World agriculture is now facing challenges unlike any before. Producing enough grain to make it to the next harvest has challenged farmers ever since agriculture began, but now the challenge is deepening as new trends—falling water tables, plateauing grain yields, and rising temperatures—join soil erosion to make it difficult to expand production fast enough.
As a result, world grain carryover stocks have dropped from an average of 107 days of consumption a decade or so ago to 74 days in recent years.
World food prices have more than doubled over the last decade. Those who live in the United States, where 9 percent of income goes for food, are largely insulated from these price shifts. But how do those who live on the lower rungs of the global economic ladder cope? They were already spending 50–70 percent of their income on food. Many were down to one meal a day before the price rises. Now millions of families routinely schedule one or more days each week when they will not eat at all.
What happens with the next price surge? Belt tightening has worked for some of the poorest people so far, but this cannot go much further. Spreading food unrest will likely lead to political instability. We could see a breakdown of political systems. Some governments may fall.
As food supplies have tightened, a new geopolitics of food has emerged—a world in which the global competition for land and water is intensifying and each country is fending for itself. We cannot claim that we are unaware of the trends that are undermining our food supply and thus our civilization. We know what we need to do.
There was a time when if we got into trouble on the food front, ministries of agriculture would offer farmers more financial incentives, like higher price supports, and things would soon return to normal. But responding to the tightening of food supplies today is a far more complex undertaking. It involves the ministries of energy, water resources, transportation, and health and family planning, among others. Because of the looming specter of climate change that is threatening to disrupt agriculture, we may find that energy policies will have an even greater effect on future food security than agricultural policies do. In short, avoiding a breakdown in the food system requires the mobilization of our entire society.
On the demand side of the food equation, there are four pressing needs—to stabilize world population, eradicate poverty, reduce excessive meat consumption, and reverse biofuels policies that encourage the use of food, land, or water that could otherwise be used to feed people. We need to press forward on all four fronts at the same time.
The first two goals are closely related. Indeed, stabilizing population depends on eliminating poverty. Even a cursory look at population growth rates shows that the countries where population size has stabilized are virtually all high-income countries. On the other side of the coin, nearly all countries with high population growth rates are on the low end of the global economic ladder.
The world needs to focus on filling the gap in reproductive health care and family planning while working to eradicate poverty. Progress on one will reinforce progress on the other. Two cornerstones of eradicating poverty are making sure that all children—both boys and girls—get at least an elementary school education and rudimentary health care. And the poorest countries need a school lunch program, one that will encourage families to send children to school and that will enable them to learn once they get there.
Shifting to smaller families has many benefits. For one, there will be fewer people at the dinner table. It comes as no surprise that a disproportionate share of malnutrition is found in larger families.
At the other end of the food spectrum, a large segment of the world’s people are consuming animal products at a level that is unhealthy and contributing to obesity and cardiovascular disease. The good news is that when the affluent consume less meat, milk, and eggs, it improves their health. When meat consumption falls in the United States, as it recently has, this frees up grain for direct consumption. Moving down the food chain also lessens pressure on the earth’s land and water resources. In short, it is a win-win-win situation.
Another initiative, one that can quickly lower food prices, is the cancellation of biofuel mandates. There is no social justification for the massive conversion of food into fuel for cars. With plug-in hybrids and all-electric cars coming to market that can run on local wind-generated electricity at a gasoline-equivalent cost of 80¢ per gallon, why keep burning costly fuel at four times the price?
On the supply side of the food equation, we face several challenges, including stabilizing climate, raising water productivity, and conserving soil. Stabilizing climate is not easy, but it can be done if we act quickly. It will take a huge cut in carbon emissions, some 80 percent within a decade, to give us a chance of avoiding the worst consequences of climate change. This means a wholesale restructuring of the world energy economy.
The easiest way to do this is to restructure the tax system. The market has many strengths, but it also has some dangerous weaknesses. It readily captures the direct costs of mining coal and delivering it to power plants. But the market does not incorporate the indirect costs of fossil fuels in prices, such as the costs to society of global warming. Sir Nicholas Stern, former chief economist at the World Bank, noted when releasing his landmark study on the costs of climate change that climate change was the product of a massive market failure.
The goal of restructuring taxes is to lower income taxes and raise carbon taxes so that the cost of climate change and other indirect costs of fossil fuel use are incorporated in market prices. If we can get the market to tell the truth, the transition from coal and oil to wind, solar, and geothermal energy will move very fast. If we remove the massive subsidies to the fossil fuel industry, we will move even faster. 10
Although to some people this energy transition may seem farfetched, it is moving ahead, and at an exciting pace in some countries. For example, four states in northern Germany now get at least 46 percent of their electricity from wind. For Denmark, the figure is 26 percent. In the United States, both Iowa and South Dakota now get one fifth of their electricity from wind farms. Solar power in Europe can now satisfy the electricity needs of some 15 million households. Kenya now gets one fifth of its electricity from geothermal energy. And Indonesia is shooting for 9,500 megawatts of geothermal generating capacity by 2025, which would meet 56 percent of current electricity needs. More
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