When resources become scarce in market economies with relevant price systems, prices increase. This price increase which reflects the increase in scarcity leads to land, capital, labor, and natural resources being used in different proportions. The higher price motivates users to reduce consumption or increase the use of substitutes. It motivates producers to increase the supply of resources if possible, or to invest in technology that better utilizes resources or leads to substitutes. The result of higher prices, substitution, and technological change is that scarce resources are used more efficiently or less intensely. It is then possible for economic growth to continue in the face of diminishing or degrading of natural resources.
Drastic changes in regulations or tax policy that stifle this process could leave us without the technological means to deal with future scarcity. This is something to be considered when dealing with climate change policy.
Friday, November 30, 2007
Wednesday, November 28, 2007
Environmental Economics
I've just recently wrapped up a series of posts related to public choice economics. Public choice is useful because the analytical framework it provides is necessary for understanding agricultural and natural resource issues in the context of government decision making.
The next series of posts will focus on theory related to environmental economics. They will focus on how we deal with scarcity of natural resources, pollution, etc.
The next series of posts will focus on theory related to environmental economics. They will focus on how we deal with scarcity of natural resources, pollution, etc.
Saturday, November 24, 2007
A SUSTAINABLE THANKSGIVING
This past Thanksgiving, Michael Maniates wrote a dismal piece in the Washington Post stating that “We need to be looking at fundamental change in our energy, transportation and agricultural systems rather than technological tweaking on the margins.” He was referring to ecological disaster that may ensue if we fail to take drastic actions today.
In the last 50 years, agricultural productivity has doubled. The average corn yield in 1960 was near 55 bushels per acre, today it is nearly 160 bushels per acre. We get about 185lbs more from every harvested cow than we did forty years ago. Technology is not only making us more productive, but also more ‘green,' addressing many of the concerns Mr. Maniates may have about ecological disaster.
1.04 million fewer pounds of insecticide are applied each year as a result of biotech Bt cotton alone. With Bt cotton, 4 million gallons of fuel and 93.7 million gallons of water are saved on the farm each year from fewer insecticide applications. Roundup Ready technology has allowed for glyphosate herbicide to substitute for 7.2 million pounds of other chemicals that are more toxic and persistent in the environment.
We’ve come a long way since the first Thanksgiving harvest. Perhaps major change will come in other areas, but in agriculture it will be the marginal tweaking of biotechnology that paves the way toward a sustainable future and provides us with tools for dealing with climate change.
References:
1)Michael Maniates “Going Green? Easy Doesn't Do It”
www.washingtonpost.com , Thursday, November 22, 2007; A37
2)NASS: http://www.nass.usda.gov:8080/QuickStats/PullData_US.jsp
3)ERS: http://www.ers.usda.gov/
4)Cattle-Fax: http://www.beefusa.org/uDocs/cattlenumbersandbeefproduction347.pdf
5)Dr. Roger Leonard, LSU Agricultural Center and Dr. Ronald Smith, Auburn University. Research in Bt Cotton
6)Farm Industry News Feb 1, 2007
7)Gregory Conko “The Benefits of Biotech” Regulation. Spring 2003.
In the last 50 years, agricultural productivity has doubled. The average corn yield in 1960 was near 55 bushels per acre, today it is nearly 160 bushels per acre. We get about 185lbs more from every harvested cow than we did forty years ago. Technology is not only making us more productive, but also more ‘green,' addressing many of the concerns Mr. Maniates may have about ecological disaster.
1.04 million fewer pounds of insecticide are applied each year as a result of biotech Bt cotton alone. With Bt cotton, 4 million gallons of fuel and 93.7 million gallons of water are saved on the farm each year from fewer insecticide applications. Roundup Ready technology has allowed for glyphosate herbicide to substitute for 7.2 million pounds of other chemicals that are more toxic and persistent in the environment.
We’ve come a long way since the first Thanksgiving harvest. Perhaps major change will come in other areas, but in agriculture it will be the marginal tweaking of biotechnology that paves the way toward a sustainable future and provides us with tools for dealing with climate change.
References:
1)Michael Maniates “Going Green? Easy Doesn't Do It”
www.washingtonpost.com , Thursday, November 22, 2007; A37
2)NASS: http://www.nass.usda.gov:8080/QuickStats/PullData_US.jsp
3)ERS: http://www.ers.usda.gov/
4)Cattle-Fax: http://www.beefusa.org/uDocs/cattlenumbersandbeefproduction347.pdf
5)Dr. Roger Leonard, LSU Agricultural Center and Dr. Ronald Smith, Auburn University. Research in Bt Cotton
6)Farm Industry News Feb 1, 2007
7)Gregory Conko “The Benefits of Biotech” Regulation. Spring 2003.
Wednesday, November 21, 2007
THE REAL THANKSGIVING
Thanksgiving was not about the Pilgrims embracing diversity and thanking the Indians for helping them survive. The celebration was about thanking God for the abundance which ultimately resulted from a move away from socialism ( imposed on them by the Colony’s Sponsors) to free market capitalism.
As governor William Bradford commented on the dreadful conditions of 1622:
" . . . the young men . . . did repine that they should spend their time and strength to work for other men's wives and children without any recompense. The strong . . . had not more in division . . . than he that was weak and not able to do a quarter the other could; this was thought injustice. The aged and graver men to be ranked and equalized in labors and victuals, clothes, etc . . . thought it some indignity and disrespect unto them. And the men's wives to be commanded to do service for other men, as dressing their meat, washing their clothes, etc., they deemed it a kind of slavery, neither could many husbands well brook it."
"For this community of property (so far as it went) was found to breed much confusion and discontentment and retard much employment that would have been to their benefit and comfort . . . all being to have alike, and all to do alike . . . if it did not cut off those relations that God hath set amongst men, yet it did at least much diminish and take off the mutual respects that should be preserved amongst them."
In the Spring of 1623, they moved away from Socialism and embraced the incentives of Private Property and Capitalism:
"All their victuals were spent . . . no supply was heard of, neither knew they when they might expect any. So they began to think how they might raise as much corn as they could, and obtain a better crop than they had done, that they might not still thus languish in misery. At length . . . the Governor (with the advice of the chiefest among them) gave way that they should set corn every man for his own particular, and in that regard trust to themselves. . . . And so assigned to every family a parcel of land . . . "
"This had very good success, for it made all hands very industrious, so as much more corn was planted than otherwise would have been by any means the Governor or any other could use, and saved him a great deal of trouble, and gave far better content. The women now went willingly into the field, and took their little ones with them to set corn, which before would allege weakness and inability, whom to have compelled would have been thought great tyranny and oppression."
Thanksgiving is therefore about freedom, private property and the unrestrained ability to worship and show thanksgiving.
As governor William Bradford commented on the dreadful conditions of 1622:
" . . . the young men . . . did repine that they should spend their time and strength to work for other men's wives and children without any recompense. The strong . . . had not more in division . . . than he that was weak and not able to do a quarter the other could; this was thought injustice. The aged and graver men to be ranked and equalized in labors and victuals, clothes, etc . . . thought it some indignity and disrespect unto them. And the men's wives to be commanded to do service for other men, as dressing their meat, washing their clothes, etc., they deemed it a kind of slavery, neither could many husbands well brook it."
"For this community of property (so far as it went) was found to breed much confusion and discontentment and retard much employment that would have been to their benefit and comfort . . . all being to have alike, and all to do alike . . . if it did not cut off those relations that God hath set amongst men, yet it did at least much diminish and take off the mutual respects that should be preserved amongst them."
In the Spring of 1623, they moved away from Socialism and embraced the incentives of Private Property and Capitalism:
"All their victuals were spent . . . no supply was heard of, neither knew they when they might expect any. So they began to think how they might raise as much corn as they could, and obtain a better crop than they had done, that they might not still thus languish in misery. At length . . . the Governor (with the advice of the chiefest among them) gave way that they should set corn every man for his own particular, and in that regard trust to themselves. . . . And so assigned to every family a parcel of land . . . "
"This had very good success, for it made all hands very industrious, so as much more corn was planted than otherwise would have been by any means the Governor or any other could use, and saved him a great deal of trouble, and gave far better content. The women now went willingly into the field, and took their little ones with them to set corn, which before would allege weakness and inability, whom to have compelled would have been thought great tyranny and oppression."
Thanksgiving is therefore about freedom, private property and the unrestrained ability to worship and show thanksgiving.
Tuesday, November 13, 2007
PUBLIC CHOICE AND THE CONSTITUTION
With all of the problems previously mentioned such as voting paradoxes and the results of the median voter theorem, democracy is not without its problems.
Our founders may not have spoke in these terms, but they did anticipate problems. Knowing that voting can be an imprecise method of determining the will of the people and government is limited in what it can do to promote the good of the society, the things that we vote for ( at the state, local, and federal levels) should be limited. Changes should come slowly, and interpretations of our laws should be consistant.
As James Madison Stated:
"It will be of little avail to the people that the laws are made by men of their own choice, if the laws be so voluminous that they cannot be read, or so incoherent that they cannot be understood; if they be repealed or revised before they are promulgated, or undergo such incessant changes that no man who knows what the law is today can guess what is will be tomorrow."
-- James Madison, Federalist no. 62, February 27, 1788
By specifically enumerating the powers of government, the constitution provides a means for mitigating these circumstances. Once we abandon this concept, democracy becomes less effective. As Thomas Jefferson stated:
"I consider the foundation of the Constitution as laid on this ground that 'all powers not delegated to the United States, by the Constitution, nor prohibited by it to the states, are reserved to the states or to the people.' To take a single step beyond the boundaries thus specially drawn around the powers of Congress, is to take possession of a boundless field of power not longer susceptible of any definition."
-- Thomas Jefferson, Opinion on the Constitutionality of a National Bank, February 15, 1791
Public Choice Theory certainly provides a solid basis for limited government, and it is one that our founders would have agreed with.
Our founders may not have spoke in these terms, but they did anticipate problems. Knowing that voting can be an imprecise method of determining the will of the people and government is limited in what it can do to promote the good of the society, the things that we vote for ( at the state, local, and federal levels) should be limited. Changes should come slowly, and interpretations of our laws should be consistant.
As James Madison Stated:
"It will be of little avail to the people that the laws are made by men of their own choice, if the laws be so voluminous that they cannot be read, or so incoherent that they cannot be understood; if they be repealed or revised before they are promulgated, or undergo such incessant changes that no man who knows what the law is today can guess what is will be tomorrow."
-- James Madison, Federalist no. 62, February 27, 1788
By specifically enumerating the powers of government, the constitution provides a means for mitigating these circumstances. Once we abandon this concept, democracy becomes less effective. As Thomas Jefferson stated:
"I consider the foundation of the Constitution as laid on this ground that 'all powers not delegated to the United States, by the Constitution, nor prohibited by it to the states, are reserved to the states or to the people.' To take a single step beyond the boundaries thus specially drawn around the powers of Congress, is to take possession of a boundless field of power not longer susceptible of any definition."
-- Thomas Jefferson, Opinion on the Constitutionality of a National Bank, February 15, 1791
Public Choice Theory certainly provides a solid basis for limited government, and it is one that our founders would have agreed with.
Saturday, November 10, 2007
PUBLIC CHOICE RECAPITULATION
Many of my recent posts have probably seemed a little more formal than my normal analysis of the biotech industry, agriculture, and natural resource issues. However, I think they highlight important tools and concepts. Because the agriculture industry and the pattern of natural resource use can be heavily influenced by government policy, it is important to be able to analyze government behavior in a way that is precise. The tools and concepts developed by public choice economists allow us to do this. To review, some of the tools/concepts that I have recently discussed include the following:
TYPE TWO ERROR BIAS - overcautious behavior, ex: FDA drug approval, response to Hurricane Katrina
VOTING PARADOXES- randomness of election outcomes
MEDIAN VOTER THEOREM- leads to exploitation of minority by majority
TRAGEDY OF THE COMMONS – lack of property rights and pollution
COASE THEOREM – symmetry of environmental pollution, internalizing effect of property rights and markets
TRAGEDY OF THE ANTICOMMONS – underuse of resources due to excessive checks on power, bureaucracy. Ex: response to hurricane Katrina
KNOWLEDGE PROBLEM- government relies on a ‘shrunken’ pool of knowledge vs. markets
By clicking the ‘Public Choice’ link below, or under the ‘Selected Topics’ sidebar you can find more detailed discussions of each of these concepts.
TYPE TWO ERROR BIAS - overcautious behavior, ex: FDA drug approval, response to Hurricane Katrina
VOTING PARADOXES- randomness of election outcomes
MEDIAN VOTER THEOREM- leads to exploitation of minority by majority
TRAGEDY OF THE COMMONS – lack of property rights and pollution
COASE THEOREM – symmetry of environmental pollution, internalizing effect of property rights and markets
TRAGEDY OF THE ANTICOMMONS – underuse of resources due to excessive checks on power, bureaucracy. Ex: response to hurricane Katrina
KNOWLEDGE PROBLEM- government relies on a ‘shrunken’ pool of knowledge vs. markets
By clicking the ‘Public Choice’ link below, or under the ‘Selected Topics’ sidebar you can find more detailed discussions of each of these concepts.
Tuesday, November 06, 2007
TRAGEDY OF THE ANTICOMMONS
In a past post I discussed the scenario described as the ‘tragedy of the commons’ which characterizes many environmental problems, especially problems of overuse and resource depletion. To review, the tragedy of the commons basically occurs when ‘individuals have unlimited access to resources in absence of well defined property rights ( Sobell and Leeson, 2006). Without property rights, there can be no transfer of rights and no market to establish a price by which environmental tradeoffs can be valued. The problem is the failure of government to define and enforce property rights.
The ‘tragedy of the anti-commons’ is another type of government failure. This occurs ‘when too many owners hold (such) rights of exclusion’ (Heller, 1998). In this case resources are subject to underuse. This can also be described as a ‘tragedy of political commons’ when too many individuals have veto power in decision making processes ( Leeson, 2006). And note, related to other posts regarding public choice theory, these individuals are acting in their own interest, face ineffective incentive structures, and likely have limited information. When they actually do make a decision, it is likely a poor one.
A prime example of the tragedy of the anticommons and resource under use is the government’s response to hurricane Katrina. Post 9-11, FEMA was placed under Homeland Security, adding an additional layer of bureaucracy to the decision making process. There were further problems at the local level. An example given in a 2006 article in the journal Public Choice describes an incident where one out of state sheriff complied with all of the necessary procedures and paper work that would enable him to direct his resources for a relief effort and was never able to help. A second sheriffs department ignored procedure and was able to bring 9 truckloads of supplies and 33 deputies to the scene.
We also see that in the private sector, where this problem is less of an issue, companies like Wal-Mart, Home Depot, and State Farm insurance were well prepared and on the scene where they were needed.
Because of the tragedy of the anticommons, resources that could have been used in the relief effort were underutilized.
References:
Government’s Response to Hurricane Katrina: A public choice analysis
Public Choice Volume 127,numbers1-2/ April 2006
Russel S. Sobel and Peter T. Leeson
Heller, M. (1998). The tragedy of the anticommons.: Property in transition from Marx to Markets. Harvard Law Review, 111 930 622-688.
The ‘tragedy of the anti-commons’ is another type of government failure. This occurs ‘when too many owners hold (such) rights of exclusion’ (Heller, 1998). In this case resources are subject to underuse. This can also be described as a ‘tragedy of political commons’ when too many individuals have veto power in decision making processes ( Leeson, 2006). And note, related to other posts regarding public choice theory, these individuals are acting in their own interest, face ineffective incentive structures, and likely have limited information. When they actually do make a decision, it is likely a poor one.
A prime example of the tragedy of the anticommons and resource under use is the government’s response to hurricane Katrina. Post 9-11, FEMA was placed under Homeland Security, adding an additional layer of bureaucracy to the decision making process. There were further problems at the local level. An example given in a 2006 article in the journal Public Choice describes an incident where one out of state sheriff complied with all of the necessary procedures and paper work that would enable him to direct his resources for a relief effort and was never able to help. A second sheriffs department ignored procedure and was able to bring 9 truckloads of supplies and 33 deputies to the scene.
We also see that in the private sector, where this problem is less of an issue, companies like Wal-Mart, Home Depot, and State Farm insurance were well prepared and on the scene where they were needed.
Because of the tragedy of the anticommons, resources that could have been used in the relief effort were underutilized.
References:
Government’s Response to Hurricane Katrina: A public choice analysis
Public Choice Volume 127,numbers1-2/ April 2006
Russel S. Sobel and Peter T. Leeson
Heller, M. (1998). The tragedy of the anticommons.: Property in transition from Marx to Markets. Harvard Law Review, 111 930 622-688.
Wednesday, October 31, 2007
KNOWLEDGE PROBLEM
We’ve often heard the statement ‘good enough for government work’ or have heard the criticism that government workers are incompetent. The truth is, many government employees are highly trained and competent professionals. Unfortunately they don’t always have the correct information or the incentive to act on that information to achieve results. When they do take action, it may not be an action that uses resources in the most effective manner. In this situation, limited resources become more limiting. Government institutions and bureaucracies often generate bad information and terrible incentives.
With markets, partial bits of decentralized information that are possessed by multitudes are coordinated to produce results. Prices provide information and incentives to act on that information. As explained in the article on Public Choice theory, government decision makers have less incentive to take appropriate actions.
Instead of relying on information in prices, which reflect the tradeoffs made by millions of individuals making decisions based on their own well being and first hand information, the involvement of government shrinks the pool of knowledge to just a few ‘experts’ with limited information.
This is the great ‘knowledge problem’ that government decision makers face. It is the reasoning that economists such as F.A. Hayek give for the collapse of the Soviet Union, and why so many free market economists are critical of expanding the role of government.
SOURCES:
The Use of Knowledge in Society
F.A. Hayek
The American Economic Review Vol 35 No 4 (Sept 1945) p. 519-530
With markets, partial bits of decentralized information that are possessed by multitudes are coordinated to produce results. Prices provide information and incentives to act on that information. As explained in the article on Public Choice theory, government decision makers have less incentive to take appropriate actions.
Instead of relying on information in prices, which reflect the tradeoffs made by millions of individuals making decisions based on their own well being and first hand information, the involvement of government shrinks the pool of knowledge to just a few ‘experts’ with limited information.
This is the great ‘knowledge problem’ that government decision makers face. It is the reasoning that economists such as F.A. Hayek give for the collapse of the Soviet Union, and why so many free market economists are critical of expanding the role of government.
SOURCES:
The Use of Knowledge in Society
F.A. Hayek
The American Economic Review Vol 35 No 4 (Sept 1945) p. 519-530
Tuesday, October 23, 2007
THE COASE THEOREM
In a previous post ‘OUR COMMONS, OUR CHOICE’, I cited the analysis of the economist Ronald Coase. The discussion was related to environmental pollution.
Traditionally when it comes to enviromental pollution, the general philosophy was that ‘the polluter pays’. A factory polluting the air or water should pay for the damages that are caused. In a much simpler case, if you build a house next to me and you don’t like the smell of livestock waste coming from my property, the traditional philosphy would hold that you could have the government stop my operation.
The insight that Coase brought was 1) yes it is true that my operation is harming you via air pollution. 2) however, in stopping me via government or legal intervention ( or taxing my waste production) you are harming me.
Coase says that the issue is that nonone owns the air that sourrounds my livestock operation and your home. There then follows a dispute over how the air should be used- to absorb livestock odor, or to provide a scent free atmosphere in your back yard. Whenever the cost of one’s behavior is not factored into a price at which a choice can be valued, I can harm you without compensating you for it. ( i.e. an externality exists)
However, if I own rights to the air, then I can choose to pollute the air. If you own rights to the air, then you can prevent me from polluting it. If noone owns the air, then it is first come first served or winner takes all.
That is not the end of the story though. What Coase emphasizes is that if I own the rights to pollute, you can pay me to limit my pollution i.e. buy those rights from me. I can then use the proceeds to alter my livestock nutrition, genetics, and management to reduce the odor my operation is causing. On the other hand, if you own the rights to pollute I can purchase those rights from you, or invest in technology that will allow me to continue my operation without violating your rights. I will do which ever is most optimal. This can be accomplished without major goevernemnt regulation, or the arbitrary imposition of a tax.
The assignment of property rights and the potential for bargaining results in behavior that is changed or altered to account for the negative impact our choices have on others. This is the essence of what is known as the ‘Coase Theorem”
Traditionally when it comes to enviromental pollution, the general philosophy was that ‘the polluter pays’. A factory polluting the air or water should pay for the damages that are caused. In a much simpler case, if you build a house next to me and you don’t like the smell of livestock waste coming from my property, the traditional philosphy would hold that you could have the government stop my operation.
The insight that Coase brought was 1) yes it is true that my operation is harming you via air pollution. 2) however, in stopping me via government or legal intervention ( or taxing my waste production) you are harming me.
Coase says that the issue is that nonone owns the air that sourrounds my livestock operation and your home. There then follows a dispute over how the air should be used- to absorb livestock odor, or to provide a scent free atmosphere in your back yard. Whenever the cost of one’s behavior is not factored into a price at which a choice can be valued, I can harm you without compensating you for it. ( i.e. an externality exists)
However, if I own rights to the air, then I can choose to pollute the air. If you own rights to the air, then you can prevent me from polluting it. If noone owns the air, then it is first come first served or winner takes all.
That is not the end of the story though. What Coase emphasizes is that if I own the rights to pollute, you can pay me to limit my pollution i.e. buy those rights from me. I can then use the proceeds to alter my livestock nutrition, genetics, and management to reduce the odor my operation is causing. On the other hand, if you own the rights to pollute I can purchase those rights from you, or invest in technology that will allow me to continue my operation without violating your rights. I will do which ever is most optimal. This can be accomplished without major goevernemnt regulation, or the arbitrary imposition of a tax.
The assignment of property rights and the potential for bargaining results in behavior that is changed or altered to account for the negative impact our choices have on others. This is the essence of what is known as the ‘Coase Theorem”
Thursday, October 18, 2007
THE MEDIAN VOTER THEOREM
THE DANGERS OF DEMOCRACY: THE MEDIAN VOTER THEOREM2
In the last entry on voting paradoxes, I mentioned that things are different if preferences are single peaked. Let’s look at another scenario.
voter X: A B C
voter Y : C A B
voter Z : C B A
In this case, no matter what order is undertaken, C always ends up being the law that is enacted. These preferences are single peaked. ( if you graph them, you will find that for each individual they will have a top choice ( a peak point), and as you move further away from that choice ( in the A-B-C spectrum) they prefer the other choices less and less. In the previous example, voter Y did not have single peaked preferences and that is what caused the cycling or order dependent outcomes.
With single peaked preferences there is a new problem. With single peaked preferences, the median point of the preference distribution will elicit the most votes. Only those laws or candidates with a centrist twist will get the majority of the votes. Only those voters with centrist views will be happy, and it makes it very difficult for candidates to be elected if they want to bring about major reforms. This phenomenon is referred to as the ‘median voter theorem.’
In the last entry on voting paradoxes, I mentioned that things are different if preferences are single peaked. Let’s look at another scenario.
voter X: A B C
voter Y : C A B
voter Z : C B A
In this case, no matter what order is undertaken, C always ends up being the law that is enacted. These preferences are single peaked. ( if you graph them, you will find that for each individual they will have a top choice ( a peak point), and as you move further away from that choice ( in the A-B-C spectrum) they prefer the other choices less and less. In the previous example, voter Y did not have single peaked preferences and that is what caused the cycling or order dependent outcomes.
With single peaked preferences there is a new problem. With single peaked preferences, the median point of the preference distribution will elicit the most votes. Only those laws or candidates with a centrist twist will get the majority of the votes. Only those voters with centrist views will be happy, and it makes it very difficult for candidates to be elected if they want to bring about major reforms. This phenomenon is referred to as the ‘median voter theorem.’
Friday, October 12, 2007
7 THINGS TO KNOW ABOUT GM FOODS
BROCHURE: http://www.sdcma.org/GMFoodsBrochure.pdf
I've linked to this before , but there are so many things that it highlights, that I think this deserves another post.
7 THINGS TO KNOW ABOUT GM FOODS
1. If you worry about food safety you should know that GM foods are as safe as other foods and that GM crops are grown with fewer pesticide applications than traditional crops.
2. If you treasure butterflies you need to know that pesticides used in conventional farming are far worse than GM crops for butterflies.
3. If you have allergies you need to know that GM technology can eliminate food allergens and that all GM crops are extensively tested to make sure that no new allergens are introduced. In addition,GM crops are being created in which the major allergens have been eliminated.
4. If you are worried about cancer you should take note of the fact that 99.99 percent of the carcinogens in your food supply are natural chemicals that humans have been eating for thousands of years. However, GM technology provides the means of increasing levels of phytoestrogens, isoflavones,carotenoids, and other antioxidants known to prevent cancer.
5. If you are a woman and worried about getting sufficient iron you should know that genetic modification can increase the iron content of cereals and has eliminated chemicals (phytic acid) that prevent iron absorption.
6. If you have doubts about the government’s approval of GM crops you need to know that extensive testing and a long approval process accompany every GM crop introduction. In the United States, three agencies regulate these crops.
7. If you care about the environment you may want to know that GM foods can make a significant contribution to alleviating the negative impact that agriculture has on our environment.
I've linked to this before , but there are so many things that it highlights, that I think this deserves another post.
7 THINGS TO KNOW ABOUT GM FOODS
1. If you worry about food safety you should know that GM foods are as safe as other foods and that GM crops are grown with fewer pesticide applications than traditional crops.
2. If you treasure butterflies you need to know that pesticides used in conventional farming are far worse than GM crops for butterflies.
3. If you have allergies you need to know that GM technology can eliminate food allergens and that all GM crops are extensively tested to make sure that no new allergens are introduced. In addition,GM crops are being created in which the major allergens have been eliminated.
4. If you are worried about cancer you should take note of the fact that 99.99 percent of the carcinogens in your food supply are natural chemicals that humans have been eating for thousands of years. However, GM technology provides the means of increasing levels of phytoestrogens, isoflavones,carotenoids, and other antioxidants known to prevent cancer.
5. If you are a woman and worried about getting sufficient iron you should know that genetic modification can increase the iron content of cereals and has eliminated chemicals (phytic acid) that prevent iron absorption.
6. If you have doubts about the government’s approval of GM crops you need to know that extensive testing and a long approval process accompany every GM crop introduction. In the United States, three agencies regulate these crops.
7. If you care about the environment you may want to know that GM foods can make a significant contribution to alleviating the negative impact that agriculture has on our environment.
Thursday, October 04, 2007
Clean Water Authority Restoration Act
The Clean Water Authority Restoration Act ( House Bill H.R.2421 S.1870) attempts to remove the requirement that bodies of water be ‘navigable’ to be federally regulated. Unfortunately, many don’t think critically about environmental problems. As economist F.A. Hayek has pointed out to us, the requisite knowledge for solving many of our problems seldom presents itself in complete integrated form. Instead, it is dispersed among multitudes of individuals and circumstances.
Technology has allowed for many environmental problems in Agriculture to be internalized. The use of global positioning systems and biotechnology are examples of how markets have utilized the dispersed knowledge of individuals acting in their own interest to help mitigate environmental problems.
Family farms make up 98% of all farms, and small farms account for 70% of farm real estate. These operations will be affected most by this legislation. They currently manage the resources that would fall under the jurisdiction of the Clean Water Act should the CWARA pass. These producers have specialized knowledge with regards to producing food in an environmentally sustainable manner. If the CWARA is passed, it could substitute the limited knowledge of a few experts for the well-coordinated knowledge and experience of multitudes of farmers. Is there any reason for us to believe that this would necessarily be better for the environment?
Technology has allowed for many environmental problems in Agriculture to be internalized. The use of global positioning systems and biotechnology are examples of how markets have utilized the dispersed knowledge of individuals acting in their own interest to help mitigate environmental problems.
Family farms make up 98% of all farms, and small farms account for 70% of farm real estate. These operations will be affected most by this legislation. They currently manage the resources that would fall under the jurisdiction of the Clean Water Act should the CWARA pass. These producers have specialized knowledge with regards to producing food in an environmentally sustainable manner. If the CWARA is passed, it could substitute the limited knowledge of a few experts for the well-coordinated knowledge and experience of multitudes of farmers. Is there any reason for us to believe that this would necessarily be better for the environment?
Tuesday, October 02, 2007
MORE GESTAPO TACTICS courtesy of GREENPEACE
The Jawa Report, August 29, 2007
"Recently, it was reported that the Agriculture and Cooperatives Ministry was going to seek cabinet approval for a lifting of the ban on open-field trials of transgenic crops. Assuredly, Greenpeace was not amused and reacted by dumping tons of papayas at the entrance to the ministry.”
This reminds me of the following quote:
"...a band of scientific illiterates who use Gestapo tactics..."
- Greenpeace Co-Founder, Patric Moore, describing his former organization.
The funny thing is, the local people were very excited to get ‘free’ GM papayas and took care of the clean up.
"Recently, it was reported that the Agriculture and Cooperatives Ministry was going to seek cabinet approval for a lifting of the ban on open-field trials of transgenic crops. Assuredly, Greenpeace was not amused and reacted by dumping tons of papayas at the entrance to the ministry.”
This reminds me of the following quote:
"...a band of scientific illiterates who use Gestapo tactics..."
- Greenpeace Co-Founder, Patric Moore, describing his former organization.
The funny thing is, the local people were very excited to get ‘free’ GM papayas and took care of the clean up.
Friday, September 28, 2007
AN EXTREME CASE OF ENVIRONMENTALISM
http://www.belfasttelegraph.co.uk/news/world-news/article2898542.ece
“Hardly a day has gone by this summer without opponents of GM maize - both environmental campaigners and small farmers - invading fields and trampling or cutting down crops. The protesters, led by the small- farmers' leader, José Bové, claim a citizens' right to destroy crops which, they say, threaten ecological calamity and the subjection of farmers to the whims of agro-industrial, multinational companies.” …. Belfast Telegraph Monday, August 27, 2007
Is this eco-fascism?
“Hardly a day has gone by this summer without opponents of GM maize - both environmental campaigners and small farmers - invading fields and trampling or cutting down crops. The protesters, led by the small- farmers' leader, José Bové, claim a citizens' right to destroy crops which, they say, threaten ecological calamity and the subjection of farmers to the whims of agro-industrial, multinational companies.” …. Belfast Telegraph Monday, August 27, 2007
Is this eco-fascism?
Thursday, September 20, 2007
rbST & HUMAN HEALTH
Many are making claims (perhaps as a marketing technique to increase profits) that milk produced from cows containing rbST is less healthy than conventionally produced milk. Milk from cows given supplemental bST contains no more bST than milk from cows not given the supplement, so the hormone itself is not a concern.
It is true however, that milk from cows that have been administered supplemental rbST contains higher levels of IGF-1 ( insulin growth factor-1). Research indicates that this level of increase is small.
In fact, the normal variation in naturally occurring IGF-1 levels among cows is much greater than this difference. Due to natural variation, it is just as likely that you will find a random organic cow that has much higher levels of IGF-1 than a random cow treated with rbST. With that said, should we be concerned with IGF-1 anyway?
Quote: “The amount of IGF-1 in milk is insignificant compared to the amount already produced in our bodies every day,” he asserts. “We swallow it in our saliva, and the amount we swallow daily is equal to the amount of IGF-1 in 95 quarts of milk. The amount produced in our whole body every day is equal the amount in 3,000 quarts of milk.”
Bauman further explains—and the American Cancer Society concurs—that there is no cause-and-effect chain linking bST, high levels of IGF-1, and cancer. “In fact, elevated levels are actually to be expected [when cancer is present] because IGF-1 is involved the turnover and repair of cells, including tumor cells.”
*Dale Bauman, professor of nutritional science and of animal science at Cornell University
SOURCES:
http://health.msn.com/centers/menopause/articlepage.aspx?cp-documentid=100149900
http://www.nytimes.com/2007/06/29/opinion/29miller.html?ei=5070&en=7732b9b995632ec6&ex=1188705600&pagewanted=all
http://vm.cfsan.fda.gov/~ear/CORBST.html
It is true however, that milk from cows that have been administered supplemental rbST contains higher levels of IGF-1 ( insulin growth factor-1). Research indicates that this level of increase is small.
In fact, the normal variation in naturally occurring IGF-1 levels among cows is much greater than this difference. Due to natural variation, it is just as likely that you will find a random organic cow that has much higher levels of IGF-1 than a random cow treated with rbST. With that said, should we be concerned with IGF-1 anyway?
Quote: “The amount of IGF-1 in milk is insignificant compared to the amount already produced in our bodies every day,” he asserts. “We swallow it in our saliva, and the amount we swallow daily is equal to the amount of IGF-1 in 95 quarts of milk. The amount produced in our whole body every day is equal the amount in 3,000 quarts of milk.”
Bauman further explains—and the American Cancer Society concurs—that there is no cause-and-effect chain linking bST, high levels of IGF-1, and cancer. “In fact, elevated levels are actually to be expected [when cancer is present] because IGF-1 is involved the turnover and repair of cells, including tumor cells.”
*Dale Bauman, professor of nutritional science and of animal science at Cornell University
SOURCES:
http://health.msn.com/centers/menopause/articlepage.aspx?cp-documentid=100149900
http://www.nytimes.com/2007/06/29/opinion/29miller.html?ei=5070&en=7732b9b995632ec6&ex=1188705600&pagewanted=all
http://vm.cfsan.fda.gov/~ear/CORBST.html
Friday, September 14, 2007
EDIBLE GENES?
I usually like to write my own posts, but this excerpt from a brochure (link: http://www.sdcma.org/GMFoodsBrochure.pdf
provided my the Sandiego Center for Molecular Agricultue is very interesting and tells a story about biotechnology that everyone can relate to.
"Dad, are there any genes on my plate?" my 14-year-old daughter asked.What if
your child asked you this? An opinion survey showed that 70 percent of the
people have the mistaken idea that ordinary food does not contain genes,
whereas GM food does. Rather than explain to my daughter that every bite of
food on her plate has billions of genes, I told her a story.
"In the mountains high above Cristobal de las Casas in Chiapas, Luis and
Jimena Rodriguez tend their small field of corn and beans.They are ‘organic’
farmers because they don’t have enough money to buy fertilizers or pesticides.
After they bring in the corn harvest, they store the ears in a large corn crib that
covers the entire back wall of their one-room house. It’s the safest place to store
the corn.This room also has their bed and the four kids sleep on the floor. After
the harvest is in, Luis goes to town to buy some pesticide to fumigate the corn
inside his house. In the house his corn is safe from rain, rodents, and thieves, but
not from insects. If he does not fumigate, the weevils will eat the stored corn. If
he does not fumigate, he will have more weevils than corn kernels in six
months’ time. Indeed, each female weevil lays about 100 eggs, and after the larvae
hatch, they burrow into the seeds. After thirty-five days mature insects
emerge and the cycle begins again. Half of those insects are females, so just
multiply 50 by 50 by 50 by 50 by 50 and figure out how many that is," I said to
my daughter.
"More than 5 million," she answered, "all coming from two weevils."
"Now suppose that the corn was genetically modified with a Bt gene to kill
those weevils, the parents and children wouldn’t have to sleep in those pesticide
fumes," I said. "Don’t you think those children would benefit from having
some genes on their plates?"
provided my the Sandiego Center for Molecular Agricultue is very interesting and tells a story about biotechnology that everyone can relate to.
"Dad, are there any genes on my plate?" my 14-year-old daughter asked.What if
your child asked you this? An opinion survey showed that 70 percent of the
people have the mistaken idea that ordinary food does not contain genes,
whereas GM food does. Rather than explain to my daughter that every bite of
food on her plate has billions of genes, I told her a story.
"In the mountains high above Cristobal de las Casas in Chiapas, Luis and
Jimena Rodriguez tend their small field of corn and beans.They are ‘organic’
farmers because they don’t have enough money to buy fertilizers or pesticides.
After they bring in the corn harvest, they store the ears in a large corn crib that
covers the entire back wall of their one-room house. It’s the safest place to store
the corn.This room also has their bed and the four kids sleep on the floor. After
the harvest is in, Luis goes to town to buy some pesticide to fumigate the corn
inside his house. In the house his corn is safe from rain, rodents, and thieves, but
not from insects. If he does not fumigate, the weevils will eat the stored corn. If
he does not fumigate, he will have more weevils than corn kernels in six
months’ time. Indeed, each female weevil lays about 100 eggs, and after the larvae
hatch, they burrow into the seeds. After thirty-five days mature insects
emerge and the cycle begins again. Half of those insects are females, so just
multiply 50 by 50 by 50 by 50 by 50 and figure out how many that is," I said to
my daughter.
"More than 5 million," she answered, "all coming from two weevils."
"Now suppose that the corn was genetically modified with a Bt gene to kill
those weevils, the parents and children wouldn’t have to sleep in those pesticide
fumes," I said. "Don’t you think those children would benefit from having
some genes on their plates?"
Monday, September 10, 2007
rbST & ENVIRONMENTAL HEALTH
What is rbST? rbST is recombinantly (lab) produced bovine somatotropin. This hormone is given supplementally by dairy producers to increase milk production in their herds. Supplemental rbST helps increase the efficiency of conversion of feed to milk in the cow's body. Producers of all sizes and types are able to benefit from this as it increases milk production per cow by about 10% or more.
How is this good for the environment? --- It requires fewer resources to produce more milk.
Less feed, less waste, less land, less energy, less water, less erosion, less pollution, less methane, more Milk!
It is a testament of environmental stewardship practiced by the American farmer. It also is another example among many that I have provided to demonstrate how embracing modern science ( biotechnology) is more sustainable and resource friendly than many other trends in food and popular culture today.
SOURCES:
http://www.nytimes.com/2007/06/29/opinion/29miller.html?ei=5070&en=7732b9b995632ec6&ex=1188705600&pagewanted=all
http://vm.cfsan.fda.gov/~ear/CORBST.html
How is this good for the environment? --- It requires fewer resources to produce more milk.
Less feed, less waste, less land, less energy, less water, less erosion, less pollution, less methane, more Milk!
It is a testament of environmental stewardship practiced by the American farmer. It also is another example among many that I have provided to demonstrate how embracing modern science ( biotechnology) is more sustainable and resource friendly than many other trends in food and popular culture today.
SOURCES:
http://www.nytimes.com/2007/06/29/opinion/29miller.html?ei=5070&en=7732b9b995632ec6&ex=1188705600&pagewanted=all
http://vm.cfsan.fda.gov/~ear/CORBST.html
Thursday, September 06, 2007
CONSEQUENCES OF ORGANIC FARMING
Dennis Avery of the Hudson Institute writes a pretty interesting op-ed regarding organic farming in today's Star Tribune. One of the more important considerations is the upcoming farm bill. Organic growers are already asking for funding components, and special relief could be on a future 'wish list.'
Quote:
"Otherwise, the public is being set up to make all kinds of "emergency" payments to organic farmers who had been preparing to sell their produce for "organic premiums" on the high-priced shelves of Whole Foods Markets. ........ With the higher yields of conventional farms, we can leave the steep hillsides for wildlife habitat. Shouldn't that be our environmental goal?"
Not to mention the benefits of biotech crops that dwarf both conventional and organic food when it comes to sustainability.
http://www.startribune.com/562/story/1404039.html
Quote:
"Otherwise, the public is being set up to make all kinds of "emergency" payments to organic farmers who had been preparing to sell their produce for "organic premiums" on the high-priced shelves of Whole Foods Markets. ........ With the higher yields of conventional farms, we can leave the steep hillsides for wildlife habitat. Shouldn't that be our environmental goal?"
Not to mention the benefits of biotech crops that dwarf both conventional and organic food when it comes to sustainability.
http://www.startribune.com/562/story/1404039.html
Wednesday, September 05, 2007
KROGER TO COMPLETE TRANSITION TO CERTIFIED rbST-FREE MILK BY EARLY 2008
http://www.thekrogerco.com/corpnews/corpnewsinfo_pressreleases_08012007.htm
‘CINCINNATI, Ohio – August 1, 2007 – The Kroger Co. (NYSE:KR) announced today it will complete the transition of milk it processes and sells in its stores to a certified rBST-free supply by February 2008.’
This press release says it all. Kroger is no longer going to buy milk from producers that use rbST in their herds.
This is very disappointing from an environmental stewardship perspective. Because supplementing with rbST increases milk production per cow by about 10%, we are able to devote fewer resources to milk production when it is used. Using fewer resources means a smaller environmental footprint on a per gallon of milk basis. And, it does this with no effects to animal or human health.
While rbST is not the solution to all of our environmental and world hunger problems, it is this sort of technological change that is necessary to feed an increasing population and to deal with problems like global warming.
It is Kroger’s duty to respond to consumer preferences. This could backfire in the long term. As consumers discover the health and environmental benefits of modern science and biotechnology on the farm, they will likely become more interested in these products. The massive adoption of zero trans-fat foods is one example. These products could not have been developed without advancements in plant breeding and genetic tools.
Unfortunately, discontinuing the use of rbST may send a signal to consumers that rbST and other beneficial biotechnologies are bad for the environment, and bad for human health. Lack of consumer demand for these life and environment enhancing products may lead to less interest, investment, and less R&D. Even worse, rent seeking businesses and politicians may use this sentiment to build support for increased regulatory scrutiny. The long term effects of this could leave us less prepared to meet future ecological challenges.
‘CINCINNATI, Ohio – August 1, 2007 – The Kroger Co. (NYSE:KR) announced today it will complete the transition of milk it processes and sells in its stores to a certified rBST-free supply by February 2008.’
This press release says it all. Kroger is no longer going to buy milk from producers that use rbST in their herds.
This is very disappointing from an environmental stewardship perspective. Because supplementing with rbST increases milk production per cow by about 10%, we are able to devote fewer resources to milk production when it is used. Using fewer resources means a smaller environmental footprint on a per gallon of milk basis. And, it does this with no effects to animal or human health.
While rbST is not the solution to all of our environmental and world hunger problems, it is this sort of technological change that is necessary to feed an increasing population and to deal with problems like global warming.
It is Kroger’s duty to respond to consumer preferences. This could backfire in the long term. As consumers discover the health and environmental benefits of modern science and biotechnology on the farm, they will likely become more interested in these products. The massive adoption of zero trans-fat foods is one example. These products could not have been developed without advancements in plant breeding and genetic tools.
Unfortunately, discontinuing the use of rbST may send a signal to consumers that rbST and other beneficial biotechnologies are bad for the environment, and bad for human health. Lack of consumer demand for these life and environment enhancing products may lead to less interest, investment, and less R&D. Even worse, rent seeking businesses and politicians may use this sentiment to build support for increased regulatory scrutiny. The long term effects of this could leave us less prepared to meet future ecological challenges.
Tuesday, September 04, 2007
DROUGHT ISSUES: CATTLE
While the cattle cycle should be in an expansion phase, it looks like at this point many people are finding themselves with little choice but to downsize. There are many options for dealing with drought conditions. Early weaning, sale, creepfeeding, or feeding hay earlier than normal.
Feeding is becoming less and less of an option. Not only is demand for hay up, but supply is down for the same reasons: drought. Fewer cuttings. A roll of hay that may have sold for $20 may now go for $70-$100. Higher prices are required to bring supply in with demand and that supply might have to come form greater distances or at greater costs than normal. Higher corn prices also make the breakeven price for feeders increase, In other words the price that feedyards are willing to pay is going to be less.
According to a recent article in a local newspaper, weekly cattle sales at the KY-TN livestock market in Guthrie have went from an average of 1500 head to 3000.
Feeding is becoming less and less of an option. Not only is demand for hay up, but supply is down for the same reasons: drought. Fewer cuttings. A roll of hay that may have sold for $20 may now go for $70-$100. Higher prices are required to bring supply in with demand and that supply might have to come form greater distances or at greater costs than normal. Higher corn prices also make the breakeven price for feeders increase, In other words the price that feedyards are willing to pay is going to be less.
According to a recent article in a local newspaper, weekly cattle sales at the KY-TN livestock market in Guthrie have went from an average of 1500 head to 3000.
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