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This paper was prepared for Stanford University’s Global Food Policy and Food Security Symposium Series, hosted by the Center on Food Security and the Environment, and supported by the Bill and Melinda Gates Foundation.


Food policy makers are increasingly faced with the question of how to adapt to climate change. The increased attention on climate adaptation is partly related to the fact that greenhouse gas emissions and climate change show little sign of slowing, partly because of prospects for large sums of money devoted to adaptation, and partly because of well publicized recent weather events that have affected agricultural regions and rattled global food markets. A common and reasonable reaction from the food policy and agricultural community has been to argue that climate variations have always been a challenge to agriculture, and that climate change just makes addressing these variations more important. A logical conclusion from this perspective is to emphasize activities that help build resilience to unpredictable weather events, as well as to focus on the types of weather variables that exhibit a lot of year-to-year variability and cause the bulk of farmers’ concerns in current climate.

However reasonable as a starting point, this perspective is misguided and risks taking a challenging problem and making it even harder. Anthropogenic global warming (AGW) is fundamentally different from the natural variations driven by internal dynamics in the climate system. Indeed, predicting the course of climate change is less like predicting the weather next week than it is like predicting that summer will be warmer than winter. Progress in climate science has shown that the most indelible hallmarks of AGW will be increased occurrence and severity of high temperature and heavy rainfall extremes in all regions, and increased frequency and severity of drought in sub-tropical regions. Changes in the timing and amount of seasonal rainfall also appear likely in some regions, but at a much smaller pace relative to natural variability. In all of these cases, predictions from climate science are most robust at broader spatial scales, with considerable uncertainty in predicting changes for any single country.

Meanwhile, progress in crop science has shown that most crops show fairly rapid declines in productivity as temperatures rise above critical thresholds, with as much as 10 percent yield loss for +1°C of warming in some locations. Both sub-Saharan Africa and South Asia appear particularly prone to productivity losses from climate change, in part because major staples in these regions are often already grown well above their optimum temperature.

Approaches to climate adaptation should recognize these realities, and should not equate anticipating climate changes with the considerably harder task of predicting next year’s weather. Predicting and building resilience to climate variability still remain important goals for agricultural development, but adaptation efforts should balance these activities with those focused more on the specific threats presented by climate change. Heat tolerant crop varieties and strategies to deal with heavy rainfall provide two examples of important needs. Similarly, balance is needed between the local-scale efforts that attract most of adaptation investment currently, and regional and global networks to develop needed technologies. Given the greater certainty of climate changes at broader scales, as well as the positive track record of international networks for crop breeding, investments in these global systems are very likely to deliver substantial adaptation benefits. Finally, given the downward pressures that climate change will exert on smallholder farm productivity in sub-Saharan Africa, and the critical role productivity gains play in catalyzing an escape from poverty, speeding the pace of investment in African agriculture can also be viewed as a good bet for climate adaptation.

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U.S. ethanol policy may be the single most significant contributor to world food price instability, states a Stanford study on the global costs of American ethanol. The rapid rise of biofuels has tied energy and agricultural markets together, making it difficult to assess one without understanding the other.

The price of corn recently hit an all time high, a departure from a long-term trend that has seen the cost of corn decline with each passing decade. Price spikes have happened before, and some experts viewed the latest jump as part of this familiar cycle. Stanford food policy economists Rosamond L. Naylor and Walter P. Falcon alternatively argue in a new paper released in The American Interest that we have entered a new era where agricultural commodity prices are increasingly driven by U.S. biofuel policies. This food and fuel linkage has, and will continue to have, major implications for global food prices and the world’s poor.

Over the last decade, the U.S. ethanol industry experienced a major increase in production and consumption as a result of beneficiary of tax breaks, tariffs and government mandates. In 2005, MTBE was phased out as a gasoline additive because of environmental and health risks, and ethanol became the preferred MTBE substitute. Production was further supported with a mandate to reach a minimum target of 15 billion gallons by 2015. 

A jump in the price of crude oil gave a further boost to ethanol as a potential replacement for petroleum. As a result, 40% of the U.S. corn crop is now devoted to ethanol production. These policies have been promoted under the banner of protecting the American farm industry, securing energy independence, and decreasing greenhouse gas emissions, and they have succeeded on a number of these fronts.

However, as a major global producer and exporter of corn, the rapid rise of ethanol production in the U.S. during such a short period of time has produced a fundamental change in the structure of demand for corn. Increased demand has led to higher and more volatile food prices, not only for corn but other agricultural commodities. If the United States, along with the rest of the G-20, is serious about stabilizing global food prices, U.S. domestic biofuels policy in its entirety will need to be re-examined.

High prices are a boon to the U.S. farm sector, but can be devastating for poor consumers with minimal income to spend on food. Food riots have broken out in several countries suggesting the new volatility in the price of staple crops has had a severe impact on developing economies. Where once the policies of the U.S. helped keep agricultural prices on an even keel, current support for the production of corn-based ethanol has reversed this stabilizing role. 

Given the bullish financial outlook for the U.S. agricultural sector, this is an ideal time to begin dismantling both ethanol and corn (and other major commodity) subsidies. Corn-based ethanol tax and tariff provisions together cost the federal government around $6 billion annually. Cutting these subsidies would help reduce the Federal budget deficit without harming the rural economy.

The trickier political and economic questions relate to reassessing mandates, and are likely off the table with the 2012 elections approaching. This is unfortunate, for these policies will continue to cause unrest in food markets far beyond American shores.

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David Lobell leads a 'Classes Without Quizzes' talk as part of Stanford Homecoming. Lobell discusses the latest trends in global food prices and hunger, explains how they are linked, and discusses some of the key factors to look for in understanding future developments in this area.

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Professor, Earth System Science
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David Lobell is the Benjamin M. Page Professor at Stanford University in the Department of Earth System Science and the Gloria and Richard Kushel Director of the Center on Food Security and the Environment. He is also the William Wrigley Senior Fellow at the Stanford Woods Institute for the Environment, and a senior fellow at the Freeman Spogli Institute for International Studies (FSI) and the Stanford Institute for Economic Policy and Research (SIEPR).

Lobell's research focuses on agriculture and food security, specifically on generating and using unique datasets to study rural areas throughout the world. His early research focused on climate change risks and adaptations in cropping systems, and he served on the Intergovernmental Panel on Climate Change (IPCC) Fifth Assessment Report as lead author for the food chapter and core writing team member for the Summary for Policymakers. More recent work has developed new techniques to measure progress on sustainable development goals and study the impacts of climate-smart practices in agriculture. His work has been recognized with various awards, including the Macelwane Medal from the American Geophysical Union (2010), a Macarthur Fellowship (2013), the National Academy of Sciences Prize in Food and Agriculture Sciences (2022) and election to the National Academy of Sciences (2023).

Prior to his Stanford appointment, Lobell was a Lawrence Post-doctoral Fellow at Lawrence Livermore National Laboratory. He holds a PhD in Geological and Environmental Sciences from Stanford University and a Sc.B. in Applied Mathematics from Brown University.

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Indonesia is currently the world’s top palm oil producer. Since the 1980s total land area planted to palm oil has increased by over 2,100 percent growing to 4.6 million hectares – the equivalent of six Yosemite National Parks. Plantation growth has predominately occurred on deforested native rainforest with major implications for global carbon emissions and biodiversity.

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World leaders are focused on agricultural supply data, insurance schemes and speculation as they try to quell volatility in global food markets. They should also turn their attention to perhaps the leading cause of price instability: U.S. ethanol policy.

Five years ago, few if any food or energy experts predicted that 40 percent of the U.S. corn crop in 2011 would be devoted to ethanol production. Nor did they imagine: that corn prices would reach all-time highs at $8 per bushel ($275 per metric ton); that July futures prices for corn in Chicago would exceed those for wheat; that the United States would be exporting ethanol to Brazil; or that an Iowa Senator would co-sponsor a bill to reduce corn-based subsidies just prior to the Iowa Caucuses for the 2012 primary season. What has caused these extraordinary circumstances? And what are the economic, political and food-security implications of a revolution in demand that has caught both economists and political leaders unaware?

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Rosamond L. Naylor
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Policies promoting ethanol and biodiesel production and use in the U.S., Europe, and other parts of the world since the mid-2000s have had profound—and largely unintended—consequences on global food prices, agricultural land values, land acquisition, and food security in developing countries. They have also created regional opportunities in the form of agricultural investments, crop yield growth, and booming farm economies. Rising incomes in emerging economies are generating increased demand for transportation fuels, thus stimulating further growth of the global biofuel industry. This seminar will explore the politics, economics, and global food security implications of the expanding biofuel sector. Several policy questions will be raised, including the role of biofuel mandates on food prices, the role of trade policies for stabilizing food prices in an era of increasingly tight demand, and the role of land policies and institutions for feedstock production and income distribution in the developing world.

Siwa Msangi, Senior Research Fellow in the Environment and Production Technology Division at the International Food Policy Research Institute (IFPRI) will provide commentary. Msangi's work focuses on the major socio-economic and bio-physical drivers affecting agricultural production and trade, and their impacts on nutrition, poverty and the environment. Dr. Msangi manages a research portfolio that includes the economic and environmental implications of biofuels, and has coordinated the project Biofuels and the Poor in partnership with FSE.  

Biofuels videos: Roz Naylor talks food security and energy with Near Zero

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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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This paper serves as background to the fourth presentation in a Symposium Series on Global Food Policy and Food Security hosted by the Center on Food Security and Environment at Stanford University and supported by the Bill and Melinda Gates Foundation.


Political dynamics, not economic analysis, drive the domestic policy response to sharply rising food prices. The political objective during a food price crisis is almost always to keep it from happening. In the short run, this means “stabilizing” domestic food prices despite whatever is happening in world markets. Stabilizing domestic food prices in the face of sharply escalating world prices is not a foolish goal—most countries try to do it. The real issue is whether this can be done effectively and efficiently. The answer is always “no” unless the country has planned well ahead for such a contingency and already has an operational food price stabilization program in place. 

As a matter of “good practice,” all countries are discouraged by international donors from conducting such programs. Instead, countries are urged to implement “social” safety nets in times of food price spikes. The economic rationale is clear: let market prices signal the scarcity of food resources so that supply and demand can adjust, and then compensate the poor for deterioration in their standard of living when food prices rise. The problem is that safety nets that reach the poor quickly and effectively take considerable time to design and implement, and are quite costly in fiscal terms if the poor are a substantial share of the total population. Historically, unless the country is already running a cash transfer program to the poor, the emergence of a food price crisis is too sudden for an effective government response. Gearing up emergency food relief safety nets is not an effective response to a sudden spike in food prices.

More active measures to prevent food price spikes are needed, both domestically and internationally. One starting point would be for countries with large populations to gradually build their grain reserves to the point where they do not feel vulnerable to spikes in world prices and to possible grain embargoes from their regular suppliers. It would be desirable to have such stockholding strategies coordinated internationally, but this is unlikely in other than rhetorical terms. Still, the mere existence of these stocks, even if domestically controlled, would have a calming influence on world grain markets (especially on the very thin world rice market). With calmer markets, recourse to more open trade policies becomes politically feasible (and it is almost always economically desirable). Eventually, the reality of the high costs of grain storage will stimulate a more balanced approach to food security, with both reserves and trade playing significant roles.

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FSE director Roz Naylor discussant in three panels at the 2011 Aspen Environment Forum, a conference sponsored by the Aspen Institute and National Geographic. Follow the conference on Twitter, @AspenInstitute and @NatGeoGreen, or via #aef2011. National Geographic will be posting daily blogs on ngm.com/aspen.

Tuesday, May 31:

Peak Planet

Population boomed in the 20th century mostly because public health and sanitation measures saved lives—but keeping those people alive and enriching many of them required an unprecedented boom in our ability to extract resources from the Earth. The debate about “peak oil” has loomed over us for decades, but other mineral resources may be nearing peaks as well. Platinum and other metals, phosphate for fertilizer, and just plain dirt—that is, fertile topsoil—have all been mentioned as approaching scarcity. Which of these resources is likely to become a real constraint on human development, and how soon?

Discussants: Marcia McNutt, Daniel Kammen, Roz Naylor, Andrew Revkin
Moderator: Elliot Gerson 

Can Science Feed the World?

Growing enough food in decades ahead at an acceptable cost to the planet will depend on research into everything from high-tech seeds to low-tech farming practices. Scientists increasingly see a critical role for “sustainable intensification,” an approach to producing more food from the same land with fewer inputs of energy and water, and at the same time reducing the negative environmental impacts that already occur. Where is this happening now and what can be learned from our attempts, and how can this be achieved at larger scale?

Discussants: Jerry Glover, Roz Naylor, Paul E. Schickler 
Moderator: Tim Appenzeller

Wednesday, June 1:

The Revolution We Need in Food Security and Population

The second global food crisis in three years is upon us – with bad weather, poor harvests and political turmoil sending food prices soaring to all-time highs. At the same time, the planet’s population is set to surpass seven billion this year, with most of the growth occurring in countries least equipped to meet the rising demands on agriculture and the environment. Experts predict that global food production must increase by 70 percent by mid-century to keep pace with current rates of growth. Join experts and policymakers for a discussion on these trends and the policies and programs needed to create lasting development and food security, including meeting the reproductive health needs of the growing world population.

Introduction: Dennis Dimick
Discussants: Dan Glickman, Roger-Mark De Souza, Roz Naylor, John Foley 
Moderator: Elliot Gerson

Aspen Institute, Aspen CO

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
0
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
Roz_low_res_9_11_cropped.jpg PhD

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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A team of researchers from Stanford University, the Carnegie Institution for Science, and Arizona State University has found that converting large swaths of land to bioenergy crops could have a wide range of effects on regional climate.

In an effort to help wean itself off fossil fuels, the U.S. has mandated significant increases in renewable fuels, with more than one-third of the domestic corn harvest to be used for conversion to ethanol by 2018. But concerns about effects of corn ethanol on food prices and deforestation had led to research suggesting that ethanol be derived from perennial crops, like the giant grasses Miscanthus and switchgrass. Nearly all of this research, though, has focused on the effects of ethanol on carbon dioxide emissions, which drive global warming.

"Almost all of the work performed to date has focused on the carbon effects," said Matei Georgescu, a climate modeler working in ASU's Center for Environmental Fluid Dynamics. "We've tried to expand our perspective to look at a more complete picture.  What we've shown is that it's not all about greenhouse gases, and that modifying the landscape can be just as important."

Georgescu and his colleagues report their findings in the current issue (Feb. 28, 2011) of the Proceedings of the National Academy of Sciences (see Direct Climate Effects of Perennial Bioenergy Crops in the United States). Co-authors are David Lobell of Stanford University's Program on Food Security and the Environment and Christopher B. Field of the Carnegie Institution for Science, also located in Stanford, California.

In their study, the researchers simulated an entire growing season with a state-of-the-art regional climate model. They ran two sets of experiments - one with an annual crop representation over the central U.S. and one with an extended growing season to represent perennial grasses. In the model, the perennial plants pumped more water from the soil to the atmosphere, leading to large local cooling. 

"We've shown that planting perennial bioenergy crops can lower surface temperatures by about a degree Celsius locally, averaged over the entire growing season. That's a pretty big effect, enough to dominate any effects of carbon savings on the regional climate." said Lobell.

The primary physical process at work is based on greater evapotranspiration (combination of evaporated water from the soil surface and plant canopy and transpired water from within the soil) for perennial crops compared to annual crops. 

"More study is needed to understand the long-term implication for regional water balance." Georgescu said. "This study focused on temperature, but the more general point is that simply assessing the impacts on carbon and greenhouse gases overlooks important features that we cannot ignore if we want a bioenergy path that is sustainable over the long haul."

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