The Economic Fallout of Authoritarianism: How Farming and Agricultural Industries Are Impacted

At The Peaceful Kingdom Farms, we’ve always been deeply connected to farming and agriculture. Growing up in farming communities, both Michael and Seamus learned the value of hard work, sustainability, and giving back. Seamus, in particular, grew up in a rural part of Louisiana, where cattle outnumbered people, and farming was a way of life. Never did he imagine that he’d go from that small community to teaching finance and entrepreneurship on the East Coast.

That journey—from rural Louisiana to cities like Boston—has taught us how deeply interconnected global markets are and how decisions made by leaders, particularly authoritarian ones, ripple across industries. Farming and agriculture, the lifeblood of rural communities, are often among the hardest hit by economic and political instability.

As we were taught by our parents, “Always give back.” So, this is our lagniappe—our little something extra—for you: This is Seamus’ analysis of how authoritarian policies will affect farming and agriculture and how these impacts will ultimately shape marketplace prices…Start supporting your local farmers now if you donot already.

How Authoritarian Policies Disrupt Farming and Agriculture

Historical Perspectives

Nazi Germany

During Hitler’s regime, Germany’s agricultural sector was heavily controlled to support military ambitions. The government implemented policies that prioritized large-scale grain production over diversified farming. Farmers were forced to meet quotas, often at the expense of their livelihoods. Forced labor and confiscation of resources further destabilized rural communities. By the end of the war, farmland was devastated, and food shortages were widespread.

The Soviet Union

Under Stalin, collectivized farming was a cornerstone of the Soviet economy. Farmers were stripped of their land, and private ownership was abolished. This led to the infamous Holodomor in Ukraine, where millions died from famine. The inefficiency of centralized planning and lack of incentives for farmers caused persistent food shortages, which weakened the agricultural sector for decades.

China During the Great Leap Forward

In Mao Zedong’s China, radical agricultural policies aimed at increasing grain production resulted in one of the worst famines in history. Farmers were forced into collective communes, and the government set unattainable quotas. The combination of poor planning, lack of innovation, and political repression led to catastrophic food shortages and millions of deaths.

Modern-Day Realities

North Korea

Agriculture in North Korea is highly centralized and inefficient. The government prioritizes military spending over investment in farming infrastructure, leaving the country reliant on foreign aid to combat chronic food shortages. Outdated farming techniques, combined with limited access to modern equipment, exacerbate the problem.

Venezuela

Once a major agricultural exporter, Venezuela’s farming industry has been decimated by authoritarian policies. Price controls, land expropriations, and corruption have driven farmers out of business. With a lack of domestic production, the country now relies heavily on imports, causing food prices to skyrocket and leaving millions unable to afford basic staples.

Russia

Russia’s agricultural sector has faced significant challenges under Vladimir Putin. Sanctions imposed after the annexation of Crimea disrupted exports, while corruption and inefficiencies in land management hinder growth. Although Russia has focused on self-sufficiency in food production, reliance on outdated practices and limited investment in innovation leaves the sector vulnerable.

How These Policies Drive Market Price Increases

1. Supply Chain Disruptions:

Authoritarian regimes often centralize control of agricultural production, leading to inefficiencies. Policies like forced quotas or price controls disrupt supply chains, resulting in shortages and higher prices for consumers.

2. Land Mismanagement:

Confiscation of farmland and forced collectivization reduce productivity. Without private ownership or incentives, farmers lack the motivation to innovate or produce efficiently.

3. Export Restrictions and Trade Wars:

Many authoritarian regimes implement export bans to prioritize domestic supply. While this might stabilize local markets temporarily, it creates global shortages, driving up prices worldwide.

4. Dependency on Imports:

Countries like Venezuela that fail to sustain domestic production are forced to rely on imports, which are often expensive and inconsistent. This dependency drives up prices for essential goods.

Common Patterns in Agricultural Collapse Under Authoritarian Rule

• Centralized Control: Government-imposed quotas and land collectivization reduce productivity and efficiency.

• Lack of Innovation: Suppression of creativity and technological advancement stifles growth in agricultural industries.

• Corruption and Mismanagement: Resources are diverted to elites or military priorities rather than invested in sustainable farming.

• Environmental Degradation: Overuse of land and lack of proper management lead to long-term damage to farmland.

The Role of Global Markets and Sanctions

The interconnectedness of global markets means that disruptions in one country’s agricultural sector can have far-reaching effects. For example, sanctions on Russia have limited its grain exports, causing global wheat prices to rise. Similarly, Venezuela’s reliance on imports has strained neighboring countries’ resources.

Authoritarian policies often exacerbate these issues by restricting trade, hoarding resources, or mismanaging supply chains. Democracies, by contrast, can foster international cooperation and innovation to stabilize agricultural markets.

Why Education and Innovation in Agriculture Matter

At Peaceful Kingdom Farms, we believe that empowering farmers and rural communities with education and resources is essential for building a sustainable future.

• Financial Literacy 101: Farmers and agricultural workers benefit from understanding market trends, budgeting, and cash flow management. These skills help them navigate economic instability and make informed decisions.

• Entrepreneurship Project: By fostering innovation and encouraging diversification, we help farmers create sustainable businesses that can withstand market disruptions. For example, incorporating regenerative farming practices or exploring value-added products like organic goods can create new revenue streams.

These programs are designed to address the challenges farmers face and provide them with tools to adapt and thrive.

Together, we can build stronger, more resilient agricultural industries and ensure a brighter future for rural communities around the world.

This is for you. Let’s make a difference—together.