26 June 2019: An event on the ‘Hidden Costs of American Food’ discussed the concept of true cost accounting (TCA) as a tool to account for the impacts food systems have on environment, health and social dimensions, and whether it is time for such a tool to be applied in US policy decision making.

The event, which convened on the afternoon of 26 June 2019 in Washington, DC, involved presentations by expert panelists, followed by an interactive discussion with the participants. Panelists focused how TCA can provide the opportunity to align food systems with environmental, health and social policy to ensure that food policies do not exacerbate climate change, biodiversity loss, and human health impacts. The ensuing discussion explored current and prospective challenges to developing and applying TCA approaches, methodologies, and tools, and achieving their uptake by policymakers, including US policymakers, as well as by the private sector.

Food production is one of the most complex and poorly understood systems in the world.

In her opening remarks, Kathleen Merrigan, Executive Director, ASU Swette Center, said work on true cost accounting of food systems was timely, given concerns about climate change pressures, the need to achieve the SDGs, and to fight all forms of malnutrition. She stressed that TCA work is not about raising the cost of food to consumers, but rather providing a fuller accounting of all costs involved in food production. She explained that this information would facilitate the design of policies to keep food affordable, as well as aligning food systems with environmental, health and social policy priorities.

Alexander Mueller, TEEBAgriFood Study Leader and Managing Director, TMG Research gGmbH, explained the rationale behind the TEEBAgriFood Evaluation Framework. He said food production is one of the most complex and poorly understood systems in the world, but important to change if the SDGs are to be attained. Mueller noted that all countries spend heavily on subsidizing food production without understanding whether they are subsidizing it well. He argued that food costs need to take into account the major impacts food systems have on environment, health and social dimensions, but cautioned that such analysis is complex and no one should expect simple answers.

The event was co-sponsored by Arizona State University’s (ASU) Swette Center for Sustainable Food Systems and TMG Research gGmbH. It built on the work of the Evaluation Framework released in 2018 by the Agriculture and Food offshoot of The Economics of Ecosystems and Biodiversity global initiative (“TEEBAgriFood”). The Framework seeks to contribute to comprehensive valuations of the eco-agri-food systems complex and demonstrate the externalities of farming systems, both negative and positive, in order to raise awareness of interlinkages among produced, natural, social, and human capital. [IISD Report on Event]