Fair trade or free trade? Let your voice be heard on Minnesota’s future!
The Obama Administration is negotiating two new mega trade deals (one with Pacific Rim countries, another with Europe) entirely in secret, with the goal of further expanding the NAFTA-model of free trade. These trade agreements could have major impacts on Minnesota's farmers, workers, small business owners and rural communities. They could limit Minnesota’s ability to support local food and energy systems and grow local businesses. In order to stay up to speed, Minnesota has set up a new Trade Policy Advisory Council (TPAC) to advise the state legislature and Governor.
TPAC wants to hear from Minnesotans: What concerns do you have about free trade? What role could TPAC play in the future? Now is your opportunity to have a say in our future trade policy. Complete the survey and let them know future trade negotiations should be public, not secret. Help ensure the voices of all Minnesotans are heard in the development of trade agreements and that they protect local control and our quality of life. The free trade model has failed for Minnesota and we need a new approach to trade. Help ensure the voices of all Minnesotans are heard before trade agreements are completed, and that they protect local control, our natural resources and our quality of life.
Posted November 14, 2013 by Dr. Steve Suppan
During the more than three years since Congress passed the Dodd-Frank Wall Street Reform and Consumer Financial Protection Act, financial regulators have struggled to draft, approve and implement the rules authorized by Dodd-Frank. No agency has met greater Congressional, Wall Street and corporate resistance to Dodd-Frank rulemaking than the Commodity Futures Trading Commission (CFTC), which has authority over more than 90 percent of the $300 trillion U.S. derivatives market. Derivatives are financial contracts, whose value is derived from the value of an underlying asset, such as wheat, oil or a mortgage interest rate. No single CFTC proposed rule has generated more comments—more than 23,000 and counting—than a rule that would limit financial firm market share of agricultural, energy and metals derivatives.
On November 5, the CFTC approved a nearly 400-page revised position limits rule and consequently withdrew an appeal to defend its original rule at the Washington D.C. Court of Appeals. (For an explanation of the October 2012 district court ruling that gave rise to the appeal, see IATP’s blog.) Position limits attempt to prevent excessive speculation and market manipulation by regulating the market share percentage that any one trader and its affiliates can control of a designated commodity contract. The CFTC also approved a rule on the data aggregation of positions across borders, to prevent regulatory evasion by trading through foreign affiliates. And so begins Round 2 of the position limits fight.
A large share of the price increases and volatility in agricultural, energy and metals contracts in U.S. markets have been attributed to the regulatory exemptions, waivers and exclusions that allowed financial firms to control market share. For example, a 2011 Better Markets study shows that 70 percent of the Chicago Board of Trade’s wheat contracts from 2006 to 2010 were controlled by financial speculators, not by traders or processors of wheat. Commodity index fund speculators, with the long-term investment horizons of their pension fund and endowment investors, bet on prices to increase and induced extreme price volatility as they bought and sold contracts according to the fund formula.
Derivatives prices, historically reliable benchmarks for setting the prices at which farmers sell in advance of harvest to grain elevators, were too volatile to be reliable. Food import–dependent developing countries were unable to forward contract enough basic grains at affordable and predictable prices. This loss of price risk–management capacity contributed to food price riots in more than 30 countries, particularly in 2008-09. Foreign exchange and energy contract price increases and volatility further destabilized these countries, since these contracts are often U.S. dollar denominated. What the U.N. Conference on Trade Development has called the “financialization of commodity markets” has driven price trends even in defiance of supply and demand fundamentals.
The CFTC has applied position limits to agricultural contracts without legal challenge from its inception in 1975. As CFTC Chairman Gary Gensler noted in an opening statement to the November 5 meeting, the Commodity Exchange Act authorized the CFTC’s predecessor to set position limits in 1936. The Dodd-Frank legislation authorized the CFTC to set position limits on all commodity contracts, including contracts traded in the unregulated over-the-counter (OTC) markets, which during the previous decade had become at least eight times as large in value as the regulated futures and options contract market.
The litigation and lobbying campaign to prevent implementation and enforcement of position limits and an associated rule on the aggregation of position data, also approved on November 5, cannot be fully understood apart from the Wall Street campaign to carve out regulatory exemptions to allow as many contracts as possible to remain in the OTC market, “dark” to regulators and the public. OTC contract opacity is key to the huge profits to be made not just in OTC commodities trading but in OTC trading of foreign currency exchange and interest rate contracts, by far the largest share of the OTC universe. For example, according CFTC Chair Gary Gensler, cited in a recent New York Times article, the price fixing of a benchmark interest rate by many of the worlds’ largest banks affected the pricing of $10 trillion in loans.
Why have the banks, and many of their largest corporate clients, as members of the International Swaps and Derivatives Association, challenged the authority of the CFTC to set position limits under Dodd Frank? The reason cannot be simply fear of a loss to the overall bottom line of ISDA members. According to the Office of the Comptroller of Currency, bank trading revenues from commodities trading in U.S. markets for the second quarter of 2013 were reported at $282 million, large enough, but small when compared to the $2.8 billion in interest rate contract trading or $3.1 billion in foreign exchange trading revenues for the same quarter.
In his statement on the revised position limit rule, Chairman Gensler noted that the CFTC was holding its ninth public meeting on position limits, more than for any other CFTC rule, out of a total of 31 Dodd-Frank related meetings. The intense public interest registered by more than 23,000 comments on the position limit rule concerns not just a debate over whether the interests of commodity users and consumers will prevail over those of OTC dealer brokers.
Of course, comments from commodity users and consumers concern their commercial self-interest, and many NGO comments concerned the effect of unregulated markets on prices that affect public policy objectives in food and energy security. But more broadly, the position limit debate is about whether governments will regulate markets or whether the position management, i.e., self-regulation by trading venues, of the past decade will continue. The ferocity of Wall Street opposition to position limits is token of its ferocious resistance, both ideological and commercial, to regulation under Dodd-Frank.
Once the revised position limit rule is posted in the Federal Register, it will be open for 60 days for comments. IATP will be among the many who will comment on revised rule. According to a CFTC fact sheet, the revised rule and the related aggregation standards rule contain new exemptions that will certainly merit comment.
The numerical formulations of the limits and when those limits apply are certainly crucial to the effectiveness of the limits in preventing excessive speculation and market disruption, public policy objectives of the Commodity Exchange Act. But equally important are the standards for aggregating position data, particularly as they apply to transactions executed by foreign affiliates of U.S. parent firms. In other words, if data aggregation standard exemptions enable big financial players’ positions to appear smaller than their influence on price formation and price discovery, then the effectiveness of the position limit rule is diminished, if not negated.
The fact sheet states there will be an exemption from position data aggregation when “sharing information [on positions] would violate or create reasonable risk of violating Federal, state or foreign law or regulation.” As I noted in July, foreign governments have complained that CFTC requirements for regulator access to foreign trade data repositories to verify compliance with CFTC’s cross-border guidance would violate data privacy laws in Group of 20 countries. This exemption, as summarized in the fact sheet, appears to be a concession to that complaint.
Nevertheless, it appears that the CFTC’s justification for the exemption indicates that this will be a narrow exemption subject to a high standard of proof. In the proposed aggregation standards rule the CFTC considers IATP comments on aggregation (footnotes 25, 26, 31 and 32), in the context of reviewing comments on how claims that aggregation would violate local, as well as federal and foreign law, might serve the purpose of regulatory evasion. The CFTC agreed with the comments of IATP and others that local laws would not serve to justify an exemption from aggregation and with IATP’s argument that international law, such as trade treaties, do not contain data sharing prohibitions that would justify an exemption (pp. 19–20).
By framing consideration of the use of the exemption in the context of potential for regulatory evasion, the CFTC shows that contrary to earlier regulatory practice, exemptions will be granted only when they cannot be used to serve the purpose of regulatory evasion.
It is likely, as Better Markets stated in a press release welcoming the CFTC decision to propose a revised position limits rule, that ISDA will again sue the CFTC to prevent implementation and enforcement of the rule. The seemingly endless resources of Wall Street for litigation and for paying billions of dollars of fines, part of which are tax deductible, and without criminal sanctions, are understandable causes for despair.
However, when as redoubtable a defender of Wall Street as William Dudley, chair of the Federal Reserve Bank of New York, chastises his member banks for lack of respect for the law, it is one of several signs that the more than decade-long reign of regulatory evasion and impunity for violations of the law may be coming to a reckoning. If ISDA and other industry groups challenge the position limit rule again in court, it will be with the backdrop of its members paying billions of dollars of fines for trillions of dollars of price fixing. Even the notoriously conservative Washington D.C. circuit may not find in favor of such plaintiffs.
Furthermore, the announcement by the European Commission that it will permit no further delay in trade data–reporting rules by European Union member state regulators, takes away another Wall Street argument for the death by a thousand cuts to CFTC regulation. European banks will have to report their OTC trades to trade data repositories and the CFTC and other foreign regulators will have access to those repositories to verify compliance with position limit and other rules. No more Wall Street excuses that CFTC rules will put them at a competitive disadvantage with their European counterparts!
Round 2 of the position limits fight begins in an environment more favorable to both transatlantic regulatory cooperation and reduced opportunities for regulatory evasion by OTC traders.
Posted November 14, 2013 by Pete Huff
Submit a comment by Friday, November 15 to tell the FDA why their proposed food safety rules don't work for small- and medium-scale food producers.
Access to safe food is something that many of us take for granted. It is assumed that the jam we pick up from the farmers market or the chicken purchased from the grocery store will have been grown and processed in a way that will nourish, not harm, our health or the health of our family. Behind these and all food purchases is a long line of farmers and processors with the responsibility to ensure that we can be afforded this assumption of safety.
The rise of the industrialized food system has deteriorated this trust through increasingly common breaches. Just In the past two months, outbreaks of Salmonella in industrialized chicken production and E. coli in the prepared food products of national retailers have, once again, made consumers suspicious of the food on their shelves. Too often, these outbreaks are the result of the scale and cost-cutting priorities of the industrial food system, making public health the collateral damage of an unsustainable food systems.
In response, the federal government has begun to update our food safety laws. In 2011, Congress passed the Food Safety Modernization Act (FSMA) into law—the first major revision of the nation’s food safety regulations since 1938. Directed by this mandate, the FSMA directs the U.S. Food and Drug Administration (FDA) to create rules and regulations that focus on produce farms and the facilities that process food—the line in the sand for safe food throughout the country. This “rulemaking” stage is currently underway, with a public comment period open until November 15, 2013. IATP’s comment to the FDA on the proposed FSMA rules is available online.
In one giant leap, the FSMA proposed rules that significantly extend the powers of the FDA to prevent, remedy and improve food safety issues, predominantly as a reaction to the persistent and emerging food safety concerns of industrial food production. The FDA’s interpretation of the FSMA has resulted in two proposed rules: the Produce Rule, which creates or adjusts standards for produce production; and the Preventative Controls Rule, which creates or adjusts food safety measures for facilities that process food for human consumption. These rules dramatically shape the pathways of food from farm-to-table and could come at the expense those producers and processors not involved in the type of industrial food production that is the source of many food safety concerns.
Both the Produce Rule and the Preventative Controls Rule fail to adequately provide the definition, flexibility and equitable process needed for small- to medium-scale farmers and processors to continue to operate, let alone grow. By creating an industrial “default” in the proposed rules and applying it generally to all produce farms and processing facilities regardless of size or circumstance the FDA is making it burdensome for the good, clean, fair food produced by small and medium farms and food businesses to reach the communities that would benefit from it the most.
Small- and medium-scale producers and processors are typically the parts of the food system tied most directly to their consumers on a local and regional level. As they interact with the people who eat their produce and products, they have vested business and personal interests in ensuring that their products are safe and healthy for their immediate and extended communities. This paradigm typically extends to ensuring the health and safety of the natural systems and ecologies that drive small—and medium-scale produce production, with producers and processors often actively stewarding their soil, water and air in a sustainable manner—typically complying with and moving beyond established organic standards.
In order to transform the FSMA into something that helps, rather than hinders a healthy and balanced food system, the proposed rules should be revised in three main ways:
The federal government should encourage farmers to steward their land and natural resources via proven and currently regulated practices. Existing federal standards and conservations programs for manure and compost, agricultural water testing, conservation practices and diversified production should be strengthened—not undermined—by the FSMA rules.
Encourage, rather than unfairly target, local food and the associated opportunities for small- and medium-scale farmers.
Safe food is in everyone’s best interest, but we can get there without causing the loss of the farms and food businesses vital to healthy local and regional food systems. These decentralized food systems are typically safer, as they do not concentrate food into industrial operations prone to pathogen outbreaks and other public health risks. Further, these local and regional systems provide the fabric of healthy local and regional economies by creating jobs and keeping money in our communities. Burdensome and unnecessary rules will drive small farms and processors out of business. This, without need for explanation, will hurt urban and rural communities alike.
Minimize administrative burden, reduce costs and create due process for farmers and producers.
Running a successful business is no easy feat and the challenge is doubly so for running a food production and processing business. As they are currently written, the proposed FSMA rules do not create a fair regulatory system, underpinned by due process, for farmers and producers. This must be the bedrock of any federal process regardless of its focus. Further, by subjecting small farms and food businesses to excessive costs of compliance, the proposed rules threaten to bankrupt existing businesses and discourage new start-ups.
The “one size fits all” rules that have been proposed do not protect and enhance the producers and processors critical to resilient and robust regional food systems. The result is burdensome and expensive, with the FDA acknowledging that the new rules will cause some farmers to go out of business, discourage new farmers from starting farms and businesses, and force an increased dependence on off-farm incomes for those who continue to produce and process food. With emerging health and environmental issues related to food production, we need more, not less, producers and processors operating on the small and medium scale serving local and regional markets.
Posted November 12, 2013 by Tara Ritter
The annual global climate talks are underway this week in Warsaw, Poland. The agenda for the 19th session of the Conference of Parties (COP 19) to the U.N. Framework Convention on Climate Change (UNFCCC), as the climate talks are formally called, includes discussions on “issues relating to agriculture” with climate change adaptation identified, appropriately, as a primary focus. As anyone who is engaged in farming or in other natural resource related fields or who lives in a rural landscape knows, there are big changes already occurring that are impacting their livelihoods, communities and local economies.
Despite this focus, it is unlikely that there will be many rural voices at the negotiating table in Warsaw. That is unfortunate, because in order to succeed, we believe it is essential to involve rural stakeholders in identifying possible policy and on-the-ground solutions. Sadly, the discussions at COP 19 are more likely to revolve around the promotion of carbon markets rather than the real strategies and investments needed to help rural communities, farmers and others to be more resilient and to help slow the pace of climate change.
To focus and strengthen the U.S. rural perspective on both the problems and solutions associated with climate change, IATP and its partners are excited to announce the launch of the Rural Climate Network (RCN). Formed out of the 2011 National Rural Assembly, the Rural Climate Network was born in response to this identified lack of rural engagement in climate policy development, but also out of a recognition for a greater need of collaboration among rural organizations and leaders regarding relevant climate change adaptation and mitigation resources, information and strategies.
Currently, the RCN website features information on the work of 21 rural organizations from across the country working to address climate change. Relevant resources range from videos of farmers and other rural residents talking about actions they are taking to combat climate change to climate adaptation plans to Neil Young discussing farming and climate change. Our hope is to grow this collection of practical, rural strategies and resources to adapt to and mitigate the current and anticipated effects of climate change, but to do that, we need your help! Read the first issue of the Rural Climate Network newsletter and sign up to receive future issues, email RCN@iatp.org to share stories, resources or organizations that would be a good fit for membership, and keep an eye on the expanding website for new information.
Posted November 6, 2013 by Shiney Varghese
For those who see agroecological approaches as necessary for achieving the food, health, and environmental targets of post 2015 agenda, agroecology is not only central to maintaining ecosystem integrity, but also to realizing food sovereignty of those involved in food production and consumption.
IATP's new report, Scaling up Agroecology: Toward the Realization of the Right to Food, begins from five principles of agroecology, presents examples of practices that could be used to implement that approach. We also developed a set of ecological as well as socioeconomic indicators of success, and mutually supportive national and international policies that would be needed for that approach to flourish.
In this report, we explore how sustainable intensification (which relies on GMOs and intensive use of technology and agrochemicals) is fundamentally different from an agroecological approach because of the latter’s roots in the political economical critique of modern agricultural systems and a holistic ecosystem analysis.
Governments, foundations, and civil society all seem to agree on the need to invest in small farmers, a recognition that they (rather than industrial agriculture) feed majority of the poor people, and that we need to explore the ways in which to support them. In the final agreement on the U.N. Food and Agriculture Organization’s (FAO) Investment in Smallholder Agriculture (a year-long process that involved civil society and governments), governments seem to recognize both approaches, sustainable intensification and agroecological approaches, as possible ways forward. But this may be misplaced.
Proponents of sustainable intensification often say (when supporting the use of both organic and GM technologies) that “no single technology is a silver bullet.” However, as a science based approach to growing food, feed and fuel that is rooted in farmers, experiences, agroecology is closest thing we have when it comes to enhancing soil biotic activity and ensuring that the soil is in the best condition to respond to nutritional needs. Moreover, agroecology enables us to be climate resilient, reduce our fossil fuel dependency, and reduce the environmental—carbon, water and biodiversity—footprints of agriculture.
Even when they are convinced that agroecological approaches are the way forward, governments, funders and policy makers are challenged by the question of how to move forward. This report is an attempt to address these questions: it identifies a set of indicators to help assess whether the policy initiatives we undertake will indeed contribute to scaling up agroecology.
This document was prepared by IATP based on consultations with a number of partner organizations and individuals involved in advancing agroecology around the world, including Grassroots International, International Development Exchange, Focus on the Global South, More and Better, and Third World Network and was further refined on the basis of workshops and consultations with partners in Mexico, Brazil and South Africa in Fall 2013. We've shared it with allies, governments and international agencies during the recently concluded meeting of the Committee on World Food Security (CFS) in Rome.
Posted November 5, 2013 by Dr. Steve Suppan
IATP is a member of the Transatlantic Consumer Dialogue (TACD), a U.S.-European network of about 80 nongovernmental organizations, founded in 1999 on the premise that public policy will be improved by a frank discussion of policy documents disclosed to NGOs, just as they are to corporate lobbyists. TACD meets with U.S. and European Union officials yearly, alternating between Washington, D.C. and Brussels, Belgium, to discuss TACD resolutions. This year’s annual meeting focused on regulatory issues in the Transatlantic Trade and Investment Partnership (TTIP) negotiations between the U.S. and the European Union, formally launched in June.
U.S. and EU TTIP negotiators were to have met last week in Brussels, but the meeting was postponed due to Edward Snowden’s revelations of U.S. electronic surveillance of European officials, including European Heads of State. The U.S. government usually sends just a couple of officials to TACD meetings in Brussels, but this year, faced with the possible derailment of TTIP negotiations due to U.S. spying, they sent a full contingent to repair the public image damage, though not to apologize. TACD was an indirect beneficiary of Snowden’s act of transparency, i.e., making the secret public.
IATP belongs to three TACD working groups, Food Policy, Nanotechnology and Financial Services Policy. I contributed to the nanotechnology and financial services resolutions relating to TTIP. Members also discussed resolutions on food policy, intellectual property and internet policy issues, such as e-commerce and data privacy. The resolutions were discussed, to a greater or lesser extent, in a daylong TACD plenary meeting on TTIP.
While a wide array of policy issues were discussed, the center of gravity for the day was transparency and, specifically, whether governments would establish two way communication on TTIP by releasing draft negotiating proposals. This a long-held TACD demand made urgent by the breadth of Transatlantic Business Council and other industry demands for regulatory “reform” to consumer health and protection laws, which jumpstarted the TTIP negotiations.
Neven Mimica, the European commissioner for consumer policy, was given the unenviable task of reassuring TACD members that TTIP’s objective of creating jobs and growth would not result in weakening of consumer protections and rights. Among his claims: The Commission would ensure that a TTIP Investor-State dispute settlement (ISDS) chapter to allow private investors to sue governments for regulations that impaired corporate profits would not be abused; basic public services would be excluded from the negotiation; no public health, food safety or environmental standards would be compromised; food safety would be enhanced; the Commission would create a consumer consultative group, along with a business consultative group, to ensure support for the final negotiated text. He read quickly from a prepared text, answered one question (the Precautionary Principle used in EU risk-management, often attacked by U.S. industry, would not be compromised by the modernizing of the General Food Law) and left before the end of the first panel.
Dan Mullaney, the lead U.S. negotiator for TTIP, outlined how the U.S. would seek to “advance TTIP without compromising standards.” He described a U.S. Trade Representative’s TTIP “listening session” in May, in which IATP participated. He claimed that TTIP environmental standards would reduce the importing of illegally logged timber and illegally caught fish; consumer fraud would be reduced through more stringent trademark enforcement; regulatory disciplines of transparency and accountability would improve consumer protections, while preventing regulatory divergence between the U.S. and EU; U.S. regulators are precautionary, and the U.S. would raise the use of the Precautionary Principle in food safety only in specific cases in a TTIP consultative committee; and that the ISDS would protect investors while also protecting “legitimate regulations.”
To these and many other claims about TTIP objectives and negotiator intentions, numerous TACD speakers and audience participants said draft negotiating texts should be published so the public can read them just as industry lobbyists do. But, said lead EU TTIP negotiator Ignacio Garcia Bercero, we do not show EU negotiating drafts to any private citizen, including corporate lobbyists. TACD members countered that the U.S. negotiators share draft texts with USTR corporate advisors and they share them with their European colleagues. If the World Intellectual Property Organization can negotiate agreements, while disclosing drafts to more than 180 member governments and hundreds of non-governmental representatives, why, asked Jamie Love of Knowledge Ecology International, can’t the U.S. and EU do the same? Transparency and public comment improve international agreements.
Rhoda Karpatkin, the president emerita of Consumers Union, said that the TACD Steering Committee had sent a letter to U.S. Trade Representative Michael Froman several months ago to request a meeting to discuss TACD ideas for establishing a two-way dialogue about TTIP, on the basis of draft texts. TACD sent a follow-up letter again reiterating the request. TTIP lead negotiator Mullaney said that “nothing negative should be inferred from the lack of response to the letters.”
Mary Bottari, of the Center for Media and Democracy and the main author of TACD resolution on ISDS, proposed a consumer right to sue corporations for billions of dollars for harms to consumers. Just as trade lawyers are the panelists of the private ISDS tribunals, there would be a consumer protection court with TACD members as judges. There were chuckles around the room, in recognition of the disparity of consumer and investor rights in a TTIP negotiated in secret. But nobody will be laughing when the ISDS is used to challenge food safety and other consumer protection laws under the trade deal.
Posted November 4, 2013 by Dr. M. Jahi Chappell
These are the remarks of M. Jahi Chappell, Ph.D., IATP's director of agroecology and agriculture policy to the World Food Prize on October 18, 2013. Videos of Dr. Chappell’s speech can be found at the IATP YouTube channel, in both English and Portuguese.
There has been, with this World Food Prize, a celebration of science. In the lead up to the Prize; in the ceremony last night; and more broadly within the career of the late Norman Borlaug, science is rightly praised as a powerful and important set of tools.
Unfortunately, the power of these tools has been blunted. It has been blunted because science—which at its most basic is the careful and systematic study of the world around us, and the consistent testing of our ideas against reality—this wonderful and powerful process has been narrowed too often in discussions of food to mean technology. Technology is but one way to use science; it is only the tip of one particular tool that can be found in the powerful toolbox that is science.
What do I mean? Well, the World Food Prize is well-named, as it is about food for the world, not just agriculture for the world. Scientifically, these are two different things. We know that what is produced is not the same as how much actually goes to become food for people, but too often we forget this. Luckily, this is a place where the toolbox of science can help us, but only if we open it wider to use all of the tools—including social sciences like sociology, anthropology, ecological economics and political ecology.
So let’s do that. Let’s talk science.
We know that most countries produce more than enough food, even after waste, but many of them still have hungry people.
We know that in places where production is a challenge like sub-Saharan Africa, yields can be increased through innovation, agroecological technology, education, and support for women and small farmers. We also know that producing enough food does not eradicate hunger. India, which produces more than enough food for its citizens, has more hungry people than the whole continent of Africa; it also has one of the highest infant malnutrition rates in the world and, parallel to Jomo’s comments, a malnutrition rate nearly twice its economic poverty rate.
And we know that in India, as in many other places, this is tied to the legacies of monoculture, cash crops, and a lack of support for smallholder farmers, household equality, especially gender equality, and agrobiodiversity.
We know that smallholders produce a disproportionate amount of the world’s food, in some places as much as twice as much as the proportion of land they hold. We’ve consistently seen that smallholder farmers very often produce more per unit area than larger farmers. Indeed, the observation is so common that it has been formally named the Inverse Relationship between Farm Size and Productivity. I know many researchers, including perhaps, some here, are somewhat skeptical about the rigor or significance of these findings. But I think the same type of skepticism has quite often accompanied new innovations and new ideas. Skepticism, for example, about the usefulness of biotechnology, should not and has not stopped investigation of how it might be used.
We have to be brave enough to ask ourselves, especially about this Inverse Relationship and its implications, whether we may need to move away from large farms and invest more heavily in small farms. We have to ask ourselves if our skepticism may reflect certain biases or a reluctance to engage against the current trends of agricultural consolidation—or whether it reflects the empirical reality, where this relationship is seen, again and again.
Additionally, we know that smallholder farmers tend to have a larger variety of diverse, healthy crops and cultivars, which can provide sufficient dietary variety and micronutrients. Too often, the diverse crops that smallholders rely on for stability, resilience, and nutritional diversity are defined as “women’s crops.” Traditional crops, and the fact that often they cannot easily be made into large-scale monocultures, can be both a strength and a weakness. The strength stems from the fact that diversity, field, plot, landscape and garden-scale variation is the very biological basis of that powerful process: evolution. Diversity allows adaptation and is the very stuff that evolution is made of. Diverse crops often correspondingly support diverse and resilient livelihoods, and—study after study has confirmed this—higher levels of ecosystem services.
They talk in economics—and in the previous panel—about “getting the prices right.” That is, paying the true costs and for the true benefits of items in our society. Well, estimates put the value of unmarketed ecosystem services at three times the size of the nominal world economic size. We act as if being a small farmer is hard only because the work is hard. And of course it is. But it’s also hard because farmers are too often forced to be our world’s volunteers in keeping agrobiodiversity. The ecosystem services, and the cultural services, provided by small farmers are not socioeconomically valued, and so while they’re paid part of the price of making food, we’re making many of the world’s smallholder farmers work as our unpaid volunteers in maintaining, fighting for, and struggling to stay keepers of huge amounts of the world’s biodiversity.
And those farmers, especially larger-scale farmers, who make the rational decision to focus on producing only what they’re paid for—just making one crop, and a lot of it—are simply following a rational response in narrowing diversity, separating crops and livestock, and using energy-intensive and unsustainable levels of inputs. We should understand these kinds of decisions, but we must also understand that these decisions are in the face of a system that doesn’t include all the costs (like climate change) and doesn’t pay for all the services (like preservation of biodiversity and different cultural ways of being). We need to realize that proper pricing might lead to smaller farms and that decreasing the amount of large farms dramatically would be simply following the science towards appropriately sized farms. We need to keep realizing that science does not simply mean production, and that production does not at all mean food security.
And lastly, we need to remember that, scientifically, our biggest opportunity to fight hunger is pushing hard for equality, particularly equality for smallholder women. Over 50 percent of the decrease in hunger between 1970 and 1995 is likely to have come from increases in gender equality. Yet we don’t see 50 percent of research effort going towards this. Estimates say that increasing women’s education and status to simple equity has 3 to 4 times the potential to reduce hunger than just producing more food alone—but I’m quite sure that this does not get 3 to 4 times the attention.
So if I am to conclude with one message, it is for us to remember that science is a powerful set of tools, but to use it we must learn about how to use all of its tools. Social, natural and technological—and we must expressly and purposefully use them to support small farmers, especially women farmers, and must never let “social” approaches be the second step in our conversations about feeding the world, but always—in line with the science—be at the forefront of our considerations.
Posted November 3, 2013 by Patrick Tsai
On the morning of September 29, North Dakota farmer Steven Jensen discovered a gurgling pool of oil in his wheat field. From a quarter-inch hole in the pipeline, 865,000 gallons of crude oil from the Bakken oil field leaked into his fields. It was 11 days before there was any public notification of the spill. In the last two years, North Dakota has had over 300 pipeline oil spills that were never publicly reported.
As the oil polluted soil is being removed from Steven Jensen's wheat field, the Enbridge oil company is planning a new pipeline from North Dakota carrying crude oil across northern Minnesota. In Carlton county, local residents and farmers along the proposed pipeline route are concerned about the risks the new pipeline, called Sandpiper, poses to their lives, land and environment. Citizens in the region have come together under the name Carlton County Land Stewards. IATP met with some members to learn more about the pipeline plans. Like so many extreme energy development projects, the citizens most affected are often the last to know what is being planned. Fortunately, land owners and farmers in Carlton County are working together to protect their farms and community.
Enbridge’s PR has focused on the temporary jobs that will be created by the Sandpiper project. This generic rallying cry neglects to recognize the loss of land and livelihoods the pipeline will cause. The Sandpiper project’s preferred southern route runs directly through a number of farms in Carlton County. Carlton County has a burgeoning local foods movement with many new farmers continuing to increase production year after year, and some farmers looking to expand onto new land. The misguided pursuit of corporate profits over sustained local economic growth and stability at the expense of farmers' livelihoods will only be detrimental to the already established agricultural economy in Carlton County.
Steve Schulstrom and his family run Spectrum Farm, established 12 years ago. Spectrum Farm prides itself on being a model of sustainable living, serving customers maple syrup, milk and organic hay. The pipeline’s route is expected to run through a field where Schulstrom grazes his cows and a large area of forest. A large swath of trees would have to be cut down affecting Schulstrom’s maple syrup production.
The Sandpiper pipeline project would suppress the growth of Janaki Fisher-Merritt’s Food Farm, an organic farm serving over 180 CSA customers.
Posted October 31, 2013 by Jim Kleinschmit
Next week the state of Washington will vote on mandatory labeling of Genetically Modified Organisms (GMOs) in food products. This is an important election and moment in the battle over GMOs, but in many critical ways, it is increasingly obvious to me that GMO opponents have already won.
News story after news story makes it clear that, even in the U.S., where the introduction and acceptance of GMOs in the fields and grocery aisles has been most pronounced, the tide has shifted. While the “war” is by no means over in a country that has genetically modified crops growing on over 60% of its total crop acres, we need to celebrate this victory. But, as importantly, we need to take advantage of the market and policy openings it provides to go beyond opposing GMOs and achieve greater overall sustainability in our farming and food system.
The most apparent signs of the change in American public opinion on GMOs are the labeling campaigns rolling around the country. Connecticut and Maine have already successfully passed labeling laws, but require neighboring states to pass complementary labeling legislation before it goes into force. The California labeling initiative on the ballot in 2012 was defeated, due in large part to overwhelming spending by the food and biotech companies that opposed it. Similar tactics and heavy corporate spending is happening in the current Washington battle as well, with the outcome still too close to call.
The labeling campaigns are the most public demonstration of this shift, but there are other, less recognized, yet very important signs of a change in public perception and the marketplace around GMOs:
· Mexican Federal judge Jaime Verdugo’s ruling that immediately halted cultivation of GMOs throughout Mexico
· The recent rejection of GMO salmon by several grocery chains
· The vote by the Big Island of Hawaii County Council Committee to restrict cultivation of GMO crops on the Big Island of Hawaii.
· The admission of complete defeat in Europe by Monsanto, with their decision to cease efforts to promote GMO crop production on the continent
Yet perhaps the most important, but least acknowledged indicator of change is the recent approval by USDA of the non-GMO verified label for meat and liquid eggs products. This USDA-approved label is a game-changer along the lines of the first voluntary labeling of Recombinant Bovine Growth Hormones (RBGH) in milk. Those “voluntary” labels quickly became de facto requirements, as consumers made clear that they were not interested in buying milk from cows injected with hormones. I believe the same will be true with the new non-GMO verified label—poll after poll indicate that, given the choice, consumers say they will choose not to eat GMO food. Now, with this label, we will finally get to see if their actual purchasing habits reflect this desire.
We need to celebrate both this victory over GMOs and those who worked tirelessly on this often lonely issue (including, but not limited to our colleagues at the Center for Food Safety, the non-GMO Project, the Organic Consumers Association, Just Label It and all of the state campaigns). But as important as this victory over GMO technology is, we can’t let it stop at the seed. This market opening provides a rare and needed opportunity to advance broader sustainability in the fields and on our grocery shelves. Chemical use, greenhouse gas emissions, soil and water quality impacts and other environmental concerns associated with farming need to be brought into this discussion and market area as well—something that has to be done with, rather than to farmers.
The great news is that there is already growing interest among farmers in non-GMO, or “conventional” crop production. Whether a result of the increasing limits and problems (i.e., growing pest and weed resistance) associated with the use of GMOs and related herbicides, the falling commodity prices or the premiums linked to non-GMO markets, farmers across the country are beginning to look at non-GMO options. They can do more. With the appropriate market incentives, farmers are ready to not only stop using GMOs and eliminate the biodiversity and other sustainability concerns that come with these crops, but also reduce negative impacts on soil, water, pollinators, animal and human health, and the climate from their farming practices as a whole.
We believe this because we have experienced it. For over 10 years, IATP has been working closely with farmers to implement just such a “non-GMO Plus” approach through our Working Landscapes Certificates (WLC) program. Created to support sustainability endeavors in the bioplastic sector, IATP’s WLC program provides farmers with a payment for following clear criteria around chemical selection, use and handling, nutrient management, biodiversity and habitat conservation, among other areas of concern associated with their farming practices. Tested through numerous and very different seasons, crop production under the WLC system has proven to neither significantly increase farmers’ costs or negatively impact yields, all while providing a host of environmental benefits and a premium market for the participating farmers.
The emerging market for non-GMO food and ingredients offers the chance to focus not only on the seed, but to also take a big step forward on some of these other major sustainability challenges associated with farming. These opportunities don’t come along very often, so it’s important we recognize and utilize this opening to support more sustainable farming approaches. Companies and advocates that have already been leading on the issue of non-GMOs will be key to this effort. But doing it right means this effort needs to be led not by them alone, but by the farmers, consumers and other stakeholders who have together managed to achieve such a real and crucial victory over GMOs in our food and farming system.
Posted October 30, 2013 by Dr. Steve Suppan
In the hall at the University of São Paulo School of Mining, Materials Science and Engineering is an exhibit of electronic microscopy photographs of nanomaterials which have been engineered to between atomic and molecular size. One of the most beautiful photographs is titled “Campos do trigo”, that is, "fields of wheat," represented by carbon nanotubes synthesized on a silicon layer. These waves of grain measure about one hundred millionth of a meter. Nanotechnology requires visualization of materials at this scale to manipulate them for use in consumer and industrial products.
I was invited to give one presentation on agriculture and nanotechnology and another on the regulatory and trade policy outlook for nanotechnology at X Semisonoma, the 10th international seminar of Renanosoma, the Brazilian Network on Nanotechnology, Society and Environment. The former presentation was based in part on an IATP report on the effect of nanomaterials on soil health. The latter presentation reflected a small section in IATP’s just published report on agriculture and food under the proposed Transatlantic Trade and Investment Partnership (TTIP).
The week-long seminar covered a broad array of issues affecting the use of Engineered Nanoscale Materials (ENMs) in consumer and industrial products. Among Renanosoma’s most powerful members is the Metal Workers’ Union, which is lobbying the Brazilian government to require companies to report to the unions which kind of ENMs are being used in union workplaces and pay for a hierarchy of occupational safety and health controls. The hierarchy spans from workplace design to safety procedures to protective clothing and masks. The carbon nanotubes in “Campos do trigo” are beautiful to look at, but cause cancerous lesions when put on the lungs of laboratory rats.
In August, the Brazilian government committed 440 million reales (about $186 million USD) to support nanotechnology research and development in 2014—further solidifying its position as a global leader in nanotech development. However, as with the U.S. National Nanotechnology Initiative budget, there is almost no budget dedicated to research into the environmental, health and safety effects of ENMs manufacturing. One of the great challenges of such research is to develop nanotech specific toxicology metrics that would serve as a basis for the risk assessment of ENMs as they are used in the workplace, not just as they are evaluated in laboratories.
A presentation via Skype by Professor Pieter van Broekhuizen outlined how such metrics might be developed. Current toxicology metrics and regulation are mass-based. However, the minute mass itself of ENMs is irrelevant to the chemical reactivity that may be toxic. Rather, said van Broekhuizen, to measure ENM toxicity requires a metric that takes into account the density of nanoparticles in a three-dimensional surface area. Van Broekhuizen’s “Nano Reference Values” of toxicity are defined by the number of nanoparticles within a cubic centimeter over an eight hour Time Weighted Average (TWA), i.e., the length of a typical workday. For nanosilver, for example, 20,000 particles per square centimeter TWA suffices to trigger a precautionary approach to use of nanosilver in the workplace. Different classes of different nanomaterials have different particle counts for triggering precautionary controls in the workplace. Such nano-specific reference values are not unique within toxicology, but they are laboratory developed rather than workplace developed. Broekhuizen’s consultancy works with labor unions, government scientists and employer associations to develop Nano Reference Values that represent the metrics of toxicity to which workers are exposed in the workplace.
Van Broekhuizen’s research, in a U.S. context, is unusual in that it proposes a Precautionary Approach to use of ENMs in the workplace. These Nano Reference Values are not yet part of Dutch or European Union regulation of ENMs but their development with the cooperation of employers to protect workers is a considerable advance over the U.S. regulatory situation, in which the Precautionary Approach continues to be regarded as a disguised non-tariff barrier to trade.
The seminar featured ENM presentations by University of São Paulo graduate students and post-doctoral researchers on research and development phases of various ENM applications. Professor José María Monserrat’s presentation of his introduction to nano-toxicology long-distance learning course was not only impressive for its scientific content, but also for its pedagogy, and use of the internet. With a budget of just $300,000, Professor Monserrat was able to offer two free on-line courses, one of 20 hours and the other 120 hours, to introduce hundreds of students at dozens of Latin American universities to the basics of nanotechnology and nano-toxicology. I suggested that the dozen or so law school participants in the seminar should be signing up for the course to begin to acquire the scientific literacy that future Brazilian nanotech regulators would need.
In August, the Brazilian legislature rejected a bill that would have required the labeling of nano-cosmetics, including sunscreens. As with the rejection of earlier legislation to regulate ENMs and nanotechnologies, officials claimed that labeling would lead to consumer alarm about a technology in which the government was investing heavily. Luiz Carlos Olivera, an occupational health and safety expert for the Steel Workers Union of São Paulo, said that legislation had been rejected in 2010 to require employers to disclose to unions when ENMs were being used in their manufacturing and to design nano-specific worker safety controls.
Nevertheless, Brazilian labor unions continue to campaign for such legislation and are building a scientifically robust worker education program in ENMs and nanotechnology related worker safety. Three labor union comic books on nanotechnology were distributed as part of the seminar materials, along with the Portuguese language version of “Principles for the Oversight of Nanotechnologies and Nanomaterials”, to which IATP is a signatory. Because of the political power of Brazilian labor unions, relative to their U.S. counterparts, when nanotechnology regulation comes to Brazil, it will likely be as a result of the combined efforts of the labor unions, nano-toxicologists, such as Professor Monserrat and Dr. van Broekhuizen, and the public education activity of Renanosoma and its webcast program, “Nanotechnology Inside Out”.
I participated in the 232nd webcast of the program, hosted by Dr. Paulo Martins. That program was a round table dedicated to exploring how “Nanotechnology Inside Out” could improve. With the stated purpose of ensuring that the public who pays for nanotechnology research has a say in its future development and regulation, “Nanotechnology Inside Out” will surely be part of nanotechnology’s future in Brazil.
Posted October 24, 2013 by Karen Hansen-Kuhn
After being delayed by the U.S. government shutdown, talks for a Transatlantic Trade and Investment Partnership (TTIP) are quietly gearing up again. Tariff barriers between the U.S. and EU are already low, so these negotiations are focused squarely on achieving “regulatory coherence.” In other words, industry lobby groups and their political allies on both sides of the Atlantic see the trade deal as an opportunity to get rid of rules and regulations that limit their ability to buy and sell goods and services. The outcome of TTIP has implications for the rest of the world. Leaders from both regions have made clear, the terms of this trade agreement will set the standard for future free trade agreements.
TTIP could affect a broad range of issues, from energy to the environment, and intellectual property rights to labor rights. It could also have a significant impact on the evolution of agricultural markets and food systems in the U.S. and EU, as well as solidify the ability of corporations and investors to challenge new regulations that could affect expected profits through international tribunals. Unfortunately, little concrete information is known about the content of the TTIP proposals, since the governments involved have refused to publish draft text.
In both the U.S. and EU, the time to influence the substance of the agreement is before it is completed. That’s a tricky task, since the negotiations are happening behind closed doors, but it means that civil society groups and legislators need to pay close attention to what is on the agenda, even without complete information.
In Promises and Perils of the TTIP: Negotiating a Transatlantic Agricultural Market, (which we are co-publishing with the Heinrich Boell Foundation) we outline some of the key differences between rules in the U.S. and EU that will likely be on the negotiating table during the trade talks:
Discussions on these rules on safer and more sustainable food systems need to happen under conditions of full transparency and should not be subsumed within a trade agreement.
If there is any hope that the focus on regulatory coherence does not simply mean shifting standards toward the lowest common denominator, then the U.S. and EU governments need to prioritize human and environmental well-being over market openings for multinational corporations. That seems entirely improbable given statements made by the governments up to this point. Improbable isn’t the same thing as impossible though. The current approach is a political choice; a different path is possible.