Energy

This image is having trouble loading!FSI researchers examine the role of energy sources from regulatory, economic and societal angles. The Program on Energy and Sustainable Development (PESD) investigates how the production and consumption of energy affect human welfare and environmental quality. Professors assess natural gas and coal markets, as well as the smart energy grid and how to create effective climate policy in an imperfect world. This includes how state-owned enterprises – like oil companies – affect energy markets around the world. Regulatory barriers are examined for understanding obstacles to lowering carbon in energy services. Realistic cap and trade policies in California are studied, as is the creation of a giant coal market in China.

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Corporate Affiliate Visiting Fellow
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Kensuke Itoh is a corporate affiliate visiting fellow at the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) for 2013-14.  Itoh has over eight years of experience in the information technology arena at Sumitomo Corporation, one of the major trading and investment conglomerates in Japan, and its subsidiaries.  His experience in the IT industry includes sales, strategy planning, M&A process and administration.  While at Stanford, Itoh is researching the difference in the profitability and structure of IT businesses between the United States and Japan.  Itoh is interested in applying his knowledge gained here to his work and overall helping to revise the economy in Asia.  Itoh graduated from the Graduate School of Energy Science at Kyoto University with a degree in energy science and technology. 

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How are the Japanese people reacting to the news of the continuing contamination leak and what does it mean for Japan's energy policy? In an interview with PBS NewsHour on August 8, Kenji E. Kushida speaks about what the government may do to stop the flow.
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Unit 4 of TEPCO's Fukushima Daiichi Nuclear Power Station (02813334)
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HIROSHIMA, Japan – Keijiro Matsushima was in eighth grade, sitting at his school desk next to a window facing the sea. He recalled looking out at the sky the morning of Aug. 6, 1945, drawn to the sound of American B-29 bombers flying over his island.

Much of the Japanese population was starving. “They were so beautiful and I was so hungry that they looked like silver pancakes to me,” he said of the bombers overhead.

Matsushima figured it was a routine reconnaissance mission and turned back to his books.

Second later, he was hit by the blast. He felt the shockwave, then the wave of heat. He was forced to close his eyes when hit by a surge of blinding, orange light.

“The whole world turned into a sunset world,” he said. He covered his ears and jumped under his desk. Though his school was destroyed, a standing stairwell protected his desk.

Today, the 84-year-old retired schoolteacher is one of the storied hibakusha, the Japanese word for “explosion-affected person,” or survivors of the atomic bombs dropped by the B-29 bombers 68 years ago this week. Their average age is 78 and they have spent decades enduring discrimination and prejudice on top of their heartache 

Matsushima was addressing two dozen international scholars and policymakers at the Hiroshima Peace Memorial Museum, including a delegation from Stanford University collaborating with the city in its efforts to become an international symbol of peace.

“Seeing the Hiroshima museum and meeting with a hibakusha was a moving reminder of the importance of moving as far and as fast as we safely can toward a world without nuclear weapons,” said Scott Sagan, a Stanford political science professor and a senior fellow at the Center for International Security and Cooperation (CISAC) and its umbrella organization, the Freeman Spogli Institute for International Studies.

Matsushima sat in a classroom in the basement of the museum, seated before a map that laid out the hypocenter of the explosion. He was stoic in his narrative about events that day and often referred to himself as a “lucky boy.”

“It was a very bad war,” he said. “We didn’t know that at the time, and it continued on, a very long war. It just got worse and worse.”

Born in Hiroshima in 1929, Matsushima saw the militarization of his native city as he grew up. He remembers hearing optimistic statements about the grand Japanese success at Pearl Harbor, the surprise attack on the U.S. naval base in Hawaii on Dec. 7, 1941, which resulted in the U.S. declaration of war on the Empire of Japan.

The pressure on Japanese civilians mounted as the war prolonged; rationing of food, water and electricity took its toll on morale. By 1944, the U.S. had conquered several strategic Pacific islands, built airbases and began bombing Japanese cities.

As the Manhattan Project progressed, meetings of the Military Targeting Committee in 1945 designated certain Japanese cities as likely targets to test the new atomic device, including Hiroshima and Nagasaki.

The Enola Gay dropped the 4-ton atomic bomb on Hiroshima and half the city vanished, along with 70,000 to 80,000 lives, or a third of the populace.

Though Matsushima was in a classroom of 70 middle-school pupils, he remembers absolute silence after the “big noise.” He was relatively lucky; his school was on the outskirts of the blast radius, several kilometers from the hypocenter.

Though lacerated by glass and rubble, his bones were unbroken and he was able to walk. He helped a wounded classmate to a rescue truck – a young boy whom he would later learn had also survived.

“I think I should have tried rescuing others, but I was a 16-year-old, selfish young boy and I just wanted to leave the city as soon as possible,” Matsushima said with regret.

His mother had left Hiroshima a few months earlier to stay with her in-laws in the surrounding hills. Matsushima walked across the burning city, where tens of thousands of people lay wounded and pleading for help, for water, or for their gods. He walked all night until he arrived at his grandparents’ home.

The atomic bombings in Hiroshima and three days later in Nagasaki claimed between 150,000 and 240,000 lives. The bombs – dubbed Little Boy and Fat Man – would leave thousands more suffering from severe burns, radiation sickness and cancer.

Few cities in history are as closely associated with single, punctuating event than Hiroshima is with the bomb. The metropolis of 1.7 million people has been rebuilt in the last 68 years, its homes refurbished and its port revitalized.

Yet for generations, the city has been known as ground zero. Local leaders are trying to reinvent the city’s image as a beacon for global zero – the elimination of nuclear weapons.

“Policymakers of the world, how long will you remain imprisoned by distrust and animosity?”  Hiroshima Mayor Kazumi Matsui, himself the son of a hibakusha, asked in his annual peace declaration on Tuesday. “Do you honestly believe you can continue to maintain national security by rattling your sabers? Please come to Hiroshima. Encounter the spirit of the hibakusha. Look squarely at the future of the human family without being trapped in the past, and make the decision to shift to a system of security based on trust and dialogue.”

Sagan, one of the nation’s leading scholars on nuclear proliferation and safety, advocates for global nuclear disarmament as a member of the Hiroshima for Global Peace Task Force. He has worked closely for years with Hiroshima Prefecture Gov. Hidehiko Yuzaki in an effort to reach global zero.

“Our hope is that by hosting international conferences and research workshops, Hiroshima can turn from being the memorial site of the deadly ground zero to being the catalyst for moving to a world without nuclear weapons,” Sagan said.

In this photo on August 10, 1945, a mother and her son received a boiled rice ball from an emergency relief party. One mile southeast of Ground Zero, Nagasaki, August 10, 1945.
Photo Credit: National Archives and Records Administration

 The visit to Hiroshima in late June by the Stanford delegation also included Francesca Giovannini, a MacArthur Nuclear Security Fellow at CISAC; Michael May, a CISAC faculty member and director emeritus of the Lawrence Livermore National Laboratory; and Edward Blandford, an assistant professor of nuclear engineering at the University of New Mexico and a former nuclear fellow at CISAC.

They were attending the conference, Learning from Fukushima, sponsored by the Japan Foundation Center for Global Partnership, CISAC, the American Academy of Arts and Sciences and the Hiroshima for Global Peace Project.

It brought together American and Japanese nuclear power and nonproliferation specialists as well as nuclear experts from Southeast Asia. They examined the regional implications of nuclear safety and regional security after the Fukushima nuclear power plant disaster.

A devastating earthquake and tsunami hit Japan in March 2011, prompting a nuclear meltdown and the release of radioactive materials from the plant.

Conference delegates listened to Matsushima’s story and met with Mayor Matsui and other city officials to discuss the American Academy of Arts and Sciences’ Global Nuclear Future Initiative, which Sagan co-chairs with Steven Miller from Harvard. It offers technical and safety advice to countries that are developing nuclear power programs, while examining the regional and global implications.

The Association of Southeast Asian Nations (ASEAN), the region’s most binding economic and political force, has long been proud of Southeast Asia’s status as a nuclear weapons-free zone. Vietnam, however, is changing that dynamic as it has commissioned several reactors from Russia, the first of which is expected to go online in 2020.

Scholars from Malaysia, Thailand, Singapore and Indonesia attended a panel to discuss proliferation, security and competition in the region and whether a nuclear-powered Vietnam would change the delicate balance of ASEAN.

Giovannini, who is also the program coordinator of the Global Nuclear Future Initiative, said her first visit to Hiroshima was spellbinding. The contrast between the vibrant, modern city and the heavy sorrow of its history was palpable. She said the narrative by Matsushima brought the 30-member delegation to silence.

“He was able to bring to life his memory, his past, and the history of the bombing through personal details that allowed us to picture vividly that little boy as he moved through what he called a ghost town,” Giovannini said.

She recalled someone asked Matsushima if he harbored enmity toward the United States.

“No,” he replied, and then smiled. “To move forward – one must forgive.”

 

Reed Jobs is a Stanford senior majoring in history and a CISAC honors student who traveled with the Stanford delegation to Hiroshima. His honors thesis will focus on the historical study of preventive warfare.

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People release paper lanterns on the Motoyasu river facing the gutted Atomic Bomb Dome in remembrance of atomic bomb victims on the 68th anniversary of the bombing of Hiroshima, August 6, 2013.
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This paper summarizes the lessons learned from implementing a realistic, game-based simulation of California’s electricity market with a cap-and-trade market for greenhouse gas (GHG) emissions and fixed-price forward financial contracts for energy. Sophisticated market participants competed to maximize their returns under stressed (high carbon price) market conditions. Our simulation exhibited volatile carbon prices that could be influenced by strategic behavior of market participants. General uncertainty around carbon price as well as the deployment of strategies that were privately profitable but adversely affected overall market efficiency resulted in total costs of electricity supply that were significantly higher than would have been observed in perfectly competitive allowance and electricity markets. 

We observed several striking phenomena in our game. First, all teams in our game found themselves in a position to prefer higher carbon prices, even those holding high-emitting power plants. This occurred both because electricity price rose faster with carbon price than the average variable cost of producing output for most teams and because the initial allowance allocations functioned as “free money” with a face value that could be increased through the unilateral actions of market participants. Second, teams exercised unilateral market power on both selling and buying sides of the carbon allowance market, with the net effect being a carbon price far above that which would have been expected based on allowance supply and demand in a perfectly competitive market. Third, disagreement among teams over the appropriate price of carbon allowances combined with the exercise of unilateral market power in both electricity and allowance markets dramatically increased electricity prices and often resulted in the use of a more expensive set of generation units to produce the electricity demanded.  Numerous authors have pointed out that electricity markets are extremely susceptible to the exercise of market power, and emissions allowance markets can exacerbate this problem, as demonstrated in Kolstad and Wolak (2008). Fourth, there was very little liquidity in the secondary market for carbon allowances until right before the final emissions “true-up,” with a flurry of trading at the last minute, which resulted in inefficient market outcomes as several trades failed to be completed before the deadline.

These findings have several important policy implications. First, policy measures that increase the transparency and liquidity of the carbon allowance market would make both the allowance market and the electricity market work better. In our simulation, all market participants showed a strong unilateral desire to limit the amount of information publicly available about conditions in the carbon market, much to the detriment of market performance. Second, guardrails that constrain market outcomes, such as price floors and ceilings, can play a valuable role by limiting carbon price volatility.  Third, position and holding limits can reduce the ability and incentive of market participants to attempt strategies that, while privately profitable, have a negative impact on overall market efficiency.

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Mark C. Thurber
Frank Wolak
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CISAC's Sig Hecker talks to one of India's most respected newspapers, The Hindu, about why he admires India's nuclear energy program. India's world-class nuclear researchers can still learn many lessons from the Fukushima nuclear crisis, particularly in fostering a culture of safety. The world's largest democracy must demonstrate to its citizens that nuclear power is safe and sustainable in order to pursue its ambitious energy program.

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The undergound tunnel being built to connect the Fast-Breeder Nuclear Reactor to the sea, at the Kalpakkam Nuclear Complex, India, January 2013.
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Shorenstein APARC
Stanford University
Encina Hall E301
Stanford, CA 94305-6055

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Jean-Marc F. Blanchard (白永辉) joins the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) from July-October 2013 from the School of International and Public Affairs (SIPA) at Shanghai Jiaotong University (SJTU) where he serves as Professor, Assistant Dean for International Cooperation and Exchange, and Executive Director of the SJTU SIPA Center for the Study of Multinational Corporations.

His research interests include Chinese outward foreign direct investment (FDI), inward FDI into China, Chinese foreign economic policy, Chinese foreign energy policy, multinational corporations, and economic globalization.  During his time at Shorenstein APARC, he will conduct research on the politico-economy of Chinese OFDI.

Blanchard is a co-author of Economic Statecraft and Foreign Policy (2013), a co-editor of and contributor to Governance, Domestic Change and Social Policy in China (forthcoming 2013); “China and Soft Power” (Asian Perspective special issue, 2012); New Thinking about The Taiwan Issue (2012), Multidimensional Diplomacy of Contemporary China (2010), Harmonious World and China’s New Foreign Policy (2008), and Power and the Purse (2000), and the author of more than three dozen refereed journal articles and book chapters.

Blanchard is former Associate Editor of the Journal of Chinese Political Studies (JCPS), a member of the Editorial Board for the JCPS, and a member of the National Committee on U.S.-China Relations.  He previously served as President of the Association of Chinese Political Studies (2010-2012).

Blanchard received his PhD in political science from the University of Pennsylvania and AB in economics from U.C. Berkeley.  Prior to his career in academia, Blanchard worked for the U.S. government Federal Savings & Loan Insurance Corporation and Federal Deposit Insurance Corporation and for the investment banking firm Kelling, Northcross, & Nobriga.

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A new study published today in the Proceedings of the National Academy of Sciences by FSE researchers finds smallholder irrigation has great potential to reduce hunger, raise incomes, and improve development prospects in an area of the world greatly in need of these advancements.

But even the cheapest pumps can still be prohibitively expensive without financing.

Distributed irrigation systems are those in which the water access (via pump or human power), distribution (furrow, watering can, sprinkler, drip lines, etc.), and use all occur at or near the same location.

These systems have the potential to use water more productively, improve nutritional outcomes and rural development, and narrow the income disparities that permit widespread hunger to persist despite economic advancement.

Only 4 percent of agricultural land in sub-Saharan Africa is currently irrigated. 

"Success stories can be found where distributed systems are used in a cooperative setting, permitting the sharing of knowledge, risk, credit and marketing as we've seen in our solar market garden project in Benin," said lead author Jennifer Burney

Moving forward development communities and sub-Saharan African governments need a better understanding of present water resources and how they will be affected by climate change.

"Farmers need access to financial services—credit and insurance—appropriate for a range of production systems," said co-author Rosamond L. Naylor. "Investments should start at a smaller scale, with thorough project evaluation, before scaling up."

FSE continues to contribute to these evaluations and added eight new villages to our project in Benin last year.

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Distributed irrigation systems are those in which the water access (via pump or human power), distribution (via furrow, watering can, sprinkler, drip lines, etc.), and use all occur at or near the same location. Distributed systems are typically privately owned and managed by individuals or groups, in contrast to centralized irrigation systems, which tend to be publicly operated and involve large water extractions and distribution over significant distances for use by scores of farmers. Here we draw on a growing body of evidence on smallholder farmers, distributed irrigation systems, and land and water resource availability across sub-Saharan Africa (SSA) to show how investments in distributed smallholder irrigation technologies might be used to (i) use the water sources of SSA more productively, (ii) improve nutritional outcomes and rural development throughout SSA, and (iii) narrow the income disparities that permit widespread hunger to persist despite aggregate economic advancement.

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This paper reflects on the credibility of nuclear risk assessment in the wake of the 2011 Fukushima meltdowns. In democratic states, policymaking around nuclear energy has long been premised on an understanding that experts can objectively and accurately calculate the probability of catastrophic accidents. Yet the Fukushima disaster lends credence to the substantial body of social science research that suggests such calculations are fundamentally unworkable. Nevertheless, the credibility of these assessments appears to have survived the disaster, just as it has resisted the evidence of previous nuclear accidents. This paper looks at why. It argues that public narratives of the Fukushima disaster invariably frame it in ways that allow risk-assessment experts to “disown” it. It concludes that although these narratives are both rhetorically compelling and highly consequential to the governance of nuclear power, they are not entirely credible.

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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 4th 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 4th is also the traditional benchmarking date for the corn crop.  Historically, corn was supposed to be “knee high by the 4th.”  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 4th 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. 

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