for you and hopefully future generations. Wealth should not be generated by pieces of paper or keyboard clicks at casinos like the Chicago Board of Trade or the New York Stock Exchange.
Today’s failing agricultural system can be explained by the lack of parity. When there is no public policy to make sure commodity prices keep up with inflation (the parity principle), inflation assures that farm income declines, fewer families can make a living on the land, and the remaining farmers must figure out how to farm more acres and increase yields. Agribusiness then offers the technologies to do that without any regard for farmers, rural communities, or the environment. Today’s corn and soybean prices are so low that giant vertically integrated livestock producers can feed their millions of livestock cheaply with clicks on the keyboard. Family farmers raising livestock with responsible crop rotations have become obsolete, so there’s no other choice than to keep ahead of the curve planting more acres of corn and soybeans and aiming for higher yields year after year.
This blog hopes to show we can build a new agriculture based on family farms and stewardship of the land, and the parity principle must be the foundation for change. We know that social conditions and climate will be in flux, so while parity is absolutely necessary, it will not be sufficient. A Just Transition will require that we must create the policies and the social recognition for change. No farmer has anything to fear, but instead is given the tools and the time necessary to transition to a model of farming that builds soil health, gets livestock out of confinements, creates community health and farming opportunities for many young people who know they want to become farmers.
25% Parity
100% Parity
George as a farm activist in the 1980’s at Hilton Coliseum in Ames with Farm Bureau “Hot Air” balloon