Chapter 168: The Agricultural Supply Store

In the end, they settled on the in-kind micro-loan model, as it was simpler to operate and more readily understood by the peasantry.

Young poultry would be provided to farmers on credit, with a minimum of five and a maximum of ten birds per household. A contract for the exclusive purchase of the resulting poultry and eggs would be signed with each farmer, who would use the eggs to repay the principal and interest on the young birds.

“I propose that the principal and interest for each chick be a total of 20 eggs,” Ye Yuming suggested.

“That’s practically a giveaway! It’s far too little,” Wu Nanhai protested, feeling it was a poor bargain. “The pullets we’re providing aren’t newly hatched chicks, but 18-week-old birds. The manpower and resources invested during this period are considerable. Moreover, the breeds of laying hens we’ve brought, whether the light White Leghorn or the medium-sized brown-egg layers, can produce an average of 220 to 280 eggs a year. A single hen can lay for at least two to three years. I’d feel short-changed even if we asked for 50 eggs as the cost.”

Ye Yuming countered, “Since we’re just starting the promotion, let’s absorb a small loss. Let’s stick with 20 eggs.”

The so-called middle peasants, rich peasants, and small landlords of Lincheng all had limited financial capacity. The inherent frugality and suspicion of the peasantry meant that any such promotion, at its outset, had to present a sufficient lure of profit without seeming too good to be true—an offer the peasants wouldn’t believe.

Wan Lihui sided with Ye Yuming, arguing that 50 eggs was indeed excessive. The stated annual egg production was achieved under the intensive farming conditions of a poultry farm, with an ample supply of compound feed. Under traditional farming methods, where feed is often of a single type and insufficient in quantity, poultry must spend more time foraging. In such conditions, egg production would be lower, and the risk of loss or death would be significantly higher.

“I think it’s highly likely that a few of these 5 to 10 chickens will die for various reasons,” Wan Lihui said. “Though you’ve studied agriculture, you don’t know the hardships of the peasants. Raising livestock in the countryside, a single mistake can lead to a total loss. A few chickens might not seem like much to a modern person, but to the peasants here, it’s a significant asset.”

After much debate, they finally accepted Ye Yuming’s proposal: 20 eggs per hen would be collected as principal and interest. The repayment period was set at six months from the start of farming.

Once the principal and interest were paid, the Society of Heaven and Earth would buy all the eggs and, eventually, the hens that could no longer lay. Everyone agreed that as long as the farmers fed the birds well and there were no accidental losses, the benefits were clear.

“This is also a prime opportunity to promote the use of circulation coupons to all the farmers in the county,” said Yan Ming. The coupons had been in circulation for over six months and had gained a degree of credit among the county’s merchants, but the farmers’ acceptance of this paper currency remained low.

They would pay the farmers for their produce with paper currency. This would be coordinated with a policy in Dongmen Market to stimulate the use of circulation coupons: all purchases made with coupons in stores operated by the transmigrator group would receive a 5% discount.

The farmers’ instinctive distrust of the coupons would lead them to spend them immediately in the market, further stimulating circulation and avoiding the hoarding that occurred with metal currency. This would truly get the money flowing.

“This isn’t promotion; it’s practically giving money away,” someone lamented.

“Most countries in the world subsidize agriculture. Otherwise, no one would farm,” Ye Yuming retorted. “We can consider this a form of agricultural subsidy.”

“In the short term, we’ll take a small loss, but to succeed with this kind of promotion, we must first win the people’s trust,” Ye Yuming said in his concluding remarks. “With trust as a foundation, it will be easier for the Society of Heaven and Earth to promote anything in the future.”

The poultry provided to the farmers was temporarily limited to laying hens. Wan Lihui suggested the White Leghorn. This light, white-egg-laying breed was no longer popular in the 21st century, but it was hardy, had a high feed conversion rate, and was an excellent forager, making it ideal for free-range farming by individual households.

“Another crucial point,” Wu Nanhai added, “is that we must provide feed and technical services. It’s not enough to just give the chickens to the farmers; we have to follow through.”

The feed issue was particularly important. Free-range farming could significantly reduce the risk of outbreaks like chicken plague, but the hens raised by the peasants of this era would not be as well-fed as their 21st-century counterparts.

The compound feed required by laying hens is highly specific. Modern animal husbandry identifies 39 different nutritional indicators for laying hens, requiring not only sufficient protein but also adequate fiber and calcium.

“Looking at the farmers here, they seem to be struggling to feed themselves. Are they capable of raising chickens? We can’t let the chickens starve.”

Raising chickens requires grain. In the past, while every household raised chickens to supplement their income, the scale was generally very small.

Wu Nanhai said, “Even if the farmers have enough grain, we still need to provide formulated feed, especially for protein and calcium. This has a major impact on the egg-laying rate. Otherwise, our promotion will be meaningless.”

“How do we provide it?”

“An in-kind loan for feed, also to be repaid with eggs.”

“With all these loans, the farmers will be saddled with an inescapable chain of debt…”

“As long as our feed increases their production, they should be willing,” Wu Nanhai said confidently. “In the past, farmers spent money on manure and household waste from the city, and bean cakes and peanut cakes from workshops… They have an investment mindset; they know that a good harvest requires high input. We won’t interfere with ordinary feed, but we will specialize in providing formulated feed to supplement protein and calcium, and add various nutrients that are easily deficient in free-range farming.”

No one disagreed. The details would be worked out by the Agriculture Committee, with Delong as the lending institution. The Society of Heaven and Earth and Delong would settle accounts internally. The Finance and Economics Committee hoped to quickly implement monetary settlement between departments to improve the financial system, rather than relying on in-kind accounts that were difficult to value.

As a supporting project, Delong Grain Company would also launch a “Farmer Support Loan,” a small cash loan specifically for farmers to buy agricultural materials like formulated feed, local veterinary medicines, and disinfectants. This would support farmers’ production while expanding the circulation of grain coupons.

“I have an idea,” Ye Yuming proposed before the meeting adjourned. “Iron farm tools in Lincheng are extremely scarce. The quality is poor, and the price is high, which greatly affects production. The metallurgy department can’t meet the demand for the entire county yet. Could we offer a special discount to the farmers who join the Society of Heaven and Earth? For example, promoting new types of farm tools at a relatively cheaper price.”

“I think that’s possible,” Wu Nanhai nodded, turning to the Planning Committee representative, Dai Xie. Dai Xie had been in charge of material distribution on D-Day. As the organization grew, he appeared less often, focusing on the administrative work of the Planning Committee, primarily approving and reviewing major projects. He was a frequent sight at various construction sites.

“How many would you need, approximately?”

“The Agriculture Committee itself needs to expand its workforce and replace worn-out tools, plus this promotion by the Society of Heaven and Earth…” Wu Nanhai consulted a notebook. “…At least fifty pieces per month.” Fearing an outright refusal, he added, “I’ll turn in the damaged tools to the Planning Committee to be melted down and recycled.”

Dai Xie said, “The problem isn’t too significant. The current daily steel output of the metallurgy department can support this quantity. But if you give them to outside farmers, recovery will be difficult. This loss must be taken into account…”

“We can do a trade-in program. Have the farmers return their old tools, give them a small subsidy, and then sell them new ones.”

“In that case, it should be acceptable,” Dai Xie agreed.

“Why don’t we just open an agricultural supply store?” Wan Lihui had a sudden inspiration, remembering the wealth of those who dealt in agricultural supplies in the countryside. “New farm tools, formulated feed, local pesticides, local fertilizers, seeds… with so many good things, we won’t have to worry about customers.”

Everyone thought this was an excellent idea. It was decided that the Society of Heaven and Earth would open an agricultural supply store in Dongmen Market to sell various agricultural products under the “Heaven and Earth Society” brand. Initially, these products would only be supplied to the landlords and small farmers participating in the promotion plan.

“Except for iron farm tools and seedlings, which cannot be widely promoted in the short term, formulated feed, local pesticides, and local fertilizers… should be available for open supply very soon,” Wu Nanhai said.

After the meeting, Yan Ming enthusiastically discussed the prices of agricultural supplies with Ye Yuming, Dai Xie, and others—the “Farmer Support Loans” would mainly be used to purchase these products. While they were arguing, Wu Nanhai rushed back to the farm with Wan Lihui.

Wan Lihui asked Wu Nanhai what the “formulated feed” would be made of. He knew that the farm’s grain reserves were not large. There wasn’t much grain to make feed with; they would most likely have to rely on by-products from the seafood factory: fish bones and scales.

Wu Nanhai went into a special warehouse and returned with a wooden box. “This is the main ingredient of my formulated feed.”

“What is this?!”

“Earthworms,” Wu Nanhai smiled. “Have you ever raised them in the countryside?”

“No—” Wan Lihui had a sudden realization. “But I’ve heard of people doing it, mainly to supply professional chicken farmers!”

“Right. Besides earthworms, I also plan to raise maggots—I haven’t done that myself, and I can’t find enough culture medium. Let’s start with the simple earthworms.”

“So you’re planning to use earthworms as the raw material for the formulated feed.”

“We’ll also need to add some plant-based ingredients, fish offal powder, and shell powder. These are all things laying hens need.”

The main formula Wu Nanhai had devised for the feed was: dried earthworm powder, fish offal powder, and shell powder. He didn’t have corn, the most common feed grain, so he could only provide a formulated supplement.