Posts tagged with: food

Blog author: lglinzak
Wednesday, March 9, 2011
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A big report is due out tomorrow which may have a positive or negative impact on economies across the globe. These numbers are not coming from the New York Stock Exchange, NASDAQ, the Tokyo Stock Exchange, the London Stock Exchange, or any other stock exchange; they are actually coming from a report being released by the U.S. Agriculture Department (USDA). It will talk about the role the U.S. will play in preventing or reducing the effects of a global food shortage.

There have been many pundits warning about a global food crisis resulting in a substantial increase in food prices. Shoppers are already experiencing the effects of higher food prices, with wheat prices up 80 percent from a year ago and U.S. retail food prices expecting to climb about 4 percent this year.

And prices are not expected to come down any time in the near future. The Ogallala Aquifer in the U.S. is depleting, and without a way to replenish itself, experts are wondering if the U.S. is on the verge of seeing another dust bowl. Texas’ wheat crop is also predicted to not meet harvesting expectations as 56 percent of its crop is rated in poor to very poor conditions by the USDA with dry weather persisting. Furthermore, an article published in Foreign Policy articulates many variables contributing to the increase in food prices and the potential food crisis which include population increase, arable lands depleting, the increasing demand for water for numerous uses, and urban sprawl. The industry is left with a lot of factors to compete with while trying to keep prices as low as possible.

It is important to note that the developed world is not immune from the adverse effects of a potential food crisis. Karen Ward, senior global economist at the worldwide bank HSBC, explains slow wage growth and use of food crops in alternative fuels are going to result in problems for those living in developed countries. While speaking on Jeff Randall Live, Ward also warned the UK may be subject to the food riots similar to those that occurred in other countries:

“Even in the developed world I think we have very, very low wage growth, so people aren’t getting more in their pay packet to compensate them for food and energy, and I think we could see social unrest certainly in parts of the developed world and the UK as well.”

She went on to highlight the link between high food prices and the escalating cost of crude oil.

“More and more we are seeing that some of these foodstuffs are actually substitutes for energy itself, particularly biofuels. So I think the energy markets are a significant contributor to these food price gains.”

While farmers are continuing to produce bigger crops, the U.S. is expected to see a 4 percent increase in the area planted along with a harvest record for corn of 13.73 billion bushels, it still may not be enough. However, corn is on such high demand due to the increase of the ethanol industry in the U.S., and current rising oil prices are even further contributing to the demand for ethanol. As a result, the 10 percent increase that is projected in the corn harvest will only add to reserves in the U.S. by five days, and by the time the fall harvest begins, the USDA predicts the U.S to only have enough corn left to satisfy the country’s appetite for 18 days.

Whether there is a food crisis of 2011 or not does not avoid the much needed ethical debate involving the use of crops. As I discussed in an earlier post, the U.S. is mandated to continue to increase its ethanol production, and with biofuels increasing the demand on crops and ever increasing population that demands food, priorities need to be evaluated and questions need to be raised. Shall more emphasis be placed on crops being harvested for food consumption or fuel usage?

After taking a look yesterday at economic consequences of rising food prices along with the affects ethanol may have on the rising food prices, a moral perspective must also be taken into account.

As I stated in my previous blog post, the World Bank says rising food prices have pushed 44 million more people into extreme poverty in developing countries since June of 2010, and are having an adverse effect on people around the globe.  The increase in demand and expanded use of crops have caused global stockpiles to erode.  Stockpiles are important to help ensure a steady flow of food, especially during traumatic times such as large food shortages.  Even the corn stocks of United States, the world’s largest corn producer, amount to 5 percent of annual use which is far below the 13.6 percent average that they have been kept at over the last 15 years.

We are also called to be stewards of the Earth and this not only means not abusing the one planet we are given, but also ensuring that we leave a planet in good condition for future generations.  However, recent studies have called into question whether ethanol is actually better for the environment.  A study conducted by the University of Minnesota demonstrates that corn ethanol is actually more harmful than gasoline to the environment.  Furthermore, a recent article from Forbes also articulates that ethanol gasoline lets out more harmful toxins than regular gasoline.  There are even suggestions that ethanol uses more energy per gallon to produce it than the energy contained the actual gallon of ethanol.

In 2007, Ray Nothstine’s commentary Big Corn’ and Unitended Consequences pointed out some of the effects of rising food prices and the environmental implications of ethanol production.

Ethanol is expensive to produce, has contributed to a rise in gasoline prices, and has its own pollution problems. It requires a lot of fertilizer, fresh water, and productive farm land. And, because of corrosive properties that make pipeline transportation problematic, it takes a lot of trucks to haul it.

While the policies behind increased ethanol production may have been intended to promote good environmental stewardship, the actual results may show a higher negative environmental impact than other fuel sources.

If ethanol is causing the problems recent studies have indicated, then is the ethanol subsidy and the government mandate to continue the increase use of ethanol sound policy?  Continued funding for the ethanol subsidy and a mandate to increase the use of ethanol, when it may not be accomplishing its originally intended goals, might be cause to reevaluate ethanol’s future.  With food prices on the rise, and the demand for wider uses for crops across the globe also rising, the United States continues to fund the current ethanol policy, which may become counter intuitive to its original goals. The United States currently dedicates 40 percent of the amount of corn it produces each year to ethanol, and so you wonder if we are actually working at cross purposes to sound stewardship, and if so, it may be time to look towards a more morally sound solution.

Economies across the globe are struggling, and rising food prices are not going to make life any easier.  The Acton Institute raised concern for rising food prices, especially corn, in 2007, when Ray Nothstine wrote a commentary on, and at the time, record prices for corn, resulting in revolts in Mexico due to rapidly rising prices for tortillas.  The commentary brought to light unintended consequences of ethanol and its subsidy, including rising food prices.

And again, with food prices on the rise, and the subsidy for ethanol up for renewal, the debate has been given new life.

Corn prices are dramatically rising and are currently more than $6 per bushel.  Compare that to a few years ago in 2005, when corn was less than $2 per bushel.  Also, in November of 2010, corn prices reached a two year high.  However, corn is not the only food stock on the rise.  The past year wheat on Chicago Board of Trade was up 74 percent, and both soybean and cotton futures have already jumped.  Although, these rising food prices have had an adverse effect across the world, and according to the World Bank, since June of 2010, the rising food prices have pushed 44 million more people into extreme poverty in developing countries.

The debate over the cause of rising food prices, especially corn has centered around whether current adverse weather conditions are the culprit, or if it can actually be contributed to ethanol subsidies from the United States.

Weather conditions have recently been less than ideal for growing crops in many parts of the world.  Last year drought in Russia and Argentina, along with torrential rains in Australia and Canada caused numerous problems for farmers, and crop production was less than expected.  Furthermore, a cool wet summer in the United States resulted in a delayed harvest.  China’s current wheat crop is being threatened by a drought which may result in even higher food prices especially because China produces more wheat than any other country.  It is estimated approximately 42 percent of China’s winter wheat crop has been hurt by the drought.

While the unfavorable weather conditions have contributed to rising food prices, critics of the ethanol subsidy claim that the subsidy has played a major role in the rising food prices.  The ethanol subsidy, which is up for renewal, places a 54 cent tariff on imported ethanol and a 45 cent tax credit for every gallon of ethanol blended with gasoline.  Current federal law also mandates the use of ethanol.  Oil companies must use a designated amount of ethanol each year, 12.6 billion gallons in 2011, which will rise to 15 billion gallons by 2015.  The ethanol subsidy is paying oil companies to abide by a mandate required by federal law.

The use of corn in ethanol is continuing to rise.  The oil industry uses more ethanol each year because of the federal mandate, and as of November 2010, ethanol production consumed 40 percent of the corn crop produced in the United States.  If the United States decides not to renew the ethanol subsidy it will not only  save 40 percent of its corn crop, but will also save $25-$30 billion over the next five years.

The United States is a major exporter of food, supplying over half the global corn exports and over 40 percent of soybean exports.  However, with more and more corn produced in the United States being used for ethanol, less corn is used for food; thus, by the law of supply and demand, increasing the price of corn.  With the ethanol subsidy creating an increase demand for corn and raising the price, more and more farmers will gravitate to growing corn instead of other crops that are also needed for food supplies around the world.

With food prices on the rise, it is imperative to think long term when deciding if the ethanol subsidy should be renewed.

Not only are the economic arguments to the ethanol subsidy important, but so are the moral arguments.  Tomorrow I will evaluate the morality of rising food prices and the ethanol subsidy.

Acton On The AirKishore Jayabalan, Director of the Acton Institute’s Rome office, made an appearance today on Vatican Radio to discuss efforts by the G-20 nations to address the growing problem of rising food prices around the world.  Jayabalan discusses how natural events and bad policy are both contributing to the sharp rise in prices seen of late.  Listen to the full interview using the audio player below:

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Blog author: jballor
Wednesday, December 15, 2010
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Steve Connor in The Independent (HT: RealClearReligion) speculates about some happenings at the Vatican with regard to genetically-modified (GM) food. It’s important to note, as is the case in this article, that things that happen in various committees and study groups at the Vatican do not by default have some kind of papal endorsement.

To wit:

A leaked document from a group of scientists linked to Rome has set a hare running about the possible endorsement of GM technology by the Pope. The document, from scientists linked to the Pontifical Academy of Sciences, suggested that there is a moral duty to adopt GM technology in order to combat hunger.

Connor’s larger point is more chastened and more accurate, however. “Intriguingly, although the debate over GM crops has died down in Britain for the moment, something tells me it is set once more to become one of the most contentious scientific issues of our time – and one where both sides will invoke morality to justify their position,” he concludes.

I’m generally in favor of allowing GM food, with the caveat that animals have a different moral status than do plants. I sketch out a case in “A Theological Framework for Evaluating Genetically Modified Food.” More recently you can see an Acton Commentary from earlier this year, “The Science of Stewardship: Sin, Sustainability, and GM Foods.”

I also should note that the use of GM foods to patent certain seeds, which then naturally circulate to non GM cropland, raises a whole host of issues related to property rights that are quite complex and can’t be dealt with here. I will say, though, that it’s not obvious to me why farmers shouldn’t have the rights to keep their crops from being exposed to GM seeds if they don’t want them to be and further how in the case of such involuntary exposure the responsibility to mitigate lies with the non GM crop farmer.

Blog author: jcouretas
Monday, December 13, 2010
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Jordan’s post on hunger raises a timely question, on a day when First Lady Michelle Obama was on hand to watch the president sign the $4.5 billion “Healthy, Hunger-Free Kids Act” at a Washington elementary school. Despite the media coverage and White House spin that points to this in part as a hunger fighting piece of legislation, the measure is really about obesity. Because in America, the real problem with food is superabundance and waste, not scarcity and hunger.

As Bloomberg noted today:

Almost 20 percent of 6- to 11-year-olds were considered obese in 2007-2008, according to a study by the Atlanta-based Centers for Disease Control and Prevention. Obese children are more likely to have health issues like Type 2 diabetes and high blood pressure according to the CDC.

A study published last year estimated the cost of treating obesity-related ailments in 2008 at $147 billion. The study, noted the Washington Post, “compared medical costs for normal-weight people to those for obese people, suggests that curbing the obesity epidemic is key not only to ensuring a healthier future for Americans, but also to reining in health costs.”

The Centers for Disease Control helpfully suggests that schools should be located “within walking distance of students’ homes and making it easier for people to get access to healthful foods.” Of course, these tips largely will be ignored, as will most other nanny state directives on eating healthy diets and exercising that have been around for decades. Walking to school? That’s what minivans are for.

Now, you can argue that poor people are consuming too much bad food. You can argue that government farm subsidies foster production of the wrong kinds of food. All that is debatable and subject to honest differences of opinions as to causes and solutions. What doesn’t seem obvious is that millions of Americans are going hungry. This is what we get constantly from the religious left and the U.S. hunger lobby, which sees expansive government welfare programs as the inevitable answer. (more…)

Blog author: jballor
Monday, December 13, 2010
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In an otherwise fine piece focusing on innovative techniques used by food banks to increase efficiency, while at the same time improving service and the recognition of the dignity of those they serve, Bread for the World president David Beckmann uses the opportunity to throw a dose of pessimism into the mix.

“We can’t food-bank our way to the end of hunger,” said Beckmann, co-recipient of the 2010 World Food Prize. “Christian people need to change the politics of hunger as well.”

Well. So what if “we can’t food-bank our way to the end of hunger”? Does that mean that we have to make governmental lobbying our primary focus? How about using the opportunity to praise best practices and improvements in the way food banks are run? How about talking about the important and indispensable role that food banks play?

It might just be that framing the problem as political by definition minimizes the role that private charity and local giving play. The emphasis all too easily becomes one of lobbying and advocacy rather than taking practical steps to address hunger in local contexts.

Perhaps I’m making too much of this. But I think we can see right where the “politics of hunger” mindset leads. Here’s an example from my local area: “West Michigan food pantries see drop in demand, but not for a good reason.”

Here in West Michigan local food bank officials point not to decrease in demand or need, but instead toward “increased state food assistance and accessibility.”

While local food banks are seeing their usage numbers decline, “We have continued to set records every month (for the food assistance program) for the past 18 months, said Edward Woods, communications director for the state Department of Human Services (DHS). “Recovery funds (federal stimulus) did increase the amount of food assistance by nearly 14 percent.”

If changing the politics of hunger means that fewer people use food banks and food pantries in favor of government welfare then I have no interest in changing the politics of hunger. Instead I want to see hunger de-politicized.

All too often discussion about charitable causes end up downplaying direct charitable giving and activity with calls for political activism and advocacy. Jim Wallis, for instance, has said “I often point out that the church can’t rebuild levees and provide health insurance for 47 million people who don’t have it.”

Instead of talking about what food banks can’t do and what Christians can’t do, I like the observation from Ron Sider about the untapped potential of Christians to act on their own through their own institutions without resorting to government advocacy.

Sider says, “If American Christians simply gave a tithe rather than the current one-quarter of a tithe, there would be enough private Christian dollars to provide basic health care and education to all the poor of the earth. And we would still have an extra $60-70 billion left over for evangelism around the world.”

Obviously evangelism shouldn’t be a “leftover” priority, but you get the point. Christians and churches can and should do more, and calls to change the “politics” of hunger, poverty, and a host of other issues let us off the hook too easily.

I mentioned Lester DeKoster’s little classic, Work: The Meaning of Your Life—A Christian Perspective, in the context of the Lutheran World Federation’s General Assembly and the theme, “Give us today our daily bread.”

In this book, DeKoster makes a pointed connection between work and food:

“I was hungry and you gave me something to eat.”

The Lord is saying that where humans are hungry, there he too chooses to hunger. He waits in the hungry man or woman or child, longing to be served. Served how? By the work of those who knit the garment of civilization through the production and distribution of food!

God himself, hungering in the hungry, is served by all those who work in …

  • agriculture,
  • wholesale or retail foods,
  • kitchens or restaurants,
  • food transportation or the mass production of food items,
  • manufacturing of implements used in agriculture or in any of the countless food-related industries,
  • innumerable support services and enterprises that together make food production and distribution possible.

God transforms plantings into harvests. Then he waits to be fed by those whose work turns harvests into one of the basic elements of civilization. The gift of ourselves to others through work is the gift of ourselves to God—and this is why work gives both temporal and eternal meaning to life!

WorkMany commentators on this passage in Matthew focus on the “giving” literally as the charitable act of giving, and this is as appropriate. But some others go on to identify the “giver” with the government, rather than charities, individual Christians, or the church itself.

But as DeKoster challenges us, we ought also to think of the “giver” as the person who works in the fields to harvest the food, who gives the sweat of their brow to bring food to the table of those of us who hunger, each and every day.

This shift in perspective, that sees our work as a form of service to others, a way of giving of ourselves to others, changes things completely. And I think it more accurately reflects the nature of market interactions and the value of human work.

In the background of this month’s 11th General Assembly of the Lutheran World Federation, it’s important to recall the recent history of global Lutheranism.

The basic context is that Lutheranism has been self-understood as historically associated with social quietism, particularly as expressed in the church’s impotency in the face of the Nazi menace. One approach in answer to this has been to become correspondingly active in social causes.

This is, at least in part, we see such an emphasis on social justice issues at Lutheran ecumenical gatherings over the last few decades. This current gathering, for instance, is committed to focusing on hunger issues.

As the introductory ENI story relates, this move from social quietism to social activism is constitutive of the Lutheran ecumenical movement’s self-understanding.

German finance minister Wolfgang Schäuble said in Stuttgart yesterday, “It has been observed that the Lutheran heritage in Germany has tended to encourage individuals to be obedient subjects rather than active citizens.”

“Germans had to learn through a painful history that good government is the responsibility of all citizens. Protestant Germans in their majority took a long time to understand that this was also what their Christian faith demanded of them,” Schäuble told a 1200-strong ecumenical congregation.

Dietrich Bonhoeffer

Dietrich Bonhoeffer (1906-1945)

The ENI piece specifically cites Dietrich Bonhoeffer and his involvement in the Abwehr conspiracy, whose climax was reached in the Stauffenberg assassination attempt of July 20, 1944. Bonhoeffer certainly does have a great deal to teach us about social engagement, as his deep reflections on the nature of social life, from his first theological dissertation (Sanctorum Communio), to his reflections on communal life together at the theological seminary in Finkenwalde, to his Ethics.

What we see in Bonhoeffer, and what I try to communicate in my use of his work in the concluding sections of Ecumenical Babel, is a balanced approach that does not allow for secularization between church life and work life, for instance. But neither does it allow for the opposite error, the substitution of social activism for the Gospel proclamation itself.

This is the risk that Lutheran social engagement has faced over the last few decades, and the trap into which the LWF has often fallen. I pray that the invocation of the prayer for our “daily bread” at this gathering in Stuttgart will take up a balanced approach to work and wealth. But as I show in Ecumenical Babel, there is little precedent in recent history to suggest such balance.

Here is an question: Where do a lot of socially liberal, anti-capitalists,left-leaning, organic, environmentalist, vegan, social democrat types who enthusiastically support government regulation and nationalized health care go to find a sense of community?

Answer: Free Markets
To be more precise: Farmer’s Markets.

Spring is in the air and so I headed off to the first official day of the farmer’s market in Grand Rapids on Saturday. As you can imagine farmer’s markets not only have an abundant supply of fresh vegetables and meats–but lots of liberal bumper stickers and flocks of “counter cultural” folk who tend to look the same, and love to talk about sustainability, free range chickens, grass finished beef, and the evils of capitalism.

Yes they love to go to farmer’s markets to buy local, drink fair trade coffee, and meet up with their friends and comrades. (To be sure there are a lot regular folks and farmers who also go to the farmer’s markets, less to make a political statement, and more to buy and sell wholesome foods at good prices).

But the irony-or rather tragedy–is that if the left had their way, then agriculture would be even more controlled by the government than it is now, and local growers and farmer’s markets would be regulated out of existence.

Already small local farms face a myriad of rules and regulations that make it difficult to compete with large agricultural corporations. Many people who love to promote the “buy local” movement, too often lack a coherent understanding about how markets and regulation work and while their bumper stickers praise small, local businesses and entrepreneurs, their voting patterns support the exact opposite.

Luckily there are some coherent voices who understand the relationship between local markets, wholesome food, and political and economic liberty. One of them is Joel Salatin, Mr. Salatin runs Polyface Farms in Central Virginia. He has a lot of interesting insights into farming, family businesses and freedom.

Unlike many in the organic movement, Salatin realizes that government and bureaucracy are part of the problem. In an illuminating article, Everything I Want to Do is Illegal in Acres Magazine he documents the struggles small farmers must face to get their food to market. You can also find the book here: Everything I Want to Do Is Illegal

Salatin tells how the law requires farmers to have their cattle butchered at a USDA approved site and not on their own farms, however he writes:

When I return home to sell these delectable packages, the county zoning ordinance says that this is a manufactured product because it exited the farm and was re-imported as a value-added product, thereby throwing our farm into the Wal-Mart category, another prohibition in agricultural areas. Just so you understand this, remember that an on farm abattoir was illegal, so I took the animals to a legal abattoir, but now the selling of said products in an on-farm store is illegal.

People who praise “local-ism” need to realize that for local farmers and businesses to flourish–and for small organic farmers to be able to compete–we need free and competitive markets and not government intrusion that only benefits those companies big enough to send lobbyists to Washington or their state capitols.