Archive for the ‘Food Security’ Category

May22

Innovation of the Month: Cereal Banks Protect Against Famine and Empower Women Across the Sahel

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By Caitlin Aylward

Drought and high food prices in 2012 threatened the food security of over 18 million people in the Sahel Region of Africa, which includes parts of Chad, Niger, Mali, Mauritania, Burkina Faso, Senegal, Gambia, Cameroon, and northern Nigeria. The Sahel is prone to drought, and is becoming increasingly so with climate change. Consequently the people in this region are experiencing more frequent bouts of food insecurity and malnutrition.

Women-led cereal banks help reduce hunger and malnutrition in the Sahel. (Photo credit: World Food Programme)

Fortunately, organizations such as the World Food Program (WFP) and Care are joining forces to create all-women-managed cereal banks in villages throughout the Sahel that not only help protect against seasonal famine, but also empower women as agents of food security in their communities.

Cereal banks are community-led grain distribution projects that store grain after harvests, and then loan grain when food is scarce during what is known as the ‘lean season.’

In 2009, WFP and Care established exclusively women-operated cereal banks to help ensure the availability of grain supplies year round. These community cereal banks loan grain below market price, helping protect against market speculation, and enabling even the poorest women to purchase food for their families during times of scarcity. The women are expected to repay the loans, but at very low interest rates and only after they have harvested their own crops.

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Apr11

Global Food Prices Continue to Rise

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By Sophie Wenzlau

Continuing a decade-long increase, global food prices rose 2.7 percent in 2012, reaching levels not seen since the 1960s and 1970s but still well below the price spike of 1974. Between 2000 and 2012, the World Bank global food price index increased 104.5 percent, at an average annual rate of 6.5 percent.

Global food prices rose 2.7 percent in 2012 (Photo Credit: Thinkstock)

The price increases reverse a previous trend when real prices of food commodities declined at an average annual rate of 0.6 percent from 1960 to 1999, approaching historic lows. The sustained price decline can be attributed to farmers’ success in keeping crop yields ahead of rising worldwide food demand. Although the global population grew by 3.8 billion or 122.9 percent between 1961 and 2010, net per capita food production increased by 49 percent over this period. Advances in crop breeding and an expansion of agricultural land drove this rise in production, as farmers cultivated an additional 434 million hectares between 1961 and 2010.

Food price volatility has increased dramatically since 2006. According to the United Nations Food and Agriculture Organization (FAO), the standard deviation—or measurement of variation from the average—for food prices between 1990 and 1999 was 7.7 index points, but it increased to 22.4 index points in the 2000–12 period.

Although food price volatility has increased in the last decade, it is not a new phenomenon. According to World Bank data, the standard deviation for food prices in 1960–99 was 11.9 index points higher than in 2000–12. Some price volatility is inherent in agricultural commodities markets, as they are strongly influenced by weather shocks. But the recent upward trend in food prices and volatility can be traced to additional factors including climate change, policies promoting the use of biofuels, rising energy and fertilizer prices, poor harvests, national export restrictions, rising global food demand, and low food stocks.

Perhaps most significant has been an increase in biofuels production in the last decade. Between 2000 and 2011, global biofuels production increased more than 500 percent, due in part to higher oil prices and the adoption of biofuel mandates in the United States and European Union (EU). According to a 2012 study by the University of Bonn’s Center for Development Research, if biofuel production continues to expand according to current plans, the price of feedstock crops (particularly maize, oilseed crops, and sugar cane) will increase more than 11 percent by 2020.

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Feb28

To Combat Scarcity, Increase Water-Use Efficiency in Agriculture

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By Sophie Wenzlau

This blog was originally published as part of an online consultation organized by The Broker  on the role of water in the post-2015 development agenda. Click here to read the original post. 

Photo Credit: World Bank

The South Centre has argued that “as oil conflicts were central to 20th century history, the struggle over freshwater is set to shape a new turning point in the world order.” Water scarcity, which already affects one in three people on earth, is set to increase in magnitude and scope as the global population grows, increasing affluence drives up demand, and the climate changes. According to the UN Convention to Combat Desertification (UNCCD), “half the world’s population will be living in areas of high water stress by 2030, including 75 to 250 million people in Africa.” In the Sahel region of Africa, desertification caused by overgrazing, unsustainable farming, and the collection of wood for fuel is already responsible for systemic crop failure, soil erosion, and devastating famine. Failure to act on water scarcity will lead to more of the same.

Though water scarcity will surely play a defining role in the 21st century, the assumption that ‘water wars’ are inevitable is overly deterministic and assumes the worst of people. Historically, the need to manage trans-group or trans-boundary water basins has actually tended to facilitate cooperation between groups with competing interests. In the last fifty years, there have been only 37 incidents of acute conflict over water, while during the same period, approximately 295 international water agreements were negotiated and signed. According to Nidal Salim, director of the Global Institute for Water, Environment, and Health, the potential to peacefully overcome water scarcity does exist; it depends on political will, trust between nations, and real manifestations of cooperation.

To peacefully overcome water scarcity, leaders at all levels must prioritize efforts to cooperatively increase water-use efficiency, reduce water waste, and manage demand.

Increasing efficiency in irrigation—which is responsible for the consumption of 70 percent of the world’s total water withdrawal—would be a sensible place to start. Improved water management in agriculture could increase global water availability, catalyze development, reduce soil erosion, and lead to increased and diversified agricultural yields, augmenting our ability to feed a population projected to reach 9 billion by 2050.

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Jan22

An Interview with Ela R. Bhatt, Founder of the Self Employed Women’s Association in India

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In September 2012, Nourishing the Planet’s Carol Dreibelbis spoke with Ela R. Bhatt, founder of the Self Employed Women’s Association (SEWA) in India. SEWA is a national trade union that helps women working in informal sectors, like agriculture or childcare, gain the same rights, securities, and self-reliance as those who are formally employed. Ms. Bhatt, a Gandhian practitioner of non-violence and self-reliance, has dedicated her life to improving the lives of India’s poorest and most oppressed women workers.

Ela R. Bhatt (Photo credit: Mihir Bhatt)

In addition to founding SEWA, Ms. Bhatt is the founder of India’s first women’s bank, the Cooperative Bank of SEWA, and one of the founders of Women’s World Banking, a global microfinance organization that works to economically empower women. She served in the Indian Parliament from 1986 to 1989, and is a member of The Elders, an independent group of global leaders who work together for peace and human rights, among many other roles.

You gave a speech to the United Nations Development Programme in 2011 on your “100 Mile Principle”; since then, you completed field testing on the Principle. Can you explain what it is? 

The 100 Mile Principle urges us to meet life’s basic needs with goods and services that are produced no more than 100 miles from where we live. This includes food, shelter, clothing, primary education, primary health care, and primary banking.

The 100 Mile Principle ties decentralization, locality, size, and scale to livelihood, suggesting that the materials, energy, and knowledge that one needs to live should come from areas around us. Seed, soil, and water are forms of knowledge that need to be retained locally. Security stems from local innovations, not distant imports. Essentially, the link between humans and nature has to be restored; the link between production and consumption has to be recovered.

The Principle also focuses on the ideas of community and citizenship. I think citizenship has two levels: it is both membership in your community and membership in your nation-state. The social space defined by national citizenship is inadequate, and the nation-state alone can be alienating and coercive without membership in a community. Take food as an example: food has to be grown locally and made locally. When food is exported, the producers have no access to the fruits of their labor.

A community is autonomous when it controls food, clothing, and shelter. Communities lose control when they go beyond the local. When food is exported, when technology is centralized, when shelter depends on some remote housing policy, we lose our freedom as a community. So the 100 Mile Principle guarantees that citizens retain control, inventiveness, and diversity.

Why did you choose a distance of 100 miles?

One simple reason is that you can travel 100 miles and return home by dinner time. But 100 miles does not need to be taken literally—it represents the distance that can provide essential goods and services for a district or state. It could be 200 miles in a desert or hilly region, 50 miles in a dense, produce-rich location, or 10 miles near a town. The distance may also vary for different goods and services: food may come from within a 10-mile radius, but specialized healthcare may require 100 miles or more.

The distance of 100 miles is a starting point for thinking in local terms. Whenever we have used the term “100 miles,” people from all walks of life—students, rural women, economists, academics—have understood the focus on local goods and services.

How did you field test the 100 Mile Principle, and what were some of the most important results?

The field study involved over 100 households in 10 rural villages from Surendranagar and Anand/Kheda districts in Gujarat, a state in Western India. We spoke with households about how they meet their basic needs and how far they would need to travel for primary education, health care, and banking.

The study revealed that rural populations have some amount of control over their food through a combination of growing their own, bartering, community and caste practices, and the Public Distribution System. A great deal of local food production and consumption is already occurring. In the case of clothing, though, most prefer cheaper, easier-to-maintain synthetics and ready-made garments from outside of 100 miles. The study showed that many desire “city-type” homes: this could be achieved with use of local material and local manpower, meeting the 100 Mile Principle and maintaining freedom of choice.

Primary education is available in all of the villages, but there is limited capacity for technical or skill-related education. Very few of the villages have a local trained doctor, meaning residents must travel to the nearest town for health care. Home herbal remedies are still used but are now less favored than medicinal tablets from the village grocer.

How can the 100 Mile Principle help communities deal with some of the most pressing issues they face, such as food security?

Food security cannot be guaranteed by foreign imports. Instead, we encourage local seed banks, owned and run by small and marginal farmers. Local, small-scale warehousing would largely overcome the problem of food scarcity, as well as rampant waste of edible food products due to lack of storage. The possibility of setting up smaller grain storage units owned by and managed by a group of small-scale farmers needs to be explored. There should also be local tool banks so that farmers can borrow these when required.

We also suggest that every primary school at the rural level develop an agricultural training center. Here, young people can learn improved farming techniques, farm-related IT skills, food processing, and on-farm processing. Prompt actions should also be taken to release the mortgaged land of small and marginal farmers. Land is their only source of livelihood.

Many small and marginal farmers can grow enough food for their own needs as well as some surplus to sell. But, for a number of reasons—including increasing cultivation of cash crops instead of food crops, animal pest management problems, and the rapid sale of land for industry—the situation is changing.

To combat hunger and to achieve food security for all, we have to protect ways of life and livelihoods of the farming communities. This is the fundamental policy point. Growing food grains should be a viable and profitable occupation for the farming community. But, broadly speaking, the producer currently gets about 60-70 percent of the price paid in the market, and the balance goes to the middleman or the enterprise that sells the products. Therefore, middlemen should be removed where possible. It is also important to bring down the input costs, including the costs of irrigation, seeds, and fertilizers.

As the founder of the Self Employed Women’s Association, you work to organize women for full employment and self-reliance. What role does the 100 Mile Principle play in women’s success?

After field testing the 100 Mile Principle, I am convinced more than ever that without the active participation of women farmers, hunger cannot be reduced. When the 100 Mile Principle is put into action, productive work opportunities and income will increase, the health of women and girls will increase, infant and maternal mortality will decrease, and housing will improve. In addition, there will be a decline in compulsive migration of youth from villages to cities, increasing local assets. Local farmers will take active interest in crop planning and learning new agricultural skills. Farmers, artisans, and village officials will strengthen their community.

What criticisms has the 100 Mile Principle faced?

We have received a variety of criticisms. Some people consider the Principle to be too theoretical, or irrelevant to urban areas. Others feel that it is inhibiting progress in this era of globalization. And others have suggested that it goes against the ideas of freedom of choice and the power of market forces—particularly competitive advantage.

Despite this criticism, we know through SEWA experience that ideas can be translated into a measurable influence on the lives of people. At the same time, I want to make clear that the Principle is a guide or a philosophy rather than something to be forced on anyone.

What are your plans to continue refining and spreading the 100 Mile Principle?

At some point I would like to carry out fieldwork in other parts of India to gain more data on the Principle. In the meantime, my major aim is to propagate this idea, especially among young people and urban consumers. Some of the findings also have implications for public policy, especially measures that help small-scale farmers and family farms.

There are some policies and government schemes already in place for health care and nutrition, but there is a large communication gap that prevents these policies from being as effective as possible. Control and implementation of these schemes need to be in the hands of local people who are aware of the realities on the ground. I am in the process of putting the field study results in the form of a book.

Now it’s your turn: How important do you think it is to keep basic goods and services on a local scale? Please let us know in the comments below. 

Carol Dreibelbis is a former research intern with the Worldwatch Institute’s Food and Agriculture Program.

Jan17

Urban Agriculture Helps Combat Hunger in India’s Slums

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By Catherine Ward

In 2010, nearly 830 million people around the world lived in slums, up from 777 million in the year 2000, according to the United Nations.

Back street of an Indian slum. (Photo credit: http://shabanaadam.wordpress.com/)

The New York Times describes Dharavi, Asia’s largest slum, as a “cliché of Indian misery,” with approximately 1 million slum dwellers living on 8 percent of the land in the western city of Mumbai. Although Dharavi lacks sufficient infrastructure to provide sewerage, water, electricity, or housing for residents, this dense community in the heart of India’s financial capital has a thriving informal economy with an annual economic output of up to US$1 billion.

Writing in Foreign Policy, Charles Kenny of the Center for Global Development observes that “slum dwellers may be at the bottom of the urban heap, but most are better off than their rural counterparts.” Urban centers, both in India and around the world, offer economic opportunities that rural areas do not. For this reason, some migrants voluntarily move to slums in hopes of learning new skills, setting up businesses, and sending their children to school.

India has a massive population of 1.2 billion, second only to China, and is home to an estimated 93 million slum dwellers. According to WaterAid, the country’s slum population has doubled in the past two decades. Slum communities can be hotspots for hunger, with an estimated 36 percent of slum children in Mumbai malnourished, reports the website Urb.im.

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Jan10

Iguana Meat Is on the Table

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By Victoria Russo

Green and scaly, with a mouth full of sharp teeth, the iguana might not look like a nutritious meal. But as the iguana population surpasses the human population in Puerto Rico—destroying gardens, digging holes under houses, and blocking roads and runways—residents are beginning to use the animal for meat. Although there is, as of yet, little global demand for this untraditional dish, Puerto Ricans are looking to international meat markets to support local pest control.

Iguana meat is said to taste like chicken. (Photo Credit: National Geographic)

Iguanas originated in Central and South America and were first brought to Puerto Rico in the 1970s to be sold as pets. The reptiles reproduce quickly, with mature females laying up to 70 eggs annually. Once iguanas entered the wild in Puerto Rico, the population quickly spiraled out of control. The animals are well camouflaged and very fast, which makes them difficult to catch.

By using iguanas for food, Puerto Ricans have found an effective way to control the reptile’s exploding population. Iguana meat has been compared to a slightly sweeter version of chicken, and common recipes include stews, tacos, and roasts. Iguana eggs are edible as well, and are said to have a rich, cheesy flavor. Puerto Rico is not the only place using iguanas for food: in Central and South America, the meat is seen as a delicacy. Nutritionally, it is rich in minerals, such as calcium and magnesium, and has more protein than chicken. If Puerto Ricans develop a taste for the meat, iguana could become a staple food source for the island.

Some other countries, including El Salvador and Mexico, already have export industries for iguana meat. Between 2001 and 2008, the United States imported more than 9,071.85 kilograms of the meat to meet the low but rising demand for consumption by humans. According to the Dallas Observer, iguana meat can go for up to $50 per pound in some U.S. markets. The business can be so lucrative that people in some countries have established iguana farms to ensure consistent supply. The production of iguana has resulted in markets for other products as well: iguana skin is used to make leather, while iguana oil is used for medicinal purposes (for example, for rheumatism, to clear up bruises, and as an aphrodisiac).

The production of iguana meat and other products could benefit Puerto Rico in multiple ways: it could protect other Puerto Rican fauna, offer new employment opportunities, and boost domestic food security.

Have you (or would you) try iguana meat? Let us know in the comments below.

Victoria Russo is a research intern with the Worldwatch Institute’s Nourishing the Planet project.

 

Jan08

Reforming Energy Subsidies Could Curb India’s Water Stress

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By Alyssa Casey

Water scarcity is a global problem, as demonstrated by the recent droughts across the U.S. Midwest and the Horn of Africa. And it is projected to become increasingly widespread in the coming years: the 2030 Water Resources Group estimates that by 2030, one-third of the world’s population will live in regions where demand for water exceeds supply by more than 50 percent.

Energy subsidies in India perpetuate inefficient water use in agriculture. (Photo Credit: Kolli Nageswara Rao)

The rapidly growing and urbanizing global population will need more natural resources, especially water, to feed and sustain itself in the coming years. The effects of climate change will only exacerbate water scarcity. A rise in sea levels will increase the salinity of already-limited freshwater resources. Changing weather patterns will further polarize rainfall levels around the world: according to climate experts, many wet regions will see more rain and increasing flood risk, while many dry regions will experience less rainfall, increasing the frequency of drought.

India’s water woes

Although water scarcity is a global concern, some countries, such as India, are more affected than others. Home to 1.2 billion people, India struggles to feed 17 percent of the world’s population with just 4 percent of the world’s freshwater resources. More than 85 percent of India’s villages and over half of its cities rely on groundwater for agriculture, domestic use, and industry, but overuse has resulted in sinking water tables. Despite relative scarcity, India is the largest freshwater user in the world.

Water levels of India’s dams are falling to record lows. According to an analysis by NASA hydrologists, India’s water tables are declining at a rate of 0.3 meters per year, and between 2002 and 2008 more than 108.37 cubic kilometers of groundwater disappeared—double the capacity of India’s largest surface water reservoir. Decreasing levels of dams and rivers could lead to political conflict within the country, as well as conflict with neighboring countries, such as Bangladesh and Pakistan.

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Dec20

New Book Discusses Causes, Effects, and Extent of Land Grabbing

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By Andrew Alesbury

On December 4, the Woodrow Wilson Center in Washington, D.C. held a book launch and panel discussion for the recently released book, The Global Farms Race: Land Grabs, Agricultural Investment, and the Scramble for Food Security. The book is among the first to examine the burgeoning and complex trend of land grabbing and its implications for investors, host countries, and the world as a whole.

The Wilson Center recently held a book launch and discussion on the prevalence, causes, and effects of land grabbing. (Photo credit: Wilson Center)

The panel discussion, which was webcast live, was led by four experts in the global food security and agriculture community: Michael Kugelman, the book’s co-author and Senior Program Associate at the Wilson Center; Derek Byerlee, an independent scholar and advisor; Gary Blumenthal, President and CEO of World Perspectives, Inc.; and Janet Larsen, Director of Research at Earth Policy Institute.

The speakers noted that land grabbing, or the acquisition of large plots of land by foreign actors such as national governments or large corporations, has become particularly notable since 2007. A growing number of countries, fearful of unrest caused by volatile food prices or driven by the need for more energy security through biofuels, have begun investing in farmland abroad, cultivating the land and then exporting the products back home.

The countries purchasing the land typically have insufficient farmland at home (or they have exhausted it) but have ample capital to invest abroad. Among the biggest investors are China, India, Japan, South Korea, Egypt, and Saudi Arabia, which have been buying up substantial parcels in regions like sub-Saharan Africa, Southeast Asia, and Latin America. The International Land Coalition estimates that more than 200 million hectares of foreign agricultural land (nearly the area of Western Europe) were approved or under negotiation between 2000 and 2010.

In The Global Farms Race, the authors note that these land transactions occur most frequently in less-developed countries where governments lack transparency or accountability. These countries attract investors with financial incentives such as low taxes or inexpensive labor, but provide little support for local populations that are displaced or otherwise negatively affected by the land sales. As such, land grabs often become a “race to the bottom” among agriculturally fertile countries to attract wealthy investors, said author and panelist Kugelman.

Kugelman adds, however, that the pace of land grabbing has slowed in recent years. And although the driving factors behind land grabs—food and energy insecurity—are likely to persist, he suggests possible actions to avoid the potential downsides of these investments. Effective government oversight and regulation could help sellers avoid compromising their food security too much. Meanwhile, investing in drought-resistant farming techniques and crops could alleviate some of the demand created by nations too arid to farm their own land.

What is your opinion on land grabbing? Is it inherently bad or can the practice be modified to benefit all affected parties? Watch the webcast discussion here and let us know your thoughts in the comments section!

Andrew Alesbury is a research intern with the Nourishing the Planet project.

Dec18

New World Bank Report Warns That “A 4°C Warmer World Must Be Avoided”

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By Carol Dreibelbis

The global mean temperature is now approximately 0.8 degrees Celsius (°C) above pre-industrial levels, and it continues to rise. In a recent report prepared for the World Bank, Turn Down the Heat: Why a 4°C Warmer World Must Be Avoided, researchers with the Potsdam Institute for Climate Impact Research and Climate Analytics examine what the world would look like if it warmed another 3.2 degrees Celsius. The report discusses the effects of warming that are already being seen around the world and explores the likely impacts and risks of future warming.

Turn Down the Heat outlines likely consequences of climate change. Here, Greenland surface melt measurements vary drastically from July 8 (left) to July 12 (right), 2012. (Photo credit: NASA)

The researchers project that a warming of 4°C would bring potentially devastating consequences, including “the inundation of coastal cities; increasing risks for food production potentially leading to higher under and malnutrition rates; many dry regions becoming dryer, wet regions wetter; unprecedented heat waves in many regions, especially in the tropics; substantially exacerbated water scarcity in many regions; increased intensity of tropical cyclones; and irreversible loss of biodiversity, including coral reef systems.”

Like similar previous studies, the report predicts that many of these effects would have the largest impact in the poorest regions of the world, particularly in Asia and Africa. The authors’ warnings about projected impacts on agriculture are particularly concerning given that, irrespective of climate change, a growing human population is projected to put unprecedented strain on the global food system.

Heat events will be more extreme and more frequent in a 4°C-warmer world, putting crops and the people who grow them at risk, the report notes. Some of the most extreme warming is projected to occur in the sub-tropical Mediterranean, the Middle East, northern Africa, and the contiguous United States. In these locations, most summer months are likely to be warmer than today’s most extreme heat waves.

In the Mediterranean, for example, temperatures during the warmest July between 2080 and 2100 are expected to approach 35°C—about 9 degrees warmer than today’s warmest July. Such intense heat would threaten agriculture: one study cited in the report finds that crop yields decrease by 1 percent for each “growing degree day” spent above 30°C. While there is potential for the carbon dioxide fertilization effect to boost crop yields in some regions, the report concludes that these gains will likely be offset in the face of higher temperatures.

In addition to heat stress, the global food system will face increasing water scarcity in a 4°C-warmer world. The report finds that northern and eastern Africa, the Middle East, and South Asia face severe risks related to reduced water availability, noting that the Ganges, Nile, and other river basins are particularly vulnerable. One study cited in the report projects that 43 to 50 percent of the global population will be living in water-scarce countries by 2080.

Meanwhile, wetter conditions in northern North America, northern Europe, Siberia, and some monsoon regions, may reduce water stress, the report notes. Still, because of expected sub-seasonal and sub-regional changes to the hydrological cycle, flooding and drought may increase significantly even if annual averages undergo little change.

The report also predicts that hotter weather and water shortages will contribute to both lower agricultural yields and concerns about food security. Drought, which already affects 15.4 percent of global cropland, may affect around 44 percent of cropland by 2100. The most severe impacts will be felt in southern Africa, the United States, southern Europe, and Southeast Asia over the next 30 to 90 years. Together with sea-level rise, which will cause contamination of coastal aquifers used for irrigation, the changes associated with a 4°C-warmer world “could substantially undermine food security,” the report concludes.

Despite these serious warnings, the authors remain optimistic that a 4°C-warmer world can be avoided with swift, cooperative, and sustained policy action. In the report’s Foreword, World Bank President Jim Yong Kim issues a call for international action, writing, “It is my hope that this report shocks us into action. Even for those of us already committed to fighting climate change, I hope it causes us to work with much more urgency.” The report calls for numerous preventative and adaptive initiatives, including investment in crop adaptation, which could “play a major role in ensuring food security in a changing climate.”

Click here to read more about Turn Down the Heat: Why a 4°C Warmer World Must Be Avoided.

Carol Dreibelbis is a research intern with the Nourishing the Planet project.

Nov16

U.S. Government Raises Estimates for Corn and Soybean Harvest, But Lasting Effects of Drought Still Loom

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By Andrew Alesbury

The U.S. government predicts that the nation’s 2012 corn and soybean harvests will not be as low as previously predicted, although the effects of this year’s drought in the country’s top agricultural region are not yet over.

The USDA has raised its production
forecasts for corn and soybeans, but
the effects of the drought are not yet over (Photo Credit: Collective Vision).

In a recent report on national crop production, the U.S. Department of Agriculture (USDA) forecasts a slight rise from October’s projections, with total corn production expected to hit 10.7 billion bushels and soybean production projected to reach 2.97 billion bushels. Even with the new projections, the drought is expected to cause deficits in 2012 U.S. corn and soybean production of 13 percent and 4 percent, respectively, over 2011.

This summer’s drought was centered in the Midwest, the heart of U.S. corn and soybean production. Because the United States is the world’s biggest exporter of the two crops, the plant-withering conditions caused soybean and corn prices to reach record highs worldwide, fueling fears over continued price increases. But rainfall late in the growing season has lessened the drought’s impact, allowing farmers to make up for some of the crop shortfall and bring prices down.

Analysts such as Mark Schultz, chief analyst at Northstar Commodity Investment Co., speculate that decreased demand for grains has also helped to soften the blow of global shortages. “Surging costs may have damped demand by makers of food, biofuel and livestock feed,” Schultz said in an interview with Bloomberg. “Given all the rhetoric about the rest of the world running out of food, it appears that supplies are adequate and that high prices may have slowed demand.”

Yet not all is back to normal. Irrespective of recent rainfall or of demand compensating for decreased supply, the drought has still accounted for large crop losses and may have lasting effects. Corn yields for 2012 are expected to average 122.3 bushels per acre, down 24.9 bushels per acre from 2011. If these predictions prove accurate, they would represent the nation’s lowest corn output since 2006 and lowest average yield since 1995.

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