Bankers, Farmers, Agri-business and Capital

By Benjamin Gisin
Financial consultant to farmers, lecturer and former banker,

At its peak in 1935, America, had almost 7 million family farms. Today there are a little over 2 million, a 70 percent loss. So how did it happen?

The background most people have from education and media is insufficient in being able to support an understanding of how it happened. This is not a criticism, but a statement that education and media don’t understand how it happened either. So if you like exploring outside the box, you will have fun with this one.

So why understand the capital in capitalism? Capital, and the processes that unfold downstream after capital is created, are what have driven America to cleanse itself of most family farms, job security and millions of jobs.

If you don’t understand capital, you won’t understand how capital can suddenly checkmate your farm.

In its purest form, capital is money. In its purest form, money is what banks owe. Now this requires a little more explanation that will be forthcoming in future discussions.

The nation’s banking system is at the heart of where capital is formed. So consider for a moment how the banking system’s primary role has been as the final undertaker of the family farm as opposed to its much weaker role in sustaining the family farm. There is great wisdom that will come over time from contemplating this.

Most all bank employees, like farmers, are innocent cogs with little or no understanding of the larger accounting matrix into which their life’s energy is given.

We must be careful in blaming bankers for creating the capital that we so eagerly pursue in our everyday constructions of a capitalistic world. The real blame may be in our shortcoming of never really questioning why capital saves farm numbers in small increments, while it cleanses the world of farm numbers in large increments.

Stay tuned for Discussion #2

Gisin’s 20-year banking career culminated as the senior agricultural approval officer for the nation’s 7th largest ag bank. Since 1997, he has and continues to consulted farmers facing challenges in the credit markets. He lectures nationally on banking, economics and the processes of capital.

Bold type has been added by our editor at Monday Small Biz Buzz