Washblog

WA's Emerging Land Resource Industries and The Commons

If there is any one issue that should underlie a progressive vision for Washington State, this would be it -- securing fair use of the resources that sustain all of us and attending to where the true welfare of people resides - in functional relationships with the physical world, within communities and in civic and political relationships.

Centralization, ownership, autonomy, and security
Food and energy production and distribution are highly centralized in the U.S.   This allows for efficiencies that have created cheap and, so far, reliable supplies. It has also meant diminished local profits and autonomy. Many decisions are moved beyond the control of the communities and people that are affected by them. This has helped to fuel the political pressure to block and undo environmental laws in this state over the past decade or longer.

Traditional agriculture: Local resources diverted into the global economy
In the 1950s, Secretary of Agriculture Ezra Taft Benson told U.S. farmers, "Get big or get out".   There followed a period of profound centralization of resource distribution, decision-making, and profit.  With hard-won exceptions seen in the sustainable farming and niche food markets realm - it is now almost impossible for small farms to make a profit.  Even the profits of the large operations have been significantly diminished.   In the early 1900s, farmers realized approximately 21 cents on the dollar.  Now they get about 5 cents. Farming autonomy has gone the same way. Conventional farming businesses now  tend to be dependent on big agribusiness for the products that make their economies of scale possible - and for the marketing and distribution of their products.  Crop subsidies and increasingly complex government regulations also reduce farmers' autonomy.

Of course, farming has also been squeezed by out-of-control development, which is the prime cause of farmland loss in Washington.  One of the two major farming organizations in the state, Washington State Farm Bureau (WSFB), has joined in on these trends.  In 1996, WSFB partnered with developers in an attempt to roll back land protections through I-164.  Polls indicated that this initiative failed partly because voters understood that developers were behind it.  This year, in a move that will increase their chances with voters, the WSFB has chosen to not publicly partner with developers for  the very similar I-933.

U.S. law protects family farming by regulating what kind of ownership is allowable for farms.   Therefore, US farms themselves are not owned by multinational corporations.  However, the multinationals now realize much of the profit that the farmers once did. The steady diminishment since the beginning of the 20th century of the profitability of sustainable land use and ownership in Washington is a prime driver of development sprawl and the relentless pressure to block and undo environmental laws in our state.    The developing Ag-Energy and sustainable agriculture industries can undergo the same globalization -- or they can help restore our economic balance.

We are part of a global economy; local and global prosperity are interrelated.  So it is inevitable and fair that powerful out-of-state entities will have some say in the structure of Washington's emerging food and energy industries and some share in the profits.  However, we need to be more focused in Washington State on the question of whether our small and mid-sized businesses, local communities and governments, and individual landowners and farmers can work together well enough to secure a fair share of the benefits of our common assets.   This is not a question of blocking or excluding economic players from our state economy. It is a question of strengthening our civic environment so that we are in a better position to foster community health and the well-being of our citizens.

The property rights people are onto something
The text of I-933, the land use initiative sponsored by Washington State's Farm Bureau, contains the following statement:

 "The people also intend to recognize and promote the unique interests, knowledge, and abilities private property owners have to protect the environment and land."

This statement acknowledges the reality that we all depend upon the caring, knowledge, and expertise of the people who locally own and reside or work on the land.  Agricultural ownership is of particular environmental importance: close to half the land in our country is in agricultural use.  Challenges like climate change make local knowledge and community health even more valuable.   The loss of local autonomy and the profitability of sustainable land use have deeply adverse impacts. Perhaps we can address these critical issues raised by the property rights movement -- but in a deeper and more effective way than the rhetoric of this movement proposes.

Will Washingtonians get a fair say and share in the state's Ag-Energy resources?
Washington's non-profit, governmental, and business response to Ag-Energy's has been complex, creative, and energetic. The state's legislatively mandated Energy Strategy, first created in 1993, guides the governor and Legislature in the formation of policy. Washington State Department of Community, Trade and Economic Development's (WACTED) Energy Policy Division is responsible under state law for updating this Strategy Plan with a biennial report. The Biennial report for 2005 explicitly acknowledges the lack of capacity within Washington State for supplying our own energy needs - and the crucial role that government must play in helping to build that capacity. The Database of State Incentives for Renewable Energy, a record of the state's commitment to building our renewable energy and fuels industries, is also worth looking at.

It is clear that our state legislature "gets it." The minimum alternative fuel requirements bill, HB 6508, which passed into law this year, is structured so to encourage development of in-state biodiesel capacity. HB 2939, which established The Energy Freedom Program, sets aside $15 million annually for low-cost loans and grants to biofuel startups.  The legislative intent section of this bill includes the following statement: "The bioenergy industry is a new and developing industry that is, in part, limited by the availability of capital for the construction of facilities for converting farm and forest products into energy and fuels. The legislature finds that it is in the public interest to encourage the rapid adoption and use of bioenergy, to develop a viable bioenergy industry within Washington State...."

But experience has taught us that vigilance is not always enough.  States and non-profit entities are unlikely to have the strength to hold their own against global forces without the awareness and backing of the grassroots.  It is an old story in the establishment of new industries:  government and small and mid-sized businesses take on the initial risks and investments - and then multinationals step in and take over a disproportionate share of control and profits.   Our current efforts have been critical in facilitating the development of Ag-energy and sustainable agriculture in Washington.  There is a critical need for a more comprehensive tracking and coordination of policy, resources, and players.  There is a critical need to pull together on the civic level so that we can stand up to the global economic forces that are at work in our state.

People power and the commons
The property rights movement that is so prominent in Washington - and that is seen by many as a key feature of this divisive political environment -  is largely driven by a response to the loss of ownership and autonomy resulting from our ever-consolidating global economic system.   This movement's focus on property and individual rights is relevant.  However, we need as a society to take this discussion deeper and broader.  We need  to frame it in the context of the commons: that universe of goods that sustains us and that cannot be sold or divided.  Wind and solar energy,  the regenerative capabilities of our natural environment, genetic diversity, and civic relationships are all part of the commons.    Within this larger context,  individual and property rights become positive rather than negative topics of discussion.

If there is any one issue that should underlie a progressive vision for Washington State, this would be it -- securing fair use of the resources that sustain all of us and attending to where the true welfare of people resides - in functional relationships with the physical world, within communities and in civic and political relationships. If there is one economic issue that should get our attention it is the question of how we will ensure that Washingtonians get a fair share of the benefits of Ag-Energy and our other land resources.

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[Author's note: the second half of this post, with information on the economic potential of Ag-Energy, specific policy suggestions, and organizational resources, will return next week as Part II. See Back to the Roots for information on the related program.]

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Noemie, I confess I didn't read the whole thing with  a "fine toothed comb" but I didn't notice any mention of Denmark.

Denmark is a net energy exporter to the rest of Europe. Their energy efficiency is also very high, not only because of consumer-focused efficiencies and transportation planning but because of local generation (other than wind and solar: fuel burning) which allows most of the "waste heat" to be utilized. I recall that over 60% of the energy we "use" here is wasted, compared to the practices they use.

(Does Seattle Steam produce electricity?)

by m3047 on Fri Mar 24, 2006 at 10:26:48 AM PST

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The first is that Tim Egan's new book The Worst Hard Time, an excellent read by the way, can just about be summed up in Noemie's comment:
"The loss of local autonomy and the profitability of sustainable land use have deeply adverse impacts."  The Dust Bowl tragedy, arguably the worst natural disaster of the 20th century, originated in the loss of local autonomy.  My second comment: in my opinion, those communities with greater self reliance will fare better in times of global warming than those reliant primarily on global influences.

Andy

by awickens on Fri Mar 24, 2006 at 12:06:25 PM PST

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This is a good topic.  I have this discussion with my engineering friends.  Some of whom are already jumping at the opportunity to get into the bio deisel market.  While I still believe there are questionable rewards for bio deisel, as to costs (real costs such as irrigation, subsidizatons not considered etc..) and energy to product, I do believe a positive force can be achieved with innovations.  What I do worry about though is that Washington's plans are a mandate.  Mandates create garanteed customers so it will be a popular market for corporate agriculture to invest in.  That, in my opinion will stifle innovation as the short term gains will be reaped.  How to avoid this is a good question.  And a good discussion.

by Jimmy on Fri Mar 24, 2006 at 03:17:23 PM PST

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I'm not going to suggest I'm an expert in the matter of bio-fuels, but it seems to me that above and beyond the cost of turning a source of energy into energy (both financial, and in the expenditure of energy to harvest and process crops), we place a huge burden on another natural resource we are running out of: fresh water.  Eastern Washington certainly does not have the natural abundance that those of us in Western Washington are often awash in.

Sometimes it seems like we disregard the severity of the limits of our water supply.

On The Road To 2008: Countdown to the next opportunity to change the direction of America

by Daniel K on Fri Mar 24, 2006 at 04:41:59 PM PST

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Frist - these areas are NOT my area of expertise. If you have need for real precise / engineering type analysis, don't read what follows.

I think the property rights people are on to something.  

Because our markets are so distorted(1.) to reward the powerful, instead of rewarding the hardest working with the best ideas and the best implementations, and they distorted by the powerful for the powerful, the costs they dump on us the community and us the peons - those costs are NOT recognized.  

I don't think humans will ever agree on what an optimal market set of distortions are, however, we will NEVER get close figuring out the optimal set if we can't recognize costs, and there are REAL money out of my pocket costs for making sure AMD and EXXON etc etc don't have to compete.

whatever arguements are made, however they are made - without some spreadsheets of costs that these bastards are dumping on me AND stealing outta my pocket - and dumping on everyone else and stealing from everyone else

without spreadsheets of costs I think we're just kind of baying at the moon.

rmm.

(ALL markets are distorted, BTW - it is just a question of in which direction(s))

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by rmdSeaBos on Fri Mar 24, 2006 at 05:13:22 PM PST

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Noemie,

This is a seminal topic and incredibly well thought out.  What a starting point. The challenge will be to take the amazing research and thinking you and others are doing on this critical topic and over time be able to understand and disseminate the core message.

This idea of community-sized participation and community-sized solutions and community-sized making of money is something that we could grap ahold of as a state or region across typical left/right, business (at least small-medium-sized)/labor and other blocks.

The forums will be a hit.  

 

by nudger on Sun Mar 26, 2006 at 10:22:37 PM PST

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This forum has the opportunity to bring together disparate groups, defeat the developer's mandate, provide framing, and actually doing something regarding sustainability - a win win win. I hope Washblog readers and activists really sink their teeth into this project.

by Brian on Fri Mar 24, 2006 at 01:06:29 PM PST

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In reply to m3047's comment about Denmark, I believe there was something mentioned on the television (imagine that!) recently that stated that (I am not sure which one here) Iceland or Finland have developed Ag-Energy to the point where they are required to import zero oil from abroad.  

I should probably be more specific and sure of my details, but I do remember that they specifically addressed different ways of converting vegetable matter into a fuel for motor vehicles (biofuel)...and in a manner that each vehicle operator was free to develop their own method of conversion.  Thus, there were many "jerry-rigged" vehicles on the road, each unique in its own design, with no standardization specifically mandated by the government, except perhaps for the requirement that byproducts must be within a certain range (and here is where I missed the particular details).  

Suffice it to say that there were some rather amusing-looking contraptions on the road, but all were effective in one way or another....and none of them contributing to pollution as we know it in the forms we are all familiar with (nitrous oxide, carbon dioxide and monoxide, particulate matter, hydrogen sulfide, etc.).

If such a concept could be embraced here in our country, we could have a very positive impact on the Commons.  Sadly, the Western (specifically the American brand of Western) culture of profit and speculation makes any such attempt problematic and extremely unlikely to be successful any time soon...but then, maybe I should try to be more positive, or at least imagine the possibility...  

The next comment may seem a bit distractive, but I fear that in our society, any reference to a "Commons" will, for a time, provoke a considerable fear-driven response (knee-jerk conservatism) ranging from bemused skepticism to vicious, bitter name-calling and screaming of epithets ("typical liberal communistic bambi-loving tree-hugging sissies!!!").

To overcome this, I believe, will require tremendous patience, time, and education about what it is that sustains the human race (let alone all the other species on Earth), what it is that connects us all, and the concept that "it" (the Commons) is God-given (whatever your concept of God is).  I mention God because I anticipate the protests that "God gave us (them) this Earth to do as we (they) damned well please".

I know this all seems like a whole lot of rambling on my part, but I really believe that is what we are up against.  

Now that I have digressed this far, can someone please reach out, slap me upside my head, bring me back to Earth, and help me to be more hopeful by pointing out some reasons I can be more positive (such as details on how many citizens, particularly in rural areas, have vocally and actively embraced the concept)?

by Richard Champlin on Fri Mar 24, 2006 at 05:29:01 PM PST

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