Issues of concern to people who live in the west: property rights, water rights, endangered species, livestock grazing, energy production, wilderness and western agriculture. Plus a few items on western history, western literature and the sport of rodeo... Frank DuBois served as the NM Secretary of Agriculture from 1988 to 2003. DuBois is a former legislative assistant to a U.S. Senator, a Deputy Assistant Secretary of Interior, and is the founder of the DuBois Rodeo Scholarship.
Wednesday, April 23, 2008
Food For Thought In the 1830s, Richard Cobden and John Bright started a campaign against the protectionist laws that were keeping food prices high in Britain. After sustaining abuse for many years, they persuaded the government in 1846 to repeal the infamous Corn Laws, a move that helped usher in a long period of prosperity. I have been thinking intensely about these 19th-century heroes lately. The world needs a new Anti-Corn Law League, the movement they founded, if it wants to put a stop to the madness of escalating food prices and save millions of people, from Haiti to Bangladesh and from Cameroon to the Philippines, from starvation. Prices have increased steadily in the last three years, but matters really came to a crunch this year. Since January, the price of rice has gone up by 141 percent, while the price of wheat has almost doubled in one year. In a world in which the poor spend three-quarters of their budget on food, that means potentially a life-or-death situation for the 1 billion human beings who live on the equivalent of $1 dollar a day. When the price of something shoots up, one can infer that the supply is not keeping up with the demand. In the wake of today's food shock, many people have focused on the causes of the rise in the demand for food. All of them--from the growing wealth of China and India to the explosion of grain-derived biofuels in rich nations--sound very plausible. Less attention has been paid to why, in the era of globalization, in which products can move quickly from manufacture to market, and with the advances in biotechnology, the supply of food is not meeting the demand. Many governments, multilateral bodies, nongovernmental organizations and pundits are failing to answer that basic question. Instead, they postulate solutions that would either compound the problem or constitute at best a short-term palliative. The real solution will be the removal of the causes of the shortfall. Those causes have little to do with economics or demographics, and everything to do with the politics of governments and those who use governments to serve their interests--to the detriment of the general public. Few areas of the economy are more strewn with protectionist laws than agriculture--in rich and poor countries alike. A panoply of quotas, subsidies, tariffs and prohibitions designed to win votes and, essentially, bribes has discouraged the much-needed increase in food production. In normal free-market circumstances, the slightest signal that prices were going up would have been enough to ensure that masses of capital were invested in farming for food. In the current mess, it is not surprising that investors are not pouring money into food production: Farmers in Europe are paid to keep their land fallow because of a scheme called the Common Agricultural Policy; farmers in Argentina are being asked to give up 75 percent of their earnings through various taxes; farmers in the United States are more interested in feeding SUVs than in feeding people because the U.S. Congress has mandated a fivefold increase in the use of biofuels; and farmers in Africa are not experimenting with genetically modified crops because they are banned in many of the countries to which they might be able to export them....
Subscribe to:
Post Comments (Atom)
1 comment:
4 dollar diesel, 75 cent a unit nitrogen, 11 bucks an hour total cost for labor we can't find... The cost of growing food continues to rise, and FINALLY, the price comes up... and everyone screams. Cry me a river. Now individuals pay the actual cost with a reasonable profit for our investment, rather than goverments subsidizing us and giving it away. It may sound bad, but food, with all the costs and extra regulatory burden we encumber is expensive to grow. 3% of us un the US feed much of the world, be we can't do it for free forever. The world has to decide how to pay for the food it needs, not tell those of us who grow it to do so gratis.
Post a Comment