A world where Rural America is rebuilt and drives change to break dependence on foreign resources
Controlling Our Global Supply Chain
America’s abundance of natural resources, agricultural productivity and innovation/technology means international trade is essential. However, this pandemic has made clear that certain products and supply chains critical to our well-being should to be identified, prioritized and must be manufactured on American soil.
We have new trade agreements and tariffs in place with countries around the world. All in an effort to level the playing field. That is understandable, but there are many alarming trends with America outsourcing agriculture processing, seed genetics and crop production, technology and pharmaceuticals from other countries.
Continuing down this path makes the U.S. dependent and vulnerable in the event of another worldwide crisis. It is imperative that we direct our efforts and our dollars towards making sure the Three Pillars of National Security – healthcare, food and housing – are supplied and owned by companies within our borders.
Focus On The Goal
Definition of the word Goal: The result of achievement toward which effort is directed.
Definition of the word Incentive: A payment or concession to stimulate greater output or investment.
With the government providing incentives to restart the economy, many people and companies focus on the incentive rather than goal. Your project or goal should be able to stand alone. Properly refocusing our economy depends on directing our stimulus efforts towards achieving clearly identified long-range goals.
Main Street Business Plans
If you took 100,000 farmers and convinced each one of them to invest $100,000 you would have a $10 billion fund. Then if you leveraged that fund with 90% debt financing – guaranteed by our government – the net result is an astonishing $100 billion dollars of investment.
American farmers are asset rich and cash poor. So while there are billions and billions of potential investment dollars in rural America, freeing them up will require immediate changes to our nation’s regulatory system to make this incredible stimulation pool possible. This includes:
- Getting rid of the Accredited Investor Rules. Let everyone invest in rebuilding America.
- Getting rid of Passive Income Requirements as to credits.
- Getting rid of Personal Guarantees.
- Allowing 401k’s to invest in local projects.
- Moving USDA Business and Industry guarantees up to 90% of debt.
- Using the Farm Credit System as a lender.
- Using the Rural Electrification Act of 1936, which exists today, to do broadband and stimulate rural jobs.
USDA Stock Loan Program Rules
Once this $100 billion fund has been accumulated, the next phase of stimulating our economy would take place in the form of a stock loan program administered by the US Department of Agriculture. Program outline would be as follows:
- Requirements for qualified borrowers – to be determined
- Loans from Bank to Farm Credit
- $50,000 or $100,000
- Stock only as collateral
- Ten year payback
- Interest-only payments for the first two years
- No origination fee
- Low interest rate