My wife and I are again spending the summer on our farm in Eastern Iowa. I am fourth-generation from land just a mile away, first settled by the Falcon family in 1858. My wife is also fourth-generation, from the farmstead we now own. Our land is a medium-sized corn, soybean, and cow and calf operation in the heart of a very rural Iowa county—though Starbucks is only seven miles away!  Summers here provide a pleasant change from my day job, which is as Farnsworth Professor of International Agricultural Policy at Stanford University.  It helps when teaching agriculture to have one’s feet in the soil.  In 2013, “in the mud” is a more appropriate phrase.

My farm notes from 2012 chronicled the problems of farming during one of Eastern Iowa’s most severe droughts. Because of high temperatures and low rainfall, it was a truly miserable production year for farmers—made only mediocre financially rather than miserable—by the widespread use of crop insurance. Drought affected many states, and last year the national federal subsidies on crop insurance were nearly $15 billion, more than the total that was spent combined on all of the other farm-related programs in the federal Farm Bill. 

But what a difference a year makes. We have gone from one of the very hottest and driest years on record to one of very coldest and wettest. But what a difference a year makes.  We have gone from one of the very hottest and driest years on record to one of very coldest and wettest. For Iowa, it was the wettest spring ever, eclipsing the 1892 record.  The riskiness of farming is something to see in real time; it is also very instructive to listen as farmers talk about coping with uncertainty. Listening to them is not very difficult if one is prepared to invest a bit of time.  In most rural areas, there is typically a restaurant, diner, or some other slightly disreputable place where farmers gather for early morning coffee.  For our group, it is the old limestone store in Waubeek—the limestone having been hauled by horses in 1868 from nearby quarries at Stone City, the historic home of Iowa’s most famous painter, Grant Wood. What have not changed from last year are the watery coffee, the stale cookies, and the energetic exchange of farm tales—mostly true, occasionally coarse, and sometimes more than a little embellished.

As with last year, the talk is about weather—though now the signs have all been reversed.   Last spring it was dry; this spring it was wet. It rained and rained and rained.  During the critical planting period of April, May and June, it rained in significant amounts in our area for 40 days. We received 21 inches in total, as compared with less than 8 inches last year.  Much of it came in torrents, leading to significant erosion, runoff, and flooding. Moreover, the weather was cold.  The local weather station reports that average temperatures for May and June were about 6 degrees cooler than in 2012, which is huge as those kinds of comparisons go. 

Farmers have had plenty of time for morning conversations, since the fields were so wet there was not much else to do.  They commiserated about a lot of things, and here are some of things I heard and learned. Virtually everyone said planting had been delayed at least three weeks beyond the first week in May, the date most think is their optimal planting time.  Perhaps a quarter said that the delays were so bad that they were shifting some fields from corn to soybeans, since the latter typically do better than corn if planted in June.  Everyone spoke of having fields with low spots that would simply go unplanted, or if planted, were flooded out with zero yields expected.  (And everyone was checking the fine print of their crop insurance policies to determine coverage for land that could not be planted due to weather, so-called “prevented” acres.)

The temperatures were so cool that corn seeds often lay in the ground and rotted or only germinated partially.  They talked about the merits of re-planting—the costly process of “tearing out” what had already been planted to replace it with new seed.  The calculus of that decision is complicated, since it involves further delays in the crop cycle and, at a minimum, the cost of new seed and tractor fuel. New corn hybrids cost up to $100 per acre, depending on the special traits that have been stacked into the seeds, thus putting seed costs on par with those of nitrogen fertilizer.  All farmers grow genetically modified corn, and those who initially had paid extra for the more expensive, drought-resistant seed seemed more resigned—“the cost of doing business”—than angry.

There was also great concern about fertilization this year.  Agronomists have been urging farmers to put nitrogen into the ground (called side-dressing) when plants needed the nutrient, rather than prior to planting, to help prevent nitrogen losses due to runoff or into the atmosphere and groundwater.  My neighbors know that nitrogen runoff is a problem, but as one put it, “this year we are screwed; because of the rain, we can’t get back into the fields with supplemental nitrogen.”

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The number of rainy days was totally frustrating for livestock farmers as well, most of whom also grow alfalfa for forage.  There was barely a sequence of dry days long enough to make hay.  The quality of the alfalfa diminished, as it grew tall and coarse. On our farm, we actually baled hay on the 4^th of July. The lateness of this first cutting will mean the loss of at least one, and possibly two, later cuttings. The latter, of course, are the most valuable in terms of quality and price per bale.

The 4^th is also the traditional benchmarking date for the corn crop.  Historically, corn was supposed to be “knee high by the 4^th.”  But with new varieties of seed and early planting dates, corn is typically shoulder high. In 2013, however, it really was knee high and looking puny and yellowish.  The 4^th is traditionally also the start of the season for sweet corn—the best in the world!  But it too was delayed by more than two weeks.  The bit of good news is that the Japanese beetles, a fierce pest in 2011 and 2012 to both soybeans and home gardens, have yet to appear.

The flooding that accompanied the rain was huge. Iowa expects to lose substantial acres of corn because of flooded fields.  Almost every farmer I know was affected in some way or another.  The week after we arrived from California, for example, we had two severe storm warnings and one tornado warning in the first four days.  The tornado blew around us, but the latter of the storms came in torrents. With the rivers running high, and with the soils saturated, flash floods happen almost instantaneously, as we experienced first-hand.  Our large permanent pasture, summer home for the red Angus cow and calf herd, contains a medium sized creek.  It quickly overflowed flooding the entire pasture.  The cows and calves were understandably unhappy, bawling loudly and persistently, thereby triggering a 5 am rodeo in the rain as they got moved to the barn on higher ground.  (Rodeos in the rain are not fun, however glamorous and intriguing the thought may be. There is always one calf….) But it was a good thing the move was made.  For later in the morning, we saw that the flood had taken out 50 yards of fence, thus opening the pasture up to the adjacent highway.  And for those interested, repairing creek fences is not a whole lot of fun either.

That same storm had countywide effects as well.  The Linn County Fair was to open on June 26th, and unfortunately the fair grounds sit alongside the good-sized Wapsipinicon River.  The storm had pelted areas upstream and the river was rising rapidly. There was a decision to be made.  National and local weather service models projected a crest of 25 feet, which would mean four feet of water in the grandstand, and a small lake where the exhibits were to be.  The fair was called off, and that is a BIG decision for a rural area. It affected almost every farm family, especially the farm boys and girls who had spent literally a year preparing their 4-H and F.F.A. (Future Farmers) projects—from livestock to sewing—for the competition. Everyone then waited in gloom for the fairground to flood.  But it didn’t!  The fair had been canceled for naught.

The forecasters had missed the river crest, and missed badly. What was estimated at 25 feet, turned out in fact to be 14.95 feet. Everyone thought that a miss by one foot was understandable, but that a miss by ten feet was sheer incompetence!  They were relieved that the flood had passed, and bore no ill will against the fair committee.  But the coffee conversations the next few days were blue about government forecasters.  I cringed, given my day job, when one of my neighbors said, “those weather guys are even worse than the damned economists.”   And that comment then triggered a lengthy conversation about the Department of Agriculture (USDA) forecasts for the size of the new (2013) corn crop.

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Despite the wetness in the Midwest, the USDA at the time was predicting a record corn harvest for 2013.  Farmers, who tend to be a bit myopic and to see and think the whole world is like their county, simply didn’t believe the numbers—neither the area nor the yield forecasts.  Those estimates of a big crop were helping to drive prices for the 2013 crop down to about $5 per bushel for corn, relative to the $7 per bushel farmers had received during 2012 and the early months of 2013.  Several of them argued that it was a deliberate attempt by the government to drive down prices. I suggested that it wasn’t what the government thought, but what markets believed that was important.  But they had a point, because the markets couldn’t figure out the estimates either, with a great deal of day-to-day variation in prices based on weather assumptions, both in the U.S. and in China.

At last the rains finally broke and there was a week of dry weather.  What happened in the countryside then was nothing short of amazing. Farmers, typically with help from their spouses and extended families, worked 24/7.  Tractors, with lights, comfort cabs, and sophisticated GPS systems to do virtually all of the steering, pulled 16- or even 24-row planters; they were everywhere one looked. So much planting took place in those few days that fertilizer dealers were overwhelmed by the logistics of moving sufficient quantities of starter fertilizer into the countryside. During that one week alone, 56 per cent of Iowa’s entire corn crop was planted!

These notes are being written in real time, and what this year’s harvest will bring eventually is now anyone’s guess.  At a minimum, the harvest will be late, which means that an early frost could be a very serious problem.  Farmers now are beginning also to worry about late-season precipitation. (My wife is convinced that we have had our rain for the season, and that from now on we will see drought.) Farmers are not an optimistic lot when it comes to forecasting weather! But at this point in the season, most of farming is waiting.

My clearest conclusions from the last two years are about risk.  Farmers and farming communities face lots of it, and in almost every direction they turn.  (I smile inwardly every time I am told by neighbors, “I don’t see how you can live in California with all those earthquakes!”) Modern corn-belt agriculture is complicated, capital-intensive, and uncertain. That is why federal crop insurance is already such a key element in the new Farm Bill, and likely to become even more so in the context of future climate variability and change.  Finally, anyone who believes that farming is done by those who can’t do anything else, or that farms are quiet, idyllic places, ought really to spend a summer on an Iowa farm. 

Food and water security in sub-Saharan Africa remain a challenge despite the region’s abundance of arable land and untapped water resources. In FSE’s final global food policy and food security symposium, water expert John Briscoe drew upon his many years of international field experience (including a 20-year career at the World Bank) to deliver a personal assessment of the issues facing Africa and suggestions for the way forward.

Improvements in infrastructure, agricultural productivity and investment are crucial for tapping Africa’s agricultural and development potential. And middle-income countries, such as Brazil, may have the most lessons to share.

Dams and the quest for water security

“Africa’s infrastructure is lousy,” said Briscoe, an environmental engineer and director of Harvard’s Water Security Initiative. “Crumbling roads, patchy supplies of electricity, and inadequate water storage are some of Africa’s biggest impediments to growth.”

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Africa has the potential to irrigate an additional 20 million hectares of land, but building that infrastructure is expensive and finding funding has become more difficult. Historically, the World Bank and wealthy countries like the United States have helped. But funding dams is now unpopular.

Meanwhile, middle-income countries - such as Brazil, India and China - are building infrastructure for water-enabled growth, and are filling the funding gap left by rich countries. Whereas the World Bank now finances about five dams, the Chinese finance over 300 dams outside of China in the developing world.

Sub-Saharan Africa has benefited from some of these projects, but still contends with an international NGO and donor community resistant to dam development.  

Big is beautiful – the case of Brazil

“Africa must increase its agricultural productivity, and a romantic emphasis on small, local, organic farming is not going to get it there,” said Briscoe.

Sub-Saharan Africa’s agricultural growth rate remains very low. In some countries, yields for staple crops like maize are actually falling. A deficit in knowledge to increase agricultural productivity is part of the problem.

Briscoe shared a telling observation of a Ghanaian CEO of a multinational company: ‘Once the best and the brightest Ghanaians went into engineering. Now they become anthropologists because NGOs dominate the job market and this is the skill they want.’ 

Briscoe pointed to Brazil as a compelling case for greater investment in agriculture and agricultural research. Between 1985 and 2006, Brazilian agricultural production grew by 77 percent.

“Much of this growth did not come from cutting down the Amazon, but by doing things smarter than it did before,” said Briscoe. “Over the last 30 years, through financial crises and changing political parties, Brazil sustained public investment in agricultural research.”

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Additionally, Brazil pioneered the use of “no-till” agriculture, now practiced by over 50 percent of its farmers. The culmination of these activities increased productivity while farming more sustainably.

An important contribution to Brazil’s productivity has been its utilization of genetically modified crops. Brazil chose not to eulogize the “small and organic” philosophy of many NGOs, but embraced new technology. Middle-income countries are currently eight of the 10 largest users of GMOs.

Brazil was also pragmatic when it came to scale. Brazilian farms are large. Thirty percent are large commercial operations producing 76 percent of the country’s output. Many environmentalists and small farmers perceived large agrobusiness as the enemy, but these large enterprises were also the grey geese laying the golden eggs for the country.

Understanding that there are no silver-bullet solutions, the Brazilian government sought innovative ways to support smaller farmers. For example, concessions for a large irrigation project in the Pontal were awarded to agribusiness operators that integrated at least 25 percent of irrigable land to small farmers as part of the company’s production chain.

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“Brazil’s success did not happen over night,” said Briscoe. “African countries must be patient and persistent, particularly with respect to public investment in agricultural research…and pragmatic and realistic about scale.”

Role for foreign investors

In the face of low levels of public investment in agriculture and non-existent or shallow domestic capital markets, there is a role for foreign direct investment (FDI) to play. FDI projects, such as international land deals, can help create implementation capacity by bringing capital and know-how, creating employment and developing infrastructure.

“But it is easier said than done,” said Briscoe. “Foreign investors, including the World Bank's International Finance Corporation (IFC), have struggled in sub-Saharan Africa because farming is a complex business.”

Briscoe noted a shortage of indigenous entrepreneurs, the small size of potential investments, and lack of access to markets have constrained IFC engagement and performance in sub-Saharan Africa.

While there are no shortcuts for Africa, Briscoe insisted optimism and a determination to move faster are needed. Africa must decide whether to follow the prescriptions of the advocacy community or, like Brazil, pursue an opposite strategy.

“Will Africa focus on its real problems, ‘the politics of the belly’?” asked Briscoe. “Or will it succumb again, to the western ‘politics of the mirror’?”

Stanford scientists joined colleagues in presenting California Gov. Jerry Brown on Thursday with a consensus statement sounding the alarm on climate change and urging action on pollution, population growth, overconsumption and other global environmental challenges.

The document, which was signed by 520 scientists from 44 countries, warns that Earth is rapidly approaching a tipping point, and if nothing changes, "we will suffer substantial degradation."

Forty-eight Stanford scientists endorsed the statement. Rosamond L. Naylor, director of the Center on Food Security and the Environment, was one of eight faculty members who helped draft the statement.

"By the time today's children reach middle age, it is extremely likely that Earth's life-support systems, critical for human prosperity and existence, will be irretrievably damaged by the magnitude, global extent and combination of these human-caused environmental stressors, unless we take concrete, immediate actions to ensure a sustainable, high-quality future," the scientists write in a summary of the statement.

Before receiving the statement, Brown said it's important that scientists communicate clearly to the public.

"We're in a war here in the contest of ideas," he said. "You have to reach people who are skeptical, disinterested and maybe even somewhat hostile."

Later, he urged those who support the statement to spread its message.

"You have to become missionaries," the governor said.

The statement, "Maintaining Humanity's Life Support System in the 21st Century," offers broad-brush solutions for challenges including climate change, loss of eco-diversity, extinctions, pollution, population growth and overconsumption of resources.

"It's important to start fixing these problems today – not next week, next year or next decade," the statement's lead author, Anthony Barnosky, a University of California-Berkeley integrative biology professor and Cox Visiting Professor in Stanford's Department of Environmental Earth System Science, said before the event. "We want to deliver this message to every world leader in government, business, religious institutions and people in all walks of life. These are big problems, but they are fixable."

Among the scientists who joined Barnosky on the stage when he presented the statement to Brown were Stanford Woods Institute Senior Fellows Rodolfo Dirzo, Paul Ehrlich, Elizabeth Hadly and Stephen Palumbi, as well as Anne Ehrlich, a senior research scientist in Stanford's Biology Department.

"This statement deciphers decades of science describing how humans have radically changed the planet," said Hadly, one of 23 senior fellows at the Stanford Woods Institute for the Environment who signed the statement. "I hope it helps policymakers of California and the world practice effective global stewardship."

Among the statement's recommendations:

• Replace fossil fuels with carbon-neutral energy sources such as solar, wind and biofuels
• Promote energy-efficient buildings, transportation and manufacturing systems
• Plan adaptation measures for climatic impacts such as sea-level rise
• Recognize the long-term economic benefits and intangible gains that accrue from protecting natural ecosystems, and act accordingly in dealing with pressures such as overfishing
• Improve the efficiency of food production and distribution
• Slow and eventually stop world population growth by ensuring access to education, economic opportunities and health care, including family planning services, with a special focus on women's rights

The effort grew out of a conversation between Brown and Barnosky, lead author of a 2012 paper warning that Earth is approaching a tipping point beyond which the planet's climate and biodiversity will be radically and unalterably changed beyond anything humanity has known.

"Governor Brown asked me last year why, if global change is such a big deal, scientists are just publishing in scientific journals and not translating their findings into terms that policymakers, industry and the general public can understand and start to address," Barnosky said.

"In 30 years, there are a few things that people will credit us for doing now or bemoan our failure if we don't," said statement co-author Stephen Palumbi, a professor of biology at Stanford and director of the university's Hopkins Marine Station. "Grappling with climate change, and stopping it, is the best gift we can give the future, because unstopped it will crack our society and impoverish our children."

The statement's signers include two Nobel Prize winners and dozens of members of national academies of science around the world.

In addition to Naylor, the other Stanford faculty who helped write the document were Gretchen Daily, Rodolfo Dirzo, Anne Ehrlich, Paul Ehrlich, Elizabeth Hadly, Harold A. Mooney, and Stephen Palumbi.

The 40 other Stanford faculty members who signed the statement are Kenneth J. Arrow, Khalid Aziz, Sally Benson, Carol Boggs, Meg Caldwell, Page Chamberlain, Craig Criddle, Larry Crowder, Lisa Curran, Giulio De Leo, Rob Dunbar, Marcus Feldman, Scott Fendorf, Tad Fukami, Christopher Gardner, Deborah Gordon, Phil Hanawalt, Craig Heller, Martin Hellman, Jamie Jones, Pat Jones, Donald Kennedy, Julie Kennedy, Jeffrey R. Koseff, Eric Lambin, Stephen Luby, Gil Masters, Perry McCarty, Sue McConnell, Michael McGehee, Fiorenza Micheli, Jonathan Payne, Kabir Peay, Dmitri Petrov, Erica Plambeck, Terry Root, Ross Shachter, Robert Street, Peter Vitousek and Charley Yanofsky.

Join us for our final Global Food Policy and Food Security symposium Thursday, May 23. John Briscoe, Gordon McKay Professor of the Practice of Environmental Engineering at Harvard University will lead a lecture on Water and agriculture in a changing Africa: What might be done?. FSE fellow Jennifer Burney will provide commentary.

China’s commitment to agricultural development over the last thirty years has dramatically transformed the country’s economy. Rural income per capita has risen an astounding 20 times after 30 prior years of stagnation. Its poverty rate (US$1.25/day) has dropped from 40 percent to less than five, and 350 million rural people between the ages of 18-65 are now working in the industrial or service sector, enjoying rising wages and new economic opportunities.

This rapid transformation is largely the result of three key agricultural policy decisions: putting land in the hands of farmers, market deregulation, and major public investment in the agricultural sector. Although China must now contend with extreme inequality, high levels of pollution, and an aging farming sector there are still lessons to draw from China’s experience that could hasten the transformation of other developing countries.

China expert and agricultural economist Scott Rozelle broke these lessons down at FSE’s fourteenth Global Food Policy and Food Security Symposium Series last week, opening with an underlying theme of the series.

“Growth and development starts with agriculture,” said Rozelle. “Agriculture provides the basis for sound, sustained economic growth needed to build housing, invest in education for kids, start self-employed enterprises, and finance moves off the farm.”

To prove this point he referenced China’s ‘lost decades’ (1950s-1970s) when 80 percent of the population lived in the rural sector and relied on communal, subsistence agriculture. Poor land rights, weak incentives, incomplete markets and inappropriate investments left the average rural farmer poorer at the end of 70s than they were in the 50s with almost no off-farm employment growth.

So what changed? Incentives, market deregulation and strategic investments by the state were key.

Creating the right incentives

In 1978 the Chinese government broke the communes down into small “family farms” such that every rural resident was allocated a small parcel of land. A family of five farmed an area the size of a football field. While they did not own nor could sell the land, they had the right to choose what crops and inputs they used and the right to the income generated from their land.

“Incentives are important, and can be enough in the short run,” said Rozelle. “Hard work led to money in the pockets of farmers and China was off.”

“Every two and half years China added another California in term of agriculture,” said Rozelle.

Between 1979 and 1985 productivity for wheat, maize, and rice went up 50 percent using the same amount of labor, land and inputs. Agriculture across the spectrum has grown at an astounding rate of 5 percent since 1988 (about four times the population growth rate). Livestock and fisheries have grown even faster – accounting for most of the output of the agricultural sector by 2005.

Income growth from farming enabled family members to begin to seek work off the farm. Between 1980 and 2011, off-farm work increased 71 percent with more than 90 percent of households reporting that at least one family member worked off the farm.

Increasing efficiency through liberalization and investment

Another key policy decision was China’s commitment to market liberalization and investment in public goods.

“Markets can be an effective, pro-poor tool of development,” said Rozelle. “A remarkable partnership is formed when you let farmers do production and government do infrastructure…let markets guide decisions.”

The government dismantled state-owned grain trading companies and deregulated trading rules. Prices were set once a week the same day across China to better integrate markets, and eventually prices for major crops closely mirrored those of world prices. Villages began specializing in crops and livestock and incomes of the poor increased. By not providing government input subsidies (e.g, pesticides, fertilizers), traders were incentivized to participate in the market.

“Giving land to farmers and letting the private sector emerge is an easy thing for governments, even without a lot of money, to do,” said Rozelle.

The government provided more indirect market support by publicly investing in better roads, communications, and surface water irrigation. Groundwater was left to the private sector. There were no water or pumping fees nor subsidies for electricity, keeping it completely deregulated. As a result, 50 percent of cultivated land in China is irrigated, compared to 10 percent in the US and only four percent in sub-Saharan Africa.

Finally, China has invested heavily in agricultural research and development (R&D). One percent of China’s agricultural GDP is now invested in agricultural R&D while US investment has fallen over time. US$2 billion alone goes to investments in Chinese biotechnology.

Despite major investment, China only has one major success story to show for so far. The introduction of Bt cotton led to a significant drop in pesticide use (with important health benefits for farmers), and drop in labor and seed price; resulting in a huge 30 percent increase in net income.

“GM technology benefits exist but big policy decisions still need to be made in the face of much resistance both in China and elsewhere in the world on its application,” said Rozelle.

Status of China’s economy

China has largely solved the country’s macro-nutrient food security problem at the household level (>3000 Kcal/day/person) and millions have been lifted out of poverty. Practically all 16-25 years old are now working off the farm.

“This is a real transformation, and one that could not have happened without a major investment in agriculture,” said Rozelle.

While China’s agricultural accomplishments have been major, Rozelle recognizes the system is far from perfect. For starters, there are serious food safety concerns due to lack of traceability. An astounding 98 percent of Beijing consumers think their food is tainted, said Rozelle.

Water is being pumped like crazy and farmers are aging. The younger generation is neither willing nor interested in following in their parents’ farming footsteps. To make up for a labor deficit farmers are applying huge amounts of fertilizer on their land with serious environmental consequences. As a result of changing demographics and an increasing demand for meat, fish, fruits and vegetables, China is likely to be a net importer of food in the long run.

China also faces major urban and rural inequality issues. Even though wages have risen, inequality has not fallen, largely a result of China’s decision not to privatize rural land.

“Rural people have no assets on which to build wealth while urban people were given assets in the form of housing,” said Rozelle. “Housing prices in major cities in China now rival those in the Bay Area!”

The Chinese government fears losing control of the land, but this comes at a price of less individual incentive to invest and inability to build larger farmers. As agricultural growth slows, Rozelle worries high levels of inequality could lead to instability.

Adding fuel to the fire, investment in rural health, nutrition, and education remains far from sufficient. Only 40 percent of the rural poor go to high school resulting in 200 million people who can barely read or write.

“What’s going to happen in 20 years when low skill manufacturing jobs move to other countries?” asked Rozelle. “The rural, uneducated poor are going to become unemployable.”

China’s record leaves room for improvement, but presents a strong case for supporting smallholder agriculture. For those countries emerging out of their own lost decades, smallholder agriculture should remain a primary focus of investment and development.