Agricultural
Policies for Food Security[i]
John Ikerd[ii]
I was pleased to be invited by
the Canadian Department of Agriculture and Agri-food
to share my perspectives on agricultural policy of particular relevance to
small and mid-sized farms. Obviously, I am far more familiar with agricultural
policy in the
Food security is the primary justification for all government involvement in agriculture. Governments would have little justification for farm and food policies if their citizens could otherwise be assured of dependable access to adequate supplies of safe and wholesome food at reasonable costs. Programs subsidizing farm commodity prices and incomes are justified as a means of stabilizing prices at levels that will ensure consumers with a stable and affordable supply of food. Pesticide and animal health regulations are justified as means of ensuring food safety. Soil conservation and water quality programs are means of protecting the agricultural resources necessary for long productivity. Even government subsidies for development of technologies that enhance agricultural productivity are justified as means of making food less costly and more available to more people. Public policies affecting agriculture have persisted in countries around the world because governments have not been willing to leave the food security of their constituents to the impersonal forces of the marketplace.
For more than 30 years, I was
involved in government support of
However, the
The farmers with the biggest financial problems were those who had been doing the things that we so-called economic experts had been telling them to do. They had routinized, mechanized, and standardized their production processes, in order to achieve greater economic efficiency through specialized, larger-scale farming operations. Farmers were failing not because they were poor managers, but because some had to fail so the survivors would have room to expand. The financial crunch of the 1980s simply made this chronic crisis of American agriculture more apparent.
The kind of agriculture I had been promoting certainly wasn’t working for farmers. The more I understood the situation, the more I came to understand that the industrial agriculture that I had been promoting was also threatening the economic viability of rural communities and degrading the land and the rural environment. It wasn’t even keeping food prices low in the supermarkets, as increasing marketing margins more than offset declining farm level prices. Eventually, I understood that the industrialization of agriculture was actually sacrificing the long run food security of the nation because it quite simply was not sustainable. The long run food security of any nation is in the natural productivity of its land and its people, and the industrialization of agriculture was degrading both.
The lack
of sustainability of the industrial approach to agriculture is not a matter of
personal opinion. It is a direct consequence of the most fundamental laws of
physics, the laws of thermodynamics. The sustainability of agriculture,
like the sustainability of any other type of development, ultimately depends
upon the use of energy, because anything that is useful in sustaining life ultimately
relies on energy. All useful material things – food, clothes, houses,
automobiles – require energy to make and energy to use. And all human energy –
working, managing, thinking – comes from the energy in things people eat, wear,
or use. Physical scientists lump all such useful activities together and call
them “work.” All work requires energy. And most important, each time energy is
used to perform work, some of the usefulness
of the energy is lost.
In performing work, energy is
always changed from more-concentrated to less-concentrated forms. In fact, this
natural tendency gives energy its ability to perform work. Material things, or
matter, are simply highly concentrated forms of energy. When matter is converted
into energy, as in eating food or burning gasoline, or when energy is used to
do any kind of work, energy invariably changes from more to less concentrated forms.
However, the total energy contained in matter and energy always remains
unchanged. This is the first law of thermodynamics, the law of energy
conservation, as in Einstein’s famous E=MC2.
At first, it might seem that energy could simply be recycled and reused forever. If so, sustainability would be inevitable. However, once energy is used to perform work, before it can be used again, it must be reconcentrated and restored, which inevitably requires energy. The energy used to reconcentrate and restore energy, is simply no longer available to do anything else. It has lost its usefulness; meaning it has lost its ability to perform work.
This is the law of entropy, the second law of thermodynamics; the tendency of all closed systems to tend toward the ultimate degradation of matter and energy; a state of inert uniformity of component elements; an absence of structure, pattern, organization, or differentiation.[1] For example, as a burning log releases heat and radiant energy, its stored energy is depleted and the log turns to ashes; its structure, pattern, and organization are lost as it tends toward entropy. Since the loss of useful energy to entropy is inevitable, it might seem that sustainability is impossible. In fact, life on earth quite simply would not be sustainable without the daily inflow of new solar energy. Sustainability ultimately depends upon the use of solar energy to offset the effects of entropy.
Industrial
approaches to economic development, including industrial agriculture, give no
consideration of the ultimate necessity of using solar energy, the only truly
renewable source of energy to offset the usefulness of energy lost to entropy. The
pursuit of economic efficiency, which drives the process of industrialization,
values only short run, individual self-interests. This narrow focus accounts
for the advantage of industrialization in economic efficiency, but also
accelerates the natural tendency of all closed systems toward dissipation and
depletion of energy – toward entropy. Economic efficiency provides no incentive
for “bottom-line” farmers invest in renewal or regeneration of resources for
the benefit of future generations. Industrial agriculture inevitably
tends toward physical entropy.
The law of entropy applies not
only to physical energy but also to social energy. All human energy is a
product of social energy or social relationships. Humans cannot be born, reach
maturity, and become useful without
the help of other people. People must be educated, trained, civilized, and
socialized before they can become productive members of complex societies. All
organizations – including business organizations, governments, and economies – depend
on the ability of people to work together for a common purpose, which in turn
depend upon the sociability and civility of human societies. Human resources
are the products of healthy personal relationships within families,
friendships, communities, and societies.
Industrialization inevitably
dissipates and disperses social energy because it weakens personal
relationships. Maximum economic efficiency requires that people relate to each
other impartially, which means impersonally; people must be
competitive. When people spend more time and energy working, they have less
time and energy to spend on personal relationships within families and
communities. When people buy things based solely on price rather than buy from
people they know and trust, personal relationships suffer from neglect.
Industrialization devalues personal relationships, disconnects people, and thus
dissipates and disperses social energy. It
is not economically efficient here is no
economic incentive for capitalists to invest in families,
communities, or society for the benefit of future generationsAnd,
it’s typically more profitable to find new people to exploit than to invest in
education and training programs to restore the economic productivity of people.
Markets allocate resources to . “Bottom-line”
Markets
provide no rewardsfarmers see no incentives forfor those who
investinging in long run community or societal
well-being. IndustrialMarket
agriculture inevitably tends toward social
entropy – they are not sustainable.
Economies are simply the means by
which people facilitate their relationships with other people and with their
natural environment in complex societies. There are obviously too many people
in most societies today to barter with each other or to produce their own food,
clothing, and shelter. Economies actually produce
nothing; they simply transform physical energy and social energy into forms
that can be traded or exchanged in impersonal
marketplaces. All economic capital, meaning anything capable of
producing something of economic value, is extracted from stocks of physical or
human energy – meaning from natural or social capital. Once all the
physicalnatural and social energycapital
has been extracted from the land and people, agriculture’s source of economic productivitycapital
will be gone. Industrial agriculture
inevitably tends towardWithout
capital, the economy will lose its ability to produce anything of economic
value; it will have reached a state of economic entropy – it will no
longer be sustainable.
A sustainable agriculture must be fundamentally different from the mechanistic paradigm of industrialization. Sustainable agriculture must be based on the paradigm of living systems. Living things are self-making, self-renewing, reproductive, and regenerative.[2] Living plants have the natural capacity to capture, organize, and store solar energy, both to support other living organisms and to offset the energy that is inevitably lost to entropy. Living things also have a natural propensity to reproduce their species. Humans, for example, devote large amounts of time and energy to raising families, with very little economic incentive to do so. Obviously, an individual life is not sustainable because every living thing eventually dies. But, communities and societies of living individuals clearly have the capacity and natural propensity to be productive while devoting a significant part of their life’s energy to conceiving and nurturing the next generation.
The
productivity and regenerative capacity of all living systems – including
organisms and organizations – depend upon mutually
beneficial relationships, specifically,
upon interdependent relationships among diverse elements within inseparable
wholes. A living system cannot be separated into its individual
components nor can its sequential processes be stopped without destroying the
essence, i.e., the life, of the whole. Spatial and temporal relationships among
the elements of living systems, and the diversity of those elements, make the
whole of life something fundamentally different from a collection of individual
parts. The whole of a living system is something more than its parts, rather than something less, whenever the relationships
among its parts, across space and over time, are interdependent or mutually beneficial.
Since relationships
within healthy living systems must be mutually beneficial, healthy living
relationships must be selective in
nature. For example, all For example, all
living organisms are made up of cells and each living cell is
surrounded by a selective or semi-permeable membrane. These semi-permeable
boundaries keep some things in but let other things out and keep some things
out but let other things in. Living organisms likewise are defined by
boundaries – skin, bark, scales, etc. – that selectively allow different
elements – air, water, food, waste, etc. – to enter and to leave the body of
the organism. If these boundaries were either completely permeable or impermeable,
– if they
let everything in or out or nothing in or out – the organism
would be would be
incapable of life, and thus, incapable of living, producing,
or reproducing. Living organisms depend upon mutually beneficial, selective relationships.
The same
principle holds for all living systems, including farms, families, communities,
and societies. The boundaries which define healthy families, communities, and
societies must be semi-permeable. Thus, relationships within farm families, communities,
and societies must be different from the relationships among families, communities,
and societies. The relationships among elements of healthy organisms and natural
ecosystems are mutually beneficial by nature. However, healthy relationships
among people and between people and nature are matters of choice, not
predetermined, and thus must be consciously and purposefully selective.
Entropy
is characterized by the absence of boundaries: inert uniformity, absent of
form, pattern, or differentiation. Boundaries invariably are destroyed as
energy is released from matter in the process of performing work. Thus, the
natural tendency of all non-living systems
toward entropy is reflected in their tendency toward the dissolution or
destruction of boundaries. This relationship between boundaries and entropy
also is relevant to cultural, political, and economic systems. The dissolution
of cultural differences removes social constraints to economic development. The
dissolution of political boundaries removes legal restraints to economic
industrialization, allowing consolidation of control. The dissolution of
economic boundaries removes restraints to trade and investment, allowing free
access to all natural and human resources. Markets provide powerful incentives to
remove all cultural, political, and economic boundaries.
These
fundamental concepts are readily apparent in the industrialization of American
agriculture. Tremendous gains in productivity and economic efficiency have been
achieved by removing boundaries in agriculture to facilitate industrial
production methods. Farmers have removed field boundaries to create larger
fields, in order to accommodate more specialized, mechanized, larger-scale
systems of production. The diverse crop and livestock enterprises that once characterized
family farms have been abandoned to achieve greater economic efficiency. As
farms grew larger, farmers looked beyond the boundaries of their communities to
purchase inputs and market their products. With no effective economic
boundaries, communities lost their ability to be selective in their
relationships – to protect themselves from outside exploitation. Rural cultures
lost their distinction and rural communities lost their economies. Rural landscapes
have tended toward inert uniformity, without form, pattern, hierarchy, or
differentiation.
Today,
national economic boundaries are being removed to create a single global
marketplace. Nations are being pressured to abandon traditional social and
cultural values, including land stewardship, food equity, and food security, to
achieve global economic efficiency. In a single global free market, no nation
would be able to protect its farmland, its farmers, or its consumers from
exploitation by the multinational corporations that increasingly dominate the
global food system. In a single global market place, food would eventually be
produced in those places of the world where nations were least able to protect
their land and farmers from exploitation and sold to those people of the world
who are willing and able to pay the highest prices. The wealthier nations of
the world would lose the farming sectors of their economics and the poorer
nations would see their lands and their farmers exploited to provide food for
the wealthy. With a single global food market, no nation would have true food
security.
So what is the logical response to this challenge, specifically in terms of public policy for agriculture? First, the people all nations must recognize the legitimate need for government policies to ensure long run food security, regardless of the short run economic consequences. Food security simply cannot be left to the market place. Markets simply do not value the ecological and social resources necessary to sustain the food economy over the long run. The current challenge to global food security is a direct reflection of the unwillingness of governments to challenge the free market philosophy of neoclassical economics. A blind faith in free markets is being used to justify the removal of all ecological, social, and political restraints to economic efficiency. However, none of the conditions necessary for classical economic free markets exists in today’s global economy. True free trade must be selective trade, which takes place across semi-permeable boundaries, where each party is free to choose not to trade. The global “free trade” of today simply facilitates extraction and exploitation of natural and human resources, accelerating the tendency toward entropy. Food security demands that every nation claim its right and accept its responsibility to protect its natural resources and its people from economic exploitation.
Agricultural policy to ensure
food security need not be radical. No one is suggesting a return to individual self-sufficiency
or even community or national self-sufficiency, where farmers meet the entire food
needs of the people of their respective communities or nations. Specialization
and trade have real and important benefits at local, national, and global
levels. Food security simply requires food sovereignty. People must maintain
the freedom to choose when, where,
and from whom they acquire their food. When people lose their freedom to
choose, their food is no longer secure.
Agricultural policy should give people an opportunity to choose between global, industrial food systems and sustainable, local food systems. In order to choose wisely, they must be informed of the ecological and social consequences of their food choices, not simply the dollar and cent costs or even relative safety, quality, and nutrient values of foods. People need to understand that that their food choices have important consequences for the land, for farmers, and for the people employed in food processing and distribution systems. They need to be given a clear choice between the economic efficiency of industrial agriculture and the ecological, social, and economic integrity of sustainable agriculture. Ultimately, the people must choose food security over convenience and price.
The goal
of farm and food policy should be to facilitate a voluntary transition from an
energy using agriculture to an energy renewing agriculture. This necessity for
such policy perhaps is most clear in the prospects for declining supplies of
fossil energy. I realize that Canadians may view their fossil energy prospects
with a bit more optimism than we do in the
The
world has perhaps a fifty-year window of opportunity to make the logical
transition to a fossil-energy free agricultural and food economy. The farm and food system in the
The
logical alternative to the energy-using industrial agriculture is an
energy-renewing sustainable agriculture. The sustainable agriculture movement
in North American has been going on for more than two decades. It emerged
during the 1980s from a merging of concerns about declining profitability,
reliance on agrichemicals, and the viability of rural communities. The sustainable agriculture movement includes
farmers who identify with organic, biodynamic, holistic, bio-intensive,
biological, ecological, and permaculture, as well as many who claim no
identification other than family farmer. These farmers and their customers
share a common commitment to creating an agriculture
that is capable of maintaining its productivity and value to society
indefinitely.
Sustainable
farms must be ecologically sound, socially responsible, and economically
viable. A farm that degrades the productivity of the land or pollutes its
natural environment cannot sustain its productivity. A farm that fails to meet
the needs of a society – not only as consumers, but also as producers and
citizens – cannot be sustained over time by that society. And, a farm that is
not financially viable is not sustainable, no matter how ecologically and
socially sound it may seem to be in the short run. Sustainable agriculture is the only means of
ensuring long run food security.
Sustainable agriculture embraces
the historic principles of organic farming. Sir Albert Howard, a pioneer of
organics, began his book, An Agricultural
Testament, with the assertion, “The maintenance of the fertility of the
soil is the first condition of any permanent system of agriculture.”[4] He
contrasted the permanent agriculture of the Orient with the agricultural
decline that led to the fall of
Rudolph Steiner, the founder of
Biodynamic Farming defined an organic farm as a living system, as an organism,
whose health and productivity depended on healthy relationships among its
ecological, social, economic, and spiritual dimensions. He wrote, “A farm is
healthy only as much as it becomes an organism in itself – an individualized,
diverse ecosystem guided by the farmer, standing in living interaction with the
larger ecological, social, economic, and spiritual realities of which it is
part.”[6] To
Steiner, organic farming was about mutually
beneficial, interdependent relationships within living systems.
Sustainable
farmers rely on green plants to capture and store solar energy and to
regenerate the organic matter and natural productivity of the soil. They use
crop rotations, cover crops, intercropping, managed grazing, and integrated
crop and livestock systems to maintain the fertility of their soils. Sustainable
farmers reflect a sense of ethical and moral commitment to preserve the
productivity of their land – to leave it as good as or better than they found
it. Even though many of today’s industrial
organic producers have adopted large-scale, specialized, standardized
systems, sustainable organic farmers have remained committed
to creating a permanent agriculture capable of supporting a permanent society.
The farm and food policies needed
to facilitate a transition to sustainability would be very different from the
agricultural policies of either the
The
principles guiding international trade policies would be simple and
straightforward. Leaders of nations would refuse to submit to either coercion
or bribery and would feel no obligation to open their national boundaries to outside
exploitation of their natural and human resources. Nations would trade when it
was deemed mutually beneficial to do so, to achieve greater economic security,
but would refuse to participate in trade that threatened ecological or social security.
The World Trade Organization would be redirected to empower every nation with
both its right and its responsibility of protecting its natural
resources and its people from economic exploitation. People within nations
should be allowed to decide the conditions under which they will choose to
trade or choose not to trade – people would have sovereignty.
To sustain productivity of
agricultural land, government farm programs should be
based on the premise that no one has the right to degrade land or the natural
environment. Thus, all farmers should be required to meet environmental
standards that conserve the soil, protect the quality of water and air, and in
general, in order to ensure the integrity of the nation’s natural resource
base. The rights of private property have never included a right to destroy the
productivity of the land or to degrade the natural environment. Accordingly, long
run food security should be given priority over economic development in public
choices concerning farmland in urbanizing areas.
To
ensure the continuing productivity of people, farmers and food system workers
should be given opportunities to lead personally and economically rewarding lives.
This doesn’t mean that everyone who chooses to farm should have a right to do
so, regardless of their aptitudes or abilities. However, those who are willing and
able to farm sustainably should be given an opportunity to do so. To support
such opportunities, government benefits should be limited to individually-owned
and family-operated farms. The objective should be to provide self-employment
opportunities for farmers and others in rural areas, not to subsidize
landowners and corporations. The overall goal should be to keep enough independent
family farmers on the land, who are committed to farming sustainably, to ensure
the long run food security of the nation.
The
same dollars used to support current farm programs in the
Farmers
qualifying for the tax credit might
be given a relative alternative farm tax rate,
possibly 50% of total net farm income compared with 15-20% paid by most farmers
today. Thus, as net farm income increased, the advantage of the tax credit would diminish as the higher tax rate claims a larger share of total income.
At a net farm income of $40,000, for example, the taxes owed (50% of $40,000)
would completely offset the $20,000 tax credit, and thus the farmer would
neither pay anything to nor receive anything from the government. At some
higher level of income, probably between $60,000 and $80,000, it would be
advantageous for the farmer to forego the special farm tax credit and pay the usual
farm tax rate. At this point, however, the sustainable farming or ranching
operation would be sufficiently profitable to ensure its sustainability without
any further government support.
Farmers
and ranchers would be free to own and operate as many acres and to produce as
much as they choose, but the tax credit would be limited to $20,000 for each
full-time, independent farmer. Off-farm income might be added to farm income
for part-time farmers, reducing the benefit of the farm tax credit as more income
is earned off-farm. Production decisions would be made by farmers, not by the
government, and not by the multinational corporations. Farmers who chose not to
participate in the long-run food security program would not be required to have
a sustainability transition plan but still would not be allowed to exploit
their land or to degrade the natural environment.
The tax
credit would facilitate the transition to sustainability by subsidizing
farmer’s incomes during years of crop failures, depressed prices, ill health,
or other economic setbacks during the transition. Over time, farmers would be
required to show progress toward ecological and social sustainability to remain
eligible for the tax credit. They would also have to show progress toward
becoming economically sustainable as well. If, after some specified number of
years, they fail to achieve economic sustainability, they could be helped to
find employment elsewhere, freeing up their farms for a beginning farmer, who would
then be eligible for the food security program.
Food security programs would be the same for all sizes and types of farms. Farm size tends to be a reflection of sustainability, rather than sustainability being a reflection of farm size. Farms are large today because they have followed industrial rather than sustainable farming strategies. As agricultural policies reward sustainability and penalize exploitation farms will become smaller and size and greater in numbers as farms become more sustainable. Sustainable farms of the future will be of a wide range of sizes, depending on the natural resources of specific farming regions and the crops and livestock produced. But sustainable farms will invariably be smaller than their industrial counterparts.
The success of such a transition to food security would depend upon large numbers of consumers ultimately being willing to pay the full cost of sustainable food production and distribution in the marketplace. Government farm and food policies however would need to play a key role in facilitating the transition from government subsidies for food security to food security through the marketplace. First, consumers must be able to identify products in the marketplace that have been produced by domestic farmers using sustainable production methods. Governments could work with sustainable farmers, along with environmental and social justice advocates, to develop uniform national minimum standards for sustainable production.
Consumers must also have assurance of sustainability in processing, distribution, and retailing of sustainably produced foods. Governments can work with independent, domestic processors, distributors, and retailers also to develop minimum national standards for their operations. The government then could accept responsibility for ensuring the integrity of the standards for domestically produced, sustainable foods – labeled, for example, as being “Produced with Canadian Integrity.” Regional and provincial organizations of farmers, processors, and retailers should be encouraged to work together to exceed national standards for social and ecological integrity, by developing products and processes that are uniquely suited to specific geographic locations and cultures – labeled, for example, as “Prince Edward Island FoodTrust.” Local communities should also be encouraged to develop cooperative relationships among local consumers, retailers, processors, and farmers to ensure the sustainability of food production and distribution, forming local community-based food systems.
The objective of such programs would be to encourage as much food as practical to be consumed as near as practical to the places where it is produced, and to ensure that minimum ecological and social standards are met for foods distributed regionally and nationally. In addition, all domestically produced, sustainably produced foods could be clearly distinguished in the marketplace from industrially produced foods of either domestic or international origin. The government should then undertake a nationwide educational campaign to inform domestic consumers of the differences between sustainably and industrially produced foods, not simply in terms of quality, safety, and nutrition, but also in terms of the social and ecological consequences for national food security. Consumers would then have an opportunity to make informed choices that reflect not only their individual economic preferences, but also their ethical and moral commitment to their neighbors, their nation, and to humanity.
Such an approach to farm policy
in
The food security program would use existing
funds to help farmers make the necessary transition from industrial to
sustainable agriculture, encouraging local food systems, reduced reliance on
agro-chemicals, energy conservation, and ultimately, a fossil-energy free agriculture.
It could establish “Green Labels” to brand foods produced in
Perhaps most important, the farm and food policies suggested here would leave the ultimate food security to choices of sovereign consumers in the marketplace, to an informed, truly competitive capitalistic marketplace, functioning within the context of a socially and ethically responsible society. In order for consumers to choose long run food security over short run convenience and costs, they must have clearly defined choices, must have adequate products from which to choose, and must be fully informed of the short and long term consequences of their choices. To make wise choices concerning farm and food policy, taxpayers and consumers must not view government farm and food policy as a collection of special-interest driven programs, but instead as a comprehensive policy serving the common good by ensuring food security.
End Notes:
[i] Prepared for presentation at the Canadian Department of Agriculture and Agri-food (AAFC),
Agricultural and Food Policy Speaker’s Series,
[ii] John
Ikerd is Professor Emeritus,
[1] For additional discussion of entropy, see Ikerd, Sustainable Capitalism, 2005.
[2] For a more in depth discussion of living systems, see Ikerd, Sustainable Capitalism, Chapter 5.
[3] David and Marcia Pimentel, ed., 1996, Food, Energy, and Society, University Press of Colorado, Niwot, CO.
[5] J. I. Rodale. 1948. The Organiculturist's Creed, Chapter 8. The Organic Front. Rodale Press:
[6] Rudolph Steiner.1924. Spiritual Foundations for the Renewal of Agriculture.