Worldview: Crowdfunding and risk

I’m a big fan of crowdfunding, that idea put forward by websites like Kickstarter and Indiegogo that allows people with ideas to connect with groups of people interested in their idea to help fund it. I’ve helped fund a few ideas myself.

Recently, I’ve been reading a lot about crowdfunding initiatives that have failed and the various amounts of ire felt by the people who helped fund those initiatives. Most of these articles leave me shaking my head.

What it seems that most people who engage in crowdfunding fail to realize is that it is simply another form of venture capitalism, one with usually lower dollar amounts and with the risk distributed among far more people. Venture capitalists will tell you that such initiatives are fraught with risk and that many, if not most, of them fail at their initial premise even if they eventually go on to succeed.

Crowdfunding is not some kind of magic elixir for success for ideas the Man won’t fund. Instead, it is venture capitalism for the masses, a mechanism to bring ideas forward that would not otherwise have a chance for all sorts of other reasons, usually profit margin.

In realizing that crowdfunding is venture capitalism, crowdfunders should realize there is going to be risk. A lot of it. Not a small number of projects are going to fail. Even after they are funded. Sometimes even after the product has been produced. There will be all kinds of reasons for these failures. They can’t be helped. They can’t be stopped.

And none of these things should stop dedicated crowdfunders from continuing to crowdfund. I know, for me, realization of this risk has made be a particularly discerning funder. I watch a lot of projects for a long time before I commit, and there have been more than a few successful projects I decided not to invest in because I was not sure. There have been some projects that I have invested in only to have them fail. That’s how the system works.

But, beneath all of those ideas, is the critical idea that makes crowdfunding worth it: giving life to ideas that might not otherwise succeed even though they are worthwhile simply because they will never make enough money to become a larger venture. Crowdfunding bypasses the court of the big venture capitalists and gives the little guys a chance.

Risk and all, that’s a venture worth supporting.

DLH

Read more at my Worldview site...

Worldview: Thoughts from Innisfree on the Stillwater: Non-industrial farming as a vow of poverty

I had an interesting conversation with someone the other day that included the idea that the other person would be interested in farming as a career except for the vow of poverty. At the time, I laughed, and I still am, but the idea has had me thinking since then.

In a lot of ways, non-industrial farming is never going to be a cash laden business. In fact, as far as I can tell, it never has been. One of the popular mantras among the industrial tycoons and capitalists of the 1880s and after was that America was a poor nation because so many people farmed, and if one limited one’s view to cash on-hand, they were right.

But, they were really so wrong.

Sure, non-industrial farming is not a cash laden undertaking, but that does not mean the business nor the people doing it are poor. Instead, such farming is very much a lifestyle choice that runs against the grain of the industrial-capitalist mindset that dominated much of the last 100 years.

Further, there was plenty of money in farming before consumerism came along. Just take a drive through the cities of old small town America and you will see the money farming provided in the form of stately houses and downtown businesses built by retired farmers after they handed their farms off to their kids and moved to town.

No, what makes non-industrial farming seem like a vow of poverty is the reality that one cannot have two-thirds of ones budget go out in the form of consumption if one wants to make it.

So, instead of being a vow of poverty, non-industrial farming is a vow not to be a wanton consumer. Most of the people I know in this business, myself included, who are not working second and third jobs to fund consumption go without most of the things most people think of as modern life. We don’t have mortgages. We pay with cash. We don’t have cable or TVs. Not a small number of people go without cell phones and internet service.

Instead of having those things, we invest in our farms. We grow our own food. Some of produce our own lumber. A few even make their own fuel. We fix up old stuff and use it instead of buying new. We buy functional clothes instead of fashionable ones. We shop at Goodwill.

And in doing so, we have adopted a life that is just different from what most people know. Sure we think it’s better, but that’s because it suits us.

Maybe instead of a vow of poverty, then, it’s a vow of contentment. I’ll take that any day.

DLH

Read more at my Thoughts from Innisfree on the Stillwater weblog...

Read more at my Worldview site...

Thoughts from Innisfree on the Stillwater: Where’s your foodshed?

I just came across a term I really like. It’s called foodshed. Like a watershed, it refers to the idea of where one’s food comes from.

So, where’s your foodshed? Is it big enough? Does it grow the kinds of food you want to be eating? If not, what are you doing about it?

DLH

Read more at my Thoughts from Innisfree on the Stillwater site...

Thoughts from Innisfree on the Stillwater: Employing America by feed it

Monty Python ruined things for all of us. How so? Because if you mention a career in growing food, this is what most Americans think:

And most of the time, that’s where the conversation ends, even if one has more to say on the subject.

Yet, as the Greenhorns blog pointed out recently,  one way to put Americans back to work is to encourage them to go into food production careers.

Of course, it’s more complicated than that. I know because I’m an American who decided to pursue a food production career. What I found is that I can be done, but our government could make it easier for more people to do it.

I’m not talking about throwing borrowed money at the problem. No, I’m talking about getting rid of the mountain of rules and regulations that strangle small farms. Sure, those rules and regs might be appropriate to control industrial ag producers. Most small farms have nothing to do with the problems big ag producers create.

Instead, what small farms need is rules and regs that help us hire. That help us invest. That help us succeed without penalizing us for success.

I imagine that, with a simple set of rule changes that differentiate small-scale and sustainable food production from industrial agriculture, America’s small farms could easily put 1 to 2 percent of the people currently employed back to work in careers with nearly infinite potential for future employment. I’d bet that quite a few of those 1 to 2 percent would go on to establish their own small farms and hire people of their own.

If only our government would listen. And care. And act. If only the voters thought this was important.

So, we keep trying. Maybe, eventually, we can change the view to something more positive.

DLH

Read more at my Thoughts from Innisfree on the Stillwater site...

Worldview: When you look at your country, who do you see?

To me, last night’s State of the Union Address represented the same kind of drivel that I’ve come to expect from all of our politicians for years. Obama went right to the boasting and political pandering that has defined national politics since I first started paying attention to it decades ago.

The centerpiece of Obama’s pandering is the idea that Americans need the government to take care of them. To the people in Washington, it’s no longer a government of, by, and for the people but a government above, around, and in front of the people.

That thought leads me to the thing that has been bothering me about this election cycle since it began way back after Obama was elected in 2008: why do we spend so much time worrying about presidents and Congresses and national politics at all? Shouldn’t those things pale in comparison to what each of us are doing as individuals wherever we are?

Last night, Obama said, ”I’m a Democrat. But I believe what Republican Abraham Lincoln believed: That Government should do for people only what they cannot do better by themselves, and no more.” The problem is that what he believes the people cannot do better themselves and what I think have nothing to do with each other at all.

If Obama believed those words the way I do, he would do exactly two things: first, he would demand that Congress include the Constitutional justification for every law it passes. If it doesn’t fit, it doesn’t go into law. Second, he would demand that Congress begin systematically dismantling the federal government until it returns to the size and scope of powers enumerated in the Constitution and its amendments.

But, Obama doesn’t believe in that at all. No, instead he believes in a government of the government, by the government, and for the government. In his view, the people need to be taken care of. They need to be ruled.

And the reason he can get away with that idea is because of you. It’s because you’re so worried about electing a president who can fix your problems instead of you fixing them yourself. It’s because you’re so worried about what’s going on in Washington that you’re not worried about what’s going on down the street. It’s because you’ve decided that the idea of being taken care of sounds kind of nice, and if you’re honest with yourself, that’s what you’re paying attention to and voting for.

So, look around you. Who do you see? Do you see a nation full of exceptional individuals who should all be given the maximum opportunity to succeed by the merits of their own work? Do you see opportunities to help others and, by doing so, help yourself? Do you see a future that lies in your hands and a destiny you determine?

Or do you see a bunch of things you want someone else to do because you don’t feel like doing it?

The sad part is that, as our government systematically dismantles our liberty in order to make us all safe and comfortable, it guarantees our demise. The history of great nations tells us that is true. And, the ones who will survive and flourish in whatever comes after that demise are the ones who take matters into their own hands.

Now, look in the mirror. Who do you see? Do you see a person ready for whatever comes next?

If not, do something about it.

DLH

Read more at my Worldview site...

Farming: Feeding the world without reducing the problem to the absurd

I’ve been following the growing absurdity of the media fueled meme about food production since the UN declared the world officially hit 7 billion people with a mixture of frustration and amusement. The center-points of this meme are that we will have to grow as much food over the next 100 years as humanity did over the last 10,000 and that the only way we could possibly do so is by intensifying our current industrial farming methods.

Unfortunately for most of the pundits spreading this meme, their argument fails on a simple apples to oranges comparison. The way humanity produced food over the past 10,000 years bears almost no resemblance to the way we’ve been producing food since the 1950s, and it is this radical shift that has produced so much of the problem we have today.

For most of mankind’s history, most humans were involved in food production. There were times and places where the number of people involved reached as high as 90 percent, and as recently as the 1910s in the United States, as much as 50 percent of the population was involved directly in food production. If you add in those whose work supported food production, the number reaches as high as 80 percent.

And the way these people farmed was completely different than the way we farm now. Historical farming was possibly one of the most green and sustainable undertakings humans have ever mastered, using crop rotation cycles involving dozens of crops lasting dozens of years, direct recycling of organic waste, and intentional use of multiculture to improve fertility and reduce waste. There are still parts of the world, especially in Asia, where these production methods are used to this day.

Now, fast forward to 2012. In 2011, as few as 1 percent of the US working population (about 1.6 million of 160 million people) work in direct food production. If you add in those whose work supports food production, the number barely climbs to 2 percent. Further, nearly all American agriculture consists of just eight crops, two of which aren’t even edible (cotton and tobacco) and three of which (corn, soybeans, and wheat) represent as much as 70 percent of acres planted. Meanwhile, most organic waste gets buried in landfills and modern farming requires massive amounts of fossil fuels to make anything grow at all.

Further, most Americans–in fact most Westerners–think it is their right to demand someone else grow their food in exchange for money. Many Americans believe food production is beneath them because they have better things to do with their time. Most people have no idea what it takes to feed them and assume that whatever it does take will continue to go on forever.

No wonder we face a food crisis of epic proportions.

The solution to this problem is not more of the same failed approach since the 1950s that got us here. We already have examples of ways things can be done better. For instance, during the height of the central planning induced famine in the Soviet Union during the late 1970s and early 1980s, as much as 70 percent of the calories consumed in Russia were grown on 4 percent of the available arable land by local farmers on small allotments that usually measured about a tenth of an acre. In urban Detroit, as I write this, small-scale sustainable farmers are creating farms capable of feeding entire neighborhoods without the need for grocery stores. In sub-Saharan Africa, farmers are returning to traditional farming methods that worked for millenia before European intervention and multiplying their yields by factors of hundreds.

In short, these problems have solutions and the solutions are already out there, but they all take the following form: smaller-scale agriculture involving more people using more intensive methods involving more plants and animals that take into account the entire cycle of birth to death to birth again.

In fact, these methods represent a return to something nature has been telling us all along: we’ve departed from the way it works and it’s not going to let us win. The methods that fed humanity for 10,000 years worked with nature. The methods that we’ve used since the 1950s have destroyed it.

So, consider the following: if the United States would engage in an agricultural “Apollo Program” wherein it created an environment where agricultural entrepreneurs seeking to establish sustainable operations could succeed without unnecessary government or corporate interference, agriculture by itself could reduce the unemployment rate, reduce US dependence on fossil fuels, increase biodiversity, reduce pollution, and produce unprecedented food surpluses that would help redress the food imbalance in the world. And if the US does it, everyone else will follow.

Don’t believe me? Visit a local sustainable farm or a local farmer’s market and see what they have going on. Then, go home and dig up part of your yard and grow something yourself. Humans have been doing it for 10,000 years. What makes you think you’re so special?

DLH

Read more at my Farming site...

Farming: Feeding the world without reducing the problem to the absurd

I’ve been following the growing absurdity of the media fueled meme about food production since the UN declared the world officially hit 7 billion people with a mixture of frustration and amusement. The center-points of this meme are that we will have to grow as much food over the next 100 years as humanity did over the last 10,000 and that the only way we could possibly do so is by intensifying our current industrial farming methods.

Unfortunately for most of the pundits spreading this meme, their argument fails on a simple apples to oranges comparison. The way humanity produced food over the past 10,000 years bears almost no resemblance to the way we’ve been producing food since the 1950s, and it is this radical shift that has produced so much of the problem we have today.

For most of mankind’s history, most humans were involved in food production. There were times and places where the number of people involved reached as high as 90 percent, and as recently as the 1910s in the United States, as much as 50 percent of the population was involved directly in food production. If you add in those whose work supported food production, the number reaches as high as 80 percent.

And the way these people farmed was completely different than the way we farm now. Historical farming was possibly one of the most green and sustainable undertakings humans have ever mastered, using crop rotation cycles involving dozens of crops lasting dozens of years, direct recycling of organic waste, and intentional use of multiculture to improve fertility and reduce waste. There are still parts of the world, especially in Asia, where these production methods are used to this day.

Now, fast forward to 2012. In 2011, as few as 1 percent of the US working population (about 1.6 million of 160 million people) work in direct food production. If you add in those whose work supports food production, the number barely climbs to 2 percent. Further, nearly all American agriculture consists of just eight crops, two of which aren’t even edible (cotton and tobacco) and three of which (corn, soybeans, and wheat) represent as much as 70 percent of acres planted. Meanwhile, most organic waste gets buried in landfills and modern farming requires massive amounts of fossil fuels to make anything grow at all.

Further, most Americans–in fact most Westerners–think it is their right to demand someone else grow their food in exchange for money. Many Americans believe food production is beneath them because they have better things to do with their time. Most people have no idea what it takes to feed them and assume that whatever it does take will continue to go on forever.

No wonder we face a food crisis of epic proportions.

The solution to this problem is not more of the same failed approach since the 1950s that got us here. We already have examples of ways things can be done better. For instance, during the height of the central planning induced famine in the Soviet Union during the late 1970s and early 1980s, as much as 70 percent of the calories consumed in Russia were grown on 4 percent of the available arable land by local farmers on small allotments that usually measured about a tenth of an acre. In urban Detroit, as I write this, small-scale sustainable farmers are creating farms capable of feeding entire neighborhoods without the need for grocery stores. In sub-Saharan Africa, farmers are returning to traditional farming methods that worked for millenia before European intervention and multiplying their yields by factors of hundreds.

In short, these problems have solutions and the solutions are already out there, but they all take the following form: smaller-scale agriculture involving more people using more intensive methods involving more plants and animals that take into account the entire cycle of birth to death to birth again.

In fact, these methods represent a return to something nature has been telling us all along: we’ve departed from the way it works and it’s not going to let us win. The methods that fed humanity for 10,000 years worked with nature. The methods that we’ve used since the 1950s have destroyed it.

So, consider the following: if the United States would engage in an agricultural “Apollo Program” wherein it created an environment where agricultural entrepreneurs seeking to establish sustainable operations could succeed without unnecessary government or corporate interference, agriculture by itself could reduce the unemployment rate, reduce US dependence on fossil fuels, increase biodiversity, reduce pollution, and produce unprecedented food surpluses that would help redress the food imbalance in the world. And if the US does it, everyone else will follow.

Don’t believe me? Visit a local sustainable farm or a local farmer’s market and see what they have going on. Then, go home and dig up part of your yard and grow something yourself. Humans have been doing it for 10,000 years. What makes you think you’re so special?

DLH

Read more at my Farming site...

Farming: Feeding the world without reducing the problem to the absurd

I’ve been following the growing absurdity of the media fueled meme about food production since the UN declared the world officially hit 7 billion people with a mixture of frustration and amusement. The center-points of this meme are that we will have to grow as much food over the next 100 years as humanity did over the last 10,000 and that the only way we could possibly do so is by intensifying our current industrial farming methods.

Unfortunately for most of the pundits spreading this meme, their argument fails on a simple apples to oranges comparison. The way humanity produced food over the past 10,000 years bears almost no resemblance to the way we’ve been producing food since the 1950s, and it is this radical shift that has produced so much of the problem we have today.

For most of mankind’s history, most humans were involved in food production. There were times and places where the number of people involved reached as high as 90 percent, and as recently as the 1910s in the United States, as much as 50 percent of the population was involved directly in food production. If you add in those whose work supported food production, the number reaches as high as 80 percent.

And the way these people farmed was completely different than the way we farm now. Historical farming was possibly one of the most green and sustainable undertakings humans have ever mastered, using crop rotation cycles involving dozens of crops lasting dozens of years, direct recycling of organic waste, and intentional use of multiculture to improve fertility and reduce waste. There are still parts of the world, especially in Asia, where these production methods are used to this day.

Now, fast forward to 2012. In 2011, as few as 1 percent of the US working population (about 1.6 million of 160 million people) work in direct food production. If you add in those whose work supports food production, the number barely climbs to 2 percent. Further, nearly all American agriculture consists of just eight crops, two of which aren’t even edible (cotton and tobacco) and three of which (corn, soybeans, and wheat) represent as much as 70 percent of acres planted. Meanwhile, most organic waste gets buried in landfills and modern farming requires massive amounts of fossil fuels to make anything grow at all.

Further, most Americans–in fact most Westerners–think it is their right to demand someone else grow their food in exchange for money. Many Americans believe food production is beneath them because they have better things to do with their time. Most people have no idea what it takes to feed them and assume that whatever it does take will continue to go on forever.

No wonder we face a food crisis of epic proportions.

The solution to this problem is not more of the same failed approach since the 1950s that got us here. We already have examples of ways things can be done better. For instance, during the height of the central planning induced famine in the Soviet Union during the late 1970s and early 1980s, as much as 70 percent of the calories consumed in Russia were grown on 4 percent of the available arable land by local farmers on small allotments that usually measured about a tenth of an acre. In urban Detroit, as I write this, small-scale sustainable farmers are creating farms capable of feeding entire neighborhoods without the need for grocery stores. In sub-Saharan Africa, farmers are returning to traditional farming methods that worked for millenia before European intervention and multiplying their yields by factors of hundreds.

In short, these problems have solutions and the solutions are already out there, but they all take the following form: smaller-scale agriculture involving more people using more intensive methods involving more plants and animals that take into account the entire cycle of birth to death to birth again.

In fact, these methods represent a return to something nature has been telling us all along: we’ve departed from the way it works and it’s not going to let us win. The methods that fed humanity for 10,000 years worked with nature. The methods that we’ve used since the 1950s have destroyed it.

So, consider the following: if the United States would engage in an agricultural “Apollo Program” wherein it created an environment where agricultural entrepreneurs seeking to establish sustainable operations could succeed without unnecessary government or corporate interference, agriculture by itself could reduce the unemployment rate, reduce US dependence on fossil fuels, increase biodiversity, reduce pollution, and produce unprecedented food surpluses that would help redress the food imbalance in the world. And if the US does it, everyone else will follow.

Don’t believe me? Visit a local sustainable farm or a local farmer’s market and see what they have going on. Then, go home and dig up part of your yard and grow something yourself. Humans have been doing it for 10,000 years. What makes you think you’re so special?

DLH

Read more at my Farming site...

Worldview: Truth

I can speak to the truth of this one personally. The burden of government intervention in small business is so heavy that it is almost not worth doing it. My biggest reason for staying in business sometimes is to continue to aggravate the government.

The Day by Day Cartoon by Chris Muir, http://www.daybydaycartoon.com/2011/08/14/

While you’re at it, head on over and support is small business.

DLH

Read more at my Worldview site...