Currently browsing posts about: Agriculture

This study in Nature Food caught my eye: Post-farmgate food value chains make up most of consumer food expenditures globally.

The study examines the proportion of at-home food expenditures received by farmers in several countries, including the U.S.

For the U.S. it reproduces this USDA figure:

The caption:

Farm share of US consumer food expenditures. As reported in the USDA ERS food dollar series, the revenue share of consumer food expenditures has declined fairly consistently for 70 years. Data are from the USDA ERS…The new series is, on average, 3.5 cents per dollar lower than the old series over the 16 years of overlapping coverage. US real per capita incomes grew roughly 2% annually over this period.

The USDA’s Food Dollar series makes this clear.

What this means is that all but about 12 cents of every food dollar goes for processing, retail, food service, and everything else that happens to a food after it is produced.

As the authors of the Nature Food study put it,

There is already growing agreement that the most unhealthy foods are largely ultra-processed products that are high in such ingredients as salt, sugars and saturated fats, that is, manufactured post-farmgate. In the average American diet, for example, only about 30% of calorie intake comes from non-processed or
mildly processed foods.

Ultra-processed foods also occupy a rapidly rising share of diets in developing countries as consumers seek greater convenience and safety. The environmental impacts of ultra-processed foods have not been properly accounted for in many studies, often considering the effects of the primary commodities used for production and disregarding the processing, packaging and distribution stages.

Likewise, the post-farmgate food processing sector is a major source of single-use plastics, greenhouse gas emissions, water use and effluent discharge.

We and the planet would be healthier eating foods that are less heavily processed.  This would not only be good for us, but also for farmers.

The press release says it all:  “New Report Highlights How Stagnant U.S. Public Funding for Agricultural Research Threatens Food Systems.”

Stagnant public funding for agricultural research is threatening the future vitality of U.S. food systems – posing risks to farmer productivity and profitability, the steady supply of affordable food for consumers, and ultimately global food security, according to a new report.

The report, jointly commissioned by Farm Journal Foundation and the American Farm Bureau Federation and authored by the IHS Markit Agribusiness Consulting Group, highlights the vital importance of public funding for agricultural research and development (R&D).

New innovations are crucial so that farmers can increase their productivity and meet rising global demand for food, even as climate change intensifies. The world population is expected to reach 10 billion by 2050, and food production will need to increase by 60%-70% to meet rising demand. While private-sector funding for agricultural R&D has been increasing, U.S. public spending has been flat for the past decade.

Here’s the big picture.

Here’s what’s happening with USDA research funding—flat.

And here’s what’s happening with overall agricultural research.  Public funding is flat.  Industry funding is rising rapidly. 

Why is this a problem?  Because industry funds research aimed at developing and marketing profit-making products

This leaves research aimed at public health to be supported by the public.  Research is needed to

• Increase productivity
• Improve crop protection
• Promote animal health and welfare
• Prevent animal diseases
• Protect against pandemics
• Reduce effects of climate change

Industry won’t fund these research areas if there’s no profit in them.

That’s why more public funds need to go to agricultural research.

Here’s a one page summary.

Here’s the full report.

I am staying out of New York City’s campaigns for Mayor, but one of the candidates, Brooklyn Borough President Eric Adams, is exceptionally interested in food issues.  He, in partnership with NYU’s Stern Center for Sustainable Business, the Cornell University College of Agriculture and Life Sciences, and many other food-and-farm groups has produced a report titled The New Agrarian Economy, which outlines why urban agriculture is good for the economy and what needs to be done to support it better.

In the press release, Adams says:

The COVID-19 pandemic has exposed the fragility of our city’s economy and the deep inequities embedded in our food system. Urban agriculture has the potential to revolutionize our urban landscape and play a significant role in an equitable recovery process, helping us to become a greener, healthier, more prosperous city after the pandemic. Our new report lays out a roadmap for achieving that, proposing steps that build on my previous advocacy efforts in Brooklyn. As the past several years have shown, there is tremendous economic potential in this promising sector — we just need the political will to invest the necessary resources to encourage its growth. I thank all of the advocates and industry leaders who offered their input into this report, and look forward to continuing our advocacy to turn our concrete jungle into a green oasis.

This is a serious report, worth serious consideration.  The recommendations in this report are grounded in reality.  I think it’s great that a Borough President/candidate for Mayor cares about food issues in such a constructive way.

“Turn concrete jungles into a green oasis.”  Yes!

Here is the press conference for the report’s release:

I’ve been collecting predictions of what’s going to happen to the food industry this year.  Here are some, about cooking, sales, products, flavors, regulations, e-sales, robotics, and agriculture.

• Waitrose identifies top 2021 consumer food trends:  Home cooking, support for British producers and winter barbecues are just some of the key trends highlighted in Waitrose’s 2021 food and drink report. Read more
• Food industry trends for 2021:  Key industry figures predict where the challenges and opportunities will be found in 2021. Read more
• 2021 Food Trends Product Developers Must Know:  Find out which trends R&D chefs and CPG food manufacturers should focus on to drive profits.
• What trends will shape flavour innovation in 2021?  The seismic events of 2020 have shaped consumer behaviours and expectations. The COVID-19 pandemic has reached every part of our lives – and the flavours we crave are no exception. Here’s our round-up of the flavour trends we can expect to tickle out taste buds in 2021… Read
• From ‘dark kitchens’ to dual quality: Expert predicts 2021’s regulatory hotspots:  What regulatory challenges should food makers be mindful of in 2021?  Read
• Retail predictions 2021: Experts talk bricks-and-mortar and the ‘jet propulsion’ of e-commerce:  What key challenges are in store for supermarket retailers as we move into 2021? Will bricks-and-mortar continue to play an important role? Do experts predict e-commerce to continue its unprecedented boom?.. Read
• Robotics, AI and the future of food: ‘The COVID-19 pandemic is a crisis that robots were built to address’:  COVID-19 has accelerated interest in the role that automation, robotics and data can play in food and agricultural production. We speak to industry leaders to learn about the latest developments… Read
• Eat the rainbow: ADM expects consumers to explore beyond their palate’s comfort zones in 2021:  Colour plays a vital role in delighting the senses, differentiating flavour expectations and aiding in taste perceptions. It also adds to consumer’s assessment of the snack’s ‘health halo’… Read
• FrieslandCampina Ingredients sees four key trends for 2021:  FrieslandCampina Ingredients has released a new report outlining the trends and developments for the future of performance and active nutrition… Read
• 9 Questions Facing Agriculture In 2021:  Each year  Agricultural Economic Insights carves out time to think about the issues and uncertainties facing agriculture in the coming year.

Is it good for any society to have people as rich as Bill and Melinda Gates?  Fairness is one thing, but the hazards of that much power are quite another.

The latest concern comes from the realization that the Gates’s own more American farmland than anyone else—242,000 acres.

According to the Realtors’ Land Institute’s The Land Report,

In 1994, the Gateses hired the former Putnam Investments bond-fund manager to diversify the couple’s portfolio away from the Microsoft co-founder’s 45 percent stake in the technology giant while maintaining comparable or better returns. According to a 2014 profile of Larson in the Wall Street Journal, these investments include a substantial stake in AutoNation, hospitality interests such as the Charles Hotel in Cambridge and the Four Seasons in San Francisco, and “at least 100,000 acres of farmland in California, Illinois, Iowa, Louisiana, and other states … .” According to the Land Report 100 Research Team, that figure is currently more than twice that amount, which means Bill Gates, co-founder of Microsoft, has an alter ego: Farmer Bill, the guy who owns more farmland than anyone else in America.

Forbes’ account of this highlights that the largest holdings are in Louisiana (69,071 acres), Arkansas (47,927 acres) and Nebraska (20,588 acres).

According to AgFunder News’ discussion of these observations,

Agrifood is one area where the couple have sought to put their substantial wealth to work. The Bill & Melinda Gates Foundation donated almost $20 million to the International Rice Research Institute between 2007 and 2010, in part to support its development of fortified rice varieties. It has also invested at least $100 million into the Alliance for a Green Revolution in Africa, which aims to enhance smallholder productivity using science and technology.

The Gates’ have also invested in agrifoodtech startups, either through their private foundation or via other investment vehicles, including crop protection companies AgBiome and Enko Chem, dairy data platform Stellapps, food waste reduction player Apeel Sciences, biotech startup Gingko Bioworks, and ‘lab-grown’ meat maker Memphis Meats.

Other concerns have been raised about Gates’ holdings and philanthropy—“philanthrocapitalism.”

• Gates to a Global Empire: This Report by Vandana Shiva’s Navdanya gathers evidence and throws light on the dangers of philanthrocapitalism, which is boosting the corporate takeover of our seed, agriculture, food, knowledge and global health systems, manipulating information and eroding our democracies. Read more / Watch video 
• Letter to WHO from 60 individuals and groups concerned about Gates’ holdings in food.
• Paper by Anne-Emanuelle Birn and Judith Richter on philanthrocapitalism by Gates and Rockefeller Foundations.

These raise important questions that deserve serious considerations.

The USDA’s now-crippled Economic Research Service has published some reports on farm income.

This is Big Ag, of course.  As the Heritage Foundation enjoys pointing out:

Another reason why Big Ag is doing so well is the amount of money poured into it by the Trump administration.  Recall this Wall Street Journal chart from a previous post.

Oh for an agricultural policy that supports growing food for people, not feed for animals or fuel for cars.

Biden administration: get busy!

FAO has this eye-catching new teaser for its new report on water and agriculture.  Check out the teaser first.  Its graphics move (the blades on the wind turbinesshow below turn, for example)

Its main point:

Everyone needs to pay attention to water use, and the teaser and the report state the policy recommendations.

I’m trying to make sense of the new $900 billion stimulus bill signed by President Trump a week or so ago.  This is not easy to do; it’s 5500 pages of government-speak.

• The entire bill can be accessed here
• Key provisions are here
• Congressional (non-binding) directives are here

The bill has $26 billion for food and nutrition, of which half goes to Big Ag (sigh) and the other half to food assistance (good, but not enough).

Why the sigh for farm aid?  Here’s what the accounting looks like:

Big Agriculture: $13 billion on top of what else it got in 2020

• $32 billion from the initial CARES Act
• $4 billion as compensation for the trade war with China
• $16 billion from the normal Farm Bill subsidies
• $13 billion from the new stimulus package ($1.5 billion is for buying food products, including seafood)

Small Ag:  $225 million (not billion) for growers of specialty crops like fruits, nuts and vegetables.

SNAP: a 15% expansion through June 2021.  This will mean a lot to recipients, but it’s still not enough.

SNAP Fruit and vegetable incentives: $75 million (not billion) for the Gus Schumacher Nutrition Incentive Program,

Pandemic-EBT: this authorizes extra benefits for families who have kids normally getting subsidized school meals (but this has been delayed)

Food banks: $400 million (not billion) for the Emergency Food Assistance Program, $400 million (not billion) for milk,

Disadvantaged, veteran, and beginning farmers: $75 million (not billion)

International Food Assistance: $1.74 billion for Food for Peace grants and $230 million for the McGovern-Dole International Food for Education and Child Nutrition program (note that this is the most the US has ever spent for these programs.

Pet foods: By congressional directive:

FDA is directed to provide an update on the investigation it is undertaking regarding canine dilated cardiomyopathy (DCM) and the manner in which it has released information to the public. The update shall include: the case definition FDA uses to include or exclude cases and the scientific work ongoing at the agency and with collaborating partners for identifying a causation of DCM; how FDA distinguishes cases of DCM due to genetic predisposition in certain breeds; how the agency plans to work with pet food companies and the veterinary cardiology community during the investigation; and the timing and nature of any future public reporting.

PFAS (Per- and polyfluoroalkyl) chemicals in food packaging: “directs FDA to review any new scientific information pertaining to PF AS chemicals and determine whether food packaging continues to meet the safety standards of a reasonable certainty of no harm under intended conditions of use.”

Restaurants: they get whatever they can out of the $284 billion Paycheck Protection Program.  The trade association for independent restaurants points out that this is nowhere near enough.  Even the Wall Street Journal says restaurants need help; their situation is bleak.

Business lunches: the full cost can now be deducted as a business expense, but nobody expects this to help restaurants much.

There is undoubtedly more, but that’s enough for now.

Politico has done a great job of covering these provisions, but is behind a paywall.  The Counter also has an especially good summary..