Underwater, in the Field, and in Our Homes Crops, Climate and Consumers
Climate change presents real threats to U.S. agricultural production, forest resources, and rural economies. The Council on Food, Agriculture and Resource Economics brings you this webinar titled, “Underwater, in the Field, and in Our Homes: Crops, Climate and Consumers.” Our panel of experts from fields across agriculture and resource economics will present three evidence-based talks that cover the food system value chain from production agriculture to consumption as it relates to USDA’s commitments to climate adaptation, resilience, and mitigation.
Kelly Maguire, USDA Economic Research Service
ERS Research & Data Priorities for Climate and Food Systems
The Department of Agriculture, particularly the Economic Research Service (ERS), is actively involved in addressing the climate agenda through their research initiatives. The ERS conducts high-quality and objective research to anticipate trends and emerging issues in agriculture, food, the environment, and rural America. Their research informs both public and private decision-making, without making policy recommendations. As a principal federal statistical agency, ERS collaborates closely with the National Agricultural Statistical Service (NASS) for data collection and analysis. Together, our work aims to provide timely and relevant information for informed decision-making within the agricultural sector.
The agricultural sector plays a significant role in greenhouse gas emissions, accounting for over 11% of total emissions in 2020. However, agriculture also holds great potential for reducing emissions and promoting carbon sequestration. The Department of Agriculture's approach to addressing climate change involves leveraging existing programs and fostering new partnerships. Their priorities include developing metrics for measuring progress, building a climate-informed workforce, promoting equity and environmental justice, and adopting a comprehensive and voluntary approach to ensure accessibility and fairness. The Department is expanding investments in Climate Smart Agriculture, which encompasses various programs, partnerships, and private market offsets to drive climate reductions in the agricultural sector. The ERS has recently released new data products related to irrigation infrastructure and poverty area measures, contributing to informed decision-making and equity considerations in climate change initiatives.
Madhu Khanna, University of Illinois, Urbana-Champaign
Economics of Decarbonization through Climate-Smart Agriculture
The economics of decarbonization through climate smart agriculture is a topic of interest when it comes to achieving environmental goals. Carbon sequestration in soil through improved production practices offers a promising way to absorb carbon dioxide from the atmosphere. Practices like planting cover crops during winter months and reducing soil tillage can increase carbon sequestration. Another potential approach is growing perennial energy crops that sequester significant amounts of carbon and can be used for bioenergy production. Despite the benefits, adoption rates for climate smart practices, particularly cover crops, remain relatively low due to barriers like high costs, labor requirements, and a lack of markets. Incentives such as voluntary private markets, government conservation programs, and premium payments for climate smart commodities can help promote adoption, but challenges like measuring carbon sequestration, ensuring additionality, and developing long-term financial support still need to be addressed.
The adoption of climate smart practices in agriculture has the potential to contribute significantly to carbon sequestration and decarbonization efforts. However, there are barriers hindering widespread adoption, such as high costs, labor requirements, and a lack of markets for climate smart commodities. Incentives through voluntary private markets, government programs, and premium payments can encourage farmers to adopt these practices. It is crucial to design effective incentives that directly pay for carbon sequestration and consider factors like additionality, long-term contracts, and upfront costs. Currently, the market price for soil carbon is relatively low, and more substantial incentives are needed to unlock the full potential of soil carbon sequestration. Overcoming measurement challenges, ensuring sustained financial support, and developing differentiated supply chains are essential for realizing the benefits of climate smart agriculture and achieving decarbonization goals.
Gal Hochman, Rutgers University
Farming the Blue: From Food Supply Chains to Climate Change
Seafood consumption is a crucial part of the diets of 3 billion people worldwide, providing essential protein and nutrition. Overfishing is a significant concern, with 33% of wild fish populations overexploited and 60% at maximum capacity. To address this, the fishing industry has turned to aquaculture, with approximately 50% of seafood now coming from fish farming. Aquaculture, valued at around $204 billion, is projected to reach $262 billion by 2026. Asia leads in terms of employment and production.
Aquaculture involves both marine and inland farming, using advanced technologies to grow fish in more densely populated environments. Micro and macroalgae play a crucial role in various industries, such as food additives, pharmaceuticals, cosmetics, and animal feed. The industry is exploring the development of raw materials for processing and the establishment of bio-refineries. Shifting producer and consumer preferences towards sustainable and plant-based alternatives are driving the demand for algae as a source of protein and fatty acids.
Technological innovation is vital for aquaculture's development. Collaboration between academia and industry has led to significant advancements, such as the production of valuable compounds like Betaine. Aquaculture has the potential to meet the growing seafood demand while minimizing environmental impact. With further research and sustainable practices, it can play a crucial role in providing nutritious food, addressing climate change, and promoting economic growth.
Tyler Mark, University of Kentucky
Could Hemp Play a Role?
Hemp, though just one tool in the toolbox, shows promise in various sectors. The CBD market dominated the industry from 2017 to 2019, but since then, the number of acres dedicated to CBD production has declined rapidly. However, there has been a shift back to the grain and fiber sectors, aligning with the original intent of the 2014 farm bill. The Upper Plains, particularly Montana and the Dakotas, have seen significant development in hemp production due to favorable genetics and infrastructure. These emerging pockets have generated high economic impact, stimulating local purchasing and infrastructure development.
In addition to the grain and fiber sectors, hemp holds potential in the livestock and aquaculture industries. Researchers are exploring hemp's role in animal feed, such as in the poultry, beef, and dairy sectors. Regulatory hurdles have hindered progress, but efforts are underway to address them in the next farm bill. In the aquaculture space, hemp is being studied as a safe and economically viable ingredient in fish food, with potential impacts on fish diets and meat composition. The focus is also on expanding domestic markets for hemp in trout production. Hemp's unique characteristics, such as its ability to sequester carbon and its use in construction materials and plastics, are attracting consumers looking for climate-smart alternatives. However, consumer confusion between hemp and marijuana persists, highlighting the need for education and clarifying regulations.
The hemp industry continues to show an upward trend in grain and fiber production. Supply materials and infrastructure development play crucial roles in the industry's growth. Regulation, particularly regarding the percentage of THC allowed in hemp products, remains a significant factor affecting engagement and market confusion. Consumer education and advertising efforts are necessary to dispel negative perceptions and catch consumers' attention. Increasing regulations, especially concerning components like Delta-8, also impact the hemp landscape. Despite challenges, ongoing research and data collection, supported by funding from agencies like the USDA, contribute to understanding and navigating this evolving industry.
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.