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This paper examines different paths and challenges in stages of agricultural transformation in two Asian countries. It contrasts their respective mechanisms of labor transfer from the agriculture sector to non- agriculture sectors and the up-skilling of the agricultural labor force in the process of an agricultural transformation. The paper describes this as a critical contribution from agriculture to economic growth. The important finding is that without such mechanisms and the corresponding instruments that increase agricultural labor productivity and improve rural livelihoods, an agricultural transformation is not assured.

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Policy Briefs
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2011 International Conference on Asia Agriculture and Animal IPCBEE
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Shinyoung Jeon
Shinyoung Jeon
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Ashley Dean
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Stanford’s Center on Food Security and the Environment (FSE) has received a $2 million grant from Cargill, a second gift from the company that raises its total contribution to FSE to $5 million over 10 years.

The announcement was made Nov. 10 at a dinner celebrating the launch of FSE as a full-scale research center. FSE has more than doubled in size in five years. Because of its growth and increasing importance of food security issues at Stanford and worldwide, it became an official center in September.

“The center’s rapid growth would not have been possible without the generous support of Cargill,” FSE Director and William Wrigley Senior Fellow Rosamond L. Naylor said. “Cargill’s initial investment provided seed-funding for the bold, new research and teaching that was happening at FSE while keeping our lights on and the staff running during our critical years of early development.”

A $3 million grant from Cargill in 2008 jump-started a visiting fellows program at FSE and helped build the infrastructure to support the center’s research.

The new grant will continue to provide program support, but will also be used to hire younger faculty and scholars to Stanford to work within the new Center.

Stanford-Cargill partnership

Stanford's partnership with Cargill extends back to 1976 when Cargill endowed Walter P. Falcon, then Director of Stanford's Food Research Institute and now FSE Deputy Director, with the Helen C. Farnsworth Professorship in International Agricultural Policy. The gift was intended to strengthen Stanford's work in agricultural policy, specifically as it relates to the international grain economy. FSI senior fellow Scott Rozelle now holds the Helen C. Farnsworth chair.

FSE and Cargill remain committed to helping feed a growing population while preserving the planet's natural resources. FSE is an applied group focused on providing real solutions to important food and agricultural issues.

“Poverty is the main issue driving food insecurity—it’s a question of access rather than food availability,” Naylor said.

FSE’s partnership with Cargill has demonstrated how Stanford-based research can be relevant to the private sector. FSE is conducting ongoing research on oil palm and land use issues in Indonesia that is helping inform and shape policy. Work on aquaculture feeds in China is another overlapping area of interest, as are ongoing assessments of biofuels in the U.S., Africa and Asia. Both have a stake in better understanding climate change impacts on agriculture and food commodity price volatility.

“It is clear to us at FSE—and increasingly to leadership of Stanford—that global food security will remain a critical issue within international policy circles,” said Naylor. “With support like the grant from Cargill, we are confident that Stanford can play a leading role in shaping the future policy discourse.”

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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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Roz Naylor will be lecturing on climate variability, rice production, and food policy in Indonesia as part of Brown University's conference on Climate Change and its Impacts. This conference will focus on changes in the supply of and demand for water in the 21st century, due both to changes in regional climate and to human population growth and development patterns. Major themes will include predicted changes in regional hydrologic cycles; resilience of existing social, economic, civil, ecological, and agricultural systems to likely changes; the potential of global and local institutions to increase the resilience of these systems; and what can be learned from one region to inform effective design of policies and water management structures in other regions. 

The conference is part of a larger institutional effort under the Brown International Advanced Research Institutes (BIARI). Throughout the Institute, participants will focus on developing interdisciplinary research through communication and joint development of projects.

Brown University

The Jerry Yang and Akiko Yamazaki
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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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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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Rosamond Naylor Speaker
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Video clips (12 min)

February 10th marked the launch of FSE's new Global Food Policy and Food Security symposium series. The opening session featured Jeff Raikes (CEO, Bill & Melinda Gates Foundation) and Greg Page (CEO, Cargill), who presented their views on global food security and the roles of the private sector and foundation community. Stanford President John Hennessy provided the opening remarks. Click herefor a news summary of the event.


Speaker biographies

Greg Page, CEO Cargill Corporation

Greg Page serves as chairman and chief executive officer of Cargill. Cargill, a leader in agribusiness, is one of the largest privately held corporations in the world, with 131,000 employees in 66 countries, and with 2010 revenues of $108 billion. He was elected chairman of the board on Sept. 11, 2007, and CEO on June 1, 2007. He continues to hold the office of president, a position to which he was elected in June 2000. He was elected to the Cargill Board of Directors in August 2000.

Page joined Cargill in 1974 as a trainee assigned to the Feed Division. Over the years, he held a number of positions in the United States and Singapore. Page worked with the start-up of a poultry processing operation in Thailand, the beef and pork processing operations of Cargill's Excel subsidiary in Wichita, Kansas, and the Financial Markets Group in Minneapolis.

Page serves as a member of Eaton Corporation's board of directors. He serves as chair of the board of Big Brothers Big Sisters of America. Page received a bachelor's degree in economics from the University of North Dakota. He was born in Bottineau, N.D.

Corporate Responsibility at Cargill

Jeff Raikes, CEO Bill & Melinda Gates Foundation

Jeff Raikes, chief executive officer, leads the foundation's efforts to promote equity for all people around the world. He sets strategic priorities, monitors results, and facilitates relationships with key partners for all three of our program groups.

Before joining the foundation, Raikes was a member of Microsoft's senior leadership team, which sets overall strategy and direction for the company. Raikes was president of the Microsoft Business Division and oversaw the Information Worker, Server & Tools Business and Microsoft Business Solutions groups. He previously served as group vice president of the Worldwide Sales and Support Group, where he was responsible for providing strategic leadership for Microsoft's sales, marketing, and service initiatives. Before that, he served as senior vice president of Microsoft North America.

Raikes joined Microsoft in 1981 as a product manager and was instrumental in driving Microsoft's applications marketing strategy. Promoted to director of applications marketing in 1984, Raikes was the chief strategist behind the company's success in graphical applications for the Apple Macintosh and the Microsoft Windows operating system and the creation of the Microsoft Office suite of productivity applications. Before joining Microsoft, he was a software development manager at Apple Computer Inc.

Raikes, a Nebraska native, holds a Bachelor of Science degree in engineering-economic systems from Stanford University. He and his wife, Tricia, have three children. They are founders of the Raikes Foundation and are active members of the United Way of King County, where they served as co-chairs of the 2006-2007 fundraising campaign. Raikes also serves on the board of directors for Costco Wholesale Corp. and the Microsoft Alumni Foundation, where he is chair of the board.

Adding special relevance to his participation today, Raikes is an active owner of a large farming and cattle-feeding operation in Nebraska.  For the last three years, he has also been a guest lecturer in Stanford's "World Food Economy" course, and he is slated to perform in that role again tomorrow.

Gates Foundation Agricultural Development Program

Mackenzie Conference Room
Room 300, Huang Building

Greg Page CEO Speaker Cargill Corporation
Jeff Raikes CEO Speaker Bill & Melinda Gates Foundation
Symposiums
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Chuin-Wei Yap
Stefanie Qi
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Yihai Kerry Group, a Singapore-based agribusiness and food company, has drawn criticism for its presence in China’s wheat market. Among the accusations leveled at the company, Yihai Kerry has been blamed for causing price inflation. Scott Rozelle, Helen F. Farnsworth Senior Fellow in the Freeman Spogli Institute for International Studies, comments on the positive side of competition.
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Holly Gibbs
Holly Gibbs
Louis Bergeron
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Global agricultural expansion cut a wide swath through tropical forests during the 1980s and 1990s. More than half a million square miles of new farmland - an area roughly the size of Alaska - was created in the developing world between 1980 and 2000, of which over 80 percent was carved out of tropical forests, according to Stanford researcher Holly Gibbs.

"This has huge implications for global warming, if we continue to expand our farmland into tropical forests at that rate," said Gibbs, a postdoctoral researcher in the Department of Environmental Earth System Science and in the Program on Food Security and the Environment, who led the study.

Gibbs and colleagues at several other universities analyzed Landsat satellite data and images from the United Nations to reach their conclusions. Theirs is the first study to map and quantify what types of land have been replaced by the immense area of new farmland developed across the tropical forest belt during the 1980s and 1990s.

While this huge increase was happening within the tropics, agricultural land in the non-tropical countries actually decreased in area.

The study was published this week in the online Early Edition of the Proceedings of the National Academy of Sciences.

The United Nations Food and Agriculture Organization estimates that to keep pace with increasing demand, global agricultural production will have to keep increasing, possibly even doubling by 2050. That would likely lead to millions of additional acres of tropical forest being felled over the next 40 years.

Direct impact on carbon released into atmosphere

"Every million acres of forest that is cut releases the same amount of carbon into the atmosphere as 40 million cars do in a year," Gibbs said.

Most of the carbon released comes from burning the forests, but even if the trees are simply cast aside, the bulk of the carbon from the plants makes its way into the atmosphere during decomposition, she said.

Gibbs and her colleagues found that about 55 percent of the tropical forests that had been cut between 1980 and 2000 were intact forests and another 28 percent were forests that had experienced some degradation, such as some small-scale farming, logging or gathering of wood and brush for cooking or heating fuel.

"The tropical forests store more than 340 billion tons of carbon, which is 40 times the total current worldwide annual fossil fuel emissions," Gibbs said. "If we continue cutting down these forests, there is a huge potential to further contribute to climate change."

The increasing demand for agricultural production stems in part from the ever-growing number of people on the planet, who all want to eat. Additionally, members of the growing middle class in emerging economies such as China and India are showing interest in eating more meat, which further intensifies demand. And incentives to grow crops for biofuel production have increased.

But Gibbs and her colleagues also observed some encouraging signs. The patterns of change in the locations they analyzed made it clear that during the 1990s, less of the deforestation was done by small family farms than was the case in the 1980s and more was done by large, corporate-run farms. Big agribusiness tends to be more responsive to global economic signals as well as pressure campaigns from advocacy organizations and consumer groups than individual small farmers.

In Brazil, where a pattern had developed of expanding soy production by direct forest clearing and by pushing cattle ranching off pastureland and into forested areas, a campaign by Greenpeace and others resulted in agreements by key companies to rein in their expansion. Instead, they worked to increase production on land already in agricultural use.

'Seeing positive changes'

"These farmers effectively increased the yield of soy on existing lands and they have also increased the head of cattle per acre by a factor of five or six," Gibbs said. "It is exciting that we are starting to see how responsive industry can be to consumer demands. We really are seeing positive changes in this area."

Along with wiser use of land already cleared, Gibbs said, improvements in technology and advances in yield intensification also could slow the expansion of farming into the forests.

Other studies that analyzed land use changes between 2000 and 2007 have shown that the pace of cutting down the tropical forests has begun to slow in some regions.

But as long as the human population on the planet continues to grow, the pressure to put food on the table, feed in the barnyard and fuel in the gas tank will continue to grow, too.

"It is critical that we focus our efforts on reducing rates of deforestation while at the same time restoring degraded lands and improving land management across the tropics," Gibbs said. "The good news is that pressure from consumer groups and nongovernmental organizations combined with international climate agreements could provide a real opportunity to shift the tide in favor of forest conservation rather than farmland expansion."

In addition to her position at the Department of Environmental Earth System Science and the Program on Food Security and the Environment, Gibbs is affiliated with Stanford's Woods Institute for the Environment. Jon Foley, a professor of ecology, evolution and behavior, and director of the Institute on the Environment at the University of Minnesota, was Gibbs' PhD adviser when the research was begun. He is a coauthor of the paper.

Initial funding for the project was provided by NASA. Gibbs is currently funded by a David H. Smith Conservation Research Fellowship.

 

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David Lobell
David Lobell
Mark Shwartz
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The impact of global warming on food prices and hunger could be large over the next 20 years, according to a new Stanford University study. Researchers say that higher temperatures could significantly reduce yields of wheat, rice and maize - dietary staples for tens of millions of poor people who subsist on less than $1 a day. The resulting crop shortages would likely cause food prices to rise and drive many into poverty.  

But even as some people are hurt, others would be helped out of poverty, says Stanford agricultural scientist David Lobell.

Lobell discussed the results of his research on Feb 19 at the annual meeting of the American Association for the Advancement of Science in San Diego.

"Poverty impacts depend not only on food prices but also on the earnings of the poor," said Lobell, a center fellow at Stanford's Program on Food Security and the Environment (FSE). "Most projections assume that if prices go up, the amount of poverty in the world also will go up, because poor people spend a lot of their money on food. But poor people are pretty diverse. There are those who farm their own land and would actually benefit from higher crop prices, and there are rural wage laborers and people that live in cities who definiztely will be hurt."

Lobell and his colleagues recently conducted the first in-depth study showing how different climate scenarios could affect incomes of farmers and laborers in developing countries.

Household incomes

In the study, Lobell, former FSE researcher Marshall Burke and Purdue University agricultural economist Thomas Hertel focused on 15 developing countries in Asia, Africa and Latin America. Hertel has developed a global trade model that closely tracks the consumption and production of rice, wheat and maize on a country-by-country basis. The model was used to project the effects of climate change on agriculture within 20 years and the resulting impact on prices and poverty.

Using a range of global warming forecasts, the researchers were able to project three different crop-yield scenarios by 2030:

  • "Low-yield" - crop production is toward the low end of expectations.
  • "Most likely" - projected yields are consistent with expectations.
  • "High-yield" - production is higher than expected.

"One of the limitations of previous forecasts is that they don't consider the full range of uncertainties - that is, the chance that things could be better or worse than we expect," Lobell said. "We provided Tom those three scenarios of what climate change could mean for agricultural productivity. Then he used the trade model to project how each scenario would affect prices and poverty over the next 20 years.

"The impacts we're talking about are mainly driven by warmer temperatures, which dry up the soil, speed up crop development and shut down biological processes, like photosynthesis, that plants rely on," he added. "Plants in general don't like it hotter, and in many climate forecasts, the temperatures projected for 2030 would be outside the range that crops prefer."

Results

The study revealed a surprising mix of winners and losers depending on the projected global temperature. The "most likely" scenario projected by the International Panel on Climate Change is that global temperatures will rise 1.8 degrees Fahrenheit (1 degree Celsius) by 2030. In that scenario, the trade model projected relatively little change in crop yields, food prices and poverty rates

But under the "low-yield" scenario, in which temperatures increase by 2.7 F (1.5 C), the model projects a 10 to 20 percent drop in agricultural productivity, which results in a 10 to 60 percent rise in the price of rice, wheat and maize. Because of these higher prices, the overall poverty rate in the 15 countries surveyed was expected to rise by 3 percent.

However, an analysis of individual countries revealed a far more complicated picture. In 11 of the 15 countries, poor people who owned their own land and raised their own crops actually benefited from higher food prices, according to the model. In Thailand, for example, the poverty rate for people in the non-agricultural sector was projected to rise 5 percent, while the rate for self-employed farmers dropped more than 30 percent - in part because, as food supplies dwindled, the global demand for higher-priced crops increased.

"If prices go up and you're tied to international markets, you could be lifted out of poverty quite considerably," Lobell explained. "But there are a lot of countries, like Bangladesh, where poor people are either in urban areas or in rural areas but don't own their own land. Countries like that could be hurt quite a lot. Then there are semi-arid countries - like Zambia, Mozambique and Malawi - where even if prices go up and people own land, productivity will go down so much that it can't make up for those price increases. In the 'low-yield' scenario, those countries would see higher poverty rates across all sectors."

Under the "high-yield" scenario, in which global temperatures rise just 0.9 F (0.5 C), crop productivity increased. The resulting food surplus led to a 16 percent drop in prices, which could be detrimental to farm owners. In Thailand, the poverty rate among self-employed farmers was projected to rise 60 percent, while those in the non-agriculture sector saw a slight drop in poverty. In Zambia, Mozambique, Malawi and Uganda, poverty in the non-farming sector was projected to decline as much as 5 percent.

Risk management

Lobell said that, although the likelihood of the "low-yield" or "high-yield" scenario occurring is only 5 percent, it is important for policymakers to consider the full range of possibilities if they want to help countries adapt to climate change and ultimately prevent an increase in poverty and hunger. 

"It's like any sort of risk management or insurance program," he said. "You have to have some idea of the probability of events that have a big consequence. It's also important to keep in mind that any change, no matter how extreme, will benefit some households and hurt others."

The Program on Food Security and the Environment at Stanford is an interdisciplinary research and teaching program that generates policy solutions to the persistent problems of global hunger and environmental damage from agricultural practices worldwide. The program is jointly run by Stanford's Woods Institute for the Environment and the Freeman Spogli Institute for International Studies.

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In this chapter, we focus specifically on agricultural risks and uncertainties related to climate variability and global climate change from a policy viewpoint. Policymakers have little control over the weather, which is driven by very short-run (hourly to daily) patterns in atmosphere and ocean circulation. With good scientific information, however, policymakers in many regions can anticipate longer-run (monthly, yearly, decadal) climate variability and climate change reflected in patterns of temperature and precipitation. Such climate fluctuations involve structural dynamics in the physical system that can be modeled and projected with varying degrees of certainty over different spatial and temporal scales. To the extent that climate variability and change in the mean state can be projected, governments can then facilitate adaptation; that is, they can augment markets by implementing policies to promote domestic food security via trade (e.g., arrange for food imports when crop production is expected to decline domestically), investments (e.g., fund crop research or improvements in irrigation infrastructure), and early-warning systems or safety-net programs for vulnerable populations within their countries.

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Springer in "Uncertainty and Environmental Decision Making"
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Rosamond L. Naylor
Rosamond L. Naylor
Michael D. Mastrandrea
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