Peñon de los Banos, a women-owned farm cooperative

The women of Penon de los Banos farm cooperative, Mexico
The women of Penon de los Banos farm cooperative, Mexico

Peñon de los Banos, is a women-owned sustainable organic farm cooperative, a short ride from the mountain town of San Miguel de Allende, Mexico. My wife and I are part of a field trip, organized by The Center for Global Justice, visiting the Campo, to learn more about their work.

Residents of this small dairy farm have been part of a traditional ejido system for generations. Ejidos are communal lands, for growing food, shared and co-managed by the people of the community. The system was developed during ancient Aztec rule of Mexico. The North American Free Trade Agreement (NAFTA) has forced the Mexican government to do away with the ejido system, and open the land up to foreign agri-business.

With exponential population growth driving increasing demand for food, food prices are increasing. Farm land has become a growth investment. Foreign investors are eager to buy up land in this fertile region. This can put land ownership out of reach for local farmers. Much of the traditional farming is now being forced out, replaced by industrial agriculture. So, the women of Peñon de los Banos have banded together and formed a SPR (Sociedad de Produccion Rural). Adding to their dairy cow farm, they have constructed nine greenhouses to grow organic tomatoes and other vegetables, year round. They endeavor to farm sustainably, using composted manure from their cows to keep the soil fertile, and employing drip irrigation to conserve precious water. They are creating value-added products including tomato sauce and paste.

If they can grow the farm business, they hope to bring their husbands into the operation. To help pay the bills, the spouses have had to leave the community, to work in San Miguel or the US.

They are surrounded by industrial farming, which presents some challenges. The industrial farming methods use old fashioned wasteful irrigation techniques. Peñon de los Banos uses very efficient drip irrigation, but they are drawing from the same well and aquifer as the industrial farms, so if the industrial farms run the well aquifer dry, it effects Peñon de los Banos too. And with increased drought in the south, water is getting very scarce. Also, the industrial farms are not organic, and when they spray with pesticides, the women at Peñon de los Banos need to quickly cover their crops so the poisons don’t settle on the crops.

This trip has a special energy, as we were accompanied by a wonderful bunch of young women and their teachers, from Edgewood College, in Madison, Wisconsin. The students are here on a trip lead by their sociology professor, Julie Whitaker. They are a fantastic bunch of people. Julie and I talk about sustainable farming challenges facing farmers. She seems like a great teacher. Her students ask great questions. I continue to be impressed with the social engagement and energy young people are bringing to our world. These students rock! They have it in them to leave the world a better place.

After the tour, the women of the farm serve us a delicious traditional lunch (comida). They teach me how to make gorditas, toasting them on a wood fire heated steel plate. I am frankly overwhelmed by their beautiful generous spirit. For me, this has been the highlight of my month in Mexico.

Here is a video interview with the women of Peñon de los Banos, pictures from the trip, and an audio presentation by Cliff Durand of The Center for Global Justice. Cliff talks about the history of Peñon de los Banos and small farming in Mexico, and talks about the recent impact NAFTA is having on small farmers.

Video – filmed at Peñon de los Banos

Includes video of traditional mid-day meal (comida) and interview with the women that run the farm cooperative. Translation is provided by Ousia Whitaker-DeVault.

Pictures – from around Peñon de los Banos

Scenes from the farm, sharing a mid-day meal, and at the organic farmers market

Greenhouse at Penon de los Banos farm cooperative, Mexico
One of eight greenhouses on the farm
Cows at the dairy at Penon de los Banos farm cooperative, Mexico
Cows at the dairy at Penon de los Banos farm cooperative, Mexico
Comida - Sharing a meal with the women of the cooperative farm at Penon de los Banos, Mexico
Comida - Sharing a meal prepared by the women of the cooperative farm at Penon de los Banos, Mexico
Cooking gorditas at Penon de los Banos farm cooperative, Mexico
Cooking gorditas at Penon de los Banos farm cooperative, Mexico
The women of Penon de los Banos farm cooperative, Mexico
The women of Penon de los Banos farm cooperative, Mexico
Farm dogs at Penon de los Banos farm cooperative, Mexico
Farm dogs at Penon de los Banos farm cooperative, Mexico
Horse-drawn cart at Penon de los Banos farm cooperative, Mexico the farm.
Horse drawn cart on the farm.
saturday organic farmers market in San Miguel de Allende, Mexico
Saturday organic farmers market in San Miguel de Allende, Mexico

Audio Presentation: Small farming in Mexico

Cliff Durand, of The Center for Global Justice gives background on small farms in Mexico and the effects of NAFTA. Audio quality is low until about 1 minute 30 seconds. Duration: 57 minutes.

Climate Change and Food Security: Rethinking Vulnerability

Landing at Puerto Vallarta International Airport in Mexico’s western state of Jalisco felt risky and appropriate: it was October 11th, the same day that hurricane Jova was expected to make landfall. The threatening category 3 storm was just off the coast as I was beginning my research assistant position on “Indigenous food security adaptation and climate change”.

I had accepted the six-month assignment with the Center for World Indigenous Studies as part of my graduate work in sustainable development. The ominous clouds looming ahead seemed symbolic—of what, exactly, I did not quite know. While hurricane Jova ended up sparing the community from severe structural damage, it wreaked havoc on a series of towns south along the coast.

Climatic Vulnerability

Mexico has suffered increasingly intense drought, four major hurricanes, and devastating floods which have led to soil degradation and destroyed crops, infrastructure, and human settlements. Indigenous communities, and the bio-culturally diverse regions they represent, are vulnerable to the recognizably changing climate. I have begun to learn that rural communities in western Mexico have the capacity and desire to adapt to the changes using knowledge learned from earlier generations of farmers and residents. This knowledge is a key point of debate in Durban, South Africa where climate change treaty negotiations started on November 28th. Given what I have experienced on the ground in western Mexico, it is critical for those in the midst of the United Nations Forum on Climate Change (UNFCC) and other “leading experts” to look at how ready and willing THEY are to adapt to inevitable climatic changes and related food insecurities.

Part of my work focuses on the local use and production of climate sensitive plants while engaging in long distance colloquies over the incorporation of language in the climate change treaty negotiations supportive of indigenous peoples. The question of how ready and willing self-described “developed” nations are to adapt to climate change is not intended as a direct plea for their higher levels of social and environmental accountability (although I do believe such governments and the corporations who fund them should be held accountable). Rather, it stems from a long overdue acknowledgement that the 5,000+ indigenous communities worldwide, who hold 80% of the world’s remaining biodiversity within their lands, have proven to be incredibly resourceful in adapting to historical climatic changes in their respective eco-niches through a consistent and symbiotic relationship with Mother Earth. Instead of spending time not agreeing to global mitigation plans, government decision-makers representing the monetarily prosperous sectors of nations should be asking for guidance from indigenous communities as they consider their own layers of vulnerability: concrete food deserts, oil-dependent infrastructures, and an incessant need to consume well beyond human and environmental means. As the climatic shi(f)t hits the fan, will they have not only the hands-on skills to make adaptive responses but also the collective ability to creatively and more responsibly reconfigure their societies?

Redefining Subsistence

In a recent visit with members of the indigenous municipality of Cabo Corrientes, Jalisco, I met a subsistence farmer named Bety.

food security, Jalisco Mexico, subsistence farmer bety

Dr. Rudolph Ryser, the leader of this research effort sent me to Bety’s community to ask about the food availability and distribution patterns of certain nutritionally-dense foods. What I had read about the security of such communities and what I found were two different things. In current economic and agricultural discourse subsistence societies are primarily described as those who do not produce a surplus; they produce only the minimal amount of food or goods that are necessary for their basic survival. Based on this definition, one might envision—as is often depicted on the front cover of UN and NGO briefing reports—families on the brink of starvation, eager to acquire the technological and financial transfers necessary to upgrade their production capacity.

This was not the scenario I encountered as I talked with Bety and observed what actually transacted on her farm. Set amongst a backdrop of lush hillsides, Bety and her parents, Crispina and Ricardo have been subsistence farming for generations. Maize, heirloom tomatoes and squash, maguey, hibisucs, sugar cane, beans, plantains, avocados, chickens, pigs and cows are just a handful of food sources that Bety proudly showed me as we toured their small, incredibly-efficient parcel of land. Subsistence clearly produced considerable abundance and variety. “Why would I want to work in a factory or an office all day when I can work out here; move my body and breathe fresh air?” she asked. “The land wants to provide–if you are willing to put in the time and love–she is more than willing to produce”.

Nearing sunset, Bety and her family literally kicked up their heels, relaxed in hammocks, and invited us to partake in home-fermented raicilla—a regional, moonshine version of Tequila. It was apparent that subsistence communities celebrate happy hour as well.

food security, Jalisco Mexico, subsistence farming, talking a break

Life-Supporting Societies

While I recognize that the degree to which different subsistence communities around the world can or cannot fully provide for their own needs varies tremendously, especially given uneven climate change effects, I think it is important to highlight a positive, yet often-neglected view of subsistence living. In her seminal work entitled Subsistence Perspective, Maria Mies presents a vision for an alternative ecological model for societies. It is not an economic model; rather, it is a way of looking at the economy—a perspective. She describes it as subsistence perspective because it focuses on the creation, recreation and support of life and it has no other purpose than this. It is life that stands at the centre of this vision, rather than money, economic growth or profit. For more on this topic, see Ecofeminism and the subsistence perspective: fostering cooperation, not competition.

Prior to my visit with Bety, I might have read Maria Mies revised definition of subsistence, and quietly tucked it away as a cozy, past-oriented notion that is no longer plausible within today’s fast-paced, growth-oriented ideology. Yet when I make my daily trek to the neighborhood Mercado, an open-air market teeming with color, variety, and intricate layers of human interaction, I recognize the numerous ways in which Mexico continues to boast tremendous life-supporting cultural infrastructure.

Indigenous communities, which comprise most of Mexico’s population, have cultivated these life-supporting systems for millennia. Their role in local, regional and international discussions on climate change and food security is vital, not only because of the vulnerabilities their own communities face, but because of the critical knowledge–the science— they have developed as a result of successful historical adaptations.

Innovation 2.0: Open-Source Urban Agriculture

window farmingIn an uplifting TED video, Britta Riley, founder of R&D-I-Y (Research & Develop It Yourself), talks about how a global network of interested citizens developed a simple window farming design that allows urban dwellers to grow food in their apartment windows.

Using open-source collaboration methods, and sharing a common interest in growing fresh food in their living spaces, the online innovation community has grown to 25,000+ participants.

In the same way that Egyptians used Web 2.0 social media tools (e.g. Facebook and online forums) to rise up, R&D-I-Y is using those social media tools for product development and innovation. All this, done outside the for-profit sanctum of traditional corporate culture.

Here’s the video of Britta describing the journey that started with a simple desire to grow healthy fresh food in her tiny apartment.

The resulting window garden design is in the public domain, at Windowfarms.org, and can be purchased as a kit, or, for Do-It-Yourselfers, you can download plans and participate in the collaborative community, to build one for yourself.

e-Bank, Tacoma, 2004 by Chris Jordan

This is important. If you can build it, you can repair it. And in our disposable culture, on a finite planet, that’s a big win.

By building something, we come to understand the nature of it – how it works. And, should it break, we understand it enough to repair it. And we have the collaborative community backing us up, if we need some advice.

Repair – it is one of the 4 Rs of sustainable living – Reduce, Recycle, Reuse and Repair. Here’s how window farming helps us live more sustainably:

  • Reduce the distance food travels, water consumed for irrigation, CO2 and water pollution, fuel imports, food cost, food nutritional loss, etc.
  • Reuse things like wire, light fixtures, fabric, etc., that might normally be discarded, when you are building it from scratch.
  • Recycle things like plastic bottles, which are basic building blocks of do-it-yourself window farms. But in this design, no need to recycle (which takes energy) – we can Reuse discarded plastic bottles.
  • Repair – If you build it, you can repair it.

For those that want to live lighter on the land, and more sustainably, the 4 Rs are our credo.

Urban Farming

One hundred years ago, almost half of Americans were employed in farming or food production. Now it is less than .4 percent of the nation. While this is a testament to improvements in the efficiency of agriculture, much has been lost. We have become disconnected from how our food is produced. Convenience often drives our choices. We consume much more prepared food, loaded with preservatives and with less nutritional goodness.

Our food travels an average of over 1,500 miles to get to us. That consumes a lot of fuel, emits a lot of CO2, reduces food freshness, and removes dollars from our local communities.

As our global population has doubled to over 7 billion people, the per capita land available for growing food has been cut in half. There are serious concerns about how we will feed the exponentially growing population. And that population will largely be dwelling in cities.

What if much of the food we wanted to eat was, literally, within reach?

Dragonfly Vertical Farm, NYC
Dragonfly Vertical Farm, NYC

Urban agriculture allows us to reclaim the built urban landscape for growing food. But now, in the dense urban setting, we will do it vertically. The acres of farmland are transformed into vertical window scapes, or rooftop gardens.

My wife and I garden year round, raise chickens, and enjoy a local community committed to growing healthy food. In addition to the economic benefits (food is one of the biggest costs of living), there is something deeply satisfying about picking fresh produce and cooking it up, on the spot – sharing it with friends.

rooftop gardenGrowing food is a daily miracle. The tiny seed becomes a mature plant that can provide food for months. In an economy of increasing scarcity, gardens provide a welcome abundance.

Beyond the satisfaction of growing ones own food, there is a real health benefit. Listen to Dr. Terry Wahls describe her remarkable story about how careful food choices cured her MS. At the center of her diet – kale and greens that can be grown in a window garden.


As Dr. Wahls points out, we can be eating a lot of food, but starving ourselves of the nutrients needed for good health. Obesity in the US is at all time highs – thanks to the proliferation of prepared foods that taste great but have little nutritional value – e.g. soft drinks, pizza, fast food, etc.. Here’s just one example. Each day, the average American consumes 100 to 200 times more sugar than we did 100 years ago. Healthcare costs now represent 17% of US GDP. Anything we can do to stay healthy will save us enormous amounts of money and the inconvenience and discomfort of doctor visits, hospitalization, surgery, back problems, addiction to pain-killers, chemo, radiation, …

Dr Terry Wahls, recorved from MS using nutritional hunter gatherer dietBad food put Dr. Wahls in a wheel chair. Good food got her back on her own two feet – In a matter of seven months. But with so much processed food being engineered to addict us to the food (sweet, salty, buttery, etc.), the choice to eat nutritious healthy foods is not easy. It is a daily choice that rewards only if we are steadily committed to the journey.

A Global Perspective on Food

Pulling the lens back for a more global view – as world population expands inexorably – we are approaching a tipping point with regard to food production.

Recently, a report that gained little attention in the news, but has major ramifications for every nation, was published by the UN’s Food and Agriculture Organization (FAO).

The FAO report – The World Food Situation – reports that world food prices surged to a new historic peak in January, for the seventh consecutive month. The FAO Food Price Index (below) is a commodity basket that regularly tracks monthly changes in global food prices.

This is the highest level (both in real and nominal terms) since FAO started measuring food prices in 1990.

FAO Food and Agriculture Organization food price index 2010

FAO food price commodity index 2010As we can see from the chart on the right, the price of individual commodities that comprise the index – meat, dairy, cereals, oil and fats, and sugar – are all on the rise.

Global food prices have exceeded their pre-recession price levels. Some of this is due to the price of petroleum returning to pre-recession levels. About 17% of all petroleum production is consumed for food production. Petroleum is a key ingredient in the manufacture of fertilizer and pesticides, and sources energy for irrigation, food transport, etc. Note how the Food Price Index closely parallels the price of oil.

In addition, climate change is driving an increase in extreme weather, including record heat during growing seasons, record flooding, and extreme rain.

And as nations move up the affluence curve, their consumption of food increases, creating rising demand from a limited supply. As Julian Cribb, author of The Coming Famine: The Global Food Crisis and What We Can Do to Avoid It, astutely points out – as developing nations become more affluent, they consume more protein, in the form of fish, meat, milk, eggs, etc. For an example from China, read the article that appeared in The Financial Times today: Chinese Corn Imports Forecast to Soar. Note the mention of corn for meat production.

Meat Protein Consumption in US and China
(source: US Department of Agriculture)

Protein is usually produced with grain, and it is an inefficient process:

  • It takes 1,ooo tons of water to produce a ton of grain
  • It takes about 15 pounds of grain to produce a pound of beef
  • So, it takes about 5,200 gallons of water to produce a pound of beef

Though food prices are volatile, and change daily, the trend is clearly up.

As our population increases, and as each nation seeks affluence, food will become a major factor in the stability of all nations. Food shortages in China will effect the price of our food here in the US, as nations vie for the precious basics of life, on a finite planet.

Want to change the world? Plant some food in your window.

Related Articles

Why Farmers Need a Pay Rise…

Climate Change May Reduce Protein in Crops

Recommended Reading: The Coming Famine

Chinese corn imports forecast to soar

What feeds a revolution?

Charles M. Blow, one of my favorite “number crunchers”, and op-ed columnist at the NY Times, has a good article today on what causes a revolution. He turns the lens on Egypt and Tunisia, as well as other countries that might be poised for revolution, and looks at what factors can contribute to people rising up and overthrowing their government.

Though agitating factors like unemployment and age have featured in many articles on the situation in Egypt and Tunisia, Charles M. Blow digs deeper. He prepared the table below, which shows median age, unemployment rate, income inequality, food as a percentage household spending, level of democracy, regime type, and internet penetration.

revolution egypt tunisia food income inequality internet penetration, regimeWorth noting: The real US unemployment rate is about 16%, when considering the more comprehensive U6 Rate. The US has the highest income inequality of all the countries considered in the list above. The US ranks with Rwanda and Uganda.  For more on that, see the recent 8020 Vision article When Does the Wealth of a Nation Hurt its Wellbeing?

I am glad Blow listed food as one of the metrics to consider. There is a proverb that governments ignore at their peril:

“Lo que separa la civilización de la anarquía son solo siete comidas.”
(Civilization and anarchy are only seven meals apart.)

—Spanish proverb

Though Egypt is not unique – corrupt repressive governance and cronyism can be found at the heart of many dysfunctional nations – once corruption interferes with meeting the basic needs of the populace, revolution is imminent.

food price correlation with food riots
Time dependence of FAO Food Price Index from January 2004 to May 2011. Red dashed vertical lines correspond to beginning dates of “food riots” and protests associated with the major recent unrest in North Africa and the Middle East. The overall death toll is reported in parentheses. Blue vertical line indicates the date, December 13, 2010, on which author submitted a report to the U.S. government, warning of the link between food prices, social unrest and political instability. Inset shows FAO Food Price Index from 1990 to 2011. (Source: The Food Crises and Political Instability in North Africa and the Middle East, New England Complex Systems Institute)

The Basics Of Revolution

When I work with clients and this subject comes up, I like to turn to Maslow’s hierarchy of needs to put this in perspective. As we can see, two of Charles Blow’s metrics – food and unemployment – are fundamental components of basic human needs.

Maslow's hierarchy of needs

The lower down on Maslow’s pyramid a dysfunctional regime effects the populace, the deeper the impact, and the more likely the effected people will rebel. In other words, when a government fails to meet the basic human needs of its people, the people rise up.

Maslow's hierarchy of needs - basic needs

Looking back in history for examples of how food and government are connected at the hip, our eyes come to rest on the Roman empire. Though the causes of the fall of Rome are debated still, one thing is certain: As the Roman empire devolved into the late-stage “Bread and Circuses” phase, once the farm system failed and the bread ran out, the rulers quickly lost the support of the people. The party was over.

the fall of Rome by
The Fall of Rome by Thomas Cole

The party is over in Egypt. President Mubarak now requires plainclothes thugs with clubs to beat back the public, losing what little credibility and dignity he might have had. How will he sleep? I don’t think the prideful Mubarak’s $60 billion family bank account will numb the shame he must feel as he watches the Egyptian army protect the people from his secret police.

As Tunisia and Egypt fail, Charles M. Blow scans his table of cold hard data and asks “Who’s next?”

Seen through that prism (of food, income inequality, and internet penetration), Tunisia and Egypt look a lot alike, and Algeria, Iran, Jordan, Morocco and Yemen look ominously similar.

A Global Perspective on Food

Pulling the lens back for a more global view – as world population expands inexorably – we are approaching a tipping point with regard to food production.

This week, a report that gained little attention in the news, but has major ramifications for every nation – especially those where food is a larger percentage of household income – was published by the UN’s Food and Agriculture Organization (FAO).

The FAO report – The World Food Situation – reports that world food prices surged to a new historic peak in January, for the seventh consecutive month. The FAO Food Price Index (below) is a commodity basket that regularly tracks monthly changes in global food prices.

This is the highest level (both in real and nominal terms) since FAO started measuring food prices in 1990.

FAO Food and Agriculture Organization food price index 2010

FAO food price commodity index 2010As we can see from the chart on the right, the price of individual commodities that comprise the index – meat, dairy, cereals, oil and fats, and sugar – are all on the rise.

Global food prices have exceeded their pre-recession price levels. Some of this is due to the price of petroleum returning to pre-recession levels. About 17% of all petroleum production is consumed for food production. Petroleum is a key ingredient in the manufacture of fertilizer and pesticides, and sources energy for irrigation, food transport, etc. Note how the Food Price Index closely parallels the price of oil.

In addition, climate change is driving an increase in extreme weather, including record heat during growing seasons, record flooding, and extreme rain.

And as nations move up the affluence curve, their consumption of food increases, creating rising demand from a limited supply. As Julian Cribb, author of The Coming Famine: The Global Food Crisis and What We Can Do to Avoid It, astutely points out – as developing nations become more affluent, they consume more protein, in the form of fish, meat, milk, eggs, etc. For an example from China, read the article that appeared in The Financial Times today: Chinese Corn Imports Forecast to Soar. Note the mention of corn for meat production.

Meat Protein Consumption in US and China
(source: US Department of Agriculture)

Protein is usually produced with grain, and it is an inefficient process:

  • It takes 1,ooo tons of water to produce a ton of grain
  • It takes about 15 pounds of grain to produce a pound of beef
  • So, it takes about 5,200 gallons of water to produce a pound of beef

As our population increases, and as each nation seeks affluence, food will become a major factor in the stability of all nations, not just the rotting authoritarian regimes of the world.

egypt revolution

Related Articles

Why Farmers Need a Pay Rise…

Climate Change May Reduce Protein in Crops

Recommended Reading: The Coming Famine

Chinese corn imports forecast to soar

Iris Parker Pavitt

I was reading an article at Time’s Ecocentric blog called European Energy Companies Funding Climate Skeptic Campaigns in the U.S. I am concerned about climate change and the behind the scenes attempts by big oil to create FUD (Fear, Uncertainty and Doubt) around global warming.

So I was reading the article, and when I got to the end, I like to read the comments. And there, at comment #2, MeMeMine69 wrote the following:

Are WE not the new neocons when we condemn our kids to a CO2 death, just to get them to turn the lights off more often? Climate change has done to us what Bush did to the neocon’s reputation.

System Change, not Climate Change.

Environmentalism is strong, successful and progressive. Just remove the CO2 mistake from the equation and let’s all just carry on. Why does it seem like we WANT this crisis to happen? I can’t do this anymore.

I’m liberal. I’m progressive and a New Green Denier.

I’m ahead of the curve because this can’t continue without alienating the rest of the voters who don’t believe this “promise of unstoppable warming” to happen to the planet Earth.

My reply:

Hi MeMeMine69.

Most of the kids I know are not afraid, they are energized, and part of the solution. They give me hope.

Think back to the 70s, when it was kids that helped their parents realize the importance and opportunity of recycling.

One of my heros is Iris Parker Pavitt. Iris served as a teen delegate to the UN Commission on Sustainable Development, and is a coordinator for FEAST (Farm Education And Sustainability for Teens), and is a member of the Farm to Cafeteria Program, to bring healthy organic foods to school food programs.

Here’s a great interview with Iris:

http://www.youtube.com/watch?v=4Wtrknd2rqY&feature=related

I am happy to have her in our community, and I assure you, there are kids like Iris all over the world.

Take heart!

Iris is just one of many kids who are engaged, informed, and active in leaving the world better than we found it.

I love these kids – Let’s give them wings!

Why Farmers Need a Pay Rise…

The world’s farmers need a pay rise – or, come the mid-century, the other 8 billion of us may well find we do not have enough to eat.

True, this assertion flies in the face of half a century of agricultural economics orthodoxy – but please bear with me as I explain.

Globally and especially  in developed countries, food has become too cheap. This is having a wide range of unfortunate – and potentially dangerous – effects which include:

  • Negative economic signals to farmers everywhere, telling them not to grow more food
  • Increasing degradation of the world’s agricultural resource base
  • A downturn in the global rate of agricultural productivity gains
  • An ‘investment gap’ which is militating against the adoption by farmers of modern sustainable farming and other new technologies
  • A deterrent to external investment because agriculture is less profitable than alternatives.
  • The decline and extinction of many local food-producing industries worldwide
  • A disincentive to young people (and young scientists) to work in agriculture.
  • Loss of agricultural skills, rural community dislocation and increased rural and urban poverty affecting tens of millions
  • Reduced national and international investment in agricultural research and extension
  • Lack of investment in water, roads, storage and other essential rural infrastructure
  • The waste of up to half of the food which is now produced
  • A pandemic of obesity and degenerative disease that sickens and kills up to half of consumers of the ‘modern diet’, resulting in
  • Soaring health costs causing the largest budget item blowout in all western democracies
  • The failure of many developing countries to lay the essential foundation for economic development – a secure food and agriculture base – imposing direct and indirect costs on the rest of the world through poverty, war and refugeeism.

From this list it can be seen that low farm incomes have far wider consequences for humanity in general than is commonly supposed.

Indeed, in a context in which all of the basic resources for food production are likely to become much scarcer, it may be argued that, indirectly, they imperil every one of us.

A Market Failure

This aspect of future global food security is primarily about a market failure.

At its ‘How to Feed the World’ meeting in October 2009 the UN Food and Agriculture Organisation stated that investment of the order of $83 billion a year was needed in the developing world alone, to meet the requirement for a 70 per cent increase in food production by 2050. (source: ii)  However, almost in the same breath, it noted “Farmers and prospective farmers will invest in agriculture only if their investments are profitable.” (My emphasis).

The logic is unassailable. Today most of the world’s farmers have little incentive to invest in agriculture because the returns are so low. This applies as much to farmers in developed countries , as it does to smallholders in Asia or Africa.

Reasons for the low returns are not hard to find: farmers are weak sellers, trapped between muscular globalised food firms who drive down the price of their produce, and muscular industrial firms who drive up the cost of their inputs. This pincer movement not only discourages ‘developed’ agriculture but also prevents undeveloped agriculture from developing.

Nothing new here, you may say. So what has changed? The growing imbalance in power between farmers and those who dominate the food supply chain is what has changed.

Two decades ago most farm produce was largely sourced from local farmers by local buyers for local markets and consumers, as it was through all of history.  In the 21st century there has been a massive concentration of market power in the hands of a tiny number of food corporations and supermarkets sourcing food worldwide.  These are – quite naturally – doing all they can to reduce their input costs (farm prices) as they compete with one another. This is not a rant about globalisation: it’s a simple observation about one of the facts of global economic life.

The power of the farmer to resist downward price pressure has not increased. Indeed it has weakened, as the average producer now competes against some struggling farmer in a far away country, rich or poor, who is also simply trying to survive by selling at the lowest price.

The power of the global input suppliers – of fuel, machinery, fertilizer, chemicals, seeds and other farm requirements, has also grown as they concentrate and globalise.  This makes it easier for them to raise the cost of their products than it is for farmers to obtain more for their wheat, rice, livestock or vegetables or to withstand input price hikes.

As a consequence of this growing market failure, the economic signal now reaching most of the world’s farmers from the market is “don’t grow more food”.

Its effect is apparent in the fact that world food output is now increasing at only about half the rate necessary to meet rising global demand, and that yield gains for major crops have stagnated.

While some will argue such cost/price pressures make for greater economic ‘efficiency’, the logical outcome of unrestrained global market power will eventually displace around 1.5 billion smallholders out of agriculture, with devastating consequences for the landscapes they manage and the societies most affected. Putting one in five of the Earth’s citizens out of work and destroying the food base is not a strategy any intelligent policy or government would advocate, one hopes. But it is one of those ‘externalities’ which classical economics sometimes omits to factor in – and is happening, nevertheless.

Global Degradation

In a recent satellite survey, researchers working for FAO reported 24 per cent of the Earth’s land surface was seriously degraded – compared with 15 per cent estimated by an on-ground survey in 1990. The FAO team noted that degradation was continuing at a rate of around 1 per cent a year. (source: iii)

Every agronomist and agricultural economist knows that, when farmers are under the economic hammer, a good many of them will overstock and overcrop in a desperate effort to escape the poverty trap leading to severe resource degradation. In drier, more marginal country, cost/price pressures can devour landscapes – and this is undoubtedly a major factor (though not the only one) in the degradation of land and water worldwide, especially in the world’s rangelands.

If we continue to sacrifice one per cent of the world’s productive land every year, there is going to be very little left on which to double food production by the mid-century: crop yields in 2060 would have to increase by 300 per cent or so universally, which is clearly a tall order.

Much the same applies to irrigation: “In order to double food production we need to double the water volume we use in agriculture, and there are serious doubts about whether there is enough water available to do this,” is how Dr Colin Chartres, director general of the International Water Management Institute summed it up recently. (source: iv)  Dr Chartres estimates that doubling world food output could require up to 6000 cubic kilometres more water.

Solutions to land and water degradation are reasonably well known, and have been shown to work in many environments – but are not being adopted at anything like the rates necessary to double world food production or even to conserve the existing resource base. One reason is that farmers, in the main, cannot afford to implement them, even though many would like to do so. The economic signal is wrong.

As a result, world agriculture is today primarily a mining activity. We all know what happens to mines when the ore runs out.

Productivity Decline

There is also persuasive evidence that world agriculture is dropping off the pace – that it is no longer making the yield advances and total productivity gains achieved in the previous generation. In a recent paper Alston and Pardey (source: v)  documented this decline both in the US and globally, attributing it significantly to falling investment worldwide in agricultural science and technology and extension of new knowledge to farmers.

The role of low returns in discouraging farmers, in both developed and developing countries, from adopting more productive and sustainable farming systems cannot be ignored. While a few highly efficient and profitable producers continue to make advances, the bulk of the world’s farmers are being left behind. Since small farmers feed more than half the world, this is a matter for concern.

One of the indirect effects of the negative economic signal for agriculture can be seen in the growing reluctance of governments to invest in agricultural research and development, and their increasing tendency to cut ‘public good’ research. This has happened in most developed countries and even in places such as China the level of ag R&D support is falling as a proportion of the total science investment. With agricultural R&D comprising a mere 1.8 cents of the developed world’s science dollar in 2000, one has a very clear idea how unimportant most of the world’s governments now consider food production to be. (source: vi)

The fact that agriculture appears perennially unprofitable and suffers from continuing social malaise probably contributes, subliminally, to a view among urban politicians that society ought not to be wasting its money funding research for such a troubled sector: there are a thousand other more attractive and exciting fields for scientific investment. This negative (and false) image of agriculture is an unspoken driver behind the reduced global R&D effort.

Today the world invests around $40 billion a year in agricultural research – and $1500 billion a year in weapons, as if killing one another were forty times more important than eating.

Is food too cheap?

For affluent societies at least, food is now the cheapest in real terms it has ever been in human history.

Back in our grandparents’ time, in the early part of the 20th century, the average western wage earner devoted about a third of their weekly income to food.  Rent was relatively cheap, people didn’t have cars, iPhone bills, plasma TVs, facelifts or overseas vacations – and food was essential. By the 1970s the amount of household disposable income spent on food was down to 20 per cent. Today it is around 11-12 per cent in Australia and similar in other western nations. As incomes rise in China and India, the proportion is falling there too.

Historic commodity food prices from FAO
Click for larger image

When something is too cheap, people do not value it as they should.  This produces a lack of respect for the product itself, for the people and industries involved in its production – farmers and scientists – and for the places it is produced and for the resources of land, water and human skills that produce it. This is one explanation for the negative image held by governments, businesses and most societies towards agriculture and its investment needs.

In an age where 3.5 billion humans have only the dimmest notion where their food comes from, lack of respect for the main thing that keeps them alive is coming to be a predominant ‘value’ in the human race and this is a potential danger.

A Culture of Waste

Food is now so cheap that developed societies such as the US, Britain and Australia throw away nearly half, while developing countries lose nearly half post-harvest. (source: vii)

Societies that pay their farmers such low returns, have found they can afford to send nearly half of the farmers’ efforts to landfill. Or burn in an recreational vehicle enough grain as biofuel in one week to feed a poor person for a year.

Where our ancestors stored, conserved and recycled nutrients, humanity now appears to waste 70% -90% of all the nutrients used to produce food.  On farm, up to half the applied fertiliser does not feed crop or pasture but escapes into the environment. Of the harvested nutrients, some are lost post-harvest, in transport, processing and cooking – but more than 30 per cent are simply discarded, in the shops and in the home. Then we dump around 90 per cent of our sewage nutrients in the ocean.

In short, the modern food system has established a culture of absolute and utter waste, sustained only by the mining of energy and nutrients (from rock or soil), which will eventually run out or become unaffordable to most farmers.

The universal practice of recycling, in use since agriculture began more than 6000 years ago, has broken down. The planetary nutrient cycle is now at risk from the colossal nutrient pollution now occurring.

This situation cannot persist more than a few decades. We will need to recycle and invest in new systems – but for that to occur, farm incomes and the incentive to invest in food production must rise and the economic signal to invest in agriculture must change.

An Unhealthy Situation

Cheap food is at the root of a pandemic of disease and death larger in the developed world than any other single cause of human mortality, and spreading like wildfire in the newly-industrialised world. Cheap, abundant processed food is a driver for obesity, which now affects one in five humans, and plays a significant role in the society-wide increase in cancers, heart disease, diabetes, stroke and bowel disorders.

Cheap food, in other words, is an economic invitation to consumers – including millions of children – to kill themselves prematurely through overindulgence.

Cheap food is the chief economic driver of the greatest budget blow-out in all western democracies: healthcare.

Solving the Food Challenge

The purpose of this essay is to call attention to the effect a never-ending reduction in farmers’ incomes will have on world food security at a time of rising physical constraints to production, including scarcities of land, water, energy, nutrients, technology, fish and stable climates.

At the very time when most experts agree we should be seeking ways to double food output sustainably over the coming half-century, the ruling economic signal is: “don’t do it”.

Of course, we can simply obey the economic signal and allow agricultural shortfalls to occur – but that will expose 8 or 10 billion consumers to massive unheralded price spikes, of the sort experienced in 2008, which have a dire impact on the poor, start wars and topple governments – and will not benefit farmers as much as a stable, steady increase in their incomes.

Most of the world’s poorest people are farmers, and it follows that one of the most effective remedies for world poverty is to increase the returns to agriculture. True, this will involve raising food prices for the urban poor but they are less numerous and can more easily be assisted by other government measures. At present rural poverty is maintained throughout the world largely by the economic policy of providing affluent city consumers with cheap food.

It is necessary to state this essay does not advocate a return to agrarian socialism, protectionism, commodity cartels or an end to free markets. In fact, we probably need to move much faster and further towards totally free trade in agricultural products in order to encourage efficient producers – large and small – around the world.

But it does hold up a warning flag about the universal dangers of underinvestment, negative signals and sentiment, resource destruction and rural dislocation caused by the undervaluing of the one commodity humanity absolutely cannot do without, as we approach the greatest demand for food in all of history.

There are numerous ways this issue might be addressed. Here are a few:

  1. Price: through an educated “community consensus” that results in willingness on the part of consumers, supermarkets and food processors to pay more for food so as to protect the resource base and enable farmers to invest in new technologies (source: viii)
  2. Subsidy: by the payment of a social wage to farmers by governments for their stewardship on behalf of society of soil, water, atmosphere and biodiversity, separate from their commercial food production
  3. Regulation: by limiting by law those practices or technologies which degrade the food resource base and rewarding by grant those which improve it
  4. Taxation: by levying a resource tax on all food which reflects its true cost to the environment to produce, and by reinvesting the proceeds in more sustainable farming systems, R&D, rural adjustment and enhanced resource management.
  5. Market solutions: by establishing markets for key farm resources (eg carbon or water) that result in higher returns for farmers from wise and sustainable use.
  6. Public education about how to eat more sustainably; industry education about sustainability standards and techniques.
  7. A combination of several of the above measures.

The technical solutions to most of the world’s food problems are well-known and well understood – but they are not being implemented as widely as they should because of a market failure which prevents their adoption. To avoid grave consequences, affecting billions of people, this failure needs correction.

It also needs correcting because, as long as world food production remains an undervalued activity, then so too will investing in the research essential to overcome future shortages –crop yields, water use, landscape sustainability, alternative energy, the recycling of nutrients and the reduction of post-harvest losses. To satisfy a doubling in demand for food over the coming half century calls for at least $160 billion in worldwide agricultural R&D activity a year – equal to a tenth of the global weapons budget. However this would leave the world both more peaceful – and better fed.

It is not the purpose of this essay to solve the issue of how to deliver fairer incomes to farmers worldwide, but rather to foster debate among thoughtful farmers, policymakers and researchers about how we should go about it.

However it does question whether some of the ‘old truths’ of the 20th century still apply in the 21st, or whether the era of globalisation and resource scarcity has changed the ground rules.

It also asks whether the unstinted application of overwhelming market force against farmers is the act of a sapient species – or a mob of lemmings?

Over to the sapient ones among you.

–– Julian Cribb FTSE

Julian Cribb is Founding Editor of Science Alert, and is the principal of Julian Cribb & Associates, specialists in science communication. He is a fellow of the Australian Academy of Technological Sciences and Engineering.

Sources

i. Sources for this essay are those cited in Julian Cribb's  book The Coming Famine, University of California Press, 2010. Since they take up 24 pages, we have not reproduced them all here. See the book at Amazon or UC Press for full reference listing.

ii. FAO High Level Export Forum, How to feed the World: Investment, Rome, October 2009. http://www.fao.org/fileadmin/templates/wsfs/docs/Issues_papers/
HLEF2050_Investment.pdf

iii. Bai ZG, Dent DL, Olsson L and Schaepman ME 2008. Global assessment of land degradation and improvement 1: identification by remote sensing. Report 2008/01, FAO/ISRIC – Rome/Wageningen

iv. Chartres C, World Congress of Soil Science, Brisbane, August 2010

v. J. Alston, J.M.Beddow, P. Pardey, “Mendel versus Malthus: research, productivity and food prices in the long run,” University of Minnesota, 2009. http://ageconsearch.umn.edu/bitstream/53400/2/SP-IP-09-01.pdf

vi. Pardey P et al, Science, Technology and Skills, CGIAR report, October 2007.

vii. See for example Lundqvist, J., C. de Fraiture and D. Molden. Saving Water: From Field to Fork – Curbing Losses and Wastage in the Food Chain. SIWI Policy Brief. SIWI, 2008.

viii. In case this should raise a sceptical eyebrow, the recent stakeholder report by Woolworths Australia “Future of Food”, 2010, suggests at least some of the major players in the food game have a dawning grasp of the consequences of their actions and are now looking to invest in (mainly non-income) ways to support farmers.

For more on the global food issue, see:

Recommended Reading: The Coming Famine: The Global Food Crisis and What We Can Do to Avoid It by Julian Cribb

Climate Change May Reduce Protein in Crops

Warmer Temperatures in China to Reduce Crop Yields

The Real Population Problem

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