As if Alaska agriculture isn't facing a monumental handicap every day ~ between the US government regulations, State of Alaska statutes, various Borough rules, regulations and taxes, an adverse growing climate, lack of transportation infrastructure, and so on......there is always, always, the blind.
It's a safe bet you never thought of this blindness extending to Alaska Ag, but it is all too true.
This blindness extends to every producer who cannot see beyond his or her fence line. They cannot see that a rising tide lifts all boats, and will torpedo the competition out of malice, or spite, or ignorance, or fear, or whatever loathsome impulse prompted their words or deeds. They just can't wrap their minds around reality-that it's all inter-connected here in this state, much more so than any other place in the L48.
So think about this: Nearly all producers would be willing to undertake more crops, or livestock. And why haven't they? Much of it rolls back around to the high costs of feed. Since there is hardly any new lands being developed, and much turning into subdivisions, the obvious answer is to open up the fallow lands for crop production-wherever they may be. And there are hundreds of acres of once productive farm lands, safely held by the State itself, awaiting their onerous, and stupendously expensive "state land auction" sales, priced nicely at residential or commercial rates and precluding farming quite nicely. There are two other large land owners here, aside from the State itself, and that is the University of Alaska, and the Mental Health Trust. Neither of those entities are particularly great stewards of that resource as both arrive in Juneau every year, hat in hand, for more money. Are they blind too? Of course they are. Could these properties become productive and increase Alaskan agriculture? Yes, much of it could. But they too, are blinded by policy, blinded by statute and regulation and a bank of bureaucrats in suits, carefully hoarding their assets away from the sordid public.
Now as to the cost of producing feed, much can written. But it boils down to actual costs. Fertilizer, equipment maintenance, insurance, taxes, all those mysterious overhead items that end up proving to the work worn farmer that the only person getting anything out of the deal is whoever holds the bank note on the place. Fertilizer costs skyrocketed when the Agrium plant closed, requiring all fertilizer to shipped from down south. When prices went from $350 a ton, to over a thousand, that cost was carried through to the crops produced. Even 25 years ago, on a very productive little patch of Valley land, my fertilizer cost *alone* was nearly $3 a bale of mixed timothy and brome hay. This is why barley and oats and hay are $300 to $400 a ton, and more. Since Alaskan farmers roll the dice on one crop in most areas, many cannot weather repeated crop loss financially. This is why many of them are still working off the farm-in what other areas would be called "gentleman farming" but up here, is many times a necessity. Then there's taxes. The organized Boros have "exemptions" for "agriculture"/ What this means is that if you can squeak out a percentage of your income from farming, they'll only tax you at a percentage of your regular taxes. When you die, your heirs get to inherit that back, uncollected tax liability-not helpful for family farms, now is it? But that's the way of it. Where they can levy taxes, they continue to rise because the tax man is a beast that is never satisfied. Not enough money to run the government? Why just increase assessed value, and voila! Bigger tax roll, and around and around it goes, until the farmers have given up, subdivided and sold out.
Once a person does manage to scratch onto the Alaskan farming scene, they are soon met with this reality: There is only one insurance company. Yes, a monopoly. Is there a solution? Oh probably, but it would require the concerted efforts of elected representatives, insurance industry types, and would take years to shepherd through to the Governor's desk for signature. Such resolve does not afflict Alaskan politicians, never mind its agricultural promoters. Again, a blind spot as wide as the YK Delta.
So if the legislative nonsupport, the statute and/or regulatory process remains invasive and expensive, the financial burden nearly impossible to surmount, there is always the heroic size of Alaskan egos to face. Of course, that comes with substantial pitfalls as a certain enterprising man figured out this year......envy may have been the catalyst that lead to the lie that lead to cancelled leases....but that is just speculation. In the end, the movers and shakers in Alaska Ag rolled an eyeball at the young farmer, and voila! Successfully ran another committed, hardworking, and entrepreneurial person right out of Alaska Ag.
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