I’m always looking for fresh perspectives on this industry. When my thinking starts to get too stale or too small, that’s when I need to hit the road. So I was happy when I got an invitation to the World Agricultural Forum’s World Congress in St. Louis last month.
The Forum, celebrating its 10th anniversary this year, is an impressive collection of agricultural companies, government, and non-government organizations representing developed and developing countries. Its stated mission is: “To be a catalyst in developing action plans that meet the growing need for food, fiber, fuel, and water.”
Sitting in a room with so many different people from around the world adds new information to the issues of the day, and provides insight into current thinking about global issues outside the U.S. I have a few observations to share.
The first thing I noticed was the issue that really wasn’t talked about all that much — biotechnology. With so much biotech research moving up the development pipeline, I thought going into the meeting that the subject would have gotten a bit more negative play. In fact, a speech by Mariann Fischer Boel, commissioner for Agricultural and Rural Development for the European Union (EU), focused on the EU’s lifting of the moratorium on biotech crop approval and its commitment to expeditious review of existing registration applications. While it does not guarantee speed, forward motion on biotech is welcome.
A message that did come through loud and clear was the difference in attitude about the issue of global climate change in the rest of the world vs. us in the U.S. For virtually everyone outside the country, the belief that global climate change is a man-made problem that needs to be fixed is a fait accompli. While we in the states continue to battle over the validity of the argument, the rest of the world has accepted it as truth, and are forming major policy decisions with climate change as one of the factors.
Finally, there’s the issue of biofuels. While corn ethanol is certainly the present and near-term model of choice in the U.S., the plan moving forward is clearly headed in a different direction in the longer term.
Boel, addressing the EU’s mandate earlier this year that 10% of its energy consumption for transportation come from renewable sources by 2020, expressed two points. First, that importing fuel will be required to satisfy the mandate, and second, that environmental and ethical issues around how the fuel is produced will figure into any decision about what fuel will be imported. The underlying message is that the ethical question of food vs. fuel that corn poses would figure into this decision-making equation.
U.S. Ag Secretary Mike Johanns also spoke of a renewable fuel future beyond corn in his Farm Bill overview. The bill being proposed by the Bush administration contains $1.6 billion in new funding for research, development, and production of renewable energy, targeting cellulosic ethanol production. Another $2.1 billion in loan guarantees are proposed for cellulosic projects, as well as $150 million in grants.
Undoubtedly, ag is becoming more global, and while we may not necessarily agree on the direction or mindset of the rest of the world, it’s definitely having a more significant impact on U.S. agriculture with each passing year.
