The "Easy Button": What’s Different Since 1995?

The Pissed Off Farmer was one of the early promoters of the New Generation Co-op model. The mission of these co-ops was to transform raw farm commodities into higher-valued products through local processing. The example most people are familiar with is the ethanol industry, which takes corn and makes fuel and animal feed.

A question I’ve been asked: “What is different now compared to 1995, when you started?”

In 1995, there was what I would call co-op fever. Farmers had just come through the farm crisis of the ’80s and saw no viable path forward. They joined forces with their neighbors to build, own, and supply a facility in which they had a share.

Various co-ops were formed: corn wet mills, dry mills, soy crush, sugar beets, alfalfa, egg, pasta, swine, dairy, etc.

The main reason farmers participated was that they had nothing to lose. Their cash was gone, and their equity was diminished. However, USDA offered loan guarantees, and banks and Farm Credit had special loans for co-op equity purchases that were interest-only for two years.

States like Minnesota created a market by mandating a 10% ethanol blend in all gasoline. Minnesota also had a generous producer payment to help ensure the viability of the industry. In my opinion, these public-private partnerships were the key to successful projects.

The economic impact of this and other programs was significant. Grain prices increased, value was added, jobs were created, land values rose, businesses profited, etc. It was truly a winning combination!

Fast forward to today. Does this public-private model still exist?

No, not really. The concept is bogged down with regulations, permitting issues, high capital costs, etc. But the elephant in the room is that today’s farmers have something to lose: equity. Today’s farmer might be cash poor, but he has significant equity that he is unwilling to risk.

There are more opportunities today than ever before because, for the first time that I can remember, we have market pull rather than depending on mandates. Yes, there are projects moving forward, but not easily. Many of today’s farmers are content with monoculture, embracing new technologies, and, when cash gets tight, hitting the “easy button” so Uncle Sam will send cash. The advent of the “safety net” has slowed new ideas and innovation to a trickle, at least when it comes to farmer ownership.

My question is: Is the current state of agriculture sustainable long term?

October 2026