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Global biodiesel production grew by 23% per annum between 2005 and 2015, leading to a seven-fold expansion of the sector in a single decade. Rapid development in the biodiesel sector corresponded to high crude oil prices, but since mid-2014, oil prices have fallen dramatically. This paper assesses the economic and policy factors that underpinned the expansion of biodiesel, and examines the near-term prospects for biodiesel growth under conditions of low fossil fuel prices. We show that the dramatic increase in biodiesel output would not have occurred without strong policy directives, subsidies, and trade policies designed to support agricultural interests, rural economic development, energy security, and climate targets. Given the important role of policy—and the political context within each country that shapes policy objectives, instruments, and priorities—case studies of major biodiesel producing countries are presented as a key element of our analysis. Although the narrative of biodiesel policies in most countries conveys win-win outcomes across multiple objectives, the case studies show that support of particular constituents, such as farm lobbies or energy interests, often dominates policy action and generates large social costs. Looking out to 2020, the paper highlights risks to the biodiesel industry associated with ongoing regulatory and market uncertainties.

 

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Renewable and Sustainable Energy Reviews
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Rosamond L. Naylor
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Over the last two decades global production of soybean and palm oil seeds have increased enormously. Because these tropically rainfed crops are used for food, cooking, animal feed, and biofuels, they have entered the agriculture, food, and energy chains of most nations despite their actual growth being increasingly concentrated in Southeast Asia and South America. The planting of these crops is controversial because they are sown on formerly forested lands, rely on large farmers and agribusiness rather than smallholders for their development, and supply export markets. The contrasts with the famed Green Revolution in rice and wheat of the 1960s through the 1980s are stark, as those irrigated crops were primarily grown by smallholders, depended upon public subsidies for cultivation, and served largely domestic sectors.  

The overall aim of the book is to provide a broad synthesis of the major supply and demand drivers of the rapid expansion of oil crops in the tropics; its economic, social, and environmental impacts; and the future outlook to 2050. After introducing the dramatic surge in oil crops, chapters provide a comparative perspective from different producing regions for two of the world's most important crops, oil palm and soybeans in the tropics. The following chapters examine the drivers of demand of vegetable oils for food, animal feed, and biodiesel and introduce the reader to price formation in vegetable oil markets and the role of trade in linking consumers across the world to distant producers in a handful of exporting countries. The remaining chapters review evidence on the economic, social, and environmental impacts of the oil crop revolution in the tropics. While both economic benefits and social and environmental costs have been huge, the outlook is for reduced trade-offs and more sustainable outcomes as the oil crop revolution slows and the global, national, and local communities converge on ways to better managed land use changes and land rights. 

Food, Feed, Fuel, and Forests
by Derek Byerlee, Walter P. Falcon, and Rosamond L. Naylor
will be published by Oxford University Press on November 10, 2016
$74.00 | 304 Pages | 9780190222987
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In a recent speech, Stanford professor Rosamond Naylor examined the wide range of challenges contributing to global food insecurity, which Naylor defined as a lack of plentiful, nutritious and affordable food. Naylor's lecture, titled "Feeding the World in the 21st Century," was part of the quarterly Earth Matters series sponsored by Stanford Continuing Studies and the Stanford School of Earth Sciences. Naylor, a professor of Environmental Earth System Science and director of the Center on Food Security and the Environment at Stanford, is also a professor (by courtesy) of Economics, and the William Wrigley Senior Fellow at the Freeman Spogli Institute for International Studies and the Stanford Woods Institute for the Environment.

"One billion people go to bed day in and day out with chronic hunger," said Naylor. The problem of food insecurity, she explained, goes far beyond food supply. "We produce enough calories, just with cereal crops alone, to feed everyone on the planet," she said. Rather, food insecurity arises from a complex and interactive set of factors including poverty, malnutrition, disease, conflict, poor governance and volatile prices. Food supply depends on limited natural resources including water and energy, and food accessibility depends on government policies about land rights, biofuels, and food subsidies. Often, said Naylor, food policies in one country can impact food security in other parts of the world. Solutions to global hunger must account for this complexity, and for the "evolving" nature of food security.

As an example of this evolution, Naylor pointed to the success of China and India in reducing hunger rates from 70 percent to 15 percent within a single generation. Economic growth was key, as was the "Green Revolution," a series of advances in plant breeding, irrigation and agricultural technology that led to a doubling of global cereal crop production between 1970 and 2010. But Naylor warned that the success of the Green Revolution can lead to complacency about present-day food security challenges. China, for example, sharply reduced hunger as it underwent rapid economic growth, but now faces what Naylor described as a "second food security challenge" of micronutrient deficiency. Anemia, which is caused by a lack of dietary iron and which Naylor said is common in many rural areas of China, can permanently damage children's cognitive development and school performance, and eventually impede a country’s economic growth.

Hunger knows no boundaries

Although hunger is more prevalent in the developing world, food insecurity knows no geographic boundaries, said Naylor. Every country, including wealthy economies like the United States, struggles with problems of food availability, access, and nutrition. "Rather than think of this as 'their problem' that we don't need to deal with, really it's our problem too," Naylor said.

She pointed out that one in five children in the United States is chronically hungry, and 50 million Americans receive government food assistance. Many more millions go to soup kitchens every night, she added. "We are in a precarious position with our own food security, with big implications for public health and educational attainment," Naylor said. A major paradox of the United States' food security challenge is that hunger increasingly coexists with obesity. For the poorest Americans, cheap food offers abundant calories but low nutritional value. To improve the health and food security of millions of Americans, "linking policy in a way that can enhance the incomes of the poorest is really important, and it's the hard part,” she said.” It's not easy to fix the inequality issue."

Success stories

When asked whether there were any "easy" decisions that the global community can agree to, Naylor responded, "What we need to do for a lot of these issues is pretty clear, but how we get after it is not always agreed upon." She added, "But I think we've seen quite a few success stories," including the growing research on climate resilient crops, new scientific tools such as plant genetics, improved modeling techniques for water and irrigation systems, and better knowledge about how to use fertilizer more efficiently. She also said that the growing body of agriculture-focused climate research was encouraging, and that Stanford is a leader on this front.

Naylor is the editor and co-author of The Evolving Sphere of Food Security, a new book from Oxford University Press. The book features a team of 19 faculty authors from 5 Stanford schools including Earth science, economics, law, engineering, medicine, political science, international relations, and biology. The all-Stanford lineup was intentional, Naylor said, because the university is committed to interdisciplinary research that addresses complex global issues like food security, and because "agriculture is incredibly dominated by policy, and Stanford has a long history of dealing with some of these policy elements. This is the glue that enables us to answer really challenging questions." 

 

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Meeting the world’s need for food in the 21st century presents unprecedented challenges and opportunities. The global population is expected to grow toward 9 billion by 2050, and more families will live in middle-income countries and urban areas with expanding per capita consumption. At the same time, climate change and resource constraints will likely reduce crop and animal production in many locations, potentially creating greater disparities in incomes, food access, and nutrition around the world. Roz Naylor, a thought leader in global food security, will discuss the world’s future food dilemma and present a range of solutions focused on the diversification of food systems, improved input efficiencies, renewable energy use, new crop technologies, and policy adjustments. Her talk will demonstrate how food security, in its broadest form, is tied to security of many other kinds: energy, water, climate, health, the environment, and national security.

FSE director Roz Naylor’s research focuses on economic and biophysical dimensions of food security and environmental impacts of crop and animal production. Her extensive field research and published work span issues related to intensive crop production, aquaculture and livestock systems, biofuels, climate change, food price volatility, and food policy analysis. At Stanford, Naylor teaches courses on the world food economy, humanenvironment interactions, and sustainable agriculture.

Naylor's new book The Evolving Sphere of Food Security (Oxford University Press, September) brings together 19 Stanford scholars from across campus to explore the many faces and facets of global food security. Copies of the book will be available for purchase at the event.

The annual Earth Matters lecture series is jointly sponsored by Stanford Continuing Studies and the Stanford School of Earth Sciences.

Cubberley Auditorium

The Jerry Yang and Akiko Yamazaki
Environment and Energy Building
Stanford University
473 Via Ortega, Office 363
Stanford, CA 94305

(650) 723-5697 (650) 725-1992
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Senior Fellow, Stanford Woods Institute and Freeman Spogli Institute for International Studies
William Wrigley Professor of Earth System Science
Senior Fellow and Founding Director, Center on Food Security and the Environment
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Rosamond Naylor is the William Wrigley Professor in Earth System Science, a Senior Fellow at Stanford Woods Institute and the Freeman Spogli Institute for International Studies, the founding Director at the Center on Food Security and the Environment, and Professor of Economics (by courtesy) at Stanford University. She received her B.A. in Economics and Environmental Studies from the University of Colorado, her M.Sc. in Economics from the London School of Economics, and her Ph.D. in applied economics from Stanford University. Her research focuses on policies and practices to improve global food security and protect the environment on land and at sea. She works with her students in many locations around the world. She has been involved in many field-level research projects around the world and has published widely on issues related to intensive crop production, aquaculture and livestock systems, biofuels, climate change, food price volatility, and food policy analysis. In addition to her many peer-reviewed papers, Naylor has published two books on her work: The Evolving Sphere of Food Security (Naylor, ed., 2014), and The Tropical Oil Crops Revolution: Food, Farmers, Fuels, and Forests (Byerlee, Falcon, and Naylor, 2017).

She is a Fellow of the Ecological Society of America, a Pew Marine Fellow, a Leopold Leadership Fellow, a Fellow of the Beijer Institute for Ecological Economics, a member of Sigma Xi, and the co-Chair of the Blue Food Assessment. Naylor serves as the President of the Board of Directors for Aspen Global Change Institute, is a member of the Scientific Advisory Committee for Oceana and is a member of the Forest Advisory Panel for Cargill. At Stanford, Naylor teaches courses on the World Food Economy, Human-Environment Interactions, and Food and Security. 

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Frontiers in Food Policy: Perspectives on sub-Saharan Africa is a compilation of research stemming from the Global Food Policy and Food Security Symposium Series, hosted by the Center on Food Security and the Environment at Stanford University and funded by the Bill and Melinda Gates Foundation. The series, and this volume, have brought the world's leading policy experts in the fields of food and agricultural development together for a comprehensive dialogue on pro-poor growth and food security policy. Participants and contributing authors have addressed the major themes of hunger and rural poverty, agricultural productivity, resource and climate constraints on agriculture, and food and agriculture policy, with a focus on sub-Saharan Africa.

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Stanford Center on Food Security and the Environment
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Walter P. Falcon
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Rosamond L. Naylor
Rosamond L. Naylor
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Sugarcane area is currently expanding in Brazil, largely in response to domestic and international demand for sugar-based ethanol. To investigate the potential hydroclimatic impacts of future expansion, a regional climate model is used to simulate 5 years of a scenario in which cerrado and cropland areas (~1.1E6 km2) within south-central Brazil are converted to sugarcane. Results indicate a cooling of up to ~1.0°C during the peak of the growing season, mainly as a result of increased albedo of sugarcane relative to the previous landscape. After harvest, warming of similar magnitude occurs from a significant decline in evapotranspiration and a repartitioning toward greater sensible heating. Overall, annual temperature changes from large-scale conversion are expected to be small because of offsetting reductions in net radiation absorption and evapotranspiration. The decline in net water flux from land to the atmosphere implies a reduction in regional precipitation, which is consistent with progressively decreasing simulated average rainfall for the study period, upon conversion to sugarcane. However, rainfall changes were not robust across three ensemble members. The results suggest that sugarcane expansion will not drastically alter the regional energy or water balance, but could result in important local and seasonal effects.

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Geophysical Research Letters
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Matei Georgescu
Matei Georgescu
David Lobell
David Lobell
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Christopher B. Field
A. Mahalov
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Ashley Dean
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Outside of China, the world now has more food insecure and nutrient deficient people than it had a decade ago, and the prevalence of obesity-related diabetes, high blood pressure and cardio-vascular diseases is increasing at very rapid rates. Expanded food production has done little to address the fact that between one-third and one-half of all deaths in children under five in developing countries are still related to malnutrition.

“With only three years away from the Millennium Development Goals deadline, this is a terrible track record,” said food and nutrition policy expert Per Pinstrup-Andersen at FSE's Global Food Policy and Food Security Symposium Series last week.  

Pinstrup-Andersen, the only economist to win the World Food Prize (the ultimate award in the food security field), has dedicated his career to understanding the linkages between food, nutrition, and agriculture. What is driving persistent food insecurity and malnutrition in a food abundant world?

Poor food supply management is part of the problem. According to the United Nations Food and Agricultural Organization (FAO), 20-30% of food produced globally is lost every year. That’s enough to feed an additional 3-3.5 billion people.

Jatropha in Africa. Photo credit: Ton Rulkens/flickr.

Biofuels production, such as jatropha in Africa, now competes with food for land, and climate change is already negatively impacting crop yields in regions straddling the equator—with major implications for food supply.

For low-income consumers in both the U.S. and developing countries increasing and more volatile food prices, such as those seen in 2007, are also driving food insecurity. Poor consumers respond by purchasing cheaper, less nutrient food, and less of it.

Nutritional value chain

Consensus is developing—at least rhetorically—among national policymakers and international organizations that investments in agricultural development must be accelerated. Members of the G8 and G20 have committed $20 billion in international economic support for such investments and some developing countries such as Ethiopia and Ghana are planning large new investments.

While most of these recent initiatives focus on expanded food supplies, there is an increasing understanding that merely making more food available will not assure better food security, nutrition, and health at the household and individual levels.

“It matters for health and nutrition how increasing food supplies are brought about and of what it consists,” said Pinstrup-Andersen. “We need to turn the food supply chain into a nutritional value chain.”

Diet diversity is incredibly important for good nutrition. Agricultural researchers and food production companies need to look at a number of different commodities, not just the major food staples, said Pinstrup-Andersen.

“The Green Revolution successfully increased the production of corn, rice, and wheat, increasing incomes for farmers, and lowering prices for consumers, but now it is time to invest in fruits, vegetables and biofortification to deal with micronutrient deficiency,” said Pintrup-Andersen.

Biofortification, the breeding of crops to increase their nutritional value, offers tremendous opportunity for dealing with malnutrition in the developing world, but is not widely available.

This is particularly important for areas in sub-Saharan Africa where between one and three and one and four people are short in calories, protein, and micronutrients. Obesity is actually going up in these countries with the introduction of cheap, processed, energy-dense foods (those high in sugar and fat) contributing to the diabetes epidemic.

Pathways to better health

Women hauling water to their gardens in Benin.

The path to better health and nutrition must look beyond the availability of food at affordable prices, clean water, and good sanitation, and consider behavioral factors such as time constraints for women in low-income households.

“Field studies have shown time and time again that one of the main factors preventing women from providing themselves and their families with good nutrition is time,” explained Pinstrup-Andersen.

He told the story of a woman in Bolivia too burdened with farm and household responsibilities to take the time to breastfeed her six-month old daughter. Enhancing productivity in activities traditionally undertaken by women could be a key intervention to improving good health and nutrition at the household level.

Access is another issue. A household may be considered food secure, in that sufficient food may be available, but food may not be equally allocated in the household.

“If we focus on the most limiting constraint we can be successful,” said Pinstrup-Anderen. “But we must tailor our response to each case.”

For sub-Saharan Africa, this includes investments in rural infrastructure, roads, irrigation systems, micronutrient fertilizer, climate adaptation strategies, and other barriers holding back small farmers.

Fortunately, there has been a renewed attention to the importance of guiding food system activities towards improved health and nutrition. The Global Agriculture and Food Security Program (GAFSP), which facilitates the distribution of some of the G8 and G20 $20 billion commitments, prescribes that country proposals for funding of agricultural development projects must show a clear pathway from the proposed agricultural change to human nutrition.

“But it’s not going to be easy to implement good policies,” warned Pinstrup-Andersen. “There are few incentives in government for multidisciplinary problem solving. The economy is set up around silos and people are loyal to their silos. Agricultural and health sectors are largely disconnected in their priorities, policy, and analysis."

Incentives must change to encourage working across ministries and disciplines to identify the most important health and nutrition-related drivers of food systems, impact pathways, and policy and program interventions to find win-wins for positive health and nutrition.

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In advance of the third presidential debate, Freeman Spogli Institute center directors thought about key international policy issues that need addressing by presidential candidates Barak Obama and Mitt Romney. FSE center director Rosamond L. Naylor posed the question below among a list of other suggested FSI foreign policy questions to debate:

Should our government help American farmers cope with climate impacts on food production, and should this assistance be extended to other countries – particularly poor countries – whose food production is also threatened by climate variability and climate change?

What to listen for: Most representatives in Congress would like to eliminate government handouts, and many would also like to turn away from any discussion of climate change. Yet this year, U.S. taxpayers are set to pay up to $20 billion to farmers for crop insurance after extreme drought and heat conditions damaged yields in the Midwest.

With the 2012 farm bill stalled in Congress, the candidates need to be clear about whether they support government subsidized crop insurance for American farmers. They should also articulate their views on climate threats to food production in the U.S. and abroad.

Without a substantial crop insurance program, American farmers will face serious risks of income losses and loan defaults. And without foreign assistance for climate adaptation, the number of people going hungry could well exceed 15 percent of the world's population. 

~Rosamond L. Naylor, director of the Center on Food Security and the Environment 

 

Inspired by the spirit of debate, FSE fellows took the opportunity to pose a few additional questions for the candidates. 

Questions from FSE deputy director Walter P. Falcon:

The US now uses more that 40% of its corn crop for biofuel. While some argue this contributes to long-term energy independence, others note that ethanol mandates, along with unfavorable weather, can contribute to higher and more volatile food prices like those seen in recent years. Do you regard the US policy emphasis on biofuels, especially corn-based ethanol, as being a successful program to date? Have the benefits from biofuels outweighed the negative impacts on higher food costs around the world, and do you believe that mandates continue to be the most appropriate policy going forward?

One of the largest agricultural programs in the US is in the form of food stamps to poor consumers. Would you prefer to cap, perhaps even eliminate, the food stamp (SNAP) program? Would you prefer to replace it with a direct cash transfer system? Whom do you think generally should qualify either for food stamps or cash transfers?

Questions from FSE associate director David Lobell:

A major initiative of the Obama Administration has been Feed the Future, which aims at improving food security in other countries. Is the U.S. focused sufficiently on hunger in other parts of the world? Have actions matched rhetoric? Is a $3 billion expenditure on this initiative the right sum in an era of large fiscal deficits in the U.S.?

Question from research scholar Bill Burke:

The United States is viewed by many as a world leader, but its role in foreign assistance is contentious. In dollar terms, the United States consistently gives more foreign assistance than any other donor nation. In 2012, for example, the U.S. provided nearly 34 billion dollars, or more than twice as much as any other country. On the other hand, many criticize the U.S. for contributing relatively little in comparison to other countries when donations are measured as a share of GDP. Some also point out that much of what is labeled foreign assistance is actually military or security assistance, and does not contribute directly towards economic development. Does the U.S. spend too little or too much on foreign assistance, and should a greater proportion of U.S. funding go directly towards poverty reduction and food security?

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Soybean production has become a significant force for economic development in Brazil. It has also received considerable attention from environmental and social non-governmental organizations as a driver of deforestation and land consolidation. While many researchers have examined the impacts of soybean production on human and environmental landscapes, there has been little investigation into the economic and institutional context of Brazilian soybean production or the relationship between soy yields and planted area. This study examines the influence of land tenure, land use policy, cooperatives, and credit access on soy production in Brazil. Using county level data we provide statistical evidence that soy planted area and yields are higher in regions where cooperative membership and credit levels are high, and cheap credit sources are more accessible. This result suggests that soybean production and profitability will increase as supply chain infrastructure improves in the Cerrado and Amazon biomes in Brazil. The yields of competing land uses, wheat, coffee, and cattle production and a complementary use, corn production, also help to determine the location of soybean planted area in Brazil. We do not find a significant relationship between land tenure and planted area or land tenure and yields. Soy yields decline as transportation costs increase, but planted area as a proportion of arable land is highest in some of the areas with very high transportation costs. In particular, counties located within Mato Grosso and counties within the Amazon biome have a larger proportion of their arable, legally available land planted in soy than counties outside of the biome. Finally, we provide evidence that soy yields are positively associated with planted area, implying that policies intending to spare land through yield improvements could actually lead to land expansion in the absence of strong land use regulations. While this study focuses on Brazil, the results underscore the importance of understanding how supply chains influence land use associated with cash crops in other countries.

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Land Use Policy
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Rachael Garrett
Rachael Garrett
Eric Lambin
Eric Lambin
Rosamond L. Naylor
Rosamond Naylor
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