Category Archives: MONEY

Money – the Universal Religion

A RETURN TO THE GOAT STANDARD

3Pettis - Breakfast at Trevas for websiteEarly in my goat farming career I bought 6,000+ pounds of goats from a scalper named Floyd Thompson in neighboring Higgins, TX. – At the age of twelve, Will Rogers ran away from his Oklahoma home to Higgins to learn how to be a cowboy. – I agreed to pay 80 cents a pound for Floyd’s 68 rag-tag collection. We drove truck and trailer to the grain silo for an empty weigh-in and returned an hour later for the loaded tally. Wrote a $5,000 check from Shelby’s account and started my two-month saga to resell those puppies for at least 85 cents a pound.

For my first attempt I set-up shop on the highway outside Booker complete with a chain-hook scale. Three hours later $20 bucks for one lousy 20lb. goat sold to a Mexican slaughterhouse worker. Next try was a six pack at the Dodge City livestock auction for a whopping 75 cents a pound. A week later it was the same story at El Reno, the auction west of Oklahoma City, where scalper Floyd had purchased most of the sorry critters weeks before.

Before embarking on another furtive sales venture my goat buddy from up-the-road in Slapout, OK – called Slapout because when the general store was out of stock their response was, “sorry we’re slap out.” – Danny Nord, claimed that slaughter goat buyers wanted ‘wethers’ or neutered ‘billies.’ Taking out his pocket knife he performed the surgery on ten ‘billies’ who post op, laid around the pen with sorrowful facial expressions. Four subsequently failed to survive the experience. Dead goats brought zero cents thereby adding to my cost of goods sold.

mills

It was then suggested that I try selling the remaining stock at the sheep & goat auctions in Texas. Goldthwaite was the closest, seven hours straight south of Follett. Friday afternoon the deed was done, 75 cents for the motley ones and 85 cents for those showing Boer blood influence. When I got home to total all the damage I had sold my collection of hand me down goats for an average of 70 cents on the dollar. Of course the diesel fuel, chicken fried steak and cheeseburger lunches were not included. However, sale barn, livestock auction cuisine beats the truck stop any day.

koreshYou would think that like Adam Smith, the father of Economics who gathered his wisdom of the law of supply and demand at the Glasgow, Scotland sheep auction, I had learned my lesson. But after Shelby and I relocated the Anala Goat Company to Kendleton, TX, 50 miles southwest of Houston I became incentivized by the West African need for $1.25/lb. billy goats. Mrs. Kettler and her husband had over 200 Nubian goats on two acres in Waco, TX. They were a legend in Texas dairy goatdom for selling $7/gal. raw goat’s milk to David Koresh and his Branch Davidians. The ATF put an end to Mrs. Kettler’s number one customer and to top it off Mr. K, who did all the milking by hand, died.

The opportunity to purchase 40 of the best Nubian breeding stock billies for only a dollar a pound, was too much to resist. Borrowing another $5,000 check from Shelby, I loaded those bad boys up in Waco and drove straight back to the Nigerian chop shop in Houston. Woe is me the deal was off, that $1.25/lb. was good for the Christmas rush, and no longer applicable in January especially since Africans don’t celebrate the Super-Bowl.

Dairy goats in general are docile. Does for sure, Bucks not so for sure but Nubian Bucks are the noisiest, rowdiest, most obnoxious breed known to man. Now, Anala Inc. had forty of them in our backyard. Accidents, described as self-punishment in Louise Hay’s book Heal Your Body came to mind when I fed Shelby’s English Mastiff in the barn stall and all forty bad boys rushed in. The Mastiff sunk his two bicuspids into my thigh muttering under his fangs, “that’s for squandered five grand on ill-gotten ventures.”

teeth checkBecause Allah, like God, protects children, drunks and architects, I was spared from complete failure by my Palestinian goat vendor in Katy, who needed two-tooth billies for the Eid al-Fitr festival celebrated by Muslims around the world, marking the end of the holy month of Ramadan. Alhamdulillah, in 2002 Eid was in February. Eid al-Fitr in Arabic literally means “festival of breaking the fast” and back then it meant saving my ass.

After, the Houston Islamic community had opened every Nubian’s mouth to verify that they were two-toothed yearlings they accepted 39 of the four legged devils. One, the prettiest, had a limp and went home with me. Later, swept up in the biblical sense I branded the dappled fawn colored boy buck, Joseph “coat of many colors.” Although, the Palestinian paid me the over a barrel price of $1/lb. I eventually sold Joseph for $500.

josephYou see, Juan Valdez – he looked like a Juan Valdez, only taller – came out to our farm as the Goat Marketing Rep of the Texas Department of Agriculture and inquired about the handsome “coat of many colors” Joseph. “Did you get that buck from Mrs. Kettler?”

Yes, I did.

“That’s great cause she raises the best Nubians in Texas.”

I wondered if the Muslims thought they tasted good too?

At the end of my 400 days and 400 nights of selling goats door to door, I was convinced that a dollar a pound was a good price for any goat as long as it was still alive. Shelby, the CPA Systems Analyst brains of the analagoatcompany.com begged to differ and sent me and Rudy, my polka-dancing Czech-American goat buddy neighbor, off to San Angelo to deliver a dozen or so of our full blood Black Boer goats for $11,000 COD.

ali the turkThe COD part turned out to be a bad check but Rudy and I got to tour the Producers Livestock Auction, where every Tuesday 4,000 goats and 6,000 sheep are auctioned off.  Ali the Turk is the big buyer of sheep and goats in Texas. On Mondays, he’s in Junction, Tuesday he’s front and center in San Angelo, he ends his work week buying for the East Coast ethnic market on Fridays in Goldthwaite. He has his purchased sheep and goats loaded on four level cattle trucks for deliver to New Holland, Pennsylvania.

There are three million goats, six million sheep and 100 million cows in America and 80% of those live in Texas. Save for a couple hundred thousand in Dallas and Houston, the hardcore caprine eaters live in the New York, New Jersey area. Ali either sells direct to a slaughter house or is forced to re-auction them off in New Holland. As Adam Smith and I learned livestock auctions are the  Real World of price discovery.

US dollar Value 3-value-of-the-dollarNo longer in the goat business per se I’m still interested in economics and especially the value of my fixed income dollar. I was on a jet plane to Rio on August 15, 1971 when the flight was grounded in Panama because Nixon closed the ‘Gold Window.’ At the time I thought that was cute. My 1955 Social Studies teacher claimed the dollar was only worth 35 cents, in 1971 it was 25 cents and after Greenspan and Bernanke less than a nickel. I thought the great Satan Greenspan was having an Adam Smith moment when he recently touted the 1913 (when a dollar was a dollar) economy and a return to the gold standard.

I don’t know how much a goat was worth in 1913 or 1971 but in 2001, I know all too well. As of Wed Aug 10, 2016 according to the USDA Market News, an 80lb. wether – A bellwether is literally the lead sheep or goat wether that wears a bell – got $2.22 – $2.42 a pound or almost $200 at the San Angelo, Producers Livestock Auction.

The New Holland Sales Stables in New Holland, Pennsylvania is one of the most important livestock auctions in the country, due to its proximity to the northeast urban population. Twelve percent of all goats slaughtered in the United States will pass through this sale ring at New Holland, and 1.6% of all federally inspected sheep slaughtered in the United States pass through here. For sheep and goats, the New Holland market has national significance due to its proximity to the northeast region of the United States, where the greatest demand for sheep and goat products is located. Although 80% of all sheep are raised in the west and processed by four major packers, the prices set at New Holland are the benchmark that others look at. Because of the high prices at Eastertime, lambs from as far away as New Mexico will arrive in New Holland by the truckload for the Easter lamb sale. Auctions are an important way in which agricultural commodities are marketed; for small farmers, the auction is both a direct outlet for selling their products as well as the measure that sets prices for products sold privately.
The New Holland Sales Stables in New Holland, Pennsylvania is one of the most important livestock auctions in the country, due to its proximity to the northeast urban population. Twelve percent of all goats slaughtered in the United States will pass through this sale ring at New Holland, and 1.6% of all federally inspected sheep slaughtered in the United States pass through here. For sheep and goats, the New Holland market has national significance due to its proximity to the northeast region of the United States, where the greatest demand for sheep and goat products is located. Although 80% of all sheep are raised in the west and processed by four major packers, the prices set at New Holland are the benchmark that others look at. Because of the high prices at Easter time, lambs from as far away as New Mexico will arrive in New Holland by the truckload for the Easter lamb sale. Auctions are an important way in which agricultural commodities are marketed; for small farmers, the auction is both a direct outlet for selling their products as well as the measure that sets prices for products sold privately.

If Ali was forced to sell his goats at the New Holland sale barn in Pennsylvania on Mon Aug 15, 2016 he would receive a whopping $3.15 – $3.25/lb. or $250  for an unsubsidized, brush grazed, ruminant friend of the environment.

sheep goatsA Return to the Goat Standard says that inflation from a dollar a pound in 2001 to $3.00/lb. 15 years later in 2016 is close to 8% per year. Another way, the current price of our 80lb. wether in 2001 dollars is $2.18 the law of supply and demand at work.

Corn was $2.00/bushel for ever until the Ethanol subsidy goosed it up to $7.00/bushel in 2012 with the subsidy curtailed we’re back to $3.70 in 2016, which is still 40 cents a bushel higher than the 2001 price. The big big problem for the corn  producers is their need for $5.37/bushel just to break even.

The cattle price when I was in high school was 20 cents a pound but then a dollar was only worth 35 cents. Cows in Nixon’s 25 cent dollar era went for $0.28/lb. Cattlemen aren’t doing too well these days at $1.32/lb. for the less than a nickel Federal Reserve economy translates to $0.22/lb. in Nixon dollars and $0.15/lb. in my high school years.  Unlike goats, cows like alfalfa, feedlot corn and expensive anti-biotics to stay alive long enough to get to the auction. A mid-west farmer puts the cows and corn fiasco this way:

“Come on you guys just look around. I take a road trip every few years across America. Sometimes I cross the northern part of the country. Sometimes south. A few years (2008-11) ago I saw corn in every 3 cornered 3-acre patch of ground for a thousand miles. This year (Feb 2016) I saw cattle in every 3 cornered 3-acre patch. I no longer raise corn or cattle because I grew weary of mine and your predilection to produce ourselves into bankruptcy. If we could get the government out of agriculture, we would probably be ok. Get rid of all subsidies and I do mean all! Then we can let the market settle itself. Forget ethanol and CRP programs. We really don’t need them. The government does. Maybe the next regime will get out of our way…? Until then I will continue digging ditches.”

A Return to the Goat Standard or the Gold Standard as Greenspan calls it, is the only way to stop the Federal Reserve, Obama, Hillary etal. from taking our currency to infinity and beyond. Here is Nixon’s Gold Window fairy tale.

Gold should be $10,000/oz. to conform to amount of digital money that has been pumped into the world economy. It has been suggested that the US Treasury offer $5,000/oz. for gold to bring Nixon’s temporary solution to an end. If not Ali will be forced to pay $625/lb. for an 80 pound wether in San Angelo, Texas. A $50,000 goat sounds like a fair price to me but then what do I know.

 

MONETARY FEUDALISM

feudalism_then_nowAspirational career options for an ENFP on the Myers-Briggs personality test, were architect at the top and farmer at the bottom. After thirty years of very limited success trying to make my fame and fortune as an architect I gave farming a shot. My ten year goat farmer experience taught me how to survive and thrive as a member of the 98.5% Everyone Else proletariat.

My second wife and mother were both Aquarians, someone born between January 20 and February 19th. “Aquarians know too much about everything, which is a blessing and a curse.” They are like the teacher that knows all the right answers and everybody else are the students each with different levels of understanding. Fortunately for America, Abraham Lincoln was an Aquarian and held fast to his belief, that government of the people, by the people, for the people, shall not perish from the earth.”

BLOOM WHERE“Bloom where you are planted,” was my Aquarian wife’s mantra, her truth, her philosophy of life. It was one of the first cross stitch patterns she completed. She had it framed and intentionally hanging on the wall in our bathroom, as a daily reminder. I didn’t pay much attention or think much of it until we bought nine hectares of land, with a barn, in the countryside, 50 miles southwest of Houston. The acreage 150 years ago belonged to a plantation that was sold to the slaves that had been freed by that earlier Aquarian, Abraham Lincoln.

Shelby, my ENTJ Aquarian wife and livestock farming visionary, chose this location because it was the cheapest real estate in the Metropolitan Houston area.  ‘Race’ was the major cause for the low cost of land, Shelby and I, were the only white people in this poor farming community, surrounded on all sides by 3rd generation Czech  farms and businesses. Except for the Post Office, all grocery stores, gas stations, or anything you wanted to buy stores, were in the adjacent villages of Needville, East Bernard and Wharton. We didn’t care, we were there to raise dairy goats, not show horses. We were there to, bloom where Shelby planted us and blooming meant joining the 3% income crowd.  In 2001 that number was $150,000 ($200,000 in 2016 dollars).

Hilary-QueenToday, you need a $250,000 annual income to escape the maddening Everyone Else club. Wherever we are planted from Bangladesh to Boston, three percent is the magic number to be a player, but as in Las Vegas, the house odds guarantee that only two percent make it to financial independence. Half of those two per-centers never had to sweat it as they were born rich. George ‘W’ and Trump got their two per-cent creds at birth, while Obama and Hillary chose the Elected Officials route to Financial Independence.

I literally, slept in the barn, with fifty goats for a month until Shelby found a forty-foot park trailer in the “Thrifty-Nickel,” that we called home in our first “down on the farm,” year.  Although we planted ourselves in October 2000 we didn’t start to blossom until six years, later. That was a very long, long time and at least, a half million, pre Bush-O-Bama dollar investment. Only, an all-knowing Aquarian could find the funds, patience and resources to endure such a long growing season, two years longer than honest Abe took to free the slaves.

Shelby had carried with her, “Five Acres to Independence,” since high school, after university, she added “Your Money or Your Life” as her guide to financial independence.

Shelby and Abe are no longer with us and I have re-potted myself two, three and four times since ending my farming career to enjoy the expat lifestyle in Antalya, Turkey where “everyday is truly a holiday and every meal a banquet.” Unfortunately, I am still dependent on my PGBC pension and SSA income to continue endow my life of Riley retirement.

Seeds of discontent, aka worry, started sprouting when I began gambling on Binary Options to supplement my endangered entitlements income source. The good news, after three years of practice and six months for real, I’m at break-even status. The bad news, the more I learn about money the scarier it gets. Five and a half days a week five trillion dollars changes hands in the world currency market. That doesn’t include my daily $1 wager at  https://marketsworld.com/ because binary options are derivatives, bets on what the real money traders are betting.

untouchablesMy real worry is that the Central Bankers today’s Monarchs and the Bankers, the Landed Gentry of yore, don’t have a clue on what to do about the global economic situation. Remember when Alan Greenspan said that:

“his whole intellectual edifice had been destroyed?”

As an architect I tried to get the Corporate Elite to hire The Austin Company to design, engineer and construct their production facilities. This came to be an ever increasing challenge as manufacturing – Austin’s 100 year-old bread and butter market – moved overseas. China took the company’s bread and butter away and following bankruptcy and my pension was salvaged by the PGBC. Our Central Bankers, Bankers, Top Bureaucrats and even our Top Professional financial analysis say that the PGBC and SSA are broke. However, the scariest scary is our Elected Officials telling us, “not to worry about it.”

How To Make $150,000 Annually On A 1.5 Acre Farm

My across the aisle farmers’ market neighbor brought her vegies to the Saturday Houston Farmers’ Market from Wharton 10 miles past our farm on the Southwest freeway. Her answer to, “was it worth it? “Most Saturdays I make over a $1,000 and if I don’t make at least $500 a market I drop it.”

I asked my fellow LLU teacher Ms Permaculture, another vegie pusher, what was her favorite market success story? “The guy who made $250,000 on a half-acre vacant lot in San Francisco, selling specialty greens to restaurants.”

My adjacent vendor always showed up late, bitched at the market manager for not having a space under the car-park canopy, then proceeded to sell out of salad greens in an hour and a half.

Of course my personal success story that convinced me that the only way to make a buck, or several bucks, was Nina Planck’s book Real Food. Her family in Louden, Virginia grossed $375,000 by trucking organic vegies to 17 farmers’ markets a week in the Metro DC area. $375,000 divided by 17 = $500/market, as an architect that was one more data point than I needed to launch my ‘Roadkill Sausage’ career in a Houston parking lot.

Today’s hero Jean-Martin Fortier interned on a farm in New Mexico and when the Santa Fe arugula dealer took home one to two thousand dollars on Saturday afternoon, Fortier was hooked. If he had worked for a Clovis, NM. farmer it would have been a different story.

https://www.youtube.com/watch?v=1BH0NkN6zHs://URBANFARM-JM-CSThere are many ways to make money living off the grid, but organic farmer Jean-Martin Fortier may have found the best one – and it’s bringing in $150,000 each year.

Fortier and his wife take in that much annually on an acre and a half farm where they raise everything from tomatoes to broccoli, using what they call “biologically intensive” practices and unique farming methods to harvest more vegetables than is normal on such a small piece of land. And they do it all without a tractor.

Fortier is this week’s guest on Off The Grid Radio, and he gives us an overview of his Quebec farm – a farm that has drawn worldwide attention and resulted in him writing a book.

He also tells us:

  • How his method can be duplicated on any off-grid homestead.
  • Why he chose not to use a tractor or any heavy machinery.
  • How he grows vegetables, in such large quantities, in a cold climate.
  • What he learned on a trip to New Mexico that inspired him to try his methods.
  • Why he believes his method – and not Big Ag – is the secret to feeding the world.

Fortier’s story is incredible and inspiring, even if you don’t plan on copying his methods. Listen as this organic farm expert shares his methods that are changing how we think about farming!

 

MAKE A SIX FIGURE INCOME WITH 50 GOATS ON 5 ACRES

goats_1Yes, a Six-Figure Income Means You’re Affluent

Only 47% of working age Americans have full time jobs.

There are 250,000,000 work age (16-64) persons in the US of A but only 117 million have jobs. There were 761,700 Farm jobs in 2014 earning on average $20,090 per year or $9.66 per hour.

farmer income

The above chart indicates that there are somewhere around 2 million farmers (principal operators) whatever the number, none of them made any money or came close to a six figure income

The real question is whether $100,000 or $200,000 in annual income makes a person affluent. Households making $100,000 or more constituted the top 24.7 percent of American households in 2014, according to the U.S. Census Bureau. To put it differently, they’re better off than three quarters of the country. Those making $200,000 or more were in the top 5.6% of households in 2014. The threshold income for membership in the infamous One Percent, according to the calculations of Thomas Piketty and Emanuel Saez, was $423,090 including capital gains and $387,810 excluding them in 2014.

But are these people affluent? Heck yeah! The median household income in the U.S. in 2014 was $53,657. If you’re making twice that, or more, you are doing quite well from the perspective of your fellow citizens in what happens to be one of the richest nations on earth. And yes, a tax break that chiefly benefits you and others like you is in fact a subsidy for the affluent. http://www.bloomberg.com/view/articles/2016-06-03/yes-a-six-figure-income-means-you-re-affluent

The big, big question is how in the hell can you make a six figure income with 50 goals on 5 aces? Short answer move to the city.

Mark Spitznagel is Founder and Chief Investment Officer of Universa Investments. Spitznagel is the author of The Dao of Capital: Austrian Investing in a Distorted World and was the Senior Economic Advisor to Rand Paul.Mark Spitznagel (born March 5, 1971) is an American hedge fund manager, derivatives and commodities trader, author, and sustainable farmer. Spitznagel is known for his pioneering “tailhedging” and frequently bearish “Austrian”-based stock and commodities trading, his hugely profitable billion dollar derivatives bet on the stock market crash of 2008, and for having allegedly caused the stock market crash of 2010.

Spitznagel “gained credibility in the investment world by predicting two market routs in the past decade, first in 2000 and then in 2008,”[14] as well as predicting the “2000s commodities boom.”[5] He is considered “one of Wall Street’s most bearish”[15] as well as “biggest and boldest investors.”[16]

Mark Spitznagel built, owns, and operates Idyll Farms, a pasture-based goat farm and creamery that produces award-winning artisanal farmstead chèvre. (The word Idyll is “a song describing pastoral life,” as well as a reference to Siegfried Idyll.[1]) Idyll Farms cheeses received three awards at the World Championship Cheese Contest (including Best of Class) in 2016, multiple and repeat awards—which included the broad all milk cheese category—at the American Cheese Society North American Competition in 2013 and 2014 (the farm’s first two years of production),[85] as well as a “Best Artisanal Cheese” from Food & Wine magazine in 2016.[86]

In starting his farm in 2010, Spitznagel has said he wanted to “capture the terroir” of his native region,[87] as well as “feel engaged with something real, something tangible, and he wanted his kids to have that connection too.”[1] In discussing his life as both financier and farmer, Spitznagel has said “What’s going on in the financial world really shouldn’t matter that much. It’s the tail wagging the dog. What matters is making things, making real things, tangible things people can use.

detroithero spitznagel

Mark Spitznagel is Founder and Chief Investment Officer of Universa Investments. Spitznagel is the author of The Dao of Capital: Austrian Investing in a Distorted World and was the Senior Economic Advisor to Rand Paul.

Spitznagel is a billionaire, a one per-center for sure, from Michigan who likes dairy goats and is my inspiration for moving to the city. Here he is pictured with his girls grazing on the inner city neighborhood of Broadmoor, Detroit. Money not being a problem, in 2010 Mark built this award winning dairy. outside of Ann Arbor.

IdyllFarmsView

Shelby Ann Brown and I built our 100 square meter dairy in Kendleton, Texas, 50 miles south west of Houston. We received our Grade ‘A’ Raw Dairy certificate in 2003 and only started to earn an income above the $20,090 average, when we took our raw goat’s milk products to Houston on Saturday mornings.

dawn parlorJLD_0005Our licence was for On-the Farm sales only but sunny weekend customers who made the 50-mile trek to our farm generated less than $200/week. Desperation was the mother of Earth Mother Farms and the visitation to eight farmers’ markets a week, averaging $500 per market.

original-united-dairy-farmersCarl Linder, in my home town, Cincinnati, got his start on the path to one percent riches with his United Dairy Farmers store. Since rural America has been depopulated, since Teddy Roosevelt banned the sale of raw milk in 1912, the only way to make a six figure income with 50 goats on 5 acres, is move the dairy to the city.

Continue reading MAKE A SIX FIGURE INCOME WITH 50 GOATS ON 5 ACRES

“You have to go where the customers are,”

nina8

“The Great Commerce of every Civilized Society is that carried on between the Inhabitants of the Town and those of the Country.– Adam Smith’s Wealth of Nations, 1776, (pg. 473)

My wife, Shelby Ann Brown and I, discovered, by forsaking our lives as Inhabitants of the Town, to become farmers, goat farmers, but farmers none the less, and live lives, like those of the Country, that everything Adam Smith said about agriculture in his seminal work the “Wealth of Nations,” was just as applicable in 1998 and 2008 as it was in 1776.

As Oogwei said to Shifu, in Kung Fu Panda, “There are no accidents, only reasons,” and God, my higher power and most assuredly Shelby, hadn’t dragged us to the most eastern tip of the Texas Panhandle in the summer of ’98, for no good reason.

Follett, Texas, the home of Shelby’s ancestors, was at the crossroads of history, in the American West. The Spanish conquistador Coronado, in 1500 came north from Mexico, through New Mexico and West Texas, then hung a right at the Canadian River. Two hundred fifty miles later, after enduring 27 mph average daily wind velocities, ambushes by the Native American crowd and not spotting a single solitary bush or tree along the way, Coronado threw up his gauntlet, and declared the Texas-Oklahoma “High Plains” to be the “inland desert of the Americas.” He then turned his expedition around and marched back the same 1,500-mile way he had come.

After the Civil War, Colonel George Custer came to Follett and lost his scalp while trying to massacre those pesky Native Americans, the pioneer cowboy-farmers solved the problem themselves by setting the prairie grass on fire, starving the buffalo and forcing the Native Americans to follow their food chain farther west.

The pioneers then established their own food distribution system by retracing Coronado’s steps with huge cattle drives, from south Texas north to Abilene and Dodge City. The prairie grass had scratched the belly of Coronado’s horse, but after a few trips, the cowboys over grazed the prairie to the nub. The citizens of Dodge were forced to lay off, both Wyatt Earp and Bat Masterson, who later moved on to Tucson to make the original, “OK Corral.”

Shelby’s mom, dad, aunts and uncles had long ago abandoned the place, haunted by childhood memories, of being at ground zero, for the 1937 ‘Dust Bowl.’ Therefore, in the summer of ’98, Shelby and I pretty much had the place to ourselves. There was circumstantial evidence, with Christian radio, heard on all FM/AM frequencies, as well as in the grocery store, that not everybody’s higher power had left town.

Our game plan was to raise Black Boer Goat breeding stock and sell the goats for an average price of $500 apiece. This contrasted with the market price of $60 for an ordinary meat goat. The theory was, selling each of the two kids, from 120 adult nanny goats, would get us a $10,000 monthly income and achieve our goal of replacing our former urban professional salaries.

“The inhabitants of the town draw from the country the rude produce which constitutes both the materials of their work and the fund of their subsistence: and they pay for this rude produce by sending back to the country a certain portion of it manufactured and prepared for immediate use.”

After two years, we former inhabitants of the town had received less than a $1,000 portion of it manufactured and prepared for immediate use,” from the sale of our rude produce, Black Boer Goat breeding stock. I therefore dusted off Ted Levitt, the Father of Marketing’s Market Myopia axiom, “know what business you are in,” showed it to Shelby and she moved the goats and us back to Houston. Coronado’s past life regression chant of, “I told you so,” was audibly visible in the extended side mirrors of our, dually-diesel, F-350, crew-cab, truck.

Shelby went back to work to support the 15-acre homestead in Follett, 650 miles from our new 18 acres, farm-to-market, location, 50 miles southwest of Houston. I laid around the ratty old trailer-house all day, reading Adam Smith’s “Wealth of Nations” and rethinking just how farmers were supposed to make money in the food business.

Adopting the philosophy – “if you want to learn something, teach it,” – I taught Goat Farming 101: Urban Income, Rural Lifestyle, six times a year for six years, averaging 25 farmer ‘wannabes’ each session. BUT! It wasn’t until the sixth year, May 2006 to be exact, that I was able to stand in front of the class and honestly say, that yes; it is possible to have a rural lifestyle and earn an urban income of $10,000/month, from only fifty goats on five acres. AND! It took two years in Follett, plus six more years in Houston, Shelby’s $300,000 net worth, another $100,000 on MasterCard to figure out how those of the Country could make money selling rude produce to the inhabitants of the Town.

Architects are trained to use the iterative process (a fancy way to say, try and try again) for problem-solving, and once again I took Shelby’s money, to this time, buy 44 Nubian billy goats, for ‘Eid,’ the Moslem holiday, where traditional ‘Allah fearing’ families sacrifice a lamb or goat. This time was supposed to be different and it was, this time Shelby bought dinner for the entire Palestinian community of Houston. BUT, the silver-lining behind this iteration of “The Great Commerce of every Civilized Society carried on between the Inhabitants of the Town and those of the Country, was the discovery that Mrs. Kettler, the owner of those Nubian bad boys, had been selling raw goat’s milk to David Keresh’s Branch Davidians, in Waco as well as the citizens of Dallas, a two-hour drive away, for $7 a gallon.

The apple had fallen from the tree, the way for those of the Country to make a six figure income was to sell their rude produce to the Inhabitants of the town for at least $12 a gallon. Shelby liked that idea and went all the way to Tennessee to bring back four pregnant Saanen nannies, built a $30,000 dairy, TB tested our 100 ruminants to comply with every Texas Department of Health regulation in order to obtain the Grade ‘A’ raw dairy license, that Mrs.Kettler and others sold their raw milk without. No sooner than we were up and running, we noticed that the Houstonians were not coming to the farm for milk more than three times, at most. Why? Too far. Mother Necessity, made us take our rude produce to the farmers’ markets in Houston and thus, we became farmers, manufacturers and merchants. The parking lot of 2100 Richmond Avenue became our friend because we could sell everything we had to sell in two hours, while educating the public on why they had to pay ten times as much money for our rude produce as the store bought milk.

You can raise six lambs, six goats or one cow; on one acre of good pasture land. You can raise the lambs, the goats, the cow plus 100 chickens on an organically composted acre through the use of multi-species and rotational intensive grazing techniques. That four legged Nubian maiden can produce 2,000 pounds of milk in a years’ worth of ruminating around that little old acre of a pasture. At an average per pound price of say $2.50 a pound, the farmer if he sells direct to the consumer, gets to take $5,000/yr. back home, to his wife and kids.

Now, I know what you are saying, “tegory, that can’t be true, you are just making that, up.” I know it is difficult, and if I threw in the additional 2,000lbs. of sheep’s milk Greek feta, another 2,100 lbs. of cow’s milk at $1.19/lb and 100 chickens at $4/lb, the total $15,700 per acre, per year, would be just too big a number, for you to swallow, but it’s true.

When I showed my proposal to Prof. Jefferson Wang’s Zhengzhou University MBA class they were more than somewhat skeptical that any Chinese mother would pay a jin more than 2.5RMB (35 cents) for a liter of milk and there wasn’t a snowballs chance in Hainan they were going to pay anywhere near my suggested price of 40RMB ($5.85) per liter. I told them that there wasn’t a snowballs chance, even in Detroit, that Americans were going to pay $30,000 for a fully loaded, Buick sedan (the most popular car in China).

How do you get the Chinese mother to pay 40 RMB/liter for milk, when she currently wouldn’t give you a ‘jin’ more than 2.5 RMB/liter? Easy, repair the link between the dairy and the single child mother. An internet billionaire (Netease) is raising 10,000 hogs on webcam because China consumes 55% of the world’s pork but they don’t trust the local supplier. The mother will buy the milk from New Zealand for her baby and drink made in China for herself.

The Chinese mother will pay, once she sees the quality in what she is buying. 2009 was also the year that China passed up Japan as the world buying leader in the luxury goods market. I experienced the buying power of the Chinese when I offered to buy lunch at the best restaurant in Gong Yi, a small city west of Zhengzhou. I changed my tune when the taxi driver told us that the BEST restaurant in this small burgh would cost 5,000 RMB. I asked my friend, now who would pay $750 for lunch in Beijing or Shanghai, let alone Gong Yi. “Rich Chinese don’t care about money,” was his reply. We don’t need to sell all the mothers in China on the health benefits of raw goat’s milk, only the well-educated 1%. The mother of a newborn, in Houston, who raided our refrigerator at 3am couldn’t afford to buy a $75 lunch, let alone a $750 one, but she left a $10 bill in the fridge door, for a half gallon of milk for her baby.

Exactly as Adam Smith said in 1776, “The Great Commerce of every Civilized Society Is that carried on between the Inhabitants of the Town and those of the Country, and by visiting eight markets a week, holding cheese-making and goat farming classes, that included farm visits, were we able to restore the customer relationship between the farmer and his community.”  America’s agricultural system is a complete failure, fiscally and morally bankrupt. Farming no longer provides revenue and wealth creation for the individual farmer, and he is forced to turn to crime, industrialized agriculture, which depletes soil quality and ends up being complicit in poisoning the nation’s food supply.

So why is our system of agriculture, the sole or the principal source of the revenue and wealth of every country,” broken? Why are we the most malnourished developed nation on earth? Why hasn’t the family farmer made any real money since WWI? Why are two-thirds of Americans obese? Why are Romney’s 47% poor in health and wealth? Because 99% of USA farmers left the country to be merchant-manufacturer-inhabitants of the Town. Actually they took the town with them on their way to the big city.