The American Midwest is suffering through the driest summer in decades, and Stanford economist Walter Falcon is watching the corn wither in his fields. He writes how the drought is affecting crops, prices and the livelihoods of his fellow farmers in Iowa.
Pamela Matson, Dean of the School of Earth Sciences and FSE researcher, discusses agricultural research in the Yaqui Valley, Mexico and how it relates to the Green Revolution with Stanford's Generation Anthropocene. She also reflects upon the politics of sustainable agriculture and how we might go about feeding the 9 billion people we expect in the coming decades.
The Yaqui Valley is the birthplace of the Green Revolution and one of the most intensive agricultural regions of the world, using irrigation, fertilizers, and other technologies to produce some of the highest yields of wheat anywhere. It also faces resource limitations, threats to human health, and rapidly changing economic conditions. In short, the Yaqui Valley represents the challenge of modern agriculture: how to maintain livelihoods and increase food production while protecting the environment.
The paper presents a theory of policy timing that relies on uncertainty and transaction costs to explain the optimal timing and duration of policy reforms. Delaying reforms resolves some uncertainty by gaining valuable information and saves transaction costs. Implementing reforms without waiting increases welfare by adjusting domestic policies to changed market parameters. Optimal policy timing is found by balancing the trade-off between delaying reforms and implementing reforms without waiting. Our theory offers an explanation of why countries differ with respect to the length of their policy reforms, and why applied studies often judge agricultural policies to be inefficient when actually they may not be.
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Australian Journal of Agricultural and Resource Economics
This research area explores the national and international land and water laws that govern land tenure and property rights in sub-Saharan African countries, with the aim of understanding how large-scale land investments influence the tenure security, and therefore food security, of local farmers. The World Bank and others have identified a large agro-ecological region of African known as the Guinea Savannah as well-positioned for major agricultural development.
This paper looks at past and likely future agricultural growth and rural poverty reduction in the context of the overall Indian economy. The growth of India’s economy has accelerated sharply since the late 1980s, but agriculture has not followed suit. Rural population and especially the labor force are continuing to rise rapidly. Meanwhile, rural-urban migration remains slow, primarily because the urban sector is not generating large numbers of jobs in labor-intensive manufacturing. Despite a sharply rising labor productivity differential between non-agriculture and agriculture, limited rural-urban migration, and slow agricultural growth, urban-rural consumption, income, and poverty differentials have not been rising. Urban-rural spillovers have become important drivers of the rapidly growing rural non-farm sector—the sector now generates the largest number of jobs in India. Rural non-farm self-employment has become especially dynamic with farm households rapidly diversifying into the sector to increase income.
The growth of the rural non-farm sector is a structural transformation of the Indian economy, but it is a stunted one. It generates few jobs at high wages with job security and benefits. It is the failure of the urban economy to create enough jobs, especially in labor-intensive manufacturing, that prevents a more favorable structural transformation of the classic kind. Nevertheless, non-farm sector growth has allowed for accelerated rural income growth, contributed to rural wage growth, and prevented the rural economy from falling dramatically behind the urban economy. The bottling up of labor in rural areas, however, means that farm sizes will continue to decline, agriculture will continue its trend to feminization, and part-time farming will become the dominant farm model. Continued rapid rural income growth depends on continued urban spillovers from accelerated economic growth, and a significant acceleration of agricultural growth based on more rapid productivity and irrigation growth. Such an acceleration is also needed to satisfy the increasing growth in food demand that follows rapid economic growth and fast growth of per capita incomes.
Seeds of Sustainability is a groundbreaking analysis of agricultural development and transitions toward more sustainable management in one region. An invaluable resource for researchers, policymakers, and students alike, it examines new approaches to make agricultural landscapes healthier for both the environment and people.
The Yaqui Valley is the birthplace of the Green Revolution and one of the most intensive agricultural regions of the world, using irrigation, fertilizers, and other technologies to produce some of the highest yields of wheat anywhere. It also faces resource limitations, threats to human health, and rapidly changing economic conditions. In short, the Yaqui Valley represents the challenge of modern agriculture: how to maintain livelihoods and increase food production while protecting the environment.
Renowned scientist Pamela Matson and colleagues from leading institutions in the U.S. and Mexico spent fifteen years in the Yaqui Valley in Sonora, Mexico addressing this challenge. Seeds of Sustainability represents the culmination of their research, providing unparalleled information about the causes and consequences of current agricultural methods. Even more importantly, it shows how knowledge can translate into better practices, not just in the Yaqui Valley, but throughout the world.
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?
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.
Senior Fellow, Emerita, Stanford Woods Institute and Freeman Spogli Institute for International Studies,
William Wrigely Professor, Emerita, Department of Environmental Social Sciences
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PhD
Rosamond (Roz) Naylor is the William Wrigley Professor, Emerita, of Global Environmental Policy in the Doerr School of Sustainability; and founding Director of the Center on Food Security and the Environment (FSE) at Stanford University. Her research focuses on policies and practices to improve global food security and protect the environment on land and at sea. She has been involved in numerous field-level research projects around the world with her students and has published widely on issues related to global food systems, food policy, and aquaculture. She is the co-chair of The Blue Food Assessment, an international initiative aimed at providing a comprehensive scientific evaluation of the sustainability, nutrition, equity, and justice dimensions of aquatic foods cultured and captured in freshwater and marine environments within the global food system. She is a Member of the National Academy of Sciences, a Fellow of the American Association for the Advancement of Science (AAAS), Fellow of the Ecological Society of America (ESA), a Pew Marine Fellow, and a Leopold Leadership Fellow. She is also the Chair of the Board of Directors for the Aspen Global Change Institute and a member of the Scientific Advisory Committee for Oceana. At Stanford, she teaches courses on The World Food Economy, Human Society and Environmental Change, and Food and Security.
