Showing posts with label world hunger. Show all posts
Showing posts with label world hunger. Show all posts

Monday, March 4, 2013

Water, Food and Hunger-Feeding Mankind



Today, agriculture uses 11 % of the earth’s land surface about 1,527 million hectares or 3.78 billion acres for crop production. In addition, agriculture uses 70% of all the water withdrawn from aquifers, streams and lakes, but it is not really known what percentage of sustainable water use this represents. Mankind has been unable to fully quantify either groundwater use or renewable water availability.  During the past half century the world’s agricultural production has grown between 2.5 and 3 times while the cultivated land area has grown only by 12%. This feat is often called the agricultural miracle or “Green Revolution” and was accomplished by doubling the areas of land that were irrigated. Fertilization, pesticides, hybrid crops and mechanized agriculture have also contributed to rapid increases in agricultural productivity and yield.

The U.N. forecasts that world population will continue to rise and grow from 7 billion people today to more than 9 billion in 2050. The Food and Agriculture Organization of the United Nations forecasts that in order to adequately feed 9 billion people, a 70 % increase in food production that will have to take place globally by 2050. There are reported to be 923 million people who are inadequately fed today and tremendous loss due to spoilage in the global food supply (30%).  The rate of growth in agricultural food production has been slowing. In developing countries the growth rate is 1.5% half the growth rate of the past, still adequate to meet the projected food need if sustained, but the distribution of land and water resources does not match the forecasted need. According to the U.N. the available cultivated land per capita in low-income countries is less than half that of high-income countries, water resources are less abundant and the suitability that land for agriculture is generally lower.

Both irrigated and rain fed agriculture will have to respond to rising populations, but the key to food security is water and diet. According to the Food and Agriculture Organization of the United Nations doubling of current food production could be derived from already developed land and water resources, but might require a changing world diet especially in the developed world that would need to supply more food to the poorer nations by reducing the amount of animal protein in the developed nations’ diet.  Using “conventional irrigated agriculture” it takes 420 gallons of water to produce one pound of rice; 1,800 gallons of water to produce one pound of beef; and 40 gallons of water to produce a cup of coffee. The dietary shift towards animal protein as nations become richer has increased world water consumption over the past 30 years.

Some land and water resources could be diverted to crop production, but in most cases this shift could have significant negative environmental and economic impacts. Increased water scarcity, loss of biodiversity and environmental services, desertification, expected reduction in water availability and some shift in seasonal flows is forecast to result from climate change in several places. Many rivers that serve as large contiguous irrigation systems in dry areas of the earth run dry from overuse before they reach the oceans.  These, including the Colorado river, Murray-Darling (Australia), Krishna, Indo-Gangetic plains, Northern China, Central Asia, Northern Africa and Middle East are forecast to become more stressed. Groundwater-dependent irrigation systems in interior arid plains: India, China, central USA, Australia, North Africa, Middle East and others are using groundwater beyond their recharge rate. In some regions the groundwater aquifers were created a millennium ago when the earth’s climate was vastly different. In others the aquifer has simply been depleted by unsustainable use with the subsequent loss of buffer role that groundwater aquifers normally play seasonally or in drought years. The U.N. Food and Agricultural Organization already warns that agricultural water already is being allocated to other uses such as municipal supplies, environmental reserves and hydropower generation and removed from irrigation.

There are now proportionately fewer malnourished people in the world than there used to be (though the absolute number, 923 million, is extremely large). An emerging problem is food and diet quality. More calories do not mean better health. Over 87% of world’s population obtains enough calories and a growing portion of the world obtains too many calories, but many suffer nutrient deficiencies, especially in four nutrients: iron, zinc, iodine and vitamin A. In addition, there is growing evidence that over reliance on grains and processes food is having a negative impact on population health. Obesity is spreading from rich countries to less well-off places: Mexico has the second-largest share of obese people after the United States; Guatemala's obesity rate has quadrupled in 30 years yet, a large group of people in these countries suffer from nutritional deficiencies.

According to the National Institute of Health, research studies in the United States and Europe show that celiac disease is significantly more common now than it was a few generations ago. Scientists found that found that in the United States celiac disease is four times more common today than it was 50 years ago. According to Joseph Murray, M.D., professor of medicine at the Mayo Clinic in Rochester, MN, and a researcher into celiac disease the most likely factor is a change involving the quantity and quality of grain in our diets. “Consumption of wheat has increased steadily over the past 50 years, but it still is less than what it was a century ago, so the issue is not simple consumption,”; Dr. Murray noted. “It more likely involves the wheat itself, which has undergone extensive hybridization as a crop and undergoes dramatic changes during processing that involves oxidizers, new methods of yeasting, and other chemical processes. We have no idea what effect these changes may have on the immune system.” This is not a model of agriculture and diet that can hope to feed a robust species.


Thursday, February 28, 2013

The Renewable Fuel Standard, Fraud and Misuse


Last Friday, Rodney R. Hailey, of Perry Hall, Md., was sentenced to 12 years and six months in prison, for selling $9 million in phony renewable fuel credits from his company, Clean Green Fuel, LLC.  Mr. Hailey registered Clean Green Fuel, a company that only existed on paper, with the U.S. Environmental Protection Agency under the Renewable Fuel Standard, RFS, program as a producer of bio-diesel fuel, a motor vehicle fuel derived from waste restaurant grease and diesel fuel. Though he manufactured no fuel, Mr. Hailey sold the fuel credits and pocketed all the money. Mr. Hailey was also ordered to pay restitution of approximately $ 42.2 million to over 20 companies and forfeit the $9.1 million in proceeds from the fraud, including cars, jewelry, his home and bank accounts, which had already been seized by the government. Mr. Hailey shows no signs of having any other money to pay the restitution.

To encourage the production of renewable fuel and lessen the nation’s dependence on foreign oil, oil companies in the U.S. are required to produce a given quantity of renewable fuel or to purchase credits, called renewable identification numbers (RINs) from producers of renewable fuels to satisfy their renewable fuel requirements. The Energy Policy Act of 2005 established the first renewable fuel volume mandate for the United States. The original RFS program required 7.5 billion gallons of renewable fuel (primarily ethanol) to be blended into gasoline by 2012. Under the Energy Independence and Security Act (EISA) of 2007, the RFS program was expanded to include diesel, in addition to gasoline; increase the volume of renewable fuel required to be blended from 9 billion gallons in 2008 to 36 billion gallons by 2022; and established new categories of renewable fuel, and set separate volume requirements for each one.

Between March 2009 and December 2010, Mr. Hailey engaged in a fraud scheme, selling over 35 million RINs (representing 23 million gallons of bio-diesel fuel) to brokers and oil companies, when in fact Clean Green Fuel had produced no fuel at all and Mr. Hailey did not even have a facility capable of producing bio-diesel fuel. Apparently, there was no requirement to verify production of renewable fuel to register the facility. Federal law enforcement agents investigated the scheme after a tip about the large number of luxury cars parked in front of Hailey’s house. Hailey took in more than $9.1 million from selling the false RINs and used the money to purchase an extraordinary number of fancy cars, including BMWs, Mercedes Benz, a Rolls Royce Phantom, a Lamborghini, Ferrari, Maserati and others, as well as real estate and more than $80,000 in diamond jewelry.

The traders and major energy companies who purchased Hailey’s false RINs are reported to have lost more than $40 million, but the loss also extends to small bio-diesel companies, who had real costs of production and, as a result of Hailey’s scheme, were unable to sell their RINs to recoup any of their real costs and were forced out of business.  “When invalid renewable fuel credits are ‘produced’ and sold, it undermines the integrity of an important program designed by Congress to reduce the nation’s dependence on foreign oil and to grow the nation’s renewable energy industry,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance.

Verification of securities is not a new problem, but how EPA chose to operate this market left it open to this kind of fraud. After this fraud came to light, EPA proposed a voluntary quality assurance program to verify that RINs generated under the RFS program have been validly generated. EPA hopes that this will make the RFS program more efficient and effective.  This blatant fraud is unlikely to be the only unintended consequence of the RFS program and how EPA chose register producers of renewable fuel and have RINs generated. The environmental attributes and the federal government created markets may be the wrong tool for achieving their stated environmental or energy independence goals.

While changes the EPA proposes may remedy some of the problems with the sale and marketing of RINs, putting ethanol into gasoline and vegetable oil into diesel is neither cost effective nor does it make the environment a cleaner. Its impact on the U.S. less dependence on foreign oil was never measured. The energy expended in growing and processing the corn or collecting and processing the vegetable oil is an environmental cost that is hidden by various subsidies.  

The RFS is not only subject to fraud (the cheapest RIN is always the fraudulent one), but the RFS’ demand for Biofuels has the ability to change the demand and price of food. The RFS diverts half of the U.S. corn crop into fuel leading to diminished supplies for livestock and food. The RFS determines the crop mix in the U.S. by distorting price and still we might end up importing corn to feed our nation either directly or feed livestock while we pay to convert corn into subsidized ethanol. In 2011, approximately 40% of the corn crop was used for making ethanol to meet the RFS; in 2012 it looks like it will take almost 50% of the corn crop, or 5.05 billion bushels. The USDA has estimated total corn production for 2012 at 10.7 billion bushels, down 13% from 2011. This was the lowest U.S. production of corn since 2006 yet the RFS demand continues to grow.