Good Morning Hank, it's Tuesday.
Thank you for my birthday present.
Hank, Nerdfighteria got me 174.3 llamas through
heifer.org that will go to families in need.
I'm a little concerned about the family that's
going to get the point three llamas, but I
think everyone else is going to be delighted.
Okay, so I've promised for weeks that I would
to fly in a helicopter with Bill Gates, and
now I shall.
I was pretty scared flying in a helicopter
for the first time.
Bill Gates: This is John taking off.
John: If this is my last message I love my
family.
But it turned out to be kind of awesome.
For one thing we didn't crash, but also up
there on our way to visit farmers working
with the World Food Program, I could see families
tilling individual plots of land, and that
was kind of a cool entree into thinking about
agricultural economics.
Now I know that this stuff is complicated
and some people find it kind of boring, but
you know what's not boring: food.
Delicious food.
So it's really important to think about, like,
maize production per hectare because someday
that corn will turn into the corn syrup in
your Pizza Hut pizza dough.
Wait, does Pizza Hut pizza dough really contain
corn syrup?
It does, pickled rota virus, that is disgusting.
By the way, Hank, I'm trying this new thing
where instead of cursing I name a way of cooking
food and a disease I dislike.
You know, like, baked malaria or, steamed
Ebola.
Anyway Hank, I live in Indiana where the state
motto is "All corn all the time, occasionally
soybeans".
And our corn plants are like taller than me
and they're extremely productive.
They produce 6000 kg per hectare.
In Ethiopia, they get around 2000 kg per cultivated
hectare and that's with dramatic improvements
in the last 20 years.
So why are our fields so much more productive
than their fields?
Well, I don't know much about agriculture,
but according to people who do, it has a lot
to do with good seed and fertilizer.
So as these farmers explained to us, you can
grow maize with seeds from last year's harvest
and no fertilizer but it ends up producing
a lot less corn per hectare, like it's usually
about waist high.
To get the taller than me American-like corn,
which I did see some of in Ethiopia, you need
good seed and good fertilizer which costs
money.
Okay, these are made up numbers, but lets
say that with bad seed and no fertilizer you'll
make $500 per harvest and with good seed and
fertilizer you'll make 1000.
Now seed and fertilizer cost $100.
So this is a no brainer right?
Definitely seed, definitely fertilizer.
Except last year you only made $500 and you
don't have that $100 because you spent all
of your money on like Tom Baker era Doctor
Who DVDs and also like food and medicine.
But no problem right?
Because you can just go to the bank and explain
to them that if they loan you $100 you're
going to make 500 extra dollars so won't have
a problem paying them back.
Yeah but one, it's not like that bank has
a diversified portfolio of loans.
I mean in a country where almost everyone
is a farmer, almost all loans are farming
loans.
So if there is some bug that eats all of the
corn or it doesn't rain that year, no one
can pay back their loans which can cause the
banks to go under, which makes them hesitant
to make loans.
Also, two, if everybody gets a loan and everybody
gets good seed, then harvests go way up and
the price of maize will plummet.
There will be too much maize in the marketplace,
you dont have the resources to store your
maize until prices go up, so you wont make
$1000 in the end.
Now there are tons of other problems and complexities
here, but in general the point I'm trying
to make is that food is a weird commodity.
Like say you make too many Cabbage Patch dolls
and they're like clogging the aisles of toy
stores, then you can just stop making Cabbage
Patch dolls.
But if you do that with food, eventually people
are going to need food and not in the way
that they need Cabbage Patch dolls.
So you have this vicious cycle - you could
produce more food with capital intensive products
like seed and fertilizer, but you can't get
the capital to use them.
And if you did somehow increase production,
the price might drop so much that it wouldn't
be worth it, at least not in the short run.
And there's also a vicious circle on the buyer's
side.
Buyers are afraid that farmers won't be able
to fulfill their contracts, so they don't
give them big contracts and don't allow them
the opportunity to become large suppliers.
But let's say you somehow break those vicious
cycles, well lots of good things start to
happen.
Like in China, rice yields quadrupled between
1960 and 1990 and then, boom.
And in Brazil, agricultural yield tripled
between 1970 and 2005.
Here's what poverty rates in Brazil and China
look like over the last 40 years.
Now I don't want to conflate correlation and
causation, but fried meningitis that is some
nice looking correlation.
So how do we break those vicious cycles?
Well in Ethiopia there's a fascinating project
with the World Food Program whereby farmers
are guaranteed a fair price for however much
corn they can produce.
And then the surplus goes to Food Aid.
Now traditionally in Ethiopia most food aid
comes from the United States.
Now almost half of Ethiopia's food aid comes
from within Ethiopia, which makes it cheaper
and more efficient and also it increases yields.
So the World Food Program offers these farmers
a contract that allows them to go and get
a loan for good seed and fertilizer because
you know, the UN is generally good for its
debts.
Yields increase, there's more food, and there's
less malnutrition.
And then the hope is that over time, if these
higher yields become sustainable, that Ethiopia
will see the kind of growth and poverty reduction
that we've seen in, like, China and Brazil
and India.
From what I can tell, this program seems to
be working, but it is extremely complicated.
Like I met this woman, who used to be a recipient
of food aid imported from the U.S., but now
is a producer of food aid, and that is awesome!
After I talked to her I was feeling very happy,
but then, when Bill Gates and Sue Desmond-Hellmann
dug deeper, it became clear that she doesn't
get to keep any of the money from her land.
It all goes to her husband.
Now, the increased yield and increased family
income is definitely good.
But another mission of the project, to help
empower women farmers, and let them keep the
proceeds of their work, isn't as effective.
On the other hand, she is a founding member
of this farmer's cooperative, which gives
her power within her family.
Similarly, I talked for a while to these women,
whose job it was to sort through the corn
by hand to pull out anything other than corn
kernels, so that it would pass WFP standards
for food purity.
I was told that they were also farmers, who
did this for extra income, but the women told
me that they weren't farmers and that this
was their primary work and that it was exhausting
and difficult, but that the money was pretty
good.
I don't know what "good money" was for them,
but the men loading these bags of maize onto
trucks made about five dollars a day.
So, Hank, it's easy enough to know the privelege
of my particular life, with its helicopter
rides and video blogging.
What's much harder is to think about how each
of us can contribute toward making a world
in which more people can lead healthy and
productive lives.
The truth about that is complicated and messy,
and any easy narratives you may hear are,
in my opinion, overly simplistic.
There is no magic bullet when it comes to
poverty.
It is a tangled and many tentacled beast.
Like, to return to my birthday llamas for
a moment, Hank, the actual sourcing and distribution
of those llamas will be tremendously challenging
and complicated.
The work doesn't end when the money gets raised;
it begins.
And no program works perfectly or succeeds
all the time.
Hank, I think the WFP project is really interesting,
and I think that it can help.
But I might be wrong, and I've been wrong
before, and there are also other things that
would help.
Like, for instance, it would help if the Ethiopian
government lifted its ban on corn exports.
But there's no question that agricultural
yields have been rising over the last ten
years in Ethiopia, and that is very encouraging.
But still, 44% of Ethiopian children are stunted
due to malnutrition.
That is unacceptable, and it's also unnecessary.
If Ethiopia's cultivated land produced as
many calories per hectare as China's or Brazil's,
no Ethiopian would have to starve.
So I know that increasing, like, calories
per cultivated hectare isn't the sexiest problem
the world is facing, but it is one of the
most important.
Nerdfighteria, thank you again for my birthday
llamas.
They just made me so happy.
Hank, DFTBA, I will see you on Friday.
