The Natural Farmer · Spring 2015: The Real Cost of Food

Eggs for 79¢ a dozen?
Ground beef for $1.99 a pound?

Many of us know in our gut that these prices cannot reflect the true cost of food. We know that the seemingly cheap food delivered by the industrialized global food system results in environmental degradation, exploited labor and chronic health problems. Yet, coming up with numbers to estimate the “true” cost of food is difficult, since polluted waterways and poorly treated farmworkers do not come with price tags. [Read more…] about The True (Unknowable?) Cost of Industrial Food

Farming practice changes link to environmental changes leading to
outcomes experienced by consumers. ES = ecosystem services, N20 =
nitrous oxide, NOX = nitrogen oxides.

Most people, when asked the cost of something, would answer with a monetary figure based on how much money it would take to buy that thing.

Well, that won’t do for economists, and it won’t do for us in this issue of The Natural Farmer. From an economist’s perspective, that is simply its market price. The true cost may be far less or far more than the market price. The difference, costs not included in the market price, are called external costs, or “externalities”. An externality is “a cost or benefit not transmitted through prices that is incurred by a party who did not agree to the action causing the cost or benefit”. General types of externalities associated with food include ecological effects, environmental quality, greenhouse gas (GHG) emissions, animal welfare, social costs associated with labor, and public health effects. [Read more…] about The External Costs of Food

It is often said that organically produced food has higher prices at the store because it takes more time and energy to produce than its chemical-intensive counterpart. Compared to so-called conventional chemical-intensive farming, organic farmers pay closer attention to the health of their agricultural ecosystems and the potential results of their farming practices for both humans and the natural world, and this more intensive management does come with a price tag.

However, this is only part of the story, as it overlooks the glaring fact that conventional farm operations do not incur the total cost of their production. Chemical-intensive agriculture has countless negative effects on our health and natural resources, which are not accounted for in most traditional farm business models, but are passed on to society nevertheless. We still pay these costs, just not at the grocery checkout counter. Instead, we see these costs in the form of higher taxes and medical bills, and decreased quality of life due to environmental pollution. Conversely, organic farmers take steps to ensure that they do not create these effects, which result in external costs. Instead, they internalize them and take care not to damage and deplete natural resources or create public health problems. The question, then, should not be, “Can we afford to buy organic food?,” but rather, “Can we afford not to?” The following data suggest that we are going to go broke cleaning up after conventional agriculture. [Read more…] about The Real Story on the Affordability of Organic Food

The price consumers pay for animal products at the grocery store does not reflect all of the costs society as a whole pays for these products. One of the important ways these costs are masked is through the provision of subsidies to CAFOs (Confined Animal Feeding Operations). Some subsidies may go directly to CAFOs; others (so-called indirect or implicit subsidies) go to other parts of the economy and are then passed on to CAFOs. These indirect subsidies may easily go unnoticed by the general public, but are just as important to CAFOs in facilitating their operation and growth. Where subsidies go to CAFOs preferentially over other production systems, they provide an especially important advantage. [Read more…] about The Untold Costs of CAFOs

Since I was a young boy, I have always wanted to have a farm, even though I have no farming experience or family involvement in farming. Four years ago, nearing retirement, I knew that I was reaching the point of no return: either do it now or it would be too late. So, while most yof my friends were contemplating moving to the Southwest or taking up more golf, my wife and I bought seven acres just north of Denver and I began to farm. I learned by doing and by keeping my eyes and ears open. I read a lot. I visited other farms. Immediately I realized I wanted to raise food as naturally as possible. Why put all that effort of morning and evening chores and daytime work into an inferior product? [Read more…] about The Real Cost of Real Food

How much of the cost of food depends on how it is marketed? Do comparable items have a consistent price relationship when purchased in different venues?

Four years ago NOFA-Vermont published a study of both organic and conventional produce prices, when sold at farmers’ markets, grocery stores, and, for organic items, at food co-ops. The study grew out of a desire to understand why farmers’ markets were such a tiny part of the market, especially among low-income buyers. As Jake put it:

The number of farmers’ markets in the United States has precipitously grown in the last two decades, from an estimated 1,755 farmers’ markets 15 years ago to a current figure of 5,274. Vermont alone has experienced a 177% increase in farmers’ markets in the last 15 years, growing from 27 farmers’ markets in 1995 to the current figure of 75. The increase in farmers’ markets over this period corresponds to a growing concern over food production practices and a related increase in demand for locally grown food. Yet, according to USDA estimates, American consumers still only spend approximately 0.2% of their food dollars at farmers’ markets. More troubling, recipients of Supplemental Nutrition Assistance Program (SNAP) benefits spent only 0.008% of their total benefits nationwide at farmers’ markets in 2009. [Read more…] about Price Comparison of Farmers’ Markets, Grocery Stores, and Co-ops on Organic and Conventional Food