The True Cost of American Food – Conference Proceedings

i The True Cost of American Food – Conference proceedings Foreword Patrick Holden Founder and Chief Executive of the Sustainable Food Trust I am delighted to be writing this foreword for the proceedings of our conference. I hope it will be a useful resource for everyone with an interest in food systems externalities and True Cost Accounting; and that should include everyone who eats! The True Cost of American Food Conference brought together more than 600 participants to listen to high quality presentations from a wide range of leading experts, representing farming, food businesses, research and academic organizations, policy makers, NGOs, public health institutions, organizations representing civil society and food justice, the investment community, funding foundations and philanthropists. As an organization which has contributed in a significant way to the development of the conceptual framework for True Cost Accounting in food and farming, we were delighted that the conference attracted such an impressive attendance of leaders from a range of sectors, all actively committed to taking this initiative forward. Looking forward, clearly one of the key challenges is how we can best convey an easy-to- grasp understanding of True Cost Accounting to individual citizens, who have reasonably assumed until now that the price tag on individual food products reflects of the true costs involved in its production. As we have now come to realize, this is often far from the case; in fact it would be no exaggeration to state that the current food pricing system is dishonest, in that it fails to include the hidden impacts of the production system, both negative and positive, on the environment and public health. Perhaps one of the simplest ways to understand True Cost Accounting is to relate it to the annual profit and loss accounting process, to which anyone running a business is already familiar. When submitting my annual tax return in the UK, I am legally required to share information following an agreed protocol, namely total income minus total expenditure, The True Cost of American Food – Conference proceedings plus critically, an adjustment for any alteration of the value of my capital assets, which are highlighted in the balance sheet before the final profit or loss is calculated. Applying this approach to current pricing systems for farm commodities and foods, it quickly becomes apparent that the impact of the food production system on the balance sheet, in this case natural and social capital, is not currently included. I am speaking here of a wide range of un-costed impacts, not only on farm-based natural capital, such as soil organic matter, but also pollution in the form of emissions, pesticide residues in water or damage to public health. Failure to account for these impacts is resulting in what economists call perverse incentives, both to farmers and food businesses. As a result of this the most profitable forms of food production remain those which are most damaging to the environment and public health. Conversely, food products from farming systems, which are far more sustainable in the long run and provide multiple benefits to people and the planet, are at present the most expensive, and for many people unaffordable. In addressing these issues, the True Cost of American Food Conference made progress in several important areas. These included recognizing the need for: • the development of a common methodology for categorizing, quantifying and monetizing food systems externalities, with future research should ideally be based on such a common framework; • the establishment of additional ‘communities of practice’ such as TEEBAgFood and the Global Alliance for the Future of Food, bringing together researchers, practitioners, food companies, policy makers, funders, NGOs and other interested parties; • ongoing research, including externalities impact studies on different types of farming systems, with the objective of establishing the true cost of food products; • case studies, ideally embracing the range of climates, soil types, scales and social structures that are currently involved with producing the majority of the food we eat; • public empowerment, not only to increase understanding of the true cost of food, but also how best buying power can be used to drive change. Finally, and looking ahead, there will be a need to investigate mechanisms, both carrots and sticks, through which the externalized costs and benefits of different food systems can be accounted for in various ways, for instance through tax breaks, insurance mechanisms, and redirection of subsidies in the form of incentives. Taken together over time, this work should enable future food pricing and agricultural subsidies to become better aligned with the interests of society and the health of the The True Cost of American Food – Conference proceedings planet. In this connection, we believe the most important contribution the Sustainable Food Trust can make is to act as a catalyst, fostering convergence of thinking and encouraging maximum collaboration between all the organizations with an interest in this work I’d like to thank everyone who attended the conference, and especially the speakers, for devoting so much time and energy to supporting the event and for contributing towards the preparation of these conference proceedings. We are also particularly mindful that without the generosity of all the conference sponsors and the funding and support they gave us, it would not have been possible to host this conference. We were truly humbled by the scale and diversity of this support, and I would like to extend my warmest gratitude, in particular, to The Global Alliance for the Future of Food, The Grace Communications Foundation, The 11th Hour Project, The Marisla Foundation, Owsley Brown III, Patricia Ross, RSF Social Finance, The McKnight Foundation, Nancy G Schaub and The Panta Rhea Foundation for their generous financial support. I would also like to thank The Bon Appétit Management Company for their magnificent achievement in preparing and serving so much of the delicious food throughout the event, the team at George Lucas’ Skywalker Ranch for making this beautiful venue available to us for a pre- conference gathering, and finally, the local producers and businesses who opened their farms and establishments to us for field trips. A full list of conference sponsors and partners can be found on the following page. Lastly, I would like to thank Nadia El-Hage Scialabba for dedicating so much of her time into putting the proceedings together. Without Nadia’s incredible and tireless work, I am certain that I would not be writing this foreword now. Patrick Holden Chief Executive, Sustainable Food Trust Conference Sponsors La Cocina The Global Alliance for the Future of Food Socially Responsible Agricultural Project The Grace Communications Foundation Roots of Change The Bon Appétit Management Company Almanac Beer The 11th Hour Project Blue Bottle Coffee The Marisla Foundation Cowgirl Creamery Victoire and Owsley Brown Finn River RSF Social Finance Fort Mason Center Farmers' Market Patricia Ross Hog Island Oysters The McKnight Foundation Local Butcher Nancy G Schaub Pie Ranch The Panta Rhea Foundation Rocky Hill Wine Natural Resources Defense Council Rustic Bakery Jo Ann and Charles Kaplan SF Specialty Bi-Rite Markets Siren Fish Co. Equator Coffee Three Twins Ice Cream US Pure Water Little Belgians Michigan State University Center for Canyon Marke Regional Food Systems Laurie and Bill Benenson Stemple Creek Ranch Veritable Vegetable Chocolate Garage Dandelion Chocolate Conference Partners Civil Eats Seedlings Projects Skywalker Ranch Mother Jones Johns Hopkins Centre for a Livable Future Food Tank Slow Money Land Stewardship Project Savory Institute Acknowledgements These proceedings were compiled and written by Nadia El-Hage Scialabba and edited by Megan Perry, Richard Young, Alicia Miller, Adele Jones, Hannah Steenbergen, Erica Davies and Ian Fitzpatrick. Heartfelt thanks go to the conference sponsors (listed above) for their financial support, and to all speakers and individuals who participated enthusiastically in the conference. Special thanks go to the staff of the Sustainable Food Trust, the Sustainable Food Alliance, Seeding’s Projects and DPEM for the planning and delivery of the event. CONTENTS PLENARIES .................................................................................................................................. 10 CHAPTER 1: WHY OUR FOOD SYSTEMS MUST CHANGE .................................................... 11 Introduction – Wendy Schmidt, President, Schmidt Family Foundation ..................................... 12 Message of Support: His Royal Highness The Prince of Wales ..................................................... 14 Failures and challenges of the global food system – Professor Jonathan Foley, Executive Director, California Academy of Sciences ..................................................................................... 15 Health and the food system – Tyler Norris, Vice President, Total Health Partnerships, Kaiser Permanente .................................................................................................................................. 18 CHAPTER 2: WHY WE NEED TRUE COST ACCOUNTING ..................................................... 21 Introduction – Danielle Nierenberg, President and Co-founder, Food Tank ................................ 22 The business case for true cost accounting – Alexander

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