C-FARE and AAEA: A Collaboration that Enhances our Value to Policy Makers
The Council on Food, Agricultural & Resource Economics (C-FARE) is to translate knowledge generated by agricultural and applied economics professionals into educational programming directed to policy-makers, Congressional staff, stakeholders, and leaders in the federal administration. The Agricultural and Applied Economics Association (AAEA) is a partner in our work. In the July webinar we communicate about some of the topics that will be showcased at the AAEA annual meetings in New Orleans July 28-30, 2024. The current AAEA president provides an overview of the expertise of the membership, we hear about climate change impacts on agriculture from a distinguished fellow, and two AAEA members discuss highlights of a session on food waste, and a workshop on food prices.
Rodolfo M. Nayga, Jr. - The AAEA Meetings and their Relevance to C-FARE's Mission
Rodolfo M. Nayga, Jr. provides an overview of the upcoming 2024 AAEA annual meeting, set to take place from July 28th to 30th in New Orleans. The conference is expected to attract 1,200 to 1,300 attendees and will feature a variety of sessions focused on public policy. These include nine pre- and post-conference workshops, two luncheon sessions, four plenary sessions, six invited paper sessions, one invited case study paper, 78 track sessions, 15 organized symposia, and 75 selected paper presentations and lightning sessions. Additionally, the AAEA board is supporting two virtual-only sessions per section, to be held either before or after the main meeting dates.
The conference will also include key plenary sessions with notable speakers such as Aaron Clauset from the University of Colorado, Tim Beatty from UC Davis, Bruce McCarl from Texas A&M University, and Kathleen Wolfram from MIT. These sessions will cover topics like faculty hiring networks, the role of people in agricultural economics, climate change adaptation and mitigation, and the future of U.S. climate and energy policy. Furthermore, the meeting will feature an undergraduate recruitment fair, an employment center, committee and journal meetings, section business meetings, and events to honor the 2024 class of fellows, including distinguished individuals from various universities. Nayga encourages widespread participation in this comprehensive and engaging event.
Bruce McCarl – Climage Change – What Do We Do About It? Economic Issues in Considering Agricultural Adaptation and Mitigation
Bruce McCarl provided an insightful preview of his upcoming address at the AAEA meetings, focusing on climate change and agriculture. He highlighted the dual approach needed to tackle climate change: adaptation and mitigation. Adaptation involves actions to lessen climate damage without changing the climate, while mitigation focuses on reducing emissions of greenhouse gases like carbon dioxide, methane, and nitrous oxide to lessen the future extent of climate change. McCarl emphasized that climate change will significantly impact agriculture over the next 25 years, requiring innovative management strategies and investments in research, extension, and risk management. He illustrated this with examples of shifting crop patterns, such as corn moving into the Dakotas and Nebraska, and the changing prominence of hay in different regions.
McCarl also discussed the potential of agriculture to reduce emissions and serve as a bridge to a lower-emission future. He noted the significant contribution of agriculture to global emissions, making it a key target for reduction efforts. The Inflation Reduction Act, for instance, incentivizes agriculture to cut emissions and increase carbon storage. Additionally, agriculture can produce lower-emission goods, host renewable energy sources, and manage reflective land surfaces. McCarl stressed the importance of studying the economics of various adaptation and mitigation strategies to develop an optimal mix and ensure cost-effective implementation. His detailed analysis and recommendations underscore the crucial role of agriculture in addressing climate change and the need for coordinated efforts to maintain and enhance productivity in the sector.
Carola Grebitus – Strategies for Reducing Food Waste: The Case of Imperfect Produce
Carola Grebitus presented strategies for reducing food waste, particularly focusing on the potential of imperfect produce. She highlighted that 30-40% of food available to consumers in the U.S. is wasted annually, with fruits and vegetables having a higher waste rate of 40-50%. The strict aesthetic standards imposed by retailers contribute significantly to this waste. Companies like Misfits Market, Hungry Harvest, and Too Good To Go offer partial solutions by promoting imperfect produce. Grebitus’s research, sponsored by USDA NIFA, aims to explore barriers and opportunities for imperfect produce along the fresh produce value chain through in-depth interviews, industry surveys and consumer surveys.
The research includes qualitative interviews with stakeholders such as growers, processors, distributors, and retailers, and quantitative industry and consumer surveys. Preliminary results show a significant difference in willingness to pay (WTP) for perfect and imperfect apples, with a WTP of 92 cents per pound for imperfect apples compared to $2.34 for perfect apples. Interestingly, WTP for imperfect processed products is higher than for fresh imperfect products. The research also examined the impact of providing information about the benefits of consuming imperfect produce, though initial findings suggest this information had minimal effect on consumer preferences. Grebitus invites those interested to attend a session on food waste strategies at the AAEA meetings on July 29th.
Lauren Chenarides – AAEA 2024 New Orleans Pre- and Post-Conference Highlights
Lauren Chenarides presented information about an upcoming two-day post-conference workshop sponsored by the Economic Research Service (ERS) on food prices and forecasting. The workshop aims to gather economists to discuss recent research on food prices and advancements in forecasting methodologies. Chenarides highlighted the importance of understanding food price trends, as illustrated by a graph showing the percent change in the Consumer Price Index (CPI) from 2014 to 2024. The graph indicates that food away from home prices have consistently risen above overall CPI, while grocery prices have also steeply increased since 2021. This divergence suggests significant macro and microeconomic implications, prompting the ERS to analyze the drivers behind these trends through their Food Price Outlook, a crucial data set used by government agencies, industry professionals, and academics for policy planning and economic analysis.
Chenarides explained that the ERS has sponsored various research projects to understand market price dynamics, such as the impacts of supply chain disruptions on food markets and economic drivers behind food price inflation. The workshop, organized in collaboration with AAEA, will bring together a diverse audience including agricultural economists, government officials, and industry leaders. Featuring around 30 presenters from ERS, the Federal Reserve, data organizations, and academic institutions, the workshop will facilitate discussions on policy-making, food security, and economic planning. Additionally, a call for papers for a special journal issue will be announced, aiming to publish six to eight papers from workshop participants. Chenarides emphasized the value of the AAEA and ERS partnership in creating impactful workshops and encouraged attendees to engage in networking opportunities and discussions relevant to the current economic climate.
This program is supported in part by the Agricultural and Applied Economics Association and the US Department of Agriculture’s Economic Research Service, and the National Agricultural Statistics Service.
Those who register but cannot attend our webinar can always view a recording of it later at the council’s YouTube channel.