Opinion: The world is on the brink of a food shortage. Here’s what the US government and businesses can do to help
Businesses can protect themselves by finding alternative sources of grain: diversifying supply chains or substituting alternatives in domestic or other unaffected markets where possible. This diversification and substitution would help mitigate some of the costs they will ultimately pass down to consumers.
Boost benefits
To help Americans in need, the Federal Emergency Management Agency could be deployed and social safety net programs, like the Supplemental Nutrition Assistance Program, could be expanded. Additionally, the federal government can make sure that school food programs, which provide nutrition to millions of children, remain fully funded.
Tap reserves
The good news is that other economies can step in immediately to feed the world. What determines this is whether these economies have stockpiles that can be tapped for exports and the internal infrastructure and labor force to facilitate ramped-up trade.
Policymakers can identify excess stocks of grain and partner with NGOs to distribute food to vulnerable nations. Governments can also draw from domestic reserves to help cushion the effects of a grain-supply shock on consumers.
Invest more in food production
Governments can also dedicate greater shares of their budgets to increasing food production, including spending on equipment, R&D and infrastructure.
Businesses can also help support increased grain production via financing and direct investment in equipment and labor.
Reduce waste
Limit the use of corn in fuel
These solutions may be easier said than done. Nonetheless, it is important that businesses and governments work together to help keep food affordable. Given the US grain production capacity, it can take the lead in putting food on the table, both at home and abroad.