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Hiển thị các bài đăng có nhãn international trade. Hiển thị tất cả bài đăng
Hiển thị các bài đăng có nhãn international trade. Hiển thị tất cả bài đăng

Chủ Nhật, 7 tháng 12, 2014

Mexican labor issues in U.S. food retail markets

To understand food policy in the United States, one must pay attention to Mexican and Central American farmworkers in this country, but also to farm labor in Mexico.

The Los Angeles Times today has started an article series and a remarkable video series on the Mexican workers who produce in Mexico for export to the United States.
The tomatoes, peppers and cucumbers arrive year-round by the ton, with peel-off stickers proclaiming "Product of Mexico."

Farm exports to the U.S. from Mexico have tripled to $7.6 billion in the last decade, enriching agribusinesses, distributors and retailers.

American consumers get all the salsa, squash and melons they can eat at affordable prices. And top U.S. brands — Wal-Mart, Whole Foods, Subway and Safeway, among many others — profit from produce they have come to depend on.

These corporations say their Mexican suppliers have committed to decent treatment and living conditions for workers.

But a Los Angeles Times investigation found that for thousands of farm laborers south of the border, the export boom is a story of exploitation and extreme hardship.
One future contributor to a more just food system could be policies that U.S. importers and supermarkets may adopt, stipulating standards for farm labor in the upstream supply chain. To some extent, such policies are being developed. The LA Times article reminds us that these policies are not yet working smoothly.

Another contributor to a more just food system could be changes in the supply and demand for farm labor, leading to higher wages and better working conditions. It is important to pay attention to these fundamental economics, and not just to labor standards that supermarkets promise to adopt.

Two of the best agricultural economists covering this issue are Philip Martin and J. Edward Taylor. Their 2013 report, titled "Ripe with Change" (.pdf), summarizes (in somewhat blander language!) many of the same terrible conditions that the LA Times article reported, while also reporting some promising trends in tighter labor markets for Mexican farm workers. In particular, demand for agricultural production has been increasing across North America, while simultaneously employment demand in other Mexican industries has expanded. An essential question is whether Mexican workers will reap the benefits, or instead whether small increases in wages will provoke large increases in mechanization, leaving workers little better off than before.

Thứ Hai, 20 tháng 10, 2014

Is it really so bad that WTO ruled against U.S. in country-of-origin labeling dispute?

The World Trade Organization (WTO) today ruled in favor of Canada and Mexico, saying that U.S. country-of-origin labeling (COOL) rules violate our commitments in previous trade agreements.

The COOL rules in dispute required new labels on fresh beef, pork, and lamb, but not on processed foods such as hot dogs. The labels would say what country the product comes from. In some cases, the labels might have to be complex ("this cow was born in Canada, fed in the United States ...").

Many people who care about food policy from a public interest perspective will say the WTO ruling is terrible. For example, Food & Water Watch Executive Director Wenonah Hauter says today:
The WTO’s continued assault against commonsense food labels is just another example of how corporate-controlled trade policy undermines the basic protections that U.S. consumers deserve.
But let me ask, is the WTO ruling really so bad? I have two reasons for asking this question.

First, perhaps the WTO ruling has some merit.

Canada and Mexico claimed that the U.S. law was designed as a trade barrier, not merely as a consumer labeling provision. They pointed out that the tracking and record-keeping burdens fell more heavily on Canadian and Mexican producers than they did on seemingly similar U.S. producers. They also cast doubt on the consumer information merit of all this tracking and record-keeping, because so much of the meat was destined for processed food that never would carry a country-of-origin label anyway. If the U.S. asks Canada and Mexico to incur tracking and record-keeping costs, and then fails to share the resulting information with processed meat consumers anyway, it does look like maybe the whole point was just to create a burden for our trading partners.

It would be one thing if the United States simply never negotiated a trade agreement in the first place. But, it is another thing altogether if the United States does negotiate a trade agreement, saying we will reduce trade barriers in return for Canada and Mexico doing the same, but then we fail to do what we promised.

Second, from the perspective of Food & Water Watch and other trade-skeptical consumer groups, perhaps the consequences are not so terrible.

WTO critics claim such rulings violate U.S. sovereignty. For example, Lori Wallach, director of Public Citizen's Global Trade Watch says today:
Many Americans will be shocked that the WTO can order our government to deny U.S. consumers the basic information about where their food comes from and that if the information policy is not gutted, we could face millions in sanctions every year.
This is not true. The WTO cannot order our government to deny U.S. consumers such information. The WTO cannot rewrite U.S. laws. The U.S. can simply refuse to comply.

When the WTO rules against the United States, the only remedy the WTO has is the power to permit Canada and Mexico to put up trade barriers of their own, without these trade barriers being ruled non-compliant with the same trade agreements. In other words, the only power the WTO has is the power to state for the record, "fair is fair."

For example, if the U.S. chooses not to honor the WTO ruling, Canada has proposed a list of U.S. exports that may get new import tariffs at the Canadian border: corn, meat, apples, pasta, orange juice, and so forth.

The United States may honor its trade agreements, or we may fail to honor them. If we don't honor them, surely it is right to be good sports when Canada and Mexico establish new import tariffs.

On what grounds should Food & Water Watch or Public Citizen's Global Trade Watch complain about the WTO ruling? If it is fine for the United States to exercise our sovereignty, it is fine for others also. Far from griping about the WTO ruling, trade-skeptical public interest organizations could just tip their hat to the WTO, contemplate the consequences for reduced food trade, and declare, "all is well."

There is a good reason why they don't do so. Many Americans, especially in agricultural regions of the country, are glad for the business that trade brings in the form of increased export markets for our farmers. When we remember that Americans are food producers as well as consumers, the trade agreements begin to seem more sensible and the WTO begins to seem more reasonable.

Further information

Chapter 4 of Food Policy in the United States: An Introduction addresses trade issues. I do my best to make the case for a public-interest pro-trade perspective in a talk at Cornell University last fall (video here).

Thứ Hai, 25 tháng 8, 2014

Textbook on Economics of Agricultural Development

Many important debates in U.S. Food Policy turn on competing views about the global food prospect, especially the food situation in developing countries. For those who want to study this topic seriously, Routledge has just published the new third edition of the comprehensive textbook, The Economics of Agricultural Development: World Food Systems and Resource Use, by George W. Norton, Jeffrey Alwang, and my Friedman School colleague William A. Masters. From the link:
Our third edition is out in August 2014, and the Japanese edition appeared in January 2013. Click here to read a review of the first edition (in ERAE), find it at your local bookstore or any online bookseller, request a review copy from Routledge, or visit our instructors’ website for lecture slides, extra photos and example quizzes.

Thứ Tư, 13 tháng 8, 2014

Kellogg announces new climate change commitments

The Kellogg Company today unveiled new commitments to address actions by itself and its suppliers that affect climate change. General Mills on July 28 had announced similar initiatives.

From Kellogg's statement (.pdf) today:
As stated in our Kellogg Global Supplier Code of Conduct, we expect suppliers to support our corporate responsibility commitments by implementing sustainable operating and farming practices, and agricultural production systems. Suppliers must strive to reduce or optimize agricultural inputs; reduce greenhouse gas emissions, energy and water use; and minimize water pollution and waste, including food waste and landfill usage.
The anti-hunger organization Oxfam International had been encouraging leading food manufacturers to make such commitments. Oxfam's recent report, Standing on the Sidelines, had argued that food and beverage companies need to do more. Today, Oxfam praised Kellogg's announcement:
“We welcome Kellogg’s efforts to become an industry leader in the fight against climate change and the damage it is causing to people everywhere,” said Monique van Zijl, campaign manager for Oxfam’s Behind the Brands campaign. “Kellogg’s new commitments add momentum to calls on governments and the wider food and agriculture industry to recognize that climate change is real, it’s happening now, and we need to tackle it.”
In the announcement today, Kellogg says it will set targets for greenhouse gas reductions, produce a climate change adaptation strategy, take steps to limit deforestation impacts in its supply chains, and commit to disclosure of key climate change information. Oxfam said Kellogg plans to participate in the Business for Innovative Climate and Energy Policy (BICEP) group and sign the Climate Declaration.

Thứ Sáu, 23 tháng 5, 2014

Superfood fads for global farmers

In a Marketplace report last night, Dan Bobkoff describes the excitement of new crops for global farmers without overstating the power of any single new crop to transform the world. To communicate this balance of opportunity and realism, Bobkoff chatted with my fellow Tufts economist Will Masters.
Masters is chairman of the Food and Nutrition Policy Department in the Friedman School of Nutrition at Tufts. He says more often than not, so-called miracle crops like moringa or breadfruit are distractions. "Why [is] it that it didn't get identified as a huge success previously?"

In other words, it's not like farmers haven't tried many of these crops before. Farmers experiment. They'll plant something new, and see how it does. And, over the years, many of these so-called superfoods failed for the most mundane of reasons. They take too long to grow, require too much labor or are prone to pests. It's not as easy to spread breadfruit as wheat.

"That search across all the available biodiversity has been going on for thousands of years," Masters said, "and it's led to a system that has found a half dozen or dozen major species that feed the world. And that's because those major species have some pretty amazing characteristics."

Thứ Ba, 8 tháng 4, 2014

The dilemma of fair trade bananas

At Civil Eats yesterday, Aliza Wasserman explains the dilemma for the public interest entrepreneurs who are developing a fair trade banana market. The article describes a recent conference at Tufts University.

The most difficult question is whether fair trade bananas should come only from smallholders and cooperatives (preserving fair trade principles but limiting scale), or instead whether fair trade sourcing should allow larger plantations so long as they follow the stipulated principles (sacrificing a small-is-best principle but achieving a larger share of the total market).

Wasserman writes:
Fair Trade banana plantations have also been crucial to building a robust supply of Fair Trade bananas. Plantations represent both a key challenge and opportunity, by providing the promise to impact the broader industry and bring Fair Trade bananas to a larger consumer base. Nearly everyone at the conference hoped to impact the broader industry, whether they are focused on the future of small-scale or “smallholder” farmers, or the overall future of Fair Trade bananas.

But many of the presenters felt that the current pricing system, in which the Fair Trade certifying bodies, like Fair Trade International or FLO, distribute the same premium to plantation owners and small landholders alike, represents a major flaw in the system. Many in the industry believe that cooperatives of small producers should receive a premium that is linked to their higher cost of production relative to plantations, which can take advantage of economies of scale. Yet, the first banana producer to receive Fair Trade certification was a plantation, and scaling up Fair Trade would not be possible without them.
While a student at the Friedman School, Wasserman was a regular contributor to the U.S. Food Policy blog.

Thứ Sáu, 15 tháng 11, 2013

WCRF policy strategies to reduce non-communicable disease around the world

The World Cancer Research Fund (WCRF) this month published a new 2-page document (.pdf) summarizing the organization's recommendations on using food policy to address the problem of high rates of non-communicable diseases (NCDs).

The recommendations encourage clear nutrition labeling, healthy school meals programs, well-targeted taxes and healthy food subsidies, and restrictions on advertising for breastmilk substitutes and for unhealthy foods (especially to children).

The WCRF is an international not-for-profit umbrella organization for a network of cancer prevention organizations. WCRF literature reviews on dietary patterns and cancer risk are used by the U.S. federal government as one of several evidence sources for the Dietary Guidelines for Americans.

The WCRF policy recommendations are bolder and more activist than some policy-makers would be ready to consider in the United States, but the WCRF approach nonetheless offers a lot of insight.  For example, a background document on law and obesity prevention (.pdf) carefully considers both advantages and disadvantages of legal approaches to addressing public health nutrition challenges.  It acknowledges not just the political power of food and beverage manufacturers to thwart such policies but also the constitutional protections for commercial speech and the serious concerns consumers may have about policy interventions that limit their autonomy.

For perspective on U.S. food policy debates, it is illuminating to hear an international perspective that is (not surprisingly) comparatively interventionist, but which at the same time fully recognizes the challenges and tradeoffs involved in such policy proposals.


Thứ Hai, 7 tháng 10, 2013

Balancing multiple concerns in Oxfam's Behind the Brands campaign

On September 17, Oxfam America released the most recent update to company scorecards from its Behind the Brands campaign.  For example, the update ...
  • praised Nestle for improvements in recognizing land rights,
  • noted that changes to Coca-Cola's guiding principles earned small increases in environmental sustainability scores,
  • assigned an increased score to Unilever for improvements on gender issues, and
  • reported that Associated British Foods, General Mills and Kellogg’s "remain at the bottom of the scorecard with few signs of progress."

The Behind the Brands campaign urges leading branded food and beverage manufacturers to improve the anti-poverty impact and environmental sustainability of their activities in developing countries.   The campaign reflects Oxfam's characteristically sensible approach toward the role of private sector initiative in economic development. While some non-governmental advocacy organizations might wish these multi-national corporations would leave developing countries alone, Oxfam instead wishes them to stick around ... and perform better for the interests of the world's poor.

In total, Oxfam's scorecards address seven issues
  • land,
  • women,
  • farmers,
  • workers,
  • climate,
  • transparency, and
  • water.
This is a good list of issues.  Still, as an economist in a nutrition school, I couldn't resist asking Oxfam whether nutrition issues might ever be considered as well.

Laura Rusu, a media manager for the non-profit organization, acknowledged that "health advocates are rightly asking tough questions about the effects of high-sugar diets."  She described Oxfam as "an organization working to right the wrongs of poverty and injustice."  While the Behind the Brands efforts "do not focus on the nutrition profile of these companies," Rusu gave a respectful shout out to initiatives that do, including the Access to Nutrition Index

Even recognizing that developing countries have major challenges of hunger and under-nutrition, I rank broader nutrition concerns higher today than I did a few years ago.  Given the focus specifically on major branded food and beverage companies, such as Nestle and Coca-Cola, I personally might rank nutrition concerns about product offerings as one of the top seven issues.  New branded food products are replacing traditional foodways that have considerable appeal both in terms of nutrition quality and in terms of economic opportunities for smaller farmers and small-business distributors and retailers.

Thứ Bảy, 8 tháng 6, 2013

Ractopamine and the proposed Chinese purchase of Smithfield Foods

Helena Bottemiller reported at the end of May for NBC News that the proposed purchase of Smithfield Foods by a Chinese company may be related to the fact that China has stricter standards than the United States does for a growth promoting drug:
The proposed $4.7 billion sale of Smithfield Foods, America’s largest pork producer, to China’s biggest meat processing company comes amid significant trade friction between the two countries over meat and livestock.

China bans ractopamine, a controversial growth-promoting drug that is widely used by U.S. livestock producers. Russia also bans the feed additive and both countries have recently stepped up residue testing in meat, worried about the health effects of the drug. The actions have constrained American meat exports.
Bottemiller's feature was supported by the Food & Environment Reporting Network.

Thứ Hai, 3 tháng 6, 2013

AGree policy initiative encourages comprehensive immigration reform

The co-chairs of the AGree agricultural policy initiative today sent a letter to U.S. Senators encouraging comprehensive immigration reform.

Dan Glickman (former Secretary of Agriculture under the Clinton administration), Gary Hirshberg (Stonyfield Farm), Jim Moseley (former Deputy Secretary of Agriculture under the Bush administration), and Emmy Simmons (former senior U.S. international aid official) wrote:
We applaud the Senate Judiciary Committee’s leadership in moving forward on the bipartisan legislation. This presents a huge opportunity for foreign-born agricultural workers who want to build a better future for themselves and their families and for American farmers and ranchers struggling with serious labor shortages. AGree has initiated and supported efforts to overcome volatile and divisive differences that have doomed past reform efforts and we will continue to use our convening powers and work in tandem with other groups to help achieve a new national immigration policy.
AGree has four principles for immigration policy reform.  These principles seem politically astute, including key themes that one hears both from agricultural producer groups and from immigrant labor advocates:

  • Build a legal, more stable workforce in agriculture;
  • Develop a practical and economically viable guest worker program that allows employers to hire legal foreign workers and protects foreign and U.S. farm workers;
  • Ensure quality of life, good working conditions, and opportunities for food and agriculture workers; and
  • Provide more opportunities for farm workers to develop skills and advance their careers within the food and agriculture sector.
The Senate legislation that the AGree co-chairs support is the Border Security, Economic Opportunity, and Immigration Modernization Act, S. 744.  It is very much a compromise piece of legislation.  This week is critical in the Senate, and, even after passing the Senate, the House is even more challenging.

From the perspective of immigrant labor advocates, farm producers and managers are a complicated group of allies.  On the one hand, farmers are a terrific helpful voice, because they speak of immigrant farm workers with respect, articulate the great value that the workers bring to the American agricultural economy, and oppose a deportation-centered immigration policy.

On the other hand, the farm groups insist on an awful tough stipulation in their support for a path to legal status for illegal workers.  The farm groups insist that newly legalized workers be prohibited from moving quickly into non-farm jobs such as construction or food service.  For the farmers, the whole point is that these newly legal workers should stay on the farm, keeping wages in check.

By and large, the Senate bill represents the best possible compromise that immigrant labor advocates could strike with farm groups, so that they could speak with one voice in the political debate.  If immigrant labor advocates and farm groups split, they will be soundly beaten by the anti-immigrant and nativist folks in Congress.

I participate in AGree as part of its Research Committee, but had no role in the organization's immigration position.  For a scholarly but highly readable account of the current issues, see Philip Martin's article (may be gated) in the January edition of the American Journal of Agricultural Economics.

Thứ Hai, 4 tháng 2, 2013

Agreement with Mexico about tomato imports

Agriculture Secretary Tom Vilsack on Feb. 2 announced a new agreement with Mexico, under which Mexico's tomato exports must satisfy a minimum price.

In adopting a moderately protectionist policy by mutual agreement, the two countries avoid a trade conflict that could have harmed their commerce more seriously.
"I applaud the good work of Undersecretary Sánchez and the Commerce Department to forge this important agreement to allow our domestic tomato industry to compete on a level playing field. The draft agreement meets the requirements of U.S. antidumping law and provides an effective remedy for our domestic tomato producers, further bolstering agriculture as a bright spot in our nation's economy. Ultimately, the Obama Administration forged an agreement that will restore stability and confidence to the U.S. tomato market and ensure fair trade in fresh tomatoes through increased reference prices, coverage and strengthened enforcement. The United States is one of the world's leading producers of tasty, high-quality tomatoes. Our U.S. fresh and processed tomatoes account for more than $2 billion in cash receipts and support thousands of American jobs in our food industry, shipping, processing and more."
Undersecretary Francisco J. Sánchez
The U.S. Food Policy blog recently discussed how agricultural labor markets in Mexico and the United States are interconnected.  If it is true that agricultural wages in Mexico are rising, it becomes easier for Mexico to agree to a price floor for Mexican tomato exports, addressing multiple problems simultaneously.  In a 2010 article for the Journal of Agricultural and Resource Economics (may be gated), Friedman School graduate student Wendy Johnecheck, Julie Caswell, and I studied the possible impact of hypothetical country-of-origin labeling (COOL) regulations on the U.S.-Mexican trade in tomatoes.

In my class on U.S. food policy, we explore (a) some occasions when import-competing businesses (such as U.S. tomato growers) have convinced the government to put up protective barriers and (b) other occasions when such barriers have been resisted by advocacy coalitions led by import buyers (such as major retail chains) and other U.S. agricultural industries that rely on exports (such as wheat producers).  These U.S. advocacy coalitions are politically important, because, of course, Mexican producer groups have no direct representation in the U.S. Congress.

A former student from this class today pointed out yesterday's New York Times coverage of the new tomato deal, which echoes these points.  In the article, Stephanie Strom explains the advocacy coalitions that make the new policy politically feasible:
The Mexicans enlisted roughly 370 American businesses, including Wal-Mart Stores and meat and vegetable producers, to argue their cause. Those businesses feared a bitter trade war like the one the Mexicans waged over trucking, which imposed stiff tariffs on American goods headed south. 

Thứ Hai, 28 tháng 1, 2013

Mexican farm labor markets tighten up, with possible implications for U.S. farmers and farm workers

The agricultural labor supply in Mexico may be shrinking, a development that is likely to raise wages for farm laborers in both Mexico and the United States.

If this is truly a long-term trend, rather than a short-term response to economic recession or disruption because of recent violence, then it would have several implications.  It could cause some difficulties for U.S. farm owners, and it could somewhat hinder efforts to encourage increased consumption of fruits and vegetables at low prices.  On the positive side, it could help smooth U.S. immigration policy debates, and it would help alleviate hardship for the immigrant workers who play such a central role in the American food system.

An article in the most recent issue of Applied Economics Perspectives and Policy (may be gated), by J. Edward Taylor, Diane Charlton, and Antonio Yúnez-Naude, is titled "The End of Farm Labor Abundance."  Here is the abstract:
An analysis of nationally representative panel data from rural Mexico, with observations in years 2002, 2007, and 2010, suggests that the same shift out of farm work that characterized U.S. labor history is well underway in Mexico. Meanwhile, the demand for agricultural labor in Mexico is rising. In the future, U.S. agriculture will compete with Mexican farms for a dwindling supply of farm labor. Since U.S. domestic workers are unwilling to do farm work and the United States can feasibly import farm workers from only a few countries in close geographic proximity, the agricultural industry will eventually need to adjust production to use less labor. The decline in foreign labor supply to farms in the United States ultimately will need to be accompanied by farm labor conservation, switching to less labor intensive crops and technologies, and labor management practices that match fewer workers with more farm jobs. 
This article may be thought-provoking for readers who participate in U.S.-based sustainable food movements.

For one thing, these movements have been trying to come to grips with labor issues, recognizing that even locally oriented and organic food production in the United States makes heavy use of low-wage farm workers.  It is good that these movements have been giving greater attention to worker advocates, including the Coalition of Immokalee Workers and others, but this attention has to be accompanied by a fearless and honest analysis of the basics of labor supply and labor demand, which are more fundamental determinants of both wages and working conditions.

For another thing -- and here I am generalizing a bit -- many of the thinkers and writers in this movement whose work I generally respect highly are nonetheless trade skeptics to a degree that makes me nervous.  It is sensible to expect high standards from trade policy without straying quite so close to a nativist pessimism in which low-income trading partners are seen as bottomless pits of economic distress.  The reason I am more optimistic than many of my friends about international trade is that I have not yet given up on the prospects for economic advancement that reaches even low-wage labor markets in the countries we trade with -- starting, for example, with Mexico.

Thứ Ba, 22 tháng 1, 2013

Food value chains beyond the farm gate

USDA's Economic Research Service has long published a well-known graphic illustrating the food value chain as a dollar bill, with each segment showing a particular industry's contribution to the average consumer dollar spent on food.

A key insight from this graphic is that farmers on average receive only about 10 cents for every dollar of consumer food spending.


It may be more surprising to hear how rapidly value chains around the world are changing, even for staples such as rice and potatoes.  A December report from the International Food Policy Research Institute (IFPRI), by Thomas Reardon, Kevin Chen, Bart Minten, and Lourdes Adriano, describes this change as a Quiet Revolution. Although the supermarket-ization of the food system in developing countries introduces risks and challenges, the report seems to me fairly upbeat.  It emphasizes several ways that economic development of the value chain can offer benefits for poor farmers and consumers, leading to improved food security.  To supply the megacities of countries like China, India, and Bangladesh with sufficient food, we cannot think just about traditional farmers selling raw commodities to a local merchant trader.  Instead, it is necessary to come to grips with modernization even in the food system that serves the world's poor consumers.



Thứ Năm, 20 tháng 12, 2012

Agricultural producer support declining over time

We hear all sorts of generalizations about U.S. farm policy.

Some say U.S. farm programs are too stingy and should provide more help to farmers, especially small farmers. Others say U.S. farm programs are a boondoggle that just makes rich farmers richer. Still others say farm programs make consumers fat by encouraging too much cheap food.

Instead of generalizing, it is important to think quantitatively.

One good data source is the Producer Support Estimates (PSE) from the Organisation of Economic Cooperation and Development (a club for the world's upper-income countries). I use this data source in several chapters of my forthcoming book from Routledge/Earthscan called Food Policy in the United States: An Introduction.

The PSE data measure diverse agricultural programs and policies in a consistent way across countries and over time.  One problem with the PSE is that it can seem a little complex.  To provide an orientation, Rebecca Nemec and I created the following data gadget.  Nemec is a graduate student at the Friedman School at Tufts and the teaching assistant for my class on U.S. Food Policy.  The top panel shows broad categories of support for agricultural producers.  The bottom panel shows more detail about each broad category in turn.   

Just click on each colored broad category in the top panel to see the corresponding detail in the bottom panel.

Working from top to bottom, we learn about trends in several major categories of producer support.
  • Price supports and deficiency payments help farmers in years when prices are low.  OECD worries about these programs because they distort international trade and hurt farmers overseas.  Michael Pollan criticizes deficiency payments for making corn too cheap.  Notice that in recent years -- with greater scarcity and higher prices -- these distorting policies have fallen to almost nothing under current policy.
  • Conservation programs have been growing in recent years, and also do not respond to price fluctuations as wildly as deficiency payments do.
  • The other payments category includes direct payments, which pay farmers regardless of the current price.  These direct payments may end under some current farm bill proposals.  They do not distort agricultural markets very much, but it is unpopular to pay farmers when they are prospering during high-price years.
  • Market Price Support represents the economic impact of the trade barriers that protect some producers, especially for milk and sugar, from imports.  Although they do not have a budget cost, these supports benefit farmers at the expense of consumers.  As with deficiency payments, the impact of these trade barriers has declined to almost nothing in recent high-price years.
An especially clever feature is that PSE data allow sensible comparisons across two seemingly different types of policies:
  • payments to farmers at the taxpayers' expense (the first three broad categories), and
  • trade policies that support farmers at the consumers' expense (the fourth broad category).
To speak coherently about U.S. agricultural policy, one must make important distinctions across several types of programs and be aware of rapid changes in program impacts from one year to the next.

There are a couple limitations that I should mention.  First, the OECD data may have some limitations of their own.  Second, while I did the best I could to classify programs from the OECD data into sensible categories, I did make some judgement calls about these program classifications.

In general, U.S. support for farmers has been declining in recent years, mainly because of high food prices that result from greater scarcity on world markets.  Though some people are more optimistic, I think population and environmental constraints may generally keep prices fairly high in the future.

This means that governmental support for U.S. farmers can be smaller over time, unless legislators replace existing programs with new and poorly designed alternatives.  For example, I worry about new and potentially expensive crop insurance programs that have been proposed in draft farm bills.


Thứ Tư, 5 tháng 12, 2012

A proposal for a global ban on trans fats

While labeling strategies provide a sound public policy response to some food ingredient dilemmas, in other cases it is simpler and more effective to make do without the ingredient altogether.  Some argue that trans fats fall into the category of ingredients that should just be eliminated (with the exception of the small amount of trans fat that occurs naturally in animal food products).  These fats replaced healthier traditional oils and fats just a few decades ago, and some countries have recently been rapidly shifting back away from their use without any major food system damage.

In a commentary this week for the World Public Health Nutrition Association, Vivica Kraak, Uriyoán Colón-Ramos, and Rafael Monge-Rojas recommend a near-complete global ban on trans fats.
This commentary presents a case for public health professionals, practitioners, academics, industry and government representatives, funders, public-interest non-governmental organisations and consumer advocates, to collaborate to support a global trans-fat ban. Coordinated actions to remove this harmful substance from our food and eating environments will be able to contribute to reducing chronic non-communicable disease mortality by 2025.

Chủ Nhật, 18 tháng 11, 2012

Feeding nine billion

From Evan Fraser at the University of Guelph, a nicely balanced 12-minute lecture on the global food prospect. I like the choice of 4 solution strategies, including both high-tech solutions and local food systems without exaggerating the strengths of either.

Thứ Năm, 5 tháng 4, 2012

Food aid reforms would be like money back on your grocery bill

Oxfam America and the American Jewish World Service (AJWS) explain here how much money could be saved -- and how many more hungry people could be fed -- if the United States reformed its food aid programs. Some of the key reforms include eliminating a rule that most food must be sourced from the United States and shipped in U.S. ships.

For more detail on such issues, the best book is Food Aid After Fifty Years, by Chris Barrett at Cornell and my colleague Dan Maxwell here at the Friedman School at Tufts. A good recent report comes from the GAO: Local and Regional Procurement Can Enhance the Efficiency of U.S. Food Aid, but Challenges May Constrain Its Implementation.