Dear CSA Members, Spring 2022
Spring is here…we had a few warm days but as we write this there is an artic blast happening. It certainly doesn’t feel like spring in this last week of March. We are in the greenhouses seeding our crops and the heaters are on keeping our little plants safe. Things are looking good.
We wanted to share with you some things that are going on which will result in higher pricing of food and we thought it important for you to hear directly from us.
For the past 7 years we have not really adjusted our price relative to the increase in the cost of goods and increase in employee wages. Last year was the first year that we really felt it. Although it is normal for farms to have good and bad years, last year we had a good year but lost money. This was a first for us where it wasn’t a natural disaster that caused financial hardship. Our farm model (which includes growing ecologically, using a alive-systems approach, serving diverse market segments to help feed as many people as possible, growing many varieties in a complex rotation planting system, and rewarding our employees with bonuses based on business performance) has proven to be robust through the years. Losing money in 2021 hit us hard and we have to do something about it.
Supporting local agriculture is important for so many reasons. Food security, food safety, regional economics, ecological footprint, and farm worker welfare are all positively impacted by supporting local agriculture. We know that it is not always easy to do, and we know that you have choices. New York is an expensive state and the USA is an expensive country. Farm workers on the H2A worker program in Texas make $10/hr. In Mexico, farm workers make around $200 per month. Here in New York, we pay over $15/hour PLUS overtime. If it were up to us and if we could, we would pay our farm worker solid working-middle class wages not “livable” wages.
The fact is, our American agricultural system, like many other American Institutions, has it’s roots in slavery. Americans do not pay enough for food and we need to be a part of the change that has to happen. This has been true for a long time. However, and to be clear, the increase in our pricing this year is not really addressing this problem. It is strictly a cost of goods increase over the last few years and a significant increase this year that brings us to this point. We are, however, very interested in bringing awareness to our customers that Americans need to re-assess their values and priorities as it relates to how much we spend on food.
We know this is a deep subject worthy of more than a quick note. It is out of necessity because this year we are going to be hit with increased costs (again) for our supplies (cardboard, fertilizer, fuel, etc.). We are making changes to increase efficiency and reduce our costs to help mitigate as much as we can, but we will have to raise our prices to be sustainable. We did not implement the increase of 15% last year that was necessary for us to break even. Consequently, this year we are likely looking at a 25% increase. We will do everything we can to contain costs.
We appreciate your trust in us to continue growing healthy fresh food for your families.
With much respect,
Amy, Gerry and Gail
--Gail Hepworth Hepworth FarmsHepworth Ag, Inc., CEO