1 00:00:04,960 --> 00:00:08,360 Speaker 1: On this episode of News World, the Russian aggression against 2 00:00:08,520 --> 00:00:12,120 Speaker 1: Ukraine is having an impact on global economies. We're seeing 3 00:00:12,160 --> 00:00:14,840 Speaker 1: the price of oil impact both consumers at the gas 4 00:00:14,840 --> 00:00:18,160 Speaker 1: pump and industries rely on on guests to transport goods 5 00:00:18,160 --> 00:00:22,360 Speaker 1: and services. In addition, Russia is the world's largest exporter 6 00:00:22,400 --> 00:00:26,759 Speaker 1: of wheat, accounting for more than eighteen percent of international exports, 7 00:00:26,800 --> 00:00:31,360 Speaker 1: and in twenty nineteen, Russia and Ukraine together exported more 8 00:00:31,360 --> 00:00:35,159 Speaker 1: than a quarter of the world's wheat according to the 9 00:00:35,159 --> 00:00:39,000 Speaker 1: Observatory of Economic Complexity. So what impact will a war 10 00:00:39,040 --> 00:00:42,319 Speaker 1: in Ukraine and the sanctions on Russia have on our 11 00:00:42,360 --> 00:00:46,600 Speaker 1: global food supply? Joining me to discuss this important topic, 12 00:00:47,040 --> 00:00:50,600 Speaker 1: I'm really pleased to welcome my good friend and guests 13 00:00:50,600 --> 00:00:54,200 Speaker 1: that I might mention fellow ambassador with Callista and Rome 14 00:00:54,560 --> 00:00:58,920 Speaker 1: Ambassador Kip Tom. Kip served as the Ambassador to the 15 00:00:59,000 --> 00:01:02,760 Speaker 1: United Nations Agents for Food and Agriculture in Rome under 16 00:01:02,800 --> 00:01:07,080 Speaker 1: President Trump. He's a seventh generation who's your farmer from 17 00:01:07,160 --> 00:01:12,399 Speaker 1: Cosciusco County, Indiana and the current CEO of Tom Farms. 18 00:01:21,600 --> 00:01:24,160 Speaker 1: Thank you for joining me. As you know, we've had 19 00:01:24,240 --> 00:01:28,560 Speaker 1: remarkable times together in Rome, chatting about ideas and so 20 00:01:29,040 --> 00:01:31,240 Speaker 1: You're one of the people I turned to immediately when 21 00:01:31,319 --> 00:01:34,160 Speaker 1: this whole issue came up. But I think people like 22 00:01:34,240 --> 00:01:36,920 Speaker 1: to know a little bit about the history and your family. 23 00:01:36,920 --> 00:01:40,600 Speaker 1: Farmers a pretty serious business. How did the tom farms 24 00:01:40,640 --> 00:01:43,440 Speaker 1: get it started? Your family must have been among the 25 00:01:43,560 --> 00:01:47,680 Speaker 1: very first to go into Indiana, if you're the seventh generation. 26 00:01:48,520 --> 00:01:50,440 Speaker 1: We were probably one of the early ones at eighteen 27 00:01:50,520 --> 00:01:53,040 Speaker 1: thirty seventh when we actually settled here on the prairies 28 00:01:53,080 --> 00:01:56,560 Speaker 1: in northern Indiana. But they came from Switzerland and Germany, 29 00:01:57,160 --> 00:02:00,760 Speaker 1: and they made their track across from New York across Pennsylvania, 30 00:02:00,920 --> 00:02:04,680 Speaker 1: Ohio with nine children, And I think about that track 31 00:02:04,760 --> 00:02:08,040 Speaker 1: and what that must have been like for them in 32 00:02:08,160 --> 00:02:11,200 Speaker 1: that journey, trying to find the promised land to where 33 00:02:11,240 --> 00:02:14,560 Speaker 1: they could call home and start their endeavors of farming 34 00:02:14,560 --> 00:02:17,480 Speaker 1: and raising a family. So traveling with nine children in 35 00:02:17,520 --> 00:02:19,880 Speaker 1: a covered wagon had to be quite an experience, with 36 00:02:19,919 --> 00:02:23,720 Speaker 1: a dairy callinto and again pregnant with another child along 37 00:02:23,760 --> 00:02:26,160 Speaker 1: the way. I have a hunch the older children were 38 00:02:26,200 --> 00:02:30,480 Speaker 1: walking along the side of the wagon. I'm guessing you're right. 39 00:02:31,120 --> 00:02:32,799 Speaker 1: You know, I was born in Harrisburg in one of 40 00:02:32,840 --> 00:02:37,000 Speaker 1: the great contributions to opening up America was the invention 41 00:02:37,040 --> 00:02:41,080 Speaker 1: of the Conestoga wagon. That plus the Pennsylvania rifle, where 42 00:02:41,160 --> 00:02:45,120 Speaker 1: Central Pennsylvania's two major contributors to the early opening up 43 00:02:45,160 --> 00:02:48,800 Speaker 1: of You know, back when Indiana was the West, long 44 00:02:48,840 --> 00:02:52,519 Speaker 1: before we went. You have actively been involved in running 45 00:02:52,560 --> 00:02:55,320 Speaker 1: the farm and your parents have had a huge role 46 00:02:55,400 --> 00:03:00,280 Speaker 1: in You also became a major seed producer for pine year. 47 00:03:00,800 --> 00:03:03,840 Speaker 1: How does that whole process work? I think the average 48 00:03:03,840 --> 00:03:08,000 Speaker 1: American is no idea how sophisticated and how complex the 49 00:03:08,040 --> 00:03:11,840 Speaker 1: modern agricultural ecosystem is. So we start as a very 50 00:03:11,880 --> 00:03:14,520 Speaker 1: small family farm, very traditional for the Midwest. You know, 51 00:03:14,560 --> 00:03:17,959 Speaker 1: maybe a couple hundred acres is today we're sizeably much 52 00:03:18,040 --> 00:03:21,480 Speaker 1: larger than that, with operations at one time in Argentina 53 00:03:21,520 --> 00:03:24,639 Speaker 1: and diet consulting throughout Latin America. But when we look 54 00:03:24,680 --> 00:03:26,560 Speaker 1: at what we do today, we produce a lot of 55 00:03:26,639 --> 00:03:30,960 Speaker 1: value add products for specific end needs. Seacorn happens to 56 00:03:31,000 --> 00:03:33,560 Speaker 1: be one of those products. The parent lines may come 57 00:03:33,600 --> 00:03:37,040 Speaker 1: from Hawaii, they may come from someplace in South America 58 00:03:37,120 --> 00:03:39,600 Speaker 1: or even Asia, but they'll bring them to us and 59 00:03:39,680 --> 00:03:42,440 Speaker 1: we will produce them throughout the year's time and turn 60 00:03:42,480 --> 00:03:44,520 Speaker 1: them back to them. And then they go ahead and 61 00:03:44,560 --> 00:03:47,600 Speaker 1: market them to farmers. But today we're producing for Buyer. 62 00:03:48,160 --> 00:03:50,360 Speaker 1: We produce a number of their brands and we're one 63 00:03:50,400 --> 00:03:53,720 Speaker 1: of their larger suppliers. Yeah, I think people don't realize 64 00:03:54,200 --> 00:04:00,480 Speaker 1: how sophisticated and how valuable the production of modern culture 65 00:04:00,520 --> 00:04:03,080 Speaker 1: and modern seed is. I know the FBI at one 66 00:04:03,080 --> 00:04:06,800 Speaker 1: point was picking up Chinese agents in Iowa who were 67 00:04:06,840 --> 00:04:10,600 Speaker 1: literally trying to steal the seeds and take them back 68 00:04:10,640 --> 00:04:14,920 Speaker 1: to China because they were so dramatically more productive than 69 00:04:15,000 --> 00:04:19,279 Speaker 1: what the Chinese. We're currently doing in a sense supplier 70 00:04:19,360 --> 00:04:22,799 Speaker 1: to the farms, that is, your farm creates the material 71 00:04:22,880 --> 00:04:26,800 Speaker 1: that enables the other farms to have such high yields. Yes, 72 00:04:26,920 --> 00:04:30,240 Speaker 1: the intellectual property will come from companies like Pioneer or 73 00:04:30,320 --> 00:04:33,799 Speaker 1: Corteva and Buyer of course, and they come to people 74 00:04:33,839 --> 00:04:36,280 Speaker 1: like us to grow them and increase the size of 75 00:04:36,400 --> 00:04:39,880 Speaker 1: that propagation. So we'll have male and female varieties and 76 00:04:39,960 --> 00:04:42,440 Speaker 1: go throughout the year of a lot of extra management 77 00:04:42,440 --> 00:04:45,000 Speaker 1: practices that take place that's above and beyond that of 78 00:04:45,040 --> 00:04:47,960 Speaker 1: commercial production and turn it back to them. But it's 79 00:04:47,960 --> 00:04:51,400 Speaker 1: a very sophisticated process of how they move these seeds 80 00:04:51,480 --> 00:04:54,240 Speaker 1: around the world. The way they back across them and 81 00:04:54,279 --> 00:04:56,160 Speaker 1: make sure that they have them here on time from 82 00:04:56,160 --> 00:04:58,760 Speaker 1: the various regions in the world that they're producing them. 83 00:04:59,160 --> 00:05:01,560 Speaker 1: But again, I remember my dad talking about when he 84 00:05:01,560 --> 00:05:04,479 Speaker 1: was born, our corneals were about twenty bushel breaker in 85 00:05:04,560 --> 00:05:08,719 Speaker 1: nineteen twenty eight. Today a year like in twenty twenty one, 86 00:05:09,120 --> 00:05:12,280 Speaker 1: they were nearly two hundred forty bushel breaker. So this 87 00:05:12,360 --> 00:05:14,760 Speaker 1: is the innovation and it changes. It's given us the 88 00:05:14,800 --> 00:05:17,640 Speaker 1: ability to feed a hungry world. It's the innovation and 89 00:05:17,720 --> 00:05:22,000 Speaker 1: science we put into play. In that sense, the extraordinary 90 00:05:22,040 --> 00:05:27,159 Speaker 1: explosion of productivity and agriculture rivals anything that was done 91 00:05:27,200 --> 00:05:32,000 Speaker 1: in manufacturing over the same period. Absolutely, and today when 92 00:05:32,040 --> 00:05:34,440 Speaker 1: we look at we're in an next revolution of agriculture, 93 00:05:34,440 --> 00:05:37,440 Speaker 1: and that is applying data science to everything we do. 94 00:05:37,880 --> 00:05:40,960 Speaker 1: Every about thirty square meters has got its own digital 95 00:05:41,000 --> 00:05:44,960 Speaker 1: fingerprint on a farm like ours, and we apply different practices, 96 00:05:45,000 --> 00:05:47,840 Speaker 1: maybe a different rate of niers and our phosphorus or 97 00:05:47,920 --> 00:05:51,120 Speaker 1: crop care product to it. So agriculture has changed a 98 00:05:51,160 --> 00:05:54,080 Speaker 1: lot in the last ten years, fifty years, and hundred 99 00:05:54,160 --> 00:05:59,560 Speaker 1: years obviously, So given all that, what is the process 100 00:05:59,640 --> 00:06:03,360 Speaker 1: by which the rise in oil prices and natural gas 101 00:06:03,400 --> 00:06:08,680 Speaker 1: prices then gets translated directly into impact on the cost 102 00:06:08,720 --> 00:06:13,800 Speaker 1: of agriculture. Well, obviously we're very related, as you just said, 103 00:06:13,839 --> 00:06:17,640 Speaker 1: to the energy sector. Obviously, our tractors burn fuel, they 104 00:06:17,680 --> 00:06:20,120 Speaker 1: burn diesel fuel. In fact, I was talking to some 105 00:06:20,160 --> 00:06:22,760 Speaker 1: of our people budgeting for our fleet and it used 106 00:06:22,760 --> 00:06:24,600 Speaker 1: to be a year ago we'd fill up a tractor 107 00:06:24,640 --> 00:06:26,320 Speaker 1: at the end of the day and it would cost 108 00:06:26,440 --> 00:06:29,919 Speaker 1: in around five hundred fifty six hundred dollars. Today, filling 109 00:06:29,960 --> 00:06:31,800 Speaker 1: that same tractor is going to be close to thirteen 110 00:06:31,920 --> 00:06:35,040 Speaker 1: hundred fifty fourteen hundred dollars to fill it up with fuel. 111 00:06:35,600 --> 00:06:37,880 Speaker 1: But when we look at the sector that probably has 112 00:06:37,920 --> 00:06:41,720 Speaker 1: impacted more, I would say is our fertilizer sector. Natural 113 00:06:41,760 --> 00:06:45,680 Speaker 1: gas is used in the production of nitrogen. The process 114 00:06:45,800 --> 00:06:49,840 Speaker 1: was something invented in Germany, the haberd Bosch process, where 115 00:06:49,839 --> 00:06:52,760 Speaker 1: we converted oxygen or the air above us along with 116 00:06:52,839 --> 00:06:55,880 Speaker 1: natural gas and we can produce nitrogen. Well, that product 117 00:06:55,920 --> 00:06:58,839 Speaker 1: alone this year has went up three times in value. 118 00:06:59,400 --> 00:07:01,719 Speaker 1: But it's really interesting when you look at the chart 119 00:07:01,839 --> 00:07:05,400 Speaker 1: of the growth and human population around the world and 120 00:07:05,440 --> 00:07:08,320 Speaker 1: the growth of nitrogen, and they run parallel from about 121 00:07:08,360 --> 00:07:11,080 Speaker 1: the data. When they start producing nitrogen that way. So 122 00:07:11,680 --> 00:07:15,840 Speaker 1: civilization today survives and grows on that of the use 123 00:07:15,880 --> 00:07:22,720 Speaker 1: of nitrogen fertilizer. So when nitrogen fertilizer becomes more expensive, 124 00:07:23,200 --> 00:07:27,320 Speaker 1: that then has a throughput to the whole process. Absolutely, 125 00:07:27,360 --> 00:07:30,640 Speaker 1: So as it becomes more expensive technologies like we have 126 00:07:30,680 --> 00:07:33,440 Speaker 1: in the United States, we will use less, but because 127 00:07:33,440 --> 00:07:36,240 Speaker 1: we're able to manage the way we apply it to 128 00:07:36,280 --> 00:07:39,320 Speaker 1: the field and put on specific amounts at different times. 129 00:07:39,840 --> 00:07:41,400 Speaker 1: But when you get a lot of other places in 130 00:07:41,440 --> 00:07:43,440 Speaker 1: the world, they don't apply it in the same way, 131 00:07:43,480 --> 00:07:46,240 Speaker 1: and sometimes it's a little wasteful. But you know, we 132 00:07:46,360 --> 00:07:48,440 Speaker 1: have the system that's going to allow us to afford 133 00:07:48,480 --> 00:07:50,840 Speaker 1: it this year, but it's still going to be very 134 00:07:50,880 --> 00:07:52,920 Speaker 1: expensive for us. But when you look around the world, 135 00:07:53,000 --> 00:07:55,680 Speaker 1: you look into developing nations, a lot of them are 136 00:07:55,720 --> 00:07:57,600 Speaker 1: not able to afford it. They're not able to get 137 00:07:57,600 --> 00:07:59,680 Speaker 1: the credit to buy it. And this is where I 138 00:07:59,760 --> 00:08:02,840 Speaker 1: see our risk is we'll see a decline in the 139 00:08:02,920 --> 00:08:05,800 Speaker 1: US and production in some other places like Oceana and 140 00:08:05,880 --> 00:08:09,200 Speaker 1: South America. But when you look across Africa and the 141 00:08:09,240 --> 00:08:11,880 Speaker 1: Middle East, they just don't have the banking system or 142 00:08:11,920 --> 00:08:15,040 Speaker 1: the system in agriculture to allow them to afford to 143 00:08:15,040 --> 00:08:17,280 Speaker 1: buy it to make sure they can have their productivity 144 00:08:17,280 --> 00:08:20,360 Speaker 1: that they need. I saw some note that India gets 145 00:08:21,240 --> 00:08:25,760 Speaker 1: I think a third of its fertilizer from Russia, and 146 00:08:26,080 --> 00:08:29,679 Speaker 1: they're really worried about the collapse of the whole Indian 147 00:08:29,680 --> 00:08:33,760 Speaker 1: and agricultural economy, which of course is you know, a billion, 148 00:08:33,800 --> 00:08:37,079 Speaker 1: four hundred million people relying on Yeah. I understand that 149 00:08:37,200 --> 00:08:40,400 Speaker 1: India came out with a subsidy to help their farmers 150 00:08:40,400 --> 00:08:43,480 Speaker 1: afford that nitrogen. I think going into the twenty twenty 151 00:08:43,520 --> 00:08:47,320 Speaker 1: two year, I'm hearing subsidies between twenty and thirty billion 152 00:08:47,360 --> 00:08:51,880 Speaker 1: dollars to help the Indian farmer afford that expensive nitrogen. 153 00:08:52,040 --> 00:08:53,760 Speaker 1: But the reality is some of them will probably just 154 00:08:53,880 --> 00:08:55,800 Speaker 1: back away and use less, and we know what that 155 00:08:55,840 --> 00:09:16,760 Speaker 1: does to productivity. You're in a unique position. I think 156 00:09:16,760 --> 00:09:21,080 Speaker 1: people probably don't realize this. But in addition to running 157 00:09:21,120 --> 00:09:25,959 Speaker 1: a very very sophisticated farm that's totally integrated into modern science, 158 00:09:26,520 --> 00:09:28,320 Speaker 1: you were and I got to know you because you 159 00:09:28,320 --> 00:09:31,880 Speaker 1: were the US ambassador to the United Nations Agencies for 160 00:09:32,000 --> 00:09:35,640 Speaker 1: Food and Agriculture in Rome. You were accredited in that 161 00:09:35,679 --> 00:09:39,720 Speaker 1: sense to three different UN agencies for Food and Agriculture, 162 00:09:39,760 --> 00:09:43,480 Speaker 1: the Food and Agriculture Organization of the United Nations, the 163 00:09:43,520 --> 00:09:48,520 Speaker 1: International Fund for Agricultural Development, and the World Food Program. 164 00:09:48,640 --> 00:09:54,920 Speaker 1: How did that service looking at worldwide from the UN perspective, 165 00:09:55,400 --> 00:09:59,000 Speaker 1: how did that change your views about agriculture and about 166 00:09:59,120 --> 00:10:01,640 Speaker 1: what the US roles should be in the world. Well, 167 00:10:01,679 --> 00:10:03,520 Speaker 1: I went into it when I looked at those different 168 00:10:03,520 --> 00:10:06,320 Speaker 1: food agencies with a very open mind, and I understood 169 00:10:06,360 --> 00:10:09,719 Speaker 1: that the World Food Program is the agency that goes 170 00:10:09,760 --> 00:10:13,319 Speaker 1: out and provides a humanitarian relief around the world where 171 00:10:13,320 --> 00:10:17,200 Speaker 1: people are unable to access the food to continue to live, 172 00:10:17,559 --> 00:10:21,520 Speaker 1: to meet their basic nutritional needs. The Food and Agriculture 173 00:10:21,559 --> 00:10:25,120 Speaker 1: Organization is the agency that is supposed to create resilience 174 00:10:25,200 --> 00:10:29,920 Speaker 1: and capacity in food systems throughout the developing world, but 175 00:10:30,040 --> 00:10:33,520 Speaker 1: quite candidly, for nearly three decades, has done little to 176 00:10:33,720 --> 00:10:38,000 Speaker 1: really support the growth of improvement in resiliency and capacity building. 177 00:10:38,000 --> 00:10:41,240 Speaker 1: And then we had to course e FAD, which offered 178 00:10:41,320 --> 00:10:45,800 Speaker 1: financing to smallholder farmers across the developing world. But when 179 00:10:45,800 --> 00:10:47,720 Speaker 1: I look at this, I know the World Food Program 180 00:10:47,760 --> 00:10:49,559 Speaker 1: is at a good example. When I first got the 181 00:10:49,640 --> 00:10:52,800 Speaker 1: room back in twenty nineteen, I think the budget was 182 00:10:52,840 --> 00:10:55,440 Speaker 1: in around five and a half billion dollars. That's how 183 00:10:55,520 --> 00:10:58,000 Speaker 1: much they were raising. By the time I left, it 184 00:10:58,040 --> 00:11:00,720 Speaker 1: was over eight and a half billion they needed, and 185 00:11:00,800 --> 00:11:04,079 Speaker 1: that's what Executive Director Beasley was raising around the world 186 00:11:04,480 --> 00:11:07,520 Speaker 1: to help fund it. And by the way, America supports 187 00:11:07,600 --> 00:11:10,760 Speaker 1: forty percent of that budget, and Americans are the most 188 00:11:10,800 --> 00:11:14,240 Speaker 1: philanthropic of any nation in the world per capita. But 189 00:11:14,360 --> 00:11:17,640 Speaker 1: when I look at their needs today, it's nearly thirteen 190 00:11:17,679 --> 00:11:21,080 Speaker 1: point seven billion dollars is what's needed to meet that 191 00:11:21,160 --> 00:11:25,600 Speaker 1: humanitary need around the world. And I'll add seventy percent 192 00:11:25,920 --> 00:11:28,400 Speaker 1: of the places they're delivering food aid is in the 193 00:11:28,480 --> 00:11:31,840 Speaker 1: midst of man made conflict. Then that's an important point 194 00:11:31,880 --> 00:11:37,640 Speaker 1: because we're talking about fifty or sixty different small wars 195 00:11:37,679 --> 00:11:41,040 Speaker 1: that are underway around the world that people just know. 196 00:11:41,120 --> 00:11:43,160 Speaker 1: We put a lot of attention on Ukraine right now, 197 00:11:43,400 --> 00:11:46,360 Speaker 1: but there are a lot of places that have long term, 198 00:11:46,520 --> 00:11:50,559 Speaker 1: vicious conflicts underway, rich small and they're not on television 199 00:11:50,960 --> 00:11:53,800 Speaker 1: and we don't identify with them. But as you said, 200 00:11:54,040 --> 00:11:56,440 Speaker 1: that means that it's very hard for a place where 201 00:11:56,440 --> 00:12:00,160 Speaker 1: people getting killed to have a stable agricultural system, and 202 00:12:00,200 --> 00:12:02,520 Speaker 1: it's very hard for them to feed the poorest people 203 00:12:02,520 --> 00:12:05,480 Speaker 1: who get crowded at the margins and very often end 204 00:12:05,559 --> 00:12:08,560 Speaker 1: up starving to death. Well, we know one thing, like 205 00:12:08,640 --> 00:12:11,480 Speaker 1: the current situation we're in today. You know, we've got 206 00:12:11,600 --> 00:12:15,720 Speaker 1: record high food prices, We've got high energy prices, which 207 00:12:15,800 --> 00:12:17,680 Speaker 1: is costing us a lot to move this food around 208 00:12:17,720 --> 00:12:20,920 Speaker 1: the world. We have some climate shocks in a few places, 209 00:12:21,000 --> 00:12:23,760 Speaker 1: so the cost to deliver this food as it's not 210 00:12:23,840 --> 00:12:25,599 Speaker 1: able to get to as many places. I spoke to 211 00:12:25,640 --> 00:12:29,200 Speaker 1: Executive director Beasley the other day and he said, before Ukraine, 212 00:12:29,320 --> 00:12:32,520 Speaker 1: the World Food Program is already cutting rations in a 213 00:12:32,559 --> 00:12:36,679 Speaker 1: lot of places to fifty percent fifty percent of normal nutrition. 214 00:12:37,280 --> 00:12:39,440 Speaker 1: So that's of the three hundred million people. And that's 215 00:12:39,520 --> 00:12:44,920 Speaker 1: before the Ukrainian invasion occurred from Russia. So right now 216 00:12:44,960 --> 00:12:49,320 Speaker 1: we're basically shutting down Ukrainian agriculture production. And I really 217 00:12:49,320 --> 00:12:52,440 Speaker 1: believe this is probably going to be worse than Arab 218 00:12:52,559 --> 00:12:55,840 Speaker 1: spring when we experience that back in twenty ten and twelve. 219 00:12:56,400 --> 00:12:58,640 Speaker 1: Like I said, we've got food shipping costs is going 220 00:12:58,720 --> 00:13:01,719 Speaker 1: up seven hundred fifty to a billion dollars. I know, 221 00:13:02,040 --> 00:13:04,640 Speaker 1: Beasley stayed the other day he needs nearly six hundred 222 00:13:04,679 --> 00:13:07,880 Speaker 1: million for Ukraine just in the next three months to 223 00:13:08,000 --> 00:13:11,000 Speaker 1: meet their basic needs. So he said to me, where 224 00:13:11,000 --> 00:13:12,440 Speaker 1: do I take that for him? Do I take it 225 00:13:12,480 --> 00:13:17,160 Speaker 1: from a child in Yemen, Afghanistan, Somalia? Do we choose 226 00:13:17,200 --> 00:13:22,240 Speaker 1: who dies and who lives? They're facing some tough situations here. Well, 227 00:13:22,360 --> 00:13:24,600 Speaker 1: it's ubly tragic because you have one of the greatest 228 00:13:24,640 --> 00:13:27,959 Speaker 1: food exporting areas in the world. I mean, Ukraine has 229 00:13:28,000 --> 00:13:32,360 Speaker 1: soil very comparable to Iowa and is enormously productive, and 230 00:13:32,480 --> 00:13:36,760 Speaker 1: yet now they're faced with starvation in Ukraine. So as 231 00:13:36,800 --> 00:13:39,200 Speaker 1: opposed to feeding the rest of the world, they're going 232 00:13:39,280 --> 00:13:41,960 Speaker 1: to have to have some help just to avoid starvation 233 00:13:42,040 --> 00:13:45,040 Speaker 1: in some of those cities. Absolutely so, if you look 234 00:13:45,040 --> 00:13:48,679 Speaker 1: at their current supply and demand of products in Ukraine, 235 00:13:48,720 --> 00:13:51,800 Speaker 1: they've shipped about between a half and two thirds of 236 00:13:51,840 --> 00:13:54,760 Speaker 1: their brains out of the country already. Wheat and corn 237 00:13:54,880 --> 00:13:58,160 Speaker 1: is the most major ones. So there is a little 238 00:13:58,160 --> 00:13:59,800 Speaker 1: bit left there and they're trying to figure out the 239 00:14:00,040 --> 00:14:02,000 Speaker 1: means to get that up into Poland or into some 240 00:14:02,080 --> 00:14:04,480 Speaker 1: other areas where they could use it to feed some 241 00:14:04,480 --> 00:14:08,640 Speaker 1: of the Ukrainians. But right now, talking executive director Beasley 242 00:14:08,679 --> 00:14:10,840 Speaker 1: and his staff, a lot of those people are moving 243 00:14:10,840 --> 00:14:12,880 Speaker 1: on into Europe, and so this is gonna be a 244 00:14:12,920 --> 00:14:15,440 Speaker 1: burden for Europe along the way trying to feed this 245 00:14:15,520 --> 00:14:18,360 Speaker 1: additional two million or three million people that are migrating 246 00:14:18,360 --> 00:14:22,600 Speaker 1: out of the country. And somebody pointed out that the 247 00:14:22,640 --> 00:14:26,240 Speaker 1: shipping problems, because historically the Black Sea has been a 248 00:14:26,280 --> 00:14:30,240 Speaker 1: major center of ships that carry dry goods, that we've 249 00:14:30,280 --> 00:14:34,840 Speaker 1: actually further compounded the whole logistics chain because you know, 250 00:14:34,880 --> 00:14:37,640 Speaker 1: I have so many ships that are empty or they 251 00:14:37,640 --> 00:14:41,040 Speaker 1: can't go through the Russian conflict in order to land. 252 00:14:41,600 --> 00:14:44,160 Speaker 1: So we're going to have an even further complication in 253 00:14:44,280 --> 00:14:48,360 Speaker 1: terms of the cost of shipping and the availability of shipping. Yeah, 254 00:14:48,680 --> 00:14:51,120 Speaker 1: bring that to the reality of today. I spoke to 255 00:14:51,120 --> 00:14:54,120 Speaker 1: a Ukrainian farmer a few days ago. Farms lower one 256 00:14:54,160 --> 00:14:57,680 Speaker 1: hundred thousand hectars, so that's nearly quarter million acres. He 257 00:14:57,760 --> 00:15:01,800 Speaker 1: operates in Ukraine, and they deliver a lot of their 258 00:15:01,840 --> 00:15:04,560 Speaker 1: grain directly the ports, and the word is that they're 259 00:15:04,600 --> 00:15:07,640 Speaker 1: getting is that they will not be shipping anything out 260 00:15:07,640 --> 00:15:11,120 Speaker 1: of those ports until this war is over. But in 261 00:15:11,120 --> 00:15:12,880 Speaker 1: the meantime, they don't even know if they can produce 262 00:15:12,920 --> 00:15:15,360 Speaker 1: a crop this year. You know, he says, the banking 263 00:15:15,400 --> 00:15:19,040 Speaker 1: system isn't functioning. All of his staff is left to 264 00:15:19,040 --> 00:15:22,880 Speaker 1: fight the war for Ukraine against the Russians. He's unable 265 00:15:22,880 --> 00:15:25,880 Speaker 1: to source the fertilizer he needs to grow crop. He 266 00:15:25,920 --> 00:15:28,560 Speaker 1: has Russian tanks going across his fields where he's got 267 00:15:28,640 --> 00:15:30,960 Speaker 1: a wheat crop that will be harvested in a few months, 268 00:15:31,360 --> 00:15:33,520 Speaker 1: and he can't even plant a crop. So, you know, 269 00:15:33,520 --> 00:15:36,080 Speaker 1: we're going to lose a lot of production that used 270 00:15:36,080 --> 00:15:39,440 Speaker 1: to be online to balance the scale around the world 271 00:15:39,520 --> 00:15:41,960 Speaker 1: and the food that we needed to feed the entire world. 272 00:15:41,960 --> 00:15:44,240 Speaker 1: And now I'm fraid it's gonna tip too far. And 273 00:15:44,280 --> 00:15:46,200 Speaker 1: that's why I made my statement about this could be 274 00:15:46,240 --> 00:15:49,200 Speaker 1: worse than Arab spring in twenty ten and twelve. You know, 275 00:15:49,360 --> 00:15:51,640 Speaker 1: people talk a lot about the price of gasoline because 276 00:15:51,680 --> 00:15:55,240 Speaker 1: in the US that's the most visible single thing that 277 00:15:55,320 --> 00:15:58,160 Speaker 1: we do in terms of paying directly out of our pocket. 278 00:15:58,600 --> 00:16:02,080 Speaker 1: But if I understand it correctly, the future's projection for 279 00:16:02,160 --> 00:16:06,400 Speaker 1: wheat is actually a bigger jump than the projection for gasoline. 280 00:16:07,160 --> 00:16:08,920 Speaker 1: I wouldn't doubt it. You know, if you look at 281 00:16:08,920 --> 00:16:11,480 Speaker 1: trend lines, wheat tends to trade in a four to 282 00:16:11,560 --> 00:16:13,760 Speaker 1: four dollars and fifty cent range, maybe up to five 283 00:16:13,800 --> 00:16:17,280 Speaker 1: dollars once in a while, it's trading at thirteen dollars today. 284 00:16:18,040 --> 00:16:21,920 Speaker 1: Now it's watching the headlines, it sees us negotiating where 285 00:16:22,320 --> 00:16:26,200 Speaker 1: Zelinski and Putin are having some negotiations. But the reality is, 286 00:16:26,240 --> 00:16:27,800 Speaker 1: just as soon as that's over with and we go 287 00:16:27,880 --> 00:16:30,800 Speaker 1: back to battle, we know that wheat price will continue 288 00:16:31,200 --> 00:16:34,840 Speaker 1: to accelerate up. So we've got a supply demand issue 289 00:16:34,960 --> 00:16:37,760 Speaker 1: that's going to affect the world. And let's hope that 290 00:16:37,880 --> 00:16:40,800 Speaker 1: we can see peace sometime soon, but I'm not that optimistic. 291 00:16:41,560 --> 00:16:43,680 Speaker 1: How much is the rise in the price of wheat, 292 00:16:43,720 --> 00:16:47,600 Speaker 1: which will be translated into cereals and bread and a 293 00:16:47,640 --> 00:16:50,040 Speaker 1: whole range of products. How much is that a function 294 00:16:50,040 --> 00:16:53,960 Speaker 1: of the general inflation rate, which has really jumped dramatically 295 00:16:54,000 --> 00:16:55,880 Speaker 1: in the last year, and how much of it is 296 00:16:55,920 --> 00:16:59,120 Speaker 1: a unique function of a supply problem caused by the war. 297 00:17:00,200 --> 00:17:02,880 Speaker 1: Prior to the war, we'd see increases in prices where 298 00:17:02,880 --> 00:17:05,240 Speaker 1: we've seen a lot of commodities up from twenty to 299 00:17:05,280 --> 00:17:08,679 Speaker 1: twenty five percent in value, some upwards over thirty percent. 300 00:17:08,840 --> 00:17:11,800 Speaker 1: So you look at the basic cost on a commodity 301 00:17:11,920 --> 00:17:14,040 Speaker 1: was up that much at that point in time. Now 302 00:17:14,080 --> 00:17:17,320 Speaker 1: we've moved it up another few dollars. So, like I said, 303 00:17:17,320 --> 00:17:20,040 Speaker 1: we're trading at three x of value. We're looking at that. 304 00:17:20,080 --> 00:17:23,480 Speaker 1: We're also looking at oil. For every ten dollars oil 305 00:17:23,560 --> 00:17:26,440 Speaker 1: goes up per barrel of price. We know that increases 306 00:17:26,480 --> 00:17:29,679 Speaker 1: inflation by half of one percent. We're used to be 307 00:17:29,680 --> 00:17:32,480 Speaker 1: trading at sixty seventy dollars range and now we're well 308 00:17:32,480 --> 00:17:35,679 Speaker 1: over one hundred dollars. So this is all inflationary. And 309 00:17:35,720 --> 00:17:39,200 Speaker 1: the thing is speaker. This affects those that can least 310 00:17:39,520 --> 00:17:42,400 Speaker 1: afford it more than anybody else. I don't care whether 311 00:17:42,400 --> 00:17:44,800 Speaker 1: it's a United States or whether it's in Yemen, or 312 00:17:44,800 --> 00:17:48,000 Speaker 1: whether it's in the Middle East or in Africa. This 313 00:17:48,119 --> 00:17:51,560 Speaker 1: really affects those that cannot afford high energy prices or 314 00:17:51,640 --> 00:17:55,639 Speaker 1: high food prices. So it's going to particularly hit the 315 00:17:55,840 --> 00:17:58,359 Speaker 1: very poor. But as you pointed out, one of the 316 00:17:58,400 --> 00:18:03,080 Speaker 1: effects of food price increases and gasoline price increases is 317 00:18:03,160 --> 00:18:05,399 Speaker 1: on the working poor in the middle class, and that 318 00:18:05,520 --> 00:18:08,800 Speaker 1: led to huge amount of unrest the last time it happened, 319 00:18:09,200 --> 00:18:11,240 Speaker 1: and so we could well be looking forward to a 320 00:18:11,280 --> 00:18:14,600 Speaker 1: year or two. We're all around the planet there is 321 00:18:14,640 --> 00:18:16,960 Speaker 1: a really high level of unrest because people are in 322 00:18:17,000 --> 00:18:20,199 Speaker 1: pain they're walking out to the local store or to 323 00:18:20,280 --> 00:18:24,080 Speaker 1: the local market and they can't afford it. That leaves 324 00:18:24,119 --> 00:18:26,400 Speaker 1: them feeling angry, and I please them feeling that their 325 00:18:26,440 --> 00:18:30,280 Speaker 1: government is both failing them and cheating them. Our rent 326 00:18:30,320 --> 00:18:33,240 Speaker 1: has failed us on our energy policy. We need to 327 00:18:33,280 --> 00:18:35,760 Speaker 1: make sure we start growing here again and have access 328 00:18:35,800 --> 00:18:38,560 Speaker 1: to the energy that we have underneath our feet to 329 00:18:38,680 --> 00:18:40,879 Speaker 1: make sure that we can live the liz we need. 330 00:18:40,880 --> 00:18:43,360 Speaker 1: And like I've mentioned many times, we need to get 331 00:18:43,359 --> 00:18:46,200 Speaker 1: back to an American first policy. We need fertilizer plants 332 00:18:46,200 --> 00:18:48,720 Speaker 1: back in United States, we need to drill again, and 333 00:18:48,720 --> 00:18:51,880 Speaker 1: we need access to that natural gas. And like I said, 334 00:18:51,880 --> 00:18:53,680 Speaker 1: this is going to affect Americans, this is going to 335 00:18:53,720 --> 00:18:56,119 Speaker 1: affect people around the world. But one of the bigger 336 00:18:56,160 --> 00:18:59,440 Speaker 1: concerns we have is probably the mass migration we could 337 00:18:59,440 --> 00:19:02,880 Speaker 1: see Ana if we're not able to feed the populations 338 00:19:02,920 --> 00:19:06,120 Speaker 1: throughout the Sahel in some of the areas where there's 339 00:19:06,119 --> 00:19:08,800 Speaker 1: a lot of extremism taking place. And we know that 340 00:19:08,840 --> 00:19:13,960 Speaker 1: there's a direct tie between food security and our own 341 00:19:14,080 --> 00:19:16,960 Speaker 1: national security and that of our allies and friends around 342 00:19:17,000 --> 00:19:20,560 Speaker 1: the world. So this is another risk that's real and 343 00:19:20,880 --> 00:19:40,520 Speaker 1: it's going to happen soon. Well, but I think people 344 00:19:40,600 --> 00:19:44,080 Speaker 1: don't realize how much subs are in Africa has changed 345 00:19:44,119 --> 00:19:47,359 Speaker 1: over the last fifty years. I mean, at current projected rates, 346 00:19:48,000 --> 00:19:50,840 Speaker 1: Nigeria by the end of the century may have the 347 00:19:50,920 --> 00:19:54,399 Speaker 1: same population as all of Western Europe. So the number 348 00:19:54,400 --> 00:19:58,199 Speaker 1: of people who potentially could be in migration patterns is 349 00:19:58,240 --> 00:20:01,760 Speaker 1: truly staggering. It is, you know, I know right now 350 00:20:01,800 --> 00:20:04,600 Speaker 1: in Eastern Europe we've probably got more people migrating ever 351 00:20:04,680 --> 00:20:07,600 Speaker 1: since World War Two. But then when we look like 352 00:20:07,640 --> 00:20:10,840 Speaker 1: you said, the hell of Africa, you know, Nigeria, they 353 00:20:10,880 --> 00:20:13,119 Speaker 1: say will be the third largest countries you just stated, 354 00:20:13,480 --> 00:20:16,800 Speaker 1: And this is where conflict resides. So oftentimes we saw 355 00:20:16,840 --> 00:20:19,600 Speaker 1: it in our many trips throughout Africa while serving as 356 00:20:19,600 --> 00:20:23,480 Speaker 1: ambassador there in Rome, that when people are hungry, they migrate, 357 00:20:23,480 --> 00:20:26,800 Speaker 1: and when they migrate, they get caught up in extremist activities, 358 00:20:27,280 --> 00:20:31,479 Speaker 1: illicit gun trade, elicit drug movement, and worse, get involved 359 00:20:31,480 --> 00:20:35,480 Speaker 1: in human trafficking. So our need, as Secretary Pompeo said 360 00:20:35,520 --> 00:20:38,439 Speaker 1: many times, was to make sure that we had a 361 00:20:38,440 --> 00:20:41,280 Speaker 1: food secure world, especially in those areas that were unable 362 00:20:41,280 --> 00:20:44,159 Speaker 1: to beat their own needs. I remember several conversations you 363 00:20:44,200 --> 00:20:48,560 Speaker 1: and I had in Rome. Could you explain how wrong 364 00:20:48,680 --> 00:20:50,919 Speaker 1: the Europeans are in their approach to all of this 365 00:20:51,040 --> 00:20:55,280 Speaker 1: and how much they're actually making it all worse. Yeah, 366 00:20:55,359 --> 00:20:58,240 Speaker 1: I would say this that the Europeans are very ideological 367 00:20:58,440 --> 00:21:01,520 Speaker 1: in their views of food system and we tend to 368 00:21:01,560 --> 00:21:04,880 Speaker 1: be more pragmatic. If you look at the EU Green Deal, 369 00:21:04,880 --> 00:21:08,200 Speaker 1: they're farmed before condition. They want to reduce fertilizer consumption 370 00:21:08,320 --> 00:21:12,280 Speaker 1: fifty percent, pesticides forty percent, they want to return another 371 00:21:12,359 --> 00:21:16,320 Speaker 1: ten percent to a natural habitat. That's all well and good. 372 00:21:16,400 --> 00:21:18,399 Speaker 1: We have a lot of same goals in the United States. 373 00:21:18,400 --> 00:21:21,000 Speaker 1: We're reducing the use of fertilizer, we're reducing the use 374 00:21:21,040 --> 00:21:24,760 Speaker 1: of pesticides on an active ingredient amount peraker. But the 375 00:21:24,840 --> 00:21:27,560 Speaker 1: reality is the outcome of the system that they're promoting 376 00:21:27,560 --> 00:21:30,480 Speaker 1: in Europe will take them from being a net exporter 377 00:21:31,320 --> 00:21:34,800 Speaker 1: to a net importer. But the reality is they've been 378 00:21:34,800 --> 00:21:37,520 Speaker 1: going across the continent of Africa trying to sell this 379 00:21:37,640 --> 00:21:40,000 Speaker 1: farm before condition and saying, if you want to trade 380 00:21:40,000 --> 00:21:42,240 Speaker 1: with Europe, if you want to be a part of 381 00:21:42,280 --> 00:21:44,600 Speaker 1: our food system, you need to produce food in the 382 00:21:44,600 --> 00:21:48,159 Speaker 1: manner that we require you to produce it well We 383 00:21:48,240 --> 00:21:51,440 Speaker 1: know this hasn't worked in Europe, it hasn't worked in Africa, 384 00:21:51,560 --> 00:21:54,639 Speaker 1: and it does little to solve our food security issues 385 00:21:54,680 --> 00:22:00,000 Speaker 1: around the world. Doesn't the European approach to agriculture actually 386 00:22:00,160 --> 00:22:04,080 Speaker 1: dramatically reduce productivity? It does. When you look at the 387 00:22:04,080 --> 00:22:06,399 Speaker 1: farm before condiati we know it's going to reduce in 388 00:22:06,600 --> 00:22:10,320 Speaker 1: Europe alone, it's seven percent their productivity. We know if 389 00:22:10,359 --> 00:22:13,040 Speaker 1: it is deployed around the world, we know it's going 390 00:22:13,080 --> 00:22:16,320 Speaker 1: to reduce it somewhere around fourteen to fifteen percent. On 391 00:22:16,440 --> 00:22:19,000 Speaker 1: top of that, it's going to increase prices of food 392 00:22:19,040 --> 00:22:23,160 Speaker 1: nearly eighty seven percent. Who can afford that? I say 393 00:22:23,200 --> 00:22:26,919 Speaker 1: this oftentimes, the system that's being promoted in Europe, the 394 00:22:26,960 --> 00:22:30,159 Speaker 1: EU Green Deal Farm before condiative, is an indulgence of 395 00:22:30,160 --> 00:22:36,520 Speaker 1: the rich. It's indefensible scientifically, and most importantly, it's indefensible morally. 396 00:22:36,600 --> 00:22:40,000 Speaker 1: It is a crime against humanity. So in effect, to 397 00:22:40,080 --> 00:22:44,399 Speaker 1: the degree that the European Union is imposing their version 398 00:22:44,400 --> 00:22:49,320 Speaker 1: of a green new Deal, they actually are forcing African 399 00:22:49,320 --> 00:22:52,919 Speaker 1: countries that want to export to Europe into adopting policies 400 00:22:52,960 --> 00:22:57,800 Speaker 1: which reduce the total productivity of the local agricultural system. 401 00:22:57,880 --> 00:23:00,439 Speaker 1: Absolutely and that's some of the work I'm doing today 402 00:23:00,520 --> 00:23:03,440 Speaker 1: is trying to work in a number of those African nations, 403 00:23:03,520 --> 00:23:07,119 Speaker 1: bringing in some different production models, working with the private 404 00:23:07,160 --> 00:23:09,960 Speaker 1: sector to try to increase productivity in some of these 405 00:23:09,960 --> 00:23:13,320 Speaker 1: places that could be the breadbasket for the continent of 406 00:23:13,359 --> 00:23:17,159 Speaker 1: Africa and really change the ability of that continent defeat 407 00:23:17,200 --> 00:23:20,600 Speaker 1: itself and maybe part of the world well. That may 408 00:23:20,600 --> 00:23:24,600 Speaker 1: be accelerated by the current invasion of Ukraine by Russia. 409 00:23:24,760 --> 00:23:28,840 Speaker 1: I was looking that Russia and Ukraine actually counts for 410 00:23:29,040 --> 00:23:32,840 Speaker 1: eighty percent of Egypt's imports of wheat. But I have 411 00:23:32,880 --> 00:23:35,240 Speaker 1: no idea where the Egyptians are going to turn to 412 00:23:35,359 --> 00:23:38,320 Speaker 1: fill that big a gap. You know, I know right 413 00:23:38,359 --> 00:23:41,119 Speaker 1: now Russia, even though they're supposed to be embargoed on 414 00:23:41,160 --> 00:23:44,359 Speaker 1: their wheat China, it was without letters of credit taking 415 00:23:44,400 --> 00:23:47,159 Speaker 1: on some of their wheat. Now is that replaced some 416 00:23:47,240 --> 00:23:50,920 Speaker 1: Australian wheat and going into Egypt. Our global grain traders 417 00:23:50,920 --> 00:23:53,840 Speaker 1: are pre nimble, They've got solid data systems, they know 418 00:23:53,920 --> 00:23:56,800 Speaker 1: where supplies are at. I'm guessing that they're trying to 419 00:23:56,800 --> 00:23:59,360 Speaker 1: address this issue and the best that they can where 420 00:23:59,400 --> 00:24:01,960 Speaker 1: they're allowed to have that free flow of trade. So 421 00:24:02,560 --> 00:24:06,399 Speaker 1: Egypt's got a problem, Lebanon's got a problem, and Yemen, 422 00:24:06,480 --> 00:24:10,000 Speaker 1: and of course of the World Food Program, nearly seventy 423 00:24:10,000 --> 00:24:12,240 Speaker 1: percent of their week came out of that Black seaport 424 00:24:12,880 --> 00:24:16,480 Speaker 1: and went into Africa. But now it's not functioning. It's 425 00:24:16,520 --> 00:24:19,399 Speaker 1: not going to happen, it's broken. When they say that 426 00:24:19,560 --> 00:24:23,200 Speaker 1: Russia is currently trading wheat and oil without the traditional 427 00:24:23,240 --> 00:24:26,280 Speaker 1: letters of credit in terms of dealing with China, what 428 00:24:26,359 --> 00:24:29,159 Speaker 1: does that mean. Well, you know, typically when you have 429 00:24:29,200 --> 00:24:32,840 Speaker 1: a trade between two different nations, the buying country will 430 00:24:32,880 --> 00:24:35,399 Speaker 1: issue a letter of credit to support that purchase of 431 00:24:35,400 --> 00:24:38,720 Speaker 1: that grain. Well, somehow you can even go online and 432 00:24:38,760 --> 00:24:40,320 Speaker 1: look at the ships moving in and out of the 433 00:24:40,359 --> 00:24:42,480 Speaker 1: Black Sea region and you can see some of them 434 00:24:42,520 --> 00:24:46,000 Speaker 1: if you trace them very long. They're still moving into 435 00:24:46,160 --> 00:24:49,520 Speaker 1: China with that wheat. So China took off all the 436 00:24:49,560 --> 00:24:52,600 Speaker 1: import tariffs on wheat and they continue to function with 437 00:24:52,640 --> 00:24:55,920 Speaker 1: those markets. So without a letter of credit, just knowing 438 00:24:55,920 --> 00:24:57,760 Speaker 1: that they're going to pay for it because they need it, 439 00:24:58,280 --> 00:25:01,280 Speaker 1: they're going ahead and continuing to ship. Is there an 440 00:25:01,320 --> 00:25:03,920 Speaker 1: advantage to China to not issue a letter of credit 441 00:25:04,000 --> 00:25:06,120 Speaker 1: or does it allow them to sort of pretend they're 442 00:25:06,119 --> 00:25:08,560 Speaker 1: going along with the embargo while they keep buying the wheat. 443 00:25:08,960 --> 00:25:11,400 Speaker 1: I think it lets them pretend that they're going along 444 00:25:11,440 --> 00:25:15,120 Speaker 1: with embargo. Okay, because I have to confess I read 445 00:25:15,160 --> 00:25:18,119 Speaker 1: that and I didn't quite know exactly how the system 446 00:25:18,240 --> 00:25:20,600 Speaker 1: works in that sense. I mean, one of the things 447 00:25:20,640 --> 00:25:24,760 Speaker 1: that's very striking is, and I think almost nobody understands 448 00:25:24,800 --> 00:25:29,879 Speaker 1: us who's outside your profession, the extraordinary complexity of the 449 00:25:29,920 --> 00:25:32,960 Speaker 1: world food system, the amount of information that flows back 450 00:25:33,000 --> 00:25:38,080 Speaker 1: and forth every single day, and how really sophisticated and 451 00:25:38,119 --> 00:25:41,679 Speaker 1: competent the best of the traders are at figuring out 452 00:25:41,800 --> 00:25:43,800 Speaker 1: where to buy, where to sell, how to move it, 453 00:25:43,920 --> 00:25:46,960 Speaker 1: what the transportation systems like. I mean, isn't this really 454 00:25:47,400 --> 00:25:51,320 Speaker 1: one of the most sophisticated systems of the entire planet. 455 00:25:52,000 --> 00:25:54,760 Speaker 1: A lot of people don't understand that the food system, 456 00:25:54,960 --> 00:25:57,760 Speaker 1: on an annual basis is valued at nearly seven trillion 457 00:25:57,840 --> 00:26:01,280 Speaker 1: dollars in the United States loan it's nearly one point 458 00:26:01,320 --> 00:26:04,480 Speaker 1: four trillion dollars. There's a lot of work that goes 459 00:26:04,520 --> 00:26:06,960 Speaker 1: before that product gets on the shelf of a grocery 460 00:26:06,960 --> 00:26:09,720 Speaker 1: store or a farmer's market, or in that consumer's house. 461 00:26:09,800 --> 00:26:12,399 Speaker 1: So there's a lot of people involved in that system. 462 00:26:12,400 --> 00:26:14,479 Speaker 1: There's a lot of people would like to disrupt that system. 463 00:26:14,520 --> 00:26:16,880 Speaker 1: They think they have a better idea of producing everything 464 00:26:16,920 --> 00:26:20,240 Speaker 1: locally and at home and a circular economy. But the 465 00:26:20,359 --> 00:26:23,120 Speaker 1: reality is we have a well functioning system. We have 466 00:26:23,160 --> 00:26:25,280 Speaker 1: a lot of people that are involved in the trade 467 00:26:25,800 --> 00:26:29,200 Speaker 1: that make sure that places around the world don't go hungry, 468 00:26:29,359 --> 00:26:32,080 Speaker 1: places that can afford to buy and can buy are 469 00:26:32,119 --> 00:26:35,200 Speaker 1: able to access the food products that they need. It's 470 00:26:35,240 --> 00:26:38,640 Speaker 1: amazing and I've really enjoyed the conversations we had when 471 00:26:38,640 --> 00:26:41,399 Speaker 1: you and close to are serving together in Rome, and 472 00:26:41,440 --> 00:26:43,639 Speaker 1: I really appreciate your doing this, Kip. I want to 473 00:26:43,680 --> 00:26:46,639 Speaker 1: thank you for joining me. I think Russia's war and 474 00:26:46,840 --> 00:26:48,600 Speaker 1: ukrained something I want to be dealing with for a 475 00:26:48,640 --> 00:26:51,400 Speaker 1: long time, and the second and third order effects are 476 00:26:51,920 --> 00:26:55,080 Speaker 1: much greater than people realize, and I think that we 477 00:26:55,119 --> 00:26:58,440 Speaker 1: have to recognize that they're going to be real disruptions 478 00:26:58,880 --> 00:27:02,240 Speaker 1: and the world market in the food supply chain. And 479 00:27:02,600 --> 00:27:04,879 Speaker 1: you're one of the people who understands all this and 480 00:27:04,920 --> 00:27:07,320 Speaker 1: who's involved in it and who cares about it. And 481 00:27:07,359 --> 00:27:09,760 Speaker 1: I just want to say, as a citizen, thank you 482 00:27:09,800 --> 00:27:12,639 Speaker 1: for your service to our country as ambassador to the 483 00:27:12,680 --> 00:27:16,320 Speaker 1: United Nations Agencies for Food and Agriculture, and thank you 484 00:27:16,359 --> 00:27:18,760 Speaker 1: for spending the time with me today because you do 485 00:27:18,920 --> 00:27:21,320 Speaker 1: understand all this, and I think it helps all of 486 00:27:21,320 --> 00:27:24,720 Speaker 1: our listeners get a better understanding both of the importance 487 00:27:25,280 --> 00:27:29,320 Speaker 1: of agriculture and of the complexity of agriculture and of 488 00:27:29,320 --> 00:27:32,400 Speaker 1: the kind of disruptions and effects we're likely to see 489 00:27:32,440 --> 00:27:34,800 Speaker 1: in the near future. So Kip, I really thank you 490 00:27:34,840 --> 00:27:37,320 Speaker 1: for taking the time to educate the rest of us. 491 00:27:37,760 --> 00:27:40,400 Speaker 1: Thank you, Speaker Gingrich, look forward to seeing you again soon. 492 00:27:43,560 --> 00:27:46,840 Speaker 1: Thank you to my guest ambassador, Kip Tom. You can 493 00:27:46,920 --> 00:27:49,800 Speaker 1: read more about the global food supply chain and Tom 494 00:27:49,840 --> 00:27:53,680 Speaker 1: Farms on our show page at newtsworld dot com. News 495 00:27:53,720 --> 00:27:57,520 Speaker 1: World is produced by Gangwich Sweet sixty and iHeartMedia. Our 496 00:27:57,560 --> 00:28:01,960 Speaker 1: executive producers Guarnsey Sloan, Our producer is Rebecca Howell, and 497 00:28:02,080 --> 00:28:05,879 Speaker 1: our researcher is Rachel Peterson. The artwork for the show 498 00:28:06,280 --> 00:28:09,480 Speaker 1: was created by Steve Penley. Special thanks to the team 499 00:28:09,480 --> 00:28:12,840 Speaker 1: at Gingwidge three sixty. If you've been enjoying Newtsworld, I 500 00:28:12,960 --> 00:28:15,919 Speaker 1: hope you'll go to Apple Podcast and both rate us 501 00:28:15,920 --> 00:28:19,199 Speaker 1: with five stars and give us a review so others 502 00:28:19,200 --> 00:28:22,280 Speaker 1: can learn what it's all about. Right now, Listeners of 503 00:28:22,359 --> 00:28:25,280 Speaker 1: news World can sign up for my three free weekly 504 00:28:25,359 --> 00:28:30,400 Speaker 1: columns at Gingwich three sixty dot com slash newsletter. I'm 505 00:28:30,480 --> 00:28:32,440 Speaker 1: Newt Gingrich. This is news World.