Economics and Permaculture
Permaculture is as much about developing sustainable and non exploitative economies as it is about sustainable and non exploitative agricultural systems.
If permaculture is going to survive and thrive, it must also make economic sense from a business perspective.
There are two business models I am currently aware of that have been developed for the specific purpose of acting as a template that other people can utilise when going into industrial scale permaculture for profit.
The first model is the "Fiefdom" model developed by Joel Salatin. Joel is a multi-generational farmer who argues that young farmers can't get into the farming business unless old farmers are getting out. Meanwhile, old farmers can't get out unless young ones are getting in.
To address this conundrum, Joel recognised that young farmers want their own independent, yet connected, profitable enterprise (fiefdom) within a farming operation to which they are wholly responsible.
He maintains that a farm is not robust or sustainable unless it is generating at least 2 income streams, and the fiefdom model addresses this by creating many independent businesses within the overall farming operation.
A fiefdom is created when a business agreement in the form of a Memorandum of Understanding (MOU) is signed by the farmer and an independent business owner who wishes to operate within the farm.
Provided that the business concept fits well within the network of other fiefdoms, and the farm as a whole, then a mutually beneficial agreement is reached and the new operation is introduced to the mini-economy.
On Polyface Farm, there are very few employees, as the people who work there operate their own business on the premises.
Here is a great article describing the fiefdoms on Polyface Farm and a link to Polyface Farm's guiding principles.
The second model is very new (as of April 2014) and is spear headed by Jack Spirko.
The initiative is called PermaEthos, which is a business that has created a template for establishing community based farming operations as profitable enterprises.
There is a very good pod cast series available where Paul Wheaton (the Duke of Permaculture) interviews Jack on this new undertaking:
Their flagship proof of concept farm is called Elisha’s Spring Farm located in West Virginia and is currently in the early stages of establishment:
The main difference between these two models is that PermsEthos provides a template and a more traditional corporate structure to their organisation. For example, they have an advisory board, shareholders and a board of directors.
The fiefdom model is more of a conceptual design, and Polyface farm is a successful working implementation of this concept.
Whichever system you follow, be it your own, or one of the models described here, the role of debt in your enterprise will play a key part in determining your success.
Modern farmers are typically heavily indebted due to the huge capital outlays required for a modern operation. They indenture themselves, and their future generations to the bank, effectively enslaving themselves to the point of perpetual serfdom.
It doesn't have to be this way. There are alternatives. Social networks within your local community are as powerful as they ever were, and yet we seem to have discarded them and taken on the mantra of being "self made".
Why borrow half a million dollars from the bank to purchase a big fancy combine that you use half a dozen times a year when you could rent one from a neighbour? You pay for it as you need it, and you don't have the headaches of storage, maintenance, and insurance.
Joel Salatin: Debt Free Farming
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