Tag Archives: food
Biofuel Crop Mix ‘Not Favourable For Environment’
A report by the European Environment Agency found benefits vary significantly depending on the source of crops Rayhan Uddin guardian.co.uk , Wednesday 3 July 2013 16.46 BST When sourced from agricultural residues or waste, bioenergy is more efficient than fossil fuels both in terms of greenhouse gas emissions and the impact on ecosystems. Photograph: Chip Somodevilla/Getty Images[/color] The current mix of crops used for energy are “not favourable to the environment”, according to a report published on Wednesday by the European Environment Agency. It said that the environmental benefits of such bioenergy vary significantly depending on the source of crops. When sourced from agricultural residues or waste, bioenergy is more efficient than fossil fuels both in terms of greenhouse gas emissions and the impact on ecosystems. But growing crops for energy has knock-on environmental impacts such as deforestation, the EEA warned. The report comes as the EU continues to debate a plan cap the percentage of biofuels made from food crops , with a final vote due to occur on 10 July. Proponents say the cap is needed because of environment concerns over the EU’s biofuel policy – which sets a target of 10% of transport fuels coming from biofuel by 2020, but the proposed cap has come under fierce criticism from biodiesel companies and farmers. The industry says the EU is destroying a booming £14bn sector while farmers feel demand is being taken away from them at a time of increasing volatility in global food prices. Hans Bruyninckx, director of the European Environment Agency, said “We see huge potential for bioenergy in the transition of the energy system that will occur over the coming years, but our research shows that this potential must take into consideration resource and climate efficiency. For example, food crops and other first generation pathways are a particularly inefficient use of biomass.” Most of the environmental impacts cited in the EEA report are a result of deforestation, draining of peatlands and other land clearance for biofuels , together known as indirect land use change (ILUC) . The report notes that adverse environmental effects associated with ILUC, such as an increase in carbon emissions or reduction in biodiversity, currently fall outside of the EU bioenergy policy framework, and believes that this needs to be addressed. Friends of the Earth Biofuels campaigner Kenneth Ritcher said: “This report is a stark warning to lawmakers about the urgent need to differentiate between the types of bioenergy, based on their real impact on climate change. If the European parliament is serious about cutting emissions it must support proposals next week to penalise biofuels that increase emissions through deforestation.” Continue reading
Farm Bill Defeat Shows Agriculture’s Waning Power
Manuel Balce Ceneta/Associated Press Speaker John A. Boehner failed to draw enough Republican support for a bill last month. By RON NIXON Published: July 2, 2013 WASHINGTON — The startling failure of the farm bill last month reflects the declining clout of the farm lobby and the once-powerful committees that have jurisdiction over agriculture policy, economists and political scientists said this week. Although a number of factors contributed to the defeat of the bill — including Speaker John A. Boehner’s failure to rally enough Republican support and Democratic opposition to $20 billion in cuts to the food stamps program — analysts said the 234 to 195 vote also illustrated the shift in the American population and political power to more urban areas. “There are a small number of Congressional districts where farming continues to carry much sway,” said Vincent H. Smith, a professor of agricultural economics at Montana State University. “Especially in the House, the farm lobby has been substantially weakened.” For much of American history, the agriculture sectors wielded tremendous political power. Farm groups were able to get key farm legislation passed by rallying millions of farmers in nearly every Congressional district. Influential farm state legislators like Representative Jamie L. Whitten of Mississippi, a Democrat who was chairman of the Appropriations Committee and its subcommittee on agriculture, brought billions in agriculture financing to their states and fought off attempts to cut subsidy programs despite pressure from both liberals and conservatives. Mr. Whitten died in 1995 after 53 years in Congress. But as Americans have moved to the cities and suburbs, farmers and lawmakers representing districts largely dependent on agriculture have seen their political muscle steadily decline. Just 2.2 million people now work in farming in the United States, or about 2.5 percent of the total work force. Farming now accounts for about 1 percent of gross national product, down from a high of about 9 percent in 1950. Only 40 lawmakers represent largely farming districts, according to research by Mr. Smith in 2006. He said that number was probably smaller today. Nonetheless, agriculture groups said they continue to have influence and blamed increased partisanship for the inability of Congress to pass the farm bill. “Agriculture used to be a nonpartisan issue that both Democrats and Republicans could support,” said Danny Murphy, president of the American Soybean Association. “Now people are lining up to take sides; it’s nutrition or farm programs,” he said. “For us, it’s a nonissue. We’re farmers, how can we be against food?” Barry L. Bequette, dean of the School of Agriculture, Research, Extension and Applied Sciences at Alcorn State University in Lorman, Miss., said the issue was not a lack of power. “Farmers just haven’t learned how to utilize the power they have,” he said. “All the groups are fractured and focused on their own narrow issues.” But agricultural economists like Mr. Smith said the Congressional response to last year’s drought and this year’s debt talks provide more evidence of the waning political influence of agriculture. Last summer, as the worst dry spell in 50 years was causing widespread damage to farmland and livestock, national farm organizations pushed for the passage of a farm bill that would provide relief. But the groups were unable to muster enough support to even get the bill to the floor for a vote. Representative Frank D. Lucas, Republican of Oklahoma and chairman of the House Agriculture Committee, which did pass a farm bill , made several appeals to House leaders to bring the legislation up for a vote, but they declined. When the Obama administration and Republican leaders worked out a compromise to avert automatic tax increases in January, Mr. Lucas and Senator Debbie Stabenow, the Michigan Democrat who is chairwoman of the Senate Agriculture Committee, tried desperately to get the farm bill included in the talks. Both touted the savings they had achieved in both the House and Senate version of the bills. But their pleas were largely unheeded. The Senate instead chose to include in the tax package a slimmed-down farm bill proposal by Senator Mitch McConnell of Kentucky, the Republican minority leader. Mr. McConnell’s proposal extended only portions of the current farm bill, which was passed in 2008. The extension did not provide disaster assistance for livestock owners, who had to kill thousands of cows, pigs and chickens because of rising feed prices and lack of water. It eliminated money for conservation programs and financing for fruit and vegetable growers and organic farmers, and cut a program that pays milk producers when feed prices increase. The proposal did contain provisions to prevent milk prices from rising and left in place direct payments to farmers or farmland owners, whether or not they grow crops. The payments, which total about $5 billion a year, have long been criticized as examples of wasteful government spending. The bill passed the Senate by 89 to 8, with a reluctant Ms. Stabenow voting for it; it passed the House by 257 to 167. Mr. Lucas also voted for the House bill. Farm groups said they felt equally ignored. An exasperated Ms. Stabenow summed up the feeling of both farm state lawmakers and the farm sector in an interview shortly after the deal was announced. “There is absolutely no way to explain this other than agriculture is just not a priority,” she said. Collin C. Peterson, the Minnesota Democrat and ranking member on the House Agriculture Committee, sent a letter to House leaders involved in the debt talks. “I could not believe that you and your leadership team could treat the committee with such disrespect,” he wrote. Continue reading
Fund Review: BGF World Agriculture fund
ivestock investment boosts short-term performance By Nyree Stewart | Published Jul 01, 2013 A recent short-term performance boost for the $294m (£187.1m) BGF World Agriculture fund is a result of a move towards more downstream areas of the agriculture sector, such as livestock, in the past six months. However, the fund’s performance has lagged its benchmark in the year to date. The Luxembourg-domiciled fund, co-managed by Desmond Cheung and Richard Davis, targets agriculture sector growth but specifically focuses on capturing what farmers are doing at any one point in the cycle. Mr Cheung explains: “Some of our competitors would expand quite a bit further away into the food sector, but while we have a little bit of food sector exposure in this fund, it is mainly due to the fact they have direct relationships or dealings with the farmers. So we don’t generally buy into companies such as Wal-Mart even though obviously it is in the food supply chain.” Process The fund’s investment process is primarily bottom-up, with Mr Cheung noting the key underlying driver is stock selection based on valuation, with a three- to five-year view on the company. But he adds: “Obviously, this is quite a cyclical sector, so we have to include a top-down overlay to determine which part of the cycle we are in. We try to incorporate the two and come to a conclusion on the recommendations on each of the names and the size of the position within the fund.” The fund is also not constrained by the market cap of companies available within the agriculture sector, and currently has roughly 10 per cent of the fund allocated to small caps, with a further 30 per cent weighting in medium-sized businesses. Performance Since launch in March 2010, the sterling-hedged share class of the fund has returned 15.81 per cent to June 10 2013, compared with a 24.92 per cent return from the benchmark FSE DAXglobal Agribusiness TR USD, according to Morningstar. However, on a discrete-year basis, the fund’s sterling share class significantly outperformed the index in 2012, with a return of 11.49 per cent compared with the benchmark return of 8.32 per cent. The manager points out the fund has not excluded any parts of the agriculture sector, so while some may have the perception the universe consists solely of seed or fertiliser or equipment companies – areas that are fairly consolidated – this is not the case. “The way we classify or define the agriculture sector is little bit wider. On one side you have arable farmers, which are those growing crops such as corn, wheat and soya beans and so those would be captured more under the seed, chemicals, equipment or fertiliser companies. But then other parts of the farming world that have been neglected in the past three years are the livestock sectors. When corn or soya bean prices rallied in the past couple of years, those are effectively the input costs that go into the production of meat, so they’ve been suffering from the high rises in crop prices.” Continue reading