Awarding of Point MacKenzie farm was done properly

A Spectrum, by Wintrhop Faulkner

Recently there has been some controversy over the state award of Wayne Brost's leased dairy farm to him for $100,000 less than another bidder from Wasilla. For the record, I am a part owner of a Point MacKenzie hay farm.

I favor the sale of the Point MacKenzie farm to Mr. Brost. Several very important points were left out of the Anchorage Daily News article on Nov. 24 and Vicki Trytten's article to the Frontiersmen in November.

First point: Wayne Brost has been improving his leased dairy farm for the past four years. This includes clearing land, planting hay, fertilizing the soil, improving the structures, roads, fencing, as well as all that goes along with running his dairy.

Wayne has been working seven days a week, 12-plus hours a day to improve the farm and actually make his dairy work. Mr. Brost's land and dairy is not the "land" he leased five years ago, but a much improved piece of land and now a dairy through the hard work and dedication of Mr. Brost.

Wouldn't it seem fair to consider these improvements and dedication to improving the dairy in Mr. Brost's bid to purchase his land? And conversely, does it make sense to award all of the product of Mr. Brost's risk and hard work to another untested farmer who is new to dairy farming?

Second point: Mr. Brost could not work his land and dairy without investment in expensive equipment such as tractors, hay bailers, fertilizer spreaders, disks, plows, trucks, loaders and many other specialized pieces of equipment that are necessary to make a farm and dairy work.

It is without question that this equipment is a substantial investment. Mr. Brost's investment in this equipment could not be made unless he could reasonably assume he would have the chance to purchase the farm at the end of his lease at a price he could know and evaluate at the time of his original investment. Otherwise you'd be asking him to make all this investment with the hope that someday he could purchase the farm for an unknown price.

Who do you think would loan Mr. Brost money under those temporary and uncertain circumstances? Using the value of Mr. Brost's land at the time of the original lease is not only justified, but was necessary to attract Mr. Brost and his financial backers into the original lease and investment.

The state's track record on promoting agriculture and dairy at Point MacKenzie in the past has been dismal. Millions of dollars of private investment has been lost by many hard-working farmers who were willing to invest their time and capital in the state's failed agricultural project.

It is certainly questionable that the state should even be involved in promoting agriculture when so many Alaskans have been bankrupt in the process of trying to prove the state's vision of agriculture in Alaska can work.

If the state chooses to continue the strategy of stripping the personal investments of hard-working Alaskans, then perhaps they should take Mr. Brost's dairy farm and award it to the bidder from Wasilla. And maybe the new bidder could even beat the odds and actually not default on his debt. If the state is truly interested in long-term investment, however, then they need to rethink this strategy.

Wayne Brost's dairy is an example of how a previously failed dairy farm was made healthy again through an investment no one else was willing to make five years ago through his lease with the state.

His entrepreneurial example of hard work and personal sacrifice and investment has resulted in his success. This is the kind of success the state rightfully should reward and encourage in the future.

Awarding Mr. Brost's farm to him for the original appraised price was not only the right thing to do, but encourages entrepreneurial efforts like Mr. Brost's for future farmers. Allowing Mr. Brost's farm to be awarded to another bidder would certainly kill Mr. Brost's spirit for ever trying this again. And worse, it may kill off the spirit of anyone willing to entertain similarly highly risky investments in the state of Alaska in the future.

Do not cave in to the jealous fits of a few disgruntled neighbors or losing bidders. Awarding Mr. Brost his farm was the right thing to do and is supported by me and other farmers on Point MacKenzie.

Winthrop Faulkner is a 38-year Alaska resident and Point MacKenzie hay farmer.