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Vignette - Essay Example

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The article is a discussion about the new trend in American agriculture which is characterized by an increase in the number of…
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Download file to see previous pages... These workers who are mostly Mexicans and Hispanics have not been arriving to the north. It is pointed out from the article that the mass-production farms are feeling the crunch of the increase in local small farms. Because of the decrease in the source of cheap labor, their produce is becoming more expensive than the local farm produce which used to be more expensive. It is cited in the article that “local farm sales are becoming more stable, predictable and measurable” (Johnson, 2012).
The growing trend is that the Hispanics, who used to be low-wage laborers, are now becoming farm entrepreneurs through the support of training programs for beginning farmers. These farmers are not only provided with the agricultural know-how but also given guidance with regards to the distribution and marketing of their produce.
Several economic concepts and implications can be derived from this article about small-scale farmers. One concept is about the risk that an entrepreneur takes in making an investment (Adomait & Maranta, 2011). It can be observed that the low-wage Hispanic farm laborers are taking a risk in becoming an entrepreneur. They are investing their time and effort at farming although they are not sure if the investment is worth it. It is a risk to be working on one’s own when one has no experience at being an entrepreneur. The laborer is taking this risk in the hope that he can benefit from its expected return. Like the Hispanic farmer, Narendra Varma, the former Microsoft manager described in the article is also taking a risk. He invested $2 million from his savings to a 58-acre project of small plots and new farmer training near Portland. Since this venture may be a high risk investment for him, he obviously expects a higher rate of return, maybe higher than if he just invested his money in the bank.
One thinks that if the trend towards entrepreneurship continues, the economy will be ...Download file to see next pagesRead More
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