An October 13 New York Times headline article warned that an increasing volatile market for grains could lead to a repeat of the 2008 food price run-up. That price spike left over 1 billion people in a state of food insecurity-a threshold symbolic in its extreme order of magnitude and in the challenges it presents for combating global hunger in the future. In a paper released December 20 in Population and Development Review FSE director Rosamond L. Naylor and deputy director Walter P. Falcon provide insight into the causes and consequences of these volatile events.

"Price variability, particularly spikes, has enormous impacts on the rural poor who spend a majority of their income on food and have minimal savings," said Naylor. "Impacts at the local level have not been well measured, yet are key to improving food security globally." 

Expectations--often faulty--have played a key role in price volatility over the past decade. Uncertain exchange rates and macro policies added to price misperceptions, as did flurries of speculative activity in organized futures markets, particularly as a result of the growing biofuels market.

"These events highlight new linkages between agriculture-energy and agriculture-finance markets that affect the world food economy today," explained Falcon. "More importantly, volatile markets compound problems of low crop productivity, increase reliance on food imports, and aggravate other internal causes of instability--conflict, weak institutions, and inadequate infrastructure--that typically plague the world's poorest countries."

To see how the rural poor were impacted on a local scale, Naylor and Falcon looked at Ghana, Uganda, Malawi, Guatemala, and India. Price changes at the local level during the 2008 price spike were frequently half that of international prices, primarily as a consequence of domestic food and trade policies.

"The price bubble was undeniably grim for poor consumers, particularly for households living under $1/day or $2/day, but not as debilitating as many commentators suggested," said Falcon. "Unfortunately, most price stabilization efforts aimed at the poor, however well intended, ended up helping larger net producers much more than those at the margin."

Additionally, domestic self-sufficiency polices tended to have long-term negative impacts on the international market when governments lacked the resources to defend a targeted price or were ‘large actors' with significant shares of global production or consumption.

For example, in the spring of 2008, the Indian government placed a ban on rice exports--a major staple in the country--when it feared significant increases in grain prices and a spread of Ug99 (wheat rust). This ban affected food prices from Asia to Africa, created mini-panics within food importing countries, and added to global grain price variability. It underscored the growing food-security and crop interdependencies among nations arising from pathogens, prices, and policies.

The extreme heat wave that hit Russia and Eastern Europe in the summer of 2010, coupled with floods in Pakistan, declining estimates of maize stocks in the U.S., and uncertainties about global GDP growth have captured the attention of many analysts and policymakers. What will happen to prices in terms of spikes, trends, and variations during 2011-2013 and beyond is uncertain.

What is known, said Naylor, is that the causes and consequences of food-price variability deserve much more attention if we are going to alleviate global food insecurity in the future.

Rosamond L. Naylor discussed the multiple challenges for achieving food security in this century‐‐ranging from economic volatility to climate change‐‐and highlighted ways in which the boundaries of analysis and action in the agricultural development community must change to address these challenges. She used a series of project and policy examples to illustrate the changes needed from international to local scales. The talk was part of a 2010 series sponsored by the SMEP Academy titled "Taking Sustainability Seriously: The Role of Knowledge Institutions".

Lori McVay, associate director for finance and administration at the Freeman Spogli Institute for International Studies' Program on Food Security and the Environment (FSE), is one of two recipients of the Marsh O'Neill Award for outstanding contributions to Stanford's research mission.

This year, two staff members - one in the Freeman Spogli Institute for International Studies and another in the School of Medicine - will receive Marsh O'Neill Awards.

Now in its 20th year, the award honors staff members who have made outstanding contributions to Stanford's research mission.

This year's honorees are Lori McVay, associate director for finance and administration at the Program on Food Security and the Environment, a joint program of the Freeman Spogli Institute for International Studies and the Woods Institute for the Environment; and Kathleen Thompson, director of the Research Management Group in the School of Medicine.

The dean of research established the Marsh O'Neill Award in 1990. It was named for its first recipient, Marshall D. O'Neill, who retired that same year after nearly four decades as associate director of the W. W. Hansen Experimental Physics Laboratory. A faculty panel chooses the award winner.

McVay and Thompson will be the 30th and 31st staff members to receive the award.

The award presentation - which includes a check for $5,000 for each winner - will take place at 4 p.m. Monday at the Faculty Club. Anyone who knows either of the winners and would like to congratulate them is welcome to attend.

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.