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To predict how agriculture will be affected by future climate change, scientists often rely on a single crop model – a computer simulation of how a specific crop’s yield responds to temperature changes. By combining 30 such models into a single study, and comparing each model against data from existing experimental wheat fields around the world, a team of researchers including Stanford professor David Lobell have developed a more powerful and accurate way to predict future wheat yields.

In a new analysis published in Nature Climate Change, the team’s results support previous work suggesting that wheat yields around the world are sensitive to rising temperatures. Using the new method of analysis, the team estimates an average six percent future yield loss for every one degree Celsius rise in global mean temperature.

“Combining 30 models gives us a much greater ability to predict future impacts and understand past impacts,” said Lobell. “This is a clear step forward.”

Lobell is professor of environmental earth system science in the School of Earth Science at Stanford and the deputy director of the Center on Food Security and the Environment. He is a senior fellow at the Stanford Woods Institute for the Environment and at the Freeman Spogli Institute for International Studies.

The estimated six percent yield loss for every degree increase is equivalent to about a quarter of the current volume of wheat traded globally in 2013. Yields at some sites, notably those in Mexico, Brazil, India and Sudan, show simulated wheat yield losses of more than 20 percent - in Sudan’s case, more than 50 percent - under a scenario in which global mean temperature rises by two degrees Celsius.

With higher temperatures also comes an increase in the variability of wheat yields, both by location and between years. More fluctuation in wheat yields could mean greater global price volatility for the staple crop.

Approximately 70 percent of the wheat produced today is grown either on irrigated plots or in rainy regions. The research team accounted for this factor by focusing its simulations on multiple regional-specific varieties of wheat that are commonly grown under these conditions.

The new paper includes several suggestions for avoiding some of the predicted yield losses. For example, some varieties of wheat are more heat tolerant than others, and farmers in the places hardest hit by rising temperatures could switch varieties to capitalize on this heat resistance. The effects of rising temperatures could also be managed, in part, by adjusting sowing and harvesting dates, or changing the way fertilizers are applied to crops.

 

Contact: David Lobell, dlobell@stanford.edu

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If we are to feed by 2050 a growing population that is increasingly adopting western style diets we will  have to intensify food production - producing more but on the same amount or less of land and with the same  amount or less of water. Moreover this has to be done in a sustainable manner, i.e. with much lower environmental impact and greater resilience. We can do this with ecological approaches, genetic approaches and socio-economic approaches. Each has its pros and cons.

Sir Gordon Conway is a Professor of International Development at Imperial College, London and Director of Agriculture for Impact, a grant funded by the Bill & Melinda Gates Foundation, which focuses on European support of agricultural development in Africa.

From 2005-2009 he was Chief Scientific Adviser to the Department for International Development. Previously he was President of The Rockefeller Foundation and Vice-Chancellor of the University of Sussex. 

He was educated at the Universities of Wales (Bangor), Cambridge, West Indies (Trinidad) and California (Davis).  His discipline is agricultural ecology.  In the early 1960's, working in Sabah, North Borneo, he became one of the pioneers of sustainable agriculture.

He was elected a Fellow of the Royal Society in 2004 and an Honorary Fellow of the Royal Academy of Engineering in 2007. He was made a Knight Commander of the Order of Saint Michael and Saint George in 2005.  He was recently President of the Royal Geographical Society.

He has authored The Doubly Green Revolution: Food for all in the 21st century (Penguin and University Press, Cornell) and co-authored Science and Innovation for Development (UK Collaborative on Development Sciences (UKCDS)).  His most recent book One Billion Hungry: Can we Feed the World? was published in October 2012. 

Can Sustainable Intensification Feed the World?
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Senior Fellow, Stanford Woods Institute and Freeman Spogli Institute for International Studies
William Wrigley Professor of Earth System Science
Senior Fellow and Founding Director, Center on Food Security and the Environment
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Rosamond Naylor is the William Wrigley Professor in Earth System Science, a Senior Fellow at Stanford Woods Institute and the Freeman Spogli Institute for International Studies, the founding Director at the Center on Food Security and the Environment, and Professor of Economics (by courtesy) at Stanford University. She received her B.A. in Economics and Environmental Studies from the University of Colorado, her M.Sc. in Economics from the London School of Economics, and her Ph.D. in applied economics from Stanford University. Her research focuses on policies and practices to improve global food security and protect the environment on land and at sea. She works with her students in many locations around the world. She has been involved in many field-level research projects around the world and has published widely on issues related to intensive crop production, aquaculture and livestock systems, biofuels, climate change, food price volatility, and food policy analysis. In addition to her many peer-reviewed papers, Naylor has published two books on her work: The Evolving Sphere of Food Security (Naylor, ed., 2014), and The Tropical Oil Crops Revolution: Food, Farmers, Fuels, and Forests (Byerlee, Falcon, and Naylor, 2017).

She is a Fellow of the Ecological Society of America, a Pew Marine Fellow, a Leopold Leadership Fellow, a Fellow of the Beijer Institute for Ecological Economics, a member of Sigma Xi, and the co-Chair of the Blue Food Assessment. Naylor serves as the President of the Board of Directors for Aspen Global Change Institute, is a member of the Scientific Advisory Committee for Oceana and is a member of the Forest Advisory Panel for Cargill. At Stanford, Naylor teaches courses on the World Food Economy, Human-Environment Interactions, and Food and Security. 

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David Lobell is the Benjamin M. Page Professor at Stanford University in the Department of Earth System Science and the Gloria and Richard Kushel Director of the Center on Food Security and the Environment. He is also the William Wrigley Senior Fellow at the Stanford Woods Institute for the Environment, and a senior fellow at the Freeman Spogli Institute for International Studies (FSI) and the Stanford Institute for Economic Policy and Research (SIEPR).

Lobell's research focuses on agriculture and food security, specifically on generating and using unique datasets to study rural areas throughout the world. His early research focused on climate change risks and adaptations in cropping systems, and he served on the Intergovernmental Panel on Climate Change (IPCC) Fifth Assessment Report as lead author for the food chapter and core writing team member for the Summary for Policymakers. More recent work has developed new techniques to measure progress on sustainable development goals and study the impacts of climate-smart practices in agriculture. His work has been recognized with various awards, including the Macelwane Medal from the American Geophysical Union (2010), a Macarthur Fellowship (2013), the National Academy of Sciences Prize in Food and Agriculture Sciences (2022) and election to the National Academy of Sciences (2023).

Prior to his Stanford appointment, Lobell was a Lawrence Post-doctoral Fellow at Lawrence Livermore National Laboratory. He holds a PhD in Geological and Environmental Sciences from Stanford University and a Sc.B. in Applied Mathematics from Brown University.

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Rosamond (Roz) Naylor has been named the first holder of the new William Wrigley Professorship in the School of Earth Sciences. Since 2006 Naylor has directed the Center on Food Security and the Environment, within the Freeman Spogli Institute for International Studies and the Stanford Woods Institute for the Environment. She is also associate professor, by courtesy, of Economics at Stanford.

"Professorships are the best way to recognize faculty for their superior leadership and commitment to research, teaching, service to the university and service to humanity," said Pamela Matson, dean of the School of Earth Sciences at Stanford. "Roz epitomizes these qualities - she is incredibly fitting as the inaugural holder of the William Wrigley Professorship."

Walter Falcon, professor (emeritus) of economics at Stanford and a longtime research collaborator of Naylor's, added: “All of Roz’s colleagues are delighted at her selection. She has long been a thought leader on food security issues, she has limitless energy, and she has an extraordinary capacity for bringing scholars together at Stanford and beyond.”

The new William Wrigley Professorship is supported by Mrs. Julie Ann Wrigley, AB '71 (Anthropology) and Ms. Alison Wrigley Rusack, AB '80 (Communication).

Naylor's research focuses on economic and biophysical dimensions of food security, and the environmental impacts of crop and animal production.  She has been involved in many field-level research projects around the world and has published widely on issues related to intensive crop productionaquaculture and livestock systemsbiofuelsclimate changefood price volatility, and food policy analysis. At Stanford, Naylor teaches courses on the World Food Economy, Human-Environment Interactions, and Sustainable Agriculture. 

Naylor currently serves on the Scientific Advisory Board for the Beijer Institute in Stockholm, is a Science Advisor for United Nation’s Secretary General Ban Ki-Moon’s initiative on Sustainable Development (Sustainable Agriculture section), and trustee of The Nature Conservancy California Chapter. Additionally, she serves on the editorial board of the journals Global Food Security and Journal on Food Security. Naylor received her B.A. in Economics and Environmental Studies from the University of Colorado, her M.Sc. in Economics from the London School of Economics, and her Ph.D. in applied economics from Stanford University. 

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The project is supported under the NSF Science, Engineering and Education for Sustainability Fellows (SEES Fellows) program, with the goal of helping to enable discoveries needed to inform actions that lead to environmental, energy and societal sustainability while creating the necessary workforce to address these challenges. Sustainability science is an emerging field that addresses the challenges of meeting human needs without harm to the environment, and without sacrificing the ability of future generations to meet their needs.

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This study identifies the factors associated with smallholder farm households that have risen out of poverty or descended into poverty between 1997 and 2007 in Kenya. The study uses data from a nationwide balanced panel of 1,275 households and data from detailed retrospective ‘life history’ survey of 84 households that had experienced either an appreciable improvement or decline in their asset wealth over the 10-year panel period. The results indicate that household welfare dynamics are associated with a disparate set of idiosyncratic and unexpected shocks, such as death and chronic illness, demographic factors, proximity to infrastructural facilities, as well as intergenerational wealth transfers.

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In a recent speech, Stanford professor Rosamond Naylor examined the wide range of challenges contributing to global food insecurity, which Naylor defined as a lack of plentiful, nutritious and affordable food. Naylor's lecture, titled "Feeding the World in the 21st Century," was part of the quarterly Earth Matters series sponsored by Stanford Continuing Studies and the Stanford School of Earth Sciences. Naylor, a professor of Environmental Earth System Science and director of the Center on Food Security and the Environment at Stanford, is also a professor (by courtesy) of Economics, and the William Wrigley Senior Fellow at the Freeman Spogli Institute for International Studies and the Stanford Woods Institute for the Environment.

"One billion people go to bed day in and day out with chronic hunger," said Naylor. The problem of food insecurity, she explained, goes far beyond food supply. "We produce enough calories, just with cereal crops alone, to feed everyone on the planet," she said. Rather, food insecurity arises from a complex and interactive set of factors including poverty, malnutrition, disease, conflict, poor governance and volatile prices. Food supply depends on limited natural resources including water and energy, and food accessibility depends on government policies about land rights, biofuels, and food subsidies. Often, said Naylor, food policies in one country can impact food security in other parts of the world. Solutions to global hunger must account for this complexity, and for the "evolving" nature of food security.

As an example of this evolution, Naylor pointed to the success of China and India in reducing hunger rates from 70 percent to 15 percent within a single generation. Economic growth was key, as was the "Green Revolution," a series of advances in plant breeding, irrigation and agricultural technology that led to a doubling of global cereal crop production between 1970 and 2010. But Naylor warned that the success of the Green Revolution can lead to complacency about present-day food security challenges. China, for example, sharply reduced hunger as it underwent rapid economic growth, but now faces what Naylor described as a "second food security challenge" of micronutrient deficiency. Anemia, which is caused by a lack of dietary iron and which Naylor said is common in many rural areas of China, can permanently damage children's cognitive development and school performance, and eventually impede a country’s economic growth.

Hunger knows no boundaries

Although hunger is more prevalent in the developing world, food insecurity knows no geographic boundaries, said Naylor. Every country, including wealthy economies like the United States, struggles with problems of food availability, access, and nutrition. "Rather than think of this as 'their problem' that we don't need to deal with, really it's our problem too," Naylor said.

She pointed out that one in five children in the United States is chronically hungry, and 50 million Americans receive government food assistance. Many more millions go to soup kitchens every night, she added. "We are in a precarious position with our own food security, with big implications for public health and educational attainment," Naylor said. A major paradox of the United States' food security challenge is that hunger increasingly coexists with obesity. For the poorest Americans, cheap food offers abundant calories but low nutritional value. To improve the health and food security of millions of Americans, "linking policy in a way that can enhance the incomes of the poorest is really important, and it's the hard part,” she said.” It's not easy to fix the inequality issue."

Success stories

When asked whether there were any "easy" decisions that the global community can agree to, Naylor responded, "What we need to do for a lot of these issues is pretty clear, but how we get after it is not always agreed upon." She added, "But I think we've seen quite a few success stories," including the growing research on climate resilient crops, new scientific tools such as plant genetics, improved modeling techniques for water and irrigation systems, and better knowledge about how to use fertilizer more efficiently. She also said that the growing body of agriculture-focused climate research was encouraging, and that Stanford is a leader on this front.

Naylor is the editor and co-author of The Evolving Sphere of Food Security, a new book from Oxford University Press. The book features a team of 19 faculty authors from 5 Stanford schools including Earth science, economics, law, engineering, medicine, political science, international relations, and biology. The all-Stanford lineup was intentional, Naylor said, because the university is committed to interdisciplinary research that addresses complex global issues like food security, and because "agriculture is incredibly dominated by policy, and Stanford has a long history of dealing with some of these policy elements. This is the glue that enables us to answer really challenging questions." 

 

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The Europe Center Graduate Student Grant Competition

Call for Proposals:

The Europe Center is pleased to announce the Fall 2014 Graduate Student Grant Competition for graduate and professional students at Stanford whose research or work focuses on Europe. Funds are available for Ph.D. candidates from across a wide range of disciplines in the humanities and social sciences to prepare for dissertation research and to conduct research on approved dissertation projects. The Europe Center also supports early graduate students who wish to determine the feasibility of a dissertation topic or acquire training relevant for that topic. Moreover, funds are available for professional students whose interests focus on some aspect of European politics, economics, history, or culture; the latter may be used to support an internship or a research project. Grants range from $500 to $5000.

Additional information about the grants, as well as the online application form, can be found here.  The deadline for this Fall’s competition is Friday, October 17th. Recipients will be notified by November 7th. A second competition is scheduled for Spring 2015.
 

Highlights from 2013-2014:

In the 2013-2014 academic year, the Center awarded grants to 26 graduate students in departments ranging from Linguistics to Political Science to Anthropology. We would like to introduce you to some of the students that we support and the projects on which they are working. Our featured students this month are Michela Giorcelli (Economics) and Orysia Kulick (History).

Giorc

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elli’s project, “The Effects of Management and Technology on Firms’ Productivity: Lesson from the US Marshall Plan in Italy,” explores the role of productivity in the process of economic growth and development. It is typically difficult to isolate the causal effect of management training programs and technology transfer programs on business productivity because these measures are often endogenous to other unobservable factors. To overcome this concern, Giorcelli employed a unique research design to analyze the effects of the Marshall Plan’s transfer of US management and technology to Italian firms in the aftermath of WWII. 

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Giorcelli collected and digitized balance sheets data for 6,035 Italian firms eligible to receive the US management and technology support between 1930 to 1970. She then exploited an exogenous change in policy implementation that randomly determined which firms actually received Marshall Plan support. Preliminary results show that all firms that received either support significantly increased their productivity. Moreover, firms that received both sets of support simultaneously showed an additional increase in productivity, suggesting that management and technology are complementary in production. (Inset: The archives where Giorcelli conducted her research)

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Kulick’s project, “Regionalism in Ukraine and the Long Collapse of the Soviet Union, 1954--2014,” used original historical evidence collected from Ukrainian archives to study the political nexus between party elites in Kiev and in Moscow. For example, Kulick gleaned insights about the political economy of postwar industrial reconstruction from local archives in Dnipropetrovsk, a metallurgical powerhouse in the region. Previously inaccessible primary sources indicate that as the Soviet economy grew more complex, the state apparatus became more independent. Consequently, managerial specialists needed more autonomy to meet deadlines and quotas, making them--rather than the party--the source of innovation in postwar Ukraine. 

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According to Kulick, “my research this summer opened up new ways of thinking about the relationship between the party and the institutions that made up the Soviet state and economy.” Kulick used insights from Soviet-era KGB documents to shed new light on the current propaganda emanating out of the Kremlin. For example, she found that the long-term pull toward greater improvisation has had ongoing consequences. The current conflict is not just about Ukraine’s geopolitical orientation; it is also the byproduct of the dissolution of intransigent and poorly understood late Soviet-era institutions. (Inset: Kulick documents military mobilization during her summer in Ukraine)
 


Undergraduate Internship Program: Highlights

The Europe Center sponsored four undergraduate student internships with leading think tanks and international organizations in Europe in Summer 2014.  Laura Conigliaro (International Relations, 2015) joined the Centre for European Policy Studies (CEPS), while Elsa Brown (Political Science, 2015), Noah Garcia (BA International Relations and MA Public Policy, 2015), and Jana Persky (Public Policy, 2016) joined Bruegel, a leading European think tank. Our featured student this month is Laura Conigliaro.

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During her time at CEPS, Conigliaro worked on a 68-page research paper on genetically modified organisms (GMO) policy in the European Union. In the paper, she traces E.U. legislation and policy development on GMOs from 1990 onward, and also offers conclusions for the future trajectory of the E.U.’s GMO policy. Conigliaro argues that the evolution of the E.U.’s GMO policy is a topic of extreme relevance--and difficulty--because it is the source of high-level trade conflicts between Europe and the United States. Consequently, the study of GMO policymaking can help advance our understanding of E.U. institutions, E.U. “comitology” (policy process), and E.U.-U.S. bilateral relations. 

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Conigliaro plans to incorporate the summer fellowship experience into her Stanford academic career, for example, by presenting research findings at Stanford’s Symposia of Undergraduate Research and Public Service (SURPS). Looking ahead, she writes: “I hope to use the knowledge and experience gained of the E.U. Institutions and policy process through the lens of the GMO issue to broaden and diversify my potential career opportunities and areas from my traditional area of concentration, East Asia, to also include the European Union.”


Recap:  Panel on Europe-Russia Relations and EU expansion

On September 30, 2014, Miroslav Lajčák, the Deputy Prime Minister and the Minister of Foreign and European Affairs of the Slovak Republic, participated in a panel discussion in which he shared his thoughts and opinions about Europe’s relationship with Russia, and about the E.U.’s management of its future membership and associations. The Minister’s viewpoints were of particular interest, given his role in the E.U. foreign policy establishment, and the Slovak Republic’s role in the E.U. and NATO.

“The fact is that E.U.-Russia relations have worsened dramatically. That cannot be denied. But it’s not E.U. enlargement that played a major role in this.”  According to the Minister, Russia did not view E.U. enlargement with hostility, in part, because enlargement remained a transparent process. “But it all changed when Europe decided to enter into Russia’s immediate neighborhood...the former Soviet Republics. And this was something that

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Miroslav Lajčák
was seen by Russia as a hostile activity, and this was what Russia fiercely resisted.” The Minister spoke candidly about the potential conflicts of concepts between the E.U.’s Eastern Partnership policy, Russia’s Near Abroad policy, and the idea of a Eurasian Union. A fundamental and ongoing source of tension pertains to the geopolitical position of Russia’s immediate neighbors: “The fact is that Russia never accepted the full sovereignty of the former Soviet Republics.” Apart from discussing the escalation of tensions between the E.U. and Russia, the Minister spoke about the role of sanctions and reforms as a path for moving forward and achieving lasting peace in Europe.

Minister Lajčák’s brought a variety of experiences to the panel. He served as the European Union Chief Negotiator for the E.U.-Ukraine and E.U.-Moldova Association Agreements, and was the European Union Special Representative for Bosnia and Herzegovina, and Sarajevo. Additionally, he was previously the Ambassador of the Slovak Republic to the Former Republic of Yugoslavia, Albania and the Former Yugoslav Republic of Macedonia. 

After Minister Lajčák spoke, he was followed by comments by Michael McFaul, Professor of Political Science and Senior Fellow, Hoover Institute and Freeman Spogli Institute; Norman Naimark, the Robert and Florence McDonnell Professor in East European Studies in the History Department and The Director of Stanford Global Studies; and Kathryn Stoner, Senior Fellow at the Freeman Spogli Institute and Faculty Director of the Susan Ford Dorsey Program in International Studies.


Introducing “Immigration and Integration in Europe” Policy Lab

The Europe Center would like to introduce a new research project entitled, “Immigration and Integration in Europe:  A Public Policy Perspective,” led by Professors David Laitin and Jens Hainmueller. Duncan Lawrence has recently joined Stanford University to help direct the project. The project is part of the new Policy Implementation Lab at the Freeman Spogli Institute for International Studies.

The social and economic integration of its diverse and ever growing immigrant populations is one of the most fundamental and pressing policy issues European countries face today. Success or failure in integrating immigrants is likely to have a substantial effect on the ability of European countries individually and collectively as members of the European Union to achieve objectives ranging from the profound such as sustaining a robust democratic culture to the necessary such as fostering economic cooperation between countries. Various policies have been devised to address this grave political dilemma, but despite heated public debates we know very little about whether these policies achieve their stated goals and actually foster the integration of immigrants into the host societies. (Inset: David Laitin)

Professor Jens Hainmueller.The goal of this research program is to fill this gap and create a network of leading immigration scholars in the US and Europe to generate rigorous evidence about what works and what does not when it comes to integration policies. The methodological core of the lab’s research program is a focus on systematic impact evaluations that leverage experimental and quasi-experimental methods with common study protocols to quantify the social and economic returns to integration policies across Europe, including polices for public housing, education, citizenship acquisition, and integration contracts for newcomers. This work will add to the quality of informed public debate on a sensitive issue, and create cumulative knowledge about policies that will be broadly relevant. (Inset: Jens Hainmueller)


The Europe Center Sponsored Events

We invite you to attend the following events sponsored or co-sponsored by The Europe Center:

Additional Details on our website
October 8-10, 2014
“War, Revolution and Freedom: the Baltic Countries in the 20th Century”
Stauffer Auditorium, Hoover Institution
9:00 AM onward

Save the Date
April 24-25, 2015
Conference on Human Rights

A collaborative effort between the International Human Rights and Conflict Resolution Clinic at Stanford Law School (IHRCRC), the Research Center for Human Rights at Vienna University (RCHR), and The Europe Center. The conference will focus on the pedagogy and practice of human rights. 

Save the Date
May 20-22, 2015
TEC Lectureship on Europe and the World 
Joel Mokyr
Robert H. Strotz Professor of Arts and Sciences, and Professor of Economics and History, Northwestern University

We welcome you to visit our website for additional details.

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Forward-thinking companies, government organizations, and NGOs are beginning to link their efforts to build markets, promote environmental conservation, and reduce poverty in developing economies.

Join GDP for a discussion that explores potential synergies and challenges associated with linking these efforts. The panelists will share their own experiences and other promising models currently employed by companies, NGOs and government organizations around the world.

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Senior Fellow, Stanford Woods Institute and Freeman Spogli Institute for International Studies
William Wrigley Professor of Earth System Science
Senior Fellow and Founding Director, Center on Food Security and the Environment
Roz_low_res_9_11_cropped.jpg PhD

Rosamond Naylor is the William Wrigley Professor in Earth System Science, a Senior Fellow at Stanford Woods Institute and the Freeman Spogli Institute for International Studies, the founding Director at the Center on Food Security and the Environment, and Professor of Economics (by courtesy) at Stanford University. She received her B.A. in Economics and Environmental Studies from the University of Colorado, her M.Sc. in Economics from the London School of Economics, and her Ph.D. in applied economics from Stanford University. Her research focuses on policies and practices to improve global food security and protect the environment on land and at sea. She works with her students in many locations around the world. She has been involved in many field-level research projects around the world and has published widely on issues related to intensive crop production, aquaculture and livestock systems, biofuels, climate change, food price volatility, and food policy analysis. In addition to her many peer-reviewed papers, Naylor has published two books on her work: The Evolving Sphere of Food Security (Naylor, ed., 2014), and The Tropical Oil Crops Revolution: Food, Farmers, Fuels, and Forests (Byerlee, Falcon, and Naylor, 2017).

She is a Fellow of the Ecological Society of America, a Pew Marine Fellow, a Leopold Leadership Fellow, a Fellow of the Beijer Institute for Ecological Economics, a member of Sigma Xi, and the co-Chair of the Blue Food Assessment. Naylor serves as the President of the Board of Directors for Aspen Global Change Institute, is a member of the Scientific Advisory Committee for Oceana and is a member of the Forest Advisory Panel for Cargill. At Stanford, Naylor teaches courses on the World Food Economy, Human-Environment Interactions, and Food and Security. 

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Mark C. Thurber is Associate Director of the Program on Energy and Sustainable Development (PESD) at Stanford University, where he studies and teaches about energy and environmental markets and policy. Dr. Thurber has written and edited books and articles on topics including global fossil fuel markets, climate policy, integration of renewable energy into electricity markets, and provision of energy services to low-income populations.

Dr. Thurber co-edited and contributed to Oil and Governance: State-owned Enterprises and the World Energy Supply  (Cambridge University Press, 2012) and The Global Coal Market: Supplying the Major Fuel for Emerging Economies (Cambridge University Press, 2015). He is the author of Coal (Polity Press, 2019) about why coal has thus far remained the preeminent fuel for electricity generation around the world despite its negative impacts on local air quality and the global climate.

Dr. Thurber teaches a course on energy markets and policy at Stanford, in which he runs a game-based simulation of electricity, carbon, and renewable energy markets. With Dr. Frank Wolak, he also conducts game-based workshops for policymakers and regulators. These workshops explore timely policy topics including how to ensure resource adequacy in a world with very high shares of renewable energy generation.

Dr. Thurber has previous experience working in high-tech industry. From 2003-2005, he was an engineering manager at a plant in Guadalajara, México that manufactured hard disk drive heads. He holds a Ph.D. from Stanford University and a B.S.E. from Princeton University.

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It is August again, and my wife and I are back on our farm. We have a medium-sized operation in east-central Iowa that produces soybeans, alfalfa, and corn, and that also supports an Angus cow-calf herd. These summers are supposed to be quiet, relaxing times away from the bustle of Stanford University. However, the days here seem anything but tranquil.  Two years ago my almanac report dealt with one of the worst droughts in Iowa’s history; last year the focus was on flooding and the wettest planting season on record.  I suppose it is only fair that wind should be the main topic this year. For our rural neighborhood, only problems, not answers, seemed to have been blowin’ in it.

Two evenings after our arrival from California, we were sent scurrying to our doubly reinforced “safe” room in the basement. Warning sirens blared, all television stations went on emergency broadcasting, and the spontaneous neighborhood phone line magically got activated.  Everything was for real, and all hell broke loose.  Eighty-five m.p.h. flat-line winds, grape-sized hail, and buckets of rain.  The power went out, and our safe-room conversation centered on whether or not to start our small generator—not for lights, but to assure that the sump pump continued working!

For a swath three miles wide and 15 miles long the tornado danced—jumping here and skipping there. Some farms were spared; others were pretty much demolished.  We were moderately lucky.  We lost an infinite number of branches and our largest oak tree—a four-foot diameter, 70-foot tall specimen. Entire trees were twisted off like toothpicks. Shingles from roofs went missing, as did white fencing. But we were among the lucky ones—no major buildings were lost and no people or animals were injured.

Two farms over, the five-bin corn storage unit took a direct hit. Two 120-foot tall elevators that lift grain to the top (called legs, although the anatomy analogy makes no sense) lay in a crumpled mess.  These bins hold some 240,000 bushels of corn and there are massive amounts of steel involved. The broken legs looked, at 120X scale, like an angry third-grader had deliberately slammed his Lego creations onto the ground. The difference is that the repairs, labor costs, and replacement parts for the bins and legs total $750,000. Farmers soon began re-reading their insurance policies about acts of God, depreciation allowances, and the rules for full versus partial replacement.

The morning following the storm, an eerie calm was soon replaced by a different form of energy.  Other work seemed to stop in a region larger than the storm-hit area.  No one arranged it, but neighbors suddenly appeared at each other’s farmsteads with tractors, loaders, pickups, and chainsaws. Small mountains of brush, trees, and building parts began to emerge, to be burned at a later date—no doubt with generous burn permits being granted by the county.

At the time of the storm, corn was about waist high. Like the trees, it took a serious beating throughout the storm’s path.  The corn stalks were tightly packed in narrow rows as a consequence of the changed density of planting—from 20,000 kernels per acre 20 years ago to 35,000 currently.  (Bags of seed corn containing 80,000 kernels now typically sell in excess of $300, putting seed costs per acre about on a par with the cost of nitrogen fertilizer.) This tightly woven carpet of corn was now leaning at 45 degrees—or worse.  The question was whether the stalks would straighten up. And the answer turns out to be “sort of.”  Many of them are “goose-necked,” a much used word now in farmer conversations. The concern is, IF large ears develop, will the stalks be sturdy enough to support them? Or, will a large amount of “ear droppage” seriously reduce yields and profits? We continue to be optimistic, and are still hoping for corn yields of 190 bushels per acre, not far from our best year of 220 bushels.

Morning coffee conversations at the old limestone café have been fairly somber affairs this summer. (The general store has changed hands, but unfortunately, the watery coffee and the stale cookies have not improved.)  Farmer faces were grim even before the storm, mainly because of what has happened to corn prices.  In August 2012, local farmers were being offered $7.65/bushel [56 pounds] of corn; in August 2013, the price was $6.20/bushel, and on August 20, 2014, the price was $3.60/bushel.  Suddenly the rush to buy new pick-ups and large harvesting equipment slowed drastically.  John Deere, the major farm-equipment manufacturer, has already laid off hundreds of workers at various Iowa sites.

Orders have not stopped entirely, however, largely because of crop insurance.  Virtually all farmers have either 75% or 85% revenue protection. If a combination of yield and/or price declines cause revenue to be less than 75% (85%) of normal, farmers are reimbursed by private insurance companies. The premiums for this revenue-protection insurance are heavily subsidized by the federal farm program. Taxpayers underwrite more than 60% of the total insurance premiums, which last year resulted in subsidies to farmers of about $9 billion. Historic yields are used in the insurance contract, and this year the early insurance lock-in price was $4.62/bushel. That price looked low in the spring, but now looks extremely favorable.  Unfortunately, many of my neighbors chose the “wrong” insurance option. They were able to purchase 75% revenue protection for about $4.50/acre, whereas the 85% protection cost about $19/acre. For a farmer with 1500 acres of corn, the difference in insurance premiums was more than $20,000.  But given declining corn prices, the cheaper insurance option for 2014 will surely turn out to be the most costly choice at the end of the season.  Farm decision making these days is mostly about risk management, and that is why crop insurance was such a big element in the new farm program.

Perhaps the hottest topic of conversation at morning coffee centered again on wind, but not of the tornado variety.  It turns out that “the wind comes sweeping down the plain” in Iowa as well as in Oklahoma. Iowa is the third-largest producer of wind energy, and wind power supplies a hefty 27 percent of Iowa’s total energy use. So why are my neighbors upset?  It is something called the Rock Island Clean Line (RICL), and a bit of history is in order.
 

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The old Rock Island Line was a rail company—made more famous than it really deserved to be by Johnny Cash. The line ran five miles south of our farm, and yes, it was a “mighty fine line” that did carry cows, sheep, pigs, and mules. But it went bankrupt in 1975. The Rock Island Clean Line originally planned to use some of the old right-of- way for quite a different purpose—transporting wind-generated power from northwest Iowa on huge towers, with cables carrying direct-current electricity into the Illinois market to the east. It turned out, however, that too much of the old right of way went through urban areas and was unsuitable, so RICL will purchase some 500 linear miles of farmland right-of-way for the towers.

Farmers are rationally and irrationally furious. (The line was originally scheduled to go across the full length of our farm, so we have been directly involved in the discussions.) It has been extremely difficult to get straight answers about the line, with the company and the Iowa Utilities Board doing a dance in which neither wants to lead. There is no doubt that these140-foot towers create an ugly line of sight; they complicate farming with large machinery; and they seriously impact adjoining fields during the construction phase.  The company believes that it is offering generous one-time compensation—the equivalent of $10,000 to $15,000 per acre in most cases—but it then retains easement rights to this land forever, including the authority to sell the rights. Farmers are livid—they basically do not want the line from which they will receive no benefits—but they are being faced with potential eminent domain proceedings if they do not agree to sell. All sorts of NIMBY arguments are being brought forward, from the “government can’t tell us what to do,” to “the lines will emit electrical forces that will cause health effects,” to “they are not paying enough,” to “why should we use good Iowa soil to transport electricity rather than to produce food for the hungry?” The last of these comments is the one I have heard most often. When I inquired as to whether the coffee group was also against ethanol—since 40% of Iowa corn is going into gas tanks rather than hungry mouths—I was NOT regarded as a helpful contributor to the conversation!

In the end, I suspect that the Rock Island Clean Line will prevail, and that farmers and their families will learn to accommodate the power towers. Many farmers will grumble publically, but smile privately en route to their banks with rather large checks. However, both the process and outcome have stirred up deep passions about who controls the land.

Not all farmers are sad this summer, and the winds of good fortune have blown in the direction of cattle feeders.  The structure of cattle feeding in Iowa has changed enormously in recent times. I am the son of a mid-sized feeder, and spent a good deal of my youth working with cattle and driving cattle trucks.  Most east Iowa farms these days are strictly grain farms, in large part to free farmers from the 24/7 burden of animal care. My neighbor talks about his corn-Texas crop rotation—growing corn in the summer and going to Texas for the winter.
 

Two black angus calves.


There are only two large cattle feeding operations left in Linn County where I live, and both are within four miles of our farm.  I was invited by one of the owners to attend a cattle auction with him, and to see for myself just how much things had changed.  He owns his own 18-wheeler, and almost every week takes a load (36 head) of prime beef to the auction.  Cattle are taken to the auction pens the night before the sale and are taken off of feed and water. These steers weigh between 1400 and 1500 pounds, and buyers want assurance that the animals have not gorged on feed and water just before crossing the scales. The cattle are weighed early the morning of the sale, and weights are then flashed on a scoreboard as the animals enter the sale ring.

There is still an amazing amount of ritual at a cattle auction—I had forgotten just how much! Prime steers are typically sold in lots of 12 animals. They enter the ring from one side, and are moved about by a “ring man” so that buyers can get a good view of them. Part of the ritual is where various people sit.  A small group of farmers/sellers sits in one section, typically bantering about whom has the best cattle and whose will “top the sale.” The buyers sit near the top of the bleachers, in the same spot each week, but separated from each other.  (They would not want a casual conversation between them to be construed as collusion!) There is also the auctioneer with his chatter, mile-a-minute delivery, and selling antics. The sale itself happens very rapidly. There are typically two to four bidders for a particular lot of animals, and the bids go back and forth among them at lightning speed. The bidding cues are highly personalized—one buyer uses the flip of his tally sheet, another raises his index finger, and one simply arches his eyebrow.  In less than 45 seconds, the winning buyer has spent $27,000! And then the next lot appears.  Cattle from this sale went to packing plants in Wisconsin, Iowa, Nebraska, and Illinois.

On the 25-mile ride home, my neighbor talked about how pleased he was with what had happened. His steers had gained well and had topped the market in terms of price at $1.57 per pound. He said that corn was very cheap, as was distiller’s grain—the high protein by-product from making corn-based ethanol—which is now an important part of cattle feeding rations. There would be a healthy profit from this load of steers that had grossed about $80,000. 

But then he turned somber.  What should he do about next year? The price of 600-pound calves that he would put into the feedlot for feeding and sale next year are selling at the astronomical price of $2.50 per pound and even higher.  Perhaps next year, he said, was the year to stay out of the ring and go to Texas or Arizona for the winter. Risk had reared its ugly head once again. But my neighbor is first and foremost a cattle feeder, with a cattle feeder’s mindset toward risk. My conjecture is that he will somehow find a rationale for purchasing replacement calves, and that he will do everything all over again next year.                                                 

“The answer my friend, is blowin’ in the wind,

The answer is blowin’ in the wind.”

(Bob Dylan, 1962)

 

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