Breaking: Major sustainable-food foundation collapses

The Fair Food Foundation crumbles under weight of the Madoff Ponzi scheme 3

For a couple of years, there has been lots of buzz in the sustainable-food world about the Fair Food Foundation of Ann Arbor, Mich.

Fair Food was founded recently by Oran Hesterman, under whose leadership the Kellogg Foundation became the key funder in the sustainable-food space. Kellogg has been pulling back from that space; Fair Food, which was gearing up to begin giving $20 million per year, was expected to fill the void.

Today brings a stunning announcement: Fair Food is closing down. In an email message I obtained from the Comfood listserv, Hesterman wrote that the funds of the foundation’s main donors had been managed by Bernard Madoff, the financial operator who has been accused of defrauding his clients of billions of dollars.

The wealth of Fair Food’s donors, Jeanne and Kenneth Levy-Church, has evaporated in Madoff’s Ponzi scheme. As a result, "We will be spending the next few weeks closing down our operation," Hesterman says.

The New York-based JHET Foundation, which funds social justice and participatory-democracy projects to the tune of $30 million per year, also relies on donations from the Levy-Churches. It, too, has collapsed, Crain’s Detroit reports.

Now is a good time to reflect that the federal government has between $5 billion and $25 billion to invest every year in industrial agriculture through subsidies for corn, soy, cotton, and a few other commodities—and billions more in the form of subsidies for biofuel. Alternative-ag projects receive a pittance in comparison, with foundations like Fair Food partially filling the void.

Thus the industrial food system can rely on public support, while alternatives to it vie for crumbs from a piecemeal and clearly vulnerable set of foundations. Perhaps it’s time to reverse that situation?

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  1. Delay And Deny's avatar

    Delay And Deny Posted 11:31 pm
    16 Dec 2008

    Pretty Sustainable, Huh?

    Sure, it was sustainable for a few years...but not much more...

    "This is the essence of science...you ask an impertinent question and you're on your way to a pertinent answer." -- Fox Mulder, S1E4, "Conduit"
  2. archigeek Posted 1:19 am
    17 Dec 2008

    Mr. J...Your mind must be a terrible place...

    The mellotron is your friend.
  3. ljsmimosa Posted 12:48 pm
    20 Dec 2008

    Remember what Jesus taught us!The nation is going on break--in five days Americans  will be recognizing the legacy of one of a great Rabbi--Jesus of Nazareth who taught us that we should honor our brother and sister and most importantly, like so many before him have taught, provide for the poorest among us. I am gut wrenchingly sad to find out that Fair Food has closed its doors. So many thousands of poor americans depend on the resources of Fair Food to support sustainability on the local level, and to advance personal responsibility through urban agriculture. This is a travesty which will have unparalleled consequences in the urban ag and food security community. What a shame!
    As we remember what Jesus talk the world, we must find a way to fill this gap, we must serve the poorest among us even during these times, we must not let greed and avarice, such as Madoff's has demonstrated, destroy our communities.
    When you celebrate the holidays, remember what Jesus said!

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