24
May 13

Can Urban Agriculture Help with Food Security?

Sometimes, but even in those cases, it’s not for the reason most people usually invoke:

Urban agriculture may have an important role to play in addressing food insecurity problems, which are bound to become increasingly vital with the secular trends towards the urbanization of poverty and of population in developing countries. Our understanding of the importance, and food security implications of urban agriculture is however plagued by a lack of high quality, reliable data. While studies based on survey research data do exists for several major cities, much of the evidence is still qualitative if not anecdotal. Using a recently created data set bringing together comparable, nationally representative household survey data for 15 developing or transition countries, this paper analyzes in a comparative international perspective the importance of urban agriculture for the urban poor and food insecure. On the one hand, the potential for urban agriculture to play a substantial role in urban poverty and food insecurity reduction should not be overemphasized, as its share in income and overall agricultural production is often quite limited. On the other hand, though, its role should also not be too easily dismissed, particularly in much of Africa agriculture provides a substantial share of income for the urban poor, and for those groups of households for whom it constitutes an important source of livelihood. We also find fairly consistent evidence of a statistical association between engagement in urban agriculture and dietary adequacy indicators.

In other words, though those who engage in urban agriculture are better off from it, urban agriculture itself does not look like it can ensure food security. From a new working paper by the University of Rome Tor Vergata’s Sylvester Jatta.


20
May 13

Managing Basis Risk with Multiscale Index Insurance

That’s the title of my article with Ghada Elabed, Michael Carter, and Catherine Guirkinger, which was just published online in Agricultural Economics. Here is the abstract:

Agricultural index insurance indemnifies a farmer against losses based on an index that is correlated with, but not identical to, her or his individual outcomes. In practice, the level of correlation may be modest, exposing insured farmers to residual, basis risk. In this article, we study the impact of basis risk on the demand for index insurance under risk and compound risk aversion. We simulate the impact of basis risk on the demand for index insurance by Malian cotton farmers using data from field experiments that reveal the distributions of risk and compound risk aversion. The analysis shows that compound risk aversion depresses demand for a conventional index insurance contract some 13 percentage points below what would be predicted based on risk aversion alone. We then analyze an innovative multiscale index insurance contract that reduces basis risk relative to conventional, single-scale index insurance contract. Simulations indicate that demand for this multiscale contract would be some 40% higher than the demand for an equivalently priced conventional contract in the population of Malian cotton farmers. Finally, we report and discuss the actual uptake of a multiscale contract introduced in Mali.

The article discusses the index insurance contract my coauthors and I have developed for and sold to cotton producer cooperatives in southern Mali. The rest of this post is more technical, as it goes into the details of the two contributions I’ve highlighted above. Continue reading →


15
May 13

Yes to Land Rights, but Land Titles Are No Silver Bullet

Some economists argue that ensuring people have titles to their land can ensure a feeling of security and boost production. … The greatest proponent of the argument is Hernando de Soto, a development economist who has managed to win praise from the likes of Bill Clinton and the libertarian Cato Institute.

There is plenty of evidence that land rights are connected to productivity, but new research out of Madagascar shows that it is not always the case.

Duke University researcher Marc F. Bellemare tested whether the land rights component of a $100 million Millennium Challenge Corporation (MCC) compact with the government of Madagascar. He found that the provision of formal land rights, meaning land titles, had not measurable impact on productivity when comparing farmers that did and did not benefit from the MCC compact.

Holding a land title is not sufficient if structures are not in place to enforce land ownership and dole it out.

From a very nice article by Tom Murphy on Humanosphere, which discusses the policy implications of my forthcoming Land Economics article on land rights in Madagascar. Continue reading →


14
May 13

Getting Food Aid Right

How many of us read a story of disaster striking people half a world away and respond by getting out our checkbooks?  Tens of millions of us in any given year, and Americans are especially generous. Relief agencies received more than $1.2 billion in the wake of the disastrous 2010 earthquake in Haiti and $3.9 billion following the 2004 Indian Ocean tsunami.  But is anyone foolish enough to go to the local grocery store, buy food and ship it to communities devastated by disaster? Of course not. That would cost much more, take too long to reach people in need, risk spoilage in transit, and likely not provide what is most needed.

Yet with only minor oversimplification, this is precisely what our government’s food aid programs have done since 1954. Our main international food aid programs are authorized through the Farm Bill and must purchase food in, and ship it from, the United States. This system was originally designed to dispose of surpluses the government acquired under farm price support programs that ended decades ago.  These antiquated rules continue today thanks to political inertia in Washington.

As a result, only 40 cents of each taxpayer dollar spent on international food aid actually buys the commodities hungry people eat; the rest goes to shipping and administrative costs. And the median time to deliver emergency food aid is nearly five months. We can do better.

From a longer piece by my friend and frequent coauthor Chris Barrett on CNN’s Global Public Square blog. Chris is also the author with Dan Maxwell of what is without a doubt the best book anyone can read on food aid.


03
May 13

Organic Is Not the Most Environmentally Friendly Way to Farm

 Contrary to widespread consumer belief, organic farming is not the best way to farm from an environmental point of view. The guiding principle of organic is to rely exclusively on natural inputs.  That was decided early in the 20th century, decades before before the scientific disciplines of toxicology, environmental studies and climate science emerged to inform our understanding of how farming practices impact the environment.  As both farming and science have progressed, there are now several cutting edge agricultural practices which are good for the environment, but difficult or impossible for organic farmers to implement within the constraints of their pre-scientific rules.

From a fascinating post by plant pathologist S.D. Savage, in which he gives six reasons why organic agriculture is not the most environmentally friendly way to farm.

People interested in food policy (PPS590 students, even though your term paper is due tonight, this means you) should read Savage’s post in full, but if you are in a hurry, here are those six reasons: Continue reading →