SEEDS OF DESTRUCTION
By William EngdahlCHAPTER 6
Fateful War and Peace Studies
Preparing a Post-War Empire
Well before the triumphant victory of the United States in
World War II, it had become obvious to the heads of the
largest American corporations and banks that the US market was
far too small for their ambitions. As they saw it, "Manifest Destiny;'
the unlimited expansion of American power, was to be a worldwide
business. A seemingly easy victory in World War I and the gains
of the Versailles Treaty in Europe had only whetted their appetite
for more.
Leading policy-making figures of the American establishment
had quietly created a highly influential policy group in late 1939,
only weeks after the German invasion of Poland, and two full years
before Pearl Harbor would bring the US directly into the war. The
task of the secret group was simple: to shape US post-war economic
and political goals, based on the assumption a world war would
come and that the United States would emerge from the ashes of
that war as the dominant global power.
That elite policy-making circle, the War and Peace Studies Group
of the New York Council on Foreign Relations, effectively took over all significant post-war planning for the US State Department.
After 1942, most of its members were quietly put directly on the State Department payroll.
Their work was financed by the ubiquitous Rockefeller
Foundation. Between November 1939 and late 1942, the Rockefeller
Foundation had contributed no less than $350,000 to finance the
drafting of the agenda for post -war American economic hegemony
via the War & Peace Studies Group. It was an investment which, like
most made by the Foundation, paid back thousands-fold in later
years. It defined the post-war American business empire globally.1
During the interwar years of the 1930's, while most Americans
were struggling with the devastation of the Great Depression, a
handful of businessmen and their academic associates at private
universities such as Harvard, Yale, Princeton, and Johns Hopkins,
along with senior partners from the major Wall Street law firms,
were preparing the ground for the new "Pax Americana." Their
aim was simple: to consolidate an American succession to the failing
Pax Britannica of the British Empire.
These American policymakers were largely concentrated among
the select membership of the New York Council on Foreign
Relations. Unlike the British Empire, their American vision of global
domination was based on economic goals rather than physical
possession of a colonial empire. It was a brilliant refinement which
allowed the US corporate giants to veil their interests behind the flag
of democracy and human rights for "oppressed colonial peoples;'
support of "free enterprise" and "open markets!'
The interests represented in the Council on Foreign Relations
task force were anything but democratic. It was that of the elite
handful of American corporations and their law firms which had
developed global interests, namely in oil, banking and related industries.
The businessmen represented in the Council on Foreign
Relations, or CFR as it was called, were a breed apart. They were no
ordinary small entrepreneurs.
The CFR had been established in May 1919, in the days of the
Versailles Peace conference in an exclusive meeting at the Paris
Hotel Majestic, by leading representatives of the J.P. Morgan bank, including Thomas Lamont, together with representatives of the
Rockefeller's Standard Oil group, and other select persons including
Woodrow Wilson's adviser, Col. Edward House. They met together
with equally select British friends, most members of Cecil Rhodes'
secretive Round Table group, to discuss establishing a private network
of institutes to "advise" their respective governments on foreign
affairs. [And so lobbying began D.C]
The handful of influential US banks and corporations going
abroad in the era of World War I were few. Most were headquartered
in New York on the East Coast, leading some to refer to it as
the East Coast Establishment. Its de facto headquarters after World
War I was the newly founded Council on Foreign Relations in
New York. The initial financing to establish the CFR came from
J.P. Morgan, John D. Rockefeller, financiers Otto Kahn, Bernard
Baruch, Jacob Schiff and Paul Warburg, the most powerful men of
their day in American business.2
This elite group had been successful in opening the legal doors
for their move overseas by lobbying for a series of Congressional
acts that exempted them from prohibitions against monopoly and
other US Government anti-trust restrictions.
In 1918, Congress passed the Webb-Pomerene Act, which
exempted companies from anti-trust laws, effectively permitting
monopolies, "if their activities are directed to export promotion:'
Standard Oil was a major beneficiary of this act. In 1919, Congress
passed the Edge Act, which exempted US banks from the same antitrust
laws for export activity and export of capital. Chase Bank,
National City Bank and J.P. Morgan in New York were the main beneficiaries
of the Edge Act. Furthermore, in 1920, the US Supreme
Court ruled in the US Steel case that mergers creating a near total
market control were "not necessarily against the public interest's 3 At
the core of these foreign US interests during the 1920's were the leading banks and oil interests of the Rockefeller and Morgan families.
They were the international corporate industry and banking
leaders who had already seen, up close, what lucrative potentials
existed in taking over the shards of European colonial empires.
Compared with what they saw as the limited market potentials within the bounds of the United States, domination of vast new
foreign markets offered untold potential, profits and, above all,
power.
The "American Century"
The US Lebensraum
In early 1941, some ten months before the Japanese bombing of
Pearl Harbor, Henry Luce, publisher of Time and Life magazines,
and a well-connected member of the East Coast elite, wrote an editorial
in the February 17 issue of Life entitled, "The American
Century" In his essay, Luce described the emerging consensus of the
US East Coast establishment around the·CFR.
"Tyrannies" Luce wrote, "may require a large amount of living
space; but Freedom requires and will require far greater living space
than Tyranny." He made an open call for Americans to embrace a
new role as the dominant power in the world, a world in which
the United States had not yet entered the war. He wrote, "the cure
is this: to accept wholeheartedly our duty and our opportunity as
the most powerful and vital nation in the world and in consequence
to exert upon the world the full impact of our influence, for such
purposes as we see fit and by such means as we see fit."4
Luce was reflecting the emerging view of the internationally oriented
US business and banking establishment around Morgan
and Rockefeller. They needed unfettered access to global resources
and markets after the war, and they saw the golden chance to get it
while all contending powers had been devastated by war.
The American banking and industrial giants needed room, or
what some called a Grand Area. The Economic & Financial Group
of the CFR War & Peace Studies made a survey of world trade in
the late 1930's. They proposed linking the Western Hemisphere
with the Pacific into a US-dominated bloc, which was premised
on what they called «military and economic supremacy for the
United States."5 The bloc included what was then, still, the British
Empire. Their Grand Area was to encompass most of the planet,
outside the sphere of the Soviet Union which, to their irritation,
remained closed to American capital penetration.
Founding CFR member and one of the leaders of the CFR War
& Peace Study group, Isaiah Bowman, known as "America's
Geopolitician" during the Second World War, had another term
for the Grand Area. Bowman called it, in reference to Hitler's geographical
term for the economic justification of German expansion,
"an American economic Lebensraum."6 The term was later
dropped for obvious reasons, and the more neutral-sounding
American Century was used instead to describe the emerging vision
of post-war US imperialism.
As Bowman and others of the CFR State Department study
group saw it, the champions of the new American economic
geography would define themselves as the selfless advocates of freedom
for colonial peoples and as the enemy of imperialism. They
would champion world peace through multinational control. Since
late days of World War I, when Bowman had worked on The
Inquiry, a top-secret strategy group of President Woodrow Wilson,
Bowman had been occupied with how to clothe American imperial
ambitions in liberal and benevolent garb.
As Bowman and other CFR planers envisioned it, the American
domination of the world after 1945 would be accomplished via a new
organization, the United Nations, including the new Bretton Woods
institutions of the International Monetary Fund and World Bank,
as well as the General Agreement on Tariffs and Trade (GATT).
Bowman's CFR group had drafted the basic outline for President
Roosevelt of what would become the United Nations Organization.
Under the banner of "free trade" and the opening of closed markets
around the world, US big business would advance their agenda,
forcing open new untapped markets for cheap raw materials as well
as new outlets for selling American manufactures after the war.
The group drafted more than 600 policy papers for the State
Department and President Roosevelt, covering every conceivable
part of the planet, from Continents to the smallest islands. It was
all based on a presumed US victory in a war which Washington
was not even officially fighting.
For the CFR and the forward-looking members of the US policy making
establishment, after World War II, global power would no longer be measured in terms of military control over colonial
territories. The British and European empires proved to be a system
far too costly and inefficient. Power would be defined directly in
economic terms. It would be based on what one Harvard proponent,
Joseph Nye, later was to call "soft power."7
As the War came to an end in 1945, no group epitomized the
global outlook of American big business more than the Rockefeller
family, whose fortune had been built on a global empire of oil and
banking. The family-above all brothers Nelson, John D. III,
Laurance and David-whose foundation had financed the War &
Peace Studies of the CFR, viewed the victorious end of the War as
a golden opportunity to dominate global policies to their advantage
as never before.
Nelson Aldrich Rockefeller was to play a discreet and decisive
behind-the scenes role in defining those global interests. They were
shrewdly redefined from being Rockefeller private interests, into
what was called «American national interests." After all, the family
had financed the War & Peace Studies for the State Department.
Nelson Ventures in Latin America
Precisely what Isaiah Bowman and his War and Peace Studies colleagues
in the US establishment had in mind with their notion of
Grand Area and free market development soon became clear.
Nelson Rockefeller, one of the primary financial backers of the
Council on Foreign Relations War & Peace Studies, wasted no time
in taking advantage of the new economic possibilities World War
II had opened up for American business.
After the War, while brother John D. Rockefeller III was busy
devising new, ever more efficient methods to promote racial purity
and depopulation through his Population Council, Nelson was
working the other side of the fence. It was in the role of a forward looking
international businessman interested in making world
food production, especially in poorer, less-developed countries
such as Mexico, more «efficient." Nelson later called his revolution
in world agriculture the Green Revolution. It was revolutionary,
but not in the way most people had been led to believe.
During the War itself, Nelson had combined" promotion of the
vast Rockefeller family interests throughout Latin America, with
a senior US Government intelligence position, Coordinator of
Inter-American Affairs (ClAA), nominally on behalf of the
Roosevelt White House. From that strategic position, Nelson could
funnel US Government support to Rockefeller family business allies
in key countries, from Brazil to Peru, Mexico, Venezuela and even
Argentina, under the guise of combating Nazi infiltration of the
Americas and of promoting "American democracy:' He was carefully
laying the basis for post-war American business expansion.8
Nelson was named as ClAA head in August 1940, in a clear violation
of US official neutrality. To conceal that delicate point, the
ClAA was given a cover as art organization promoting "American
culture" in Latin America.
Skeletons in Rockefeller's Dark Closet
In 1941, Standard Oil of New Jersey, later renamed Exxon, was the
largest oil company in the world. It controlled 84% of the US petroleum
market. Its bank was Chase Bank, and its main owners were
the Rockefeller group. After the Rockefellers, the next largest stockholder
in Standard Oil was I.G. Farben, the enormous petrochemicals
trust of Germany, which at the time was a vital part of
the German war industry. The Rockefeller-I.G. Farben relationship
went back to 1927, around the same time the Rockefeller
Foundation began heavily funding German eugenics research.9
While Nelson Rockefeller was ostensibly combating Nazi economic
interests in Latin America as head of the ClAA, the
Rockefeller family's Standard Oil, through its President, Walter
Teagle, was arranging to ship vital tetraethyl lead gasoline to the
German Luftwaffe. When Britain protested the shipment of such
strategic materials to Nazi Germany, as Britain itself was being
bombed by German Luftwaffe planes, Standard Oil changed its
policy. The change was purely cosmetic. They merely altered the
registration of their entire fleet to Panama to avoid British search
or seizure. Their ships continued to carry oil to Tenerife in the
Canary Islands, off the coast of Morocco and the Spanish Sahara in Northwest Africa, where they refueled and siphoned oil onto
German tankers for shipment to Hamburg. 10
During the war, US Senator Harry S. Truman charged, in a
Senate investigation, that the Rockefeller-I.G. Farben relationship
"was approaching treason."11 CBS News war correspondent, Paul
Manning, reported that on August 10, 1944, the Rockefeller-I.G.
Farben partners moved their "flight capital" through affiliated
American, German, French, British and Swiss banks.
Nelson Rockefeller's role in Latin America during the War was
to coordinate US intelligence and covert operations in the days
before the creation of the CIA. He was the direct liaison between
President Franklin Roosevelt and British Prime Minister Winston
Churchill's personal intelligence head for the Americas, Sir William
Stephenson, who directed a front company called British Security
Coordination or BSC. Notably, Stephenson's clandestine headquarters
for his covert activity was in room 3603 in Rockefeller
Center, in New York City, not far from Nelson's office. It was no
coincidence. Rockefeller and Stephenson coordinated closely on
mutual intelligence operations in the Americas. 12
Rockefeller brought with him to Washington a team he selected
from family business connections, including Joseph Rovensky from
Chase Bank, and Will Clayton, a Texas cotton magnate from the
agricultural commodity firm Anderson Clayton. 13 Nelson's assistant,
John McClintock, ran the vast United Fruit plantations across
Central America after the war, on whose behalf the CIA later
conveniently orchestrated a coup in Guatemala in 1954.
During the war, Nelson Rockefeller's work laid the basis for the
family's vast expansion of interests in the 1950's. He shaped a US/Latin
American defense concept which was to tie the military elite
of the region to US policies during the Cold War, often through
ruthless military dictators who benefited from the backing of the
Rockefeller family and insured favorable treatment of Rockefeller
business interests. Nelson called the cooperative Latin military dictators
he backed, "the New Military:' 14
Nelson Rockefeller had been a leading figure in US corporate
investment in Latin America since the 1930s, a time when he was a director of Standard Oil's Venezuelan subsidiary, Creole
Petroleum. In 1938, he had tried, and failed, to negotiate a settlement
with Mexico's President Lazaro Cardenas for Standard Oil
in Mexico. Cardenas had nationalized Standard Oil, leading to
bitter US-Mexico relations.
In the 1940s, Rockefeller set up the Mexican American
Development Corp. and was a personal investor in Mexican industries
after the war. He encouraged his brother David to set up Chase
Bank's Latin American division. One motive was to regain a
foothold in Mexico through the guise of helping to solve the country's
food problems.15
As chairman of the US Government's International Development
Advisory Board, Rockefeller became the architect of President
Harry S. Truman's foreign-aid program. Typically, Nelson used US
guarantees to leverage the massive private lending by Chase,
National City Bank (today Citigroup Inc.) and other New York
banks throughout the Latin American region.
During the War, as head of Roosevelt's CIAA, Nelson had organized
a network of journalists and of major newspapers owners
throughout the region. He did this by threatening neutral Latin
American newspaper publishers with a cut-off of newsprint paper
from Canada. Soon Rockefeller boasted of controlling 1,200 newspaper
publishers by threatening their newsprint, which had to be
carried on US ships.16
Rockefeller's media staff then saturated Latin America with
planted news stories friendly to US and especially Rockefeller business
interests in the region. Under the guise of fighting Nazi influence
in Latin America, Nelson Rockefeller and his brothers were
laying the basis of their vast private business empire for the postwar
era.
Among the most far-reaching covert operations carried out by
Nelson and his circle in Latin America towards the end of the War,
was to secure for the United States the majority votes of participating
nations in the founding of the United Nations, and with it,
de facto US control of the International Monetary Fund and World
Bank in 1944-45. It was indicative of how the new US international elite moved governments and others to suit their agenda. The UN
was to be their vehicle, as they saw it, wrapped in the clothing of
world democracy.
According to historian John Loftus, Rockefeller used behind the-scenes
pressure to get the backing of all Latin American nations
in the founding San Francisco conference of the United Nations
in 1945. This included the pro-Axis regime of Juan Peron in
Argentina. Rockefeller and Washington pressured Peron to officially
declare war on Germany and Italy, even though it was two
weeks before the war's end. That allowed Argentina to vote with
the "winning" side.
Rockefeller's political strategy was to use his block of Latin
American nations to "buy" the majority vote at the UN. The Latin
American bloc represented nineteen votes to Europe's nine. As a
result, Washington and the powerful international banking business
interests shaping its postwar agenda, ended up with decisive control
of the IMF, the World Bank and a dominant role in the United
Nations.17 The Rockefeller family, generous to a fault, even donated
the land for the headquarters of the new United Nations in New
York City. It was also good business, and a nice tax write-off to boot.
On the whole, Nelson Rockefeller was well situated in 1941,
more than perhaps anyone else in US business circles, to launch
his major Latin American agribusiness initiative.
The Rockefeller-Wallace Report
In 1941, some months before Pearl Harbor had brought the United
States into the war, Rockefeller and US Vice President Henry A.
Wallace, the former Agriculture Secretary of Franklin Roosevelt,
sent a team to Mexico to discuss how to increase food production
with the Mexican government. Wallace was a well-known agriculturist,
who had served as Roosevelt's Secretary of Agriculture until
1940, and who had founded the seed company that became Pioneer
Hi-Bred International Inc., which decades later would become a
DuPont company and one of the Big Four GMO seed giants.
The Wallace-Rockefeller team's Mexico report emphasized the
need to breed crops that had higher yields. At the time, corn was the major crop of Mexico, along with wheat and beans. In 1943, as
a result of the project, the Rockefeller Foundation started the
Mexican Agricultural Program (MAC), headed by the Rockefeller
Foundation's George Harrar. The program included a young plant
pathologist from the Rockefeller Foundation named Norman
Borlaug. The Rockefeller family was preparing the first steps of what
was to become a major transformation of world agricultural markets
after the war.
That same year, as Nelson and Vice President Wallace were
surveying Latin America for agricultural opportunities for the
United States, Laurance and Nelson Rockefeller both had begun
buying up, on the cheap, vast holdings of high-quality Latin
American farmland. The family was diversifying their fortune from
oil into ·agriculture. 18
This was not simple family farming, however, but global
"agribusiness;' as it began to be called in the 1950's. Oil was the
core of the new agribusiness economics. And oil was something
the Rockefellers knew cold. The economic model of global monopoly
concentration they had built up in oil over decades would be
the model for transforming the nature of world agriculture into a
global "agribusiness."
In March 1941, nine months before the bombing of Pearl Harbor
brought the US into the war, Laurance took advantage of British
financial duress in the Americas and bought 1.5 million acres of
prime agricultural land on the Magdalena River in Colombia.
Brother Nelson had also just bought a vast ranch in Venezuela,
once owned by Simon Bolivar. As a Rockefeller aide at CIAA glibly
said at the time, "There are good properties in the British portfolio.
We might as well pick them up now."19
By the time Roosevelt named thirty-two-year-old Nelson
Rockefeller to be Assistant Secretary of State for Latin America,
Rockefeller was fully involved with food and agribusiness. In 1943,
Edward O'Neal, President of the American Farm Bureau Federation,
joined with Nelson and other top US businessmen at Chapultepec,
Mexico, for a conference on Inter-American cooperation organized
by the US State Department.
At Chapultepec, Rockefeller agreed with O'Neal that US
agriculture needed new export markets. The markets of Latin
America were coming into their view. Nelson said he was looking for
new "frontiers:' Rockefeller, in a true spirit of free market, demanded
that the Americas be closed to all but US business interests, while
demanding that the world, including governments of Latin America,
open their doors to US products, including agriculture. 20
Rockefeller also agreed with US Pentagon generals at Chapultepec,
that selling US military surplus weapons to the governments of
Latin America would be a good way to lock those countries into
dependence on Washington for their military security after the war.21 Dependence on US military security was to work in tandem with
Latin American economic dependence on US companies and on
US bank capital. No one was more in the forefront of this transition
in the.l940's than the Rockefeller family. They also held major stock
in the largest military defence industries.22
As the Cold War escalated in the late 1940's, Truman announced
that the US would fight the expansion of Communism in Africa,
Asia, and Latin America. He called for exporting US technical
expertise and capital to the developing world, stressing that the
American private sector, and not the US Government, should play
the leading role in transferring US technology abroad.
The concept came from Nelson Rockefeller. US domination of
global agricultural technology was fast becoming a weapon of the
Cold War for Washington, and above all for the powerful Rockefeller
interests.
By the beginning of the 1950's, US export of agricultural products
was nearly equal in importance to arms and manufactures export.
The US Department of Agriculture food surplus was viewed as a
weapon of US foreign policy. As noted earlier, by 1954, p.L. 480 or
"Food for Peace:' had formalized the process in a major way.
The Rockefeller family and the Rockefeller Foundation had little
problem getting their view of global food and population issues
across to the US State Department. They and their allies from the
New York Council on Foreign Relations dominated the senior ranks
of the US foreign policy establishment.
The Rockefeller group wielded tremendous influence on the
State Department. Every man who served as Secretary of State in
the critical Cold War years ranging from 1952 to the end of Jimmy
Carter's Presidency in 1979 had formerly been a leading figure
from the Rockefeller Foundation.
Eisenhower's Secretary of State, John Foster Dulles, a Wall Street
lawyer, was Chairman of the Rockefeller Foundation before he
came to Washington in 1952. John Kennedy's and later Lyndon
Johnson's Secretary of State, Dean Rusk, left his job as President
of the Rockefeller Foundation to come to Washington in 1961.
Nixon's National Security Adviser and Rusk's successor in 1974 as
Secretary of State, Henry Kissinger, also came from the inner circle
of the Rockefeller Foundation. Moreover, Jimmy Carter's Secretary
of State, Cyrus Vance, came to Washington from his post as
Chairman of the Rockefeller Foundation. But the enormous influence
of this private, non-profit foundation on post-war American
foreign policy was kept well in the background.
Dulles, Rusk, Vance and Kissinger all understood the Rockefeller
views on the importance of private sector activity over the role of
government, and they understood how the Rockefellers viewed
agriculture-as a commodity just like oil, which could be traded,
controlled, made scarce or plentiful depending on foreign policy
goals of the few corporations controlling its trade.
Remarkably enough, the Dulles-Rusk -Vance-Kissinger-Rockefeller
ties were rarely mentioned openly, even though they
were essential to understanding key aspects of US foreign policy
and food policy.
Early Agribusiness: Rockefeller
Teams up with Cargill
In 1947, after the end of the War, Nelson Rockefeller founded another
new company called International Basic Economy Corporation
(IBEC). IBEe's aim was to show that private capital, organized as a
profit-making enterprise, could upgrade the agriculture of developing
countries. In reality, IBEC was about the introduction of mass scale
agribusiness in countries where US dollars could buy huge
influence in the 1950's and 1960's.
Rockefeller's IBEC invited Cargill, a privately-held US agribusiness
giant, to work with it in Brazil. IBEC had lots of plans: hybrid
corn production, hog production, crop dusting with helicopters,
contract plowing and grain storage. One IBEC company was
Sementes Agroceres, which later played a key role in plant and
animal genetics in Brazil.23
IBEC and Cargill began developing hybrid corn seed varieties.
They turned Brazil into the world's third largest corn producer
after the US and China. In Brazil, the corn was mixed with soymeal
for animal feed. That was later to become instrumental in the proliferation
of GMO soybeans on the world animal feed market in the
late 1990's.
The agricultural economics of sugarcane also led to Brazil's
prominent role in the production of soybeans. Sugarcane plants
could typically produce for about five years after which they had to
be dug out and new cane planted, a procedure known as "rationing" Brazilian farmers pioneered the planting of soybeans between the
digging out of the old and planting of the new cane. Soybeans
enriched or "fixed" nitrogen in the soil. Since sugarcane needs
nitrogen, this reduced demand for fertilizer, which was the reason
soybeans were introduced in Brazil.
Cargill and the other US grain trading companies later developed
soybeans into a major export commodity, initially as animal feed.
It became a major weapon in the US food control arsenal.
Lester Brown, whose own Worldwatch Institute was created
with a 1974 grant from the Rockefeller Brothers Fund, stated the
agenda of the Rockefeller Foundation's Green Revolution: «Fertilizer
is in the package of new inputs which farmers need in order to
realize the full potential of the new seed. Once it becomes profitable
to use modern technology, the demand for all kinds of farm
inputs increases rapidly. And so, only agro-business firms can supply
these inputs efficiently."24
Brown further declared that the multinational corporation was "an
amazingly efficient way of institutionalizing the transfer of technical
knowledge in agriculture." And the agribusiness firms which were
then in the best position to provide seeds and fertilizer were, of course, American agribusiness firms like DuPont, Pioneer Hi-Bred
International, Cargill and Archer Daniels Midland. Thus, encouraged
by the Rockefeller Green Revolution, beginning in the late 1950's,
US agribusiness export was rapidly becoming a strategic core of US
economic strategy alongside oil and military hardware.
In Brazil and Venezuela
As the Rockefeller Foundation's Green Revolution was making
major inroads in Mexico, Nelson Rockefeller set up another organization
to pursue similar work in Brazil and Venezuela. He wanted
to continue projects he had started at the Office of the Coordinator
of Inter-American Intelligence Affairs (ClAA) during World War
II. Joining with several former ClAA colleagues, he created the
American International Association for Economic and Social
Development (AlA). The declared objective of the AlA was the
transfer of technology and education.
With the AlA, Rockefeller wanted to rapidly modernize basic
infrastructure. The AlA argued that if their efforts failed, the region
faced the prospect that an exploding population would decrease the
standard of living. As a major stockholder in Venezuela's Creole
Petroleum, Rockefeller convinced Shell, Mobil, Gulf, and various
other private donors to join him in underwriting the AIA's projects
after 1946. Nelson and his brothers had sponsored a series of studies,
a precursor to NSSM 200, pinpointing which nations in Latin
America, Southeast Asia, the Middle East and Africa were likely to
be "soft on communism." Brazil and Venezuela in Latin America
were singled out in the study-Brazil because of its vast untapped
wealth and Venezuela because of the Rockefeller family's involvement
with its oil.25
Nelson A. Rockefeller was a master of deploying the rhetoric of
Cold War necessity in the name of US "national security" while
advancing family interests. It did not hurt his effort that his old
friend and former head of the Rockefeller Foundation, John Foster
Dulles, now Secretary of State, pursued a policy of nuclear "massive
retaliation" and Cold War "brinkmanship:' which made the
population ever-aware of the alleged dangers and threat of the Soviet military. That made it quite easy to justify almost anything
in the name of "US national security interests."
What Nelson Rockefeller and other leading US bankers and
businessmen were creating with agriculture in Latin America was
the early phase of what was to be a revolution in world food
production. In the process, they set out to take over the control of
basic daily necessities of the majority of the .world's population.
Like most revolutions, it wasn't what it advertised itself to be.
The Rockefeller Foundation, not surprisingly, was at the forefront
here too. They even gave the process a new term-agribusiness.
Their model of agribusiness, driven by rules set out by the
dominant player, US industry and finance, provided the perfect
partner for the introduction, by the 1990's, of genetically engineered
food crops or GMO plants. How this marriage of strategic
interests came about and of what its longer-term goals consisted
were to remain hidden under the rubric of free market efficiency,
modernization, feeding a malnourished world and other public
relations fabrications-thus cleverly obscuring the boldest coup
over the destiny of entire nations ever attempted.
PART III
Creating Agribusiness
CHAPTER 7
Rockefeller and Harvard
Invent
USA "Agribusiness"
A Green Revolution Opens the Door
The Rockefellers' Green Revolution began in Mexico and was
spread across Latin America during the 1950's and 1960's.
Shortly thereafter, backed by John D. Rockefeller's networks across
Asia, it was introduced in India and elsewhere in Asia. The "revolution"
was a veiled effort to gain control over food production in
key target countries of the developing world, promoted in the name
of free enterprise market efficiency against alleged "communist
inefficiency."
In the aftermath of World War II, with Germany's LG.Farben a
bombed-out heap of rubble, American chemical companies emerged
as the world's largest. The most prominent companies-DuPont,
Dow Chemical, Monsanto, Hercules Powder and others-faced a
glut of nitrogen production capacity which they had built up, at
US taxpayer expense, to produce bombs and shells for the war effort.
An essential chemical for making bombs and explosives, nitrogen
was a prime component of TNT and other high explosives. Nitrogen
could also form the basis for nitrate fertilizers. The chemical
industry developed the idea of creating large new markets for their nitrogen in the form of fertilizers, ammonia nitrate, anhydrous
ammonia, for both domestic US agriculture and for export.
The nitrogen fertilizer industry was part of the powerful lobby
of the Rockefeller Standard Oil circles which, by the end of the
War, included DuPont, Dow Chemicals and Hercules Powder
among others.
The global marketing of the new agri-chemicals after the war
also solved the problem of finding significant new markets for the
American petrochemical industry as well as the grain cartel, a group
of four to five companies then including Cargill, Continental Grain, .
Bunge and ADM. The largest grain traders were American and
their growth was a product of the development of special hybrid
seeds through the spread of the Green Revolution in the 1960's
and 1970's. Agriculture was in the process of going global and the
Rockefeller Foundation was shaping that process of agribusiness
globalization.
With a monopoly on the agricultural chemicals and on the
hybrid seeds, American agribusiness giants were intent on dominating
the global market in agricultural trade. After all, as Kissinger
noted in the 1970's, "If you control the food you control the people:'
. Governments from the developing sector to the European
Economic Community, the Soviet Union and China, soon
depended on the powerful grain cartel companies to provide the
needed grains and food products to maintain their political stability
in times of bad harvest.
Truly, there was genuine US Government concern to contain
communist and nationalist movements in the developing world
during the 1960's by offering food aid in the form of privately
sponsored agricultural inputs. However, the combination of US
Government aid and the techniques being developed in the name
of a Green Revolution would present a golden opportunity for the
influential policy-making circles around Rockefeller and their emerging
agribusiness groups to turn that concern to their advantage.
Nelson Rockefeller worked hand-in-glove on agriculture with his
brother, John D. III, who had set up his own Agriculture
Development Council in 1953, one year after he had founded the Population Council. The focus of the Agriculture Development
Council was Asia, while Nelson concentrated on his familiar turf in
Latin America. They shared the common goal of long-term
cartelization of world agriculture and food supplies under their
corporate hegemony.
When the Rockefeller Foundation's Norman Borlaug came into
Mexico in the 1950's, he worked on hybrid forms of rust-resistant
wheat and hybrid corn types, not yet the genetically engineered
projects to come several decades later. Behind the fa'fade of agricultural
and biological science, however, the Rockefeller group was
pursuing a calculated strategy through its Green Revolution during
the 1950's and 1960's.
The heart of its strategy was to introduce "modern" agriculture
methods to increase crop yields and, so went the argument, thereby
to reduce hunger and lessen the threat of potential communist
subversion of hungry, unruly nations. It was the same seducing
argument used years later to sell its Gene Revolution.
The Green Revolution was the beginning of global control over
food production, a process made complete with the Gene Revolution
several decades later. The same companies, not surprisingly, were
involved in both, as were the Rockefeller and other powerful US
foundations.
In 1966, the Rockefeller Foundation was joined by the considerable
financial resources of the Ford Foundation, another US private
tax-exempt foundation which enjoyed intimate ties to the US
. Government, intelligence and foreign policy establishment. Together
with the Ford resources, the Rockefeller Foundation's Green
Revolution went into high gear.
That year of 1966, the Government of Mexico along with the
Rockefeller Foundation set up the International Maize and Wheat
Improvement Center (CIMMYT). The center focused its work on
a wheat program, which originated from breeding studies begun in
Mexico in the 1940s by the Rockefeller Foundation. 1
Their efforts in food and agriculture received a boost that same
year when US President Lyndon Johnson announced a drastic shift
in US food aid to developing countries under P.L. 480, namely that no food aid would be sent unless a recipient country had agreed to
preconditions which included agreeing to the Rockefeller agenda
for agriculture development, stepping up their population control
programs and opening their doors to interested American
investors.2
In 1970, the Rockefeller's Norman Borlaug won the Nobel Prize.
Interestingly enough, it was not for biology but for peace, the same
prize Henry Kissinger was to receive several years later. Both men
were also proteges of the influential Rockefeller circles.
In reality, the Green Revolution introduced US agribusiness
into key developing countries under the cover of promoting crop
science and modern techniques. The new wheat hybrids in Mexico
required modern chemical fertilizers, mechanized tractors and
other farm equipment, and above all, they required irrigation,
which meant pumps driven by oil or gas energy.
The Green Revolution methods were suitable only in the richest
crop areas, and it was deliberately aimed at the richest farmers,
reinforcing old semi-feudal Latifundist divisions between wealthy
landowners and poor peasant farmers. In Mexico, the new wheat
hybrids were'all planted in the rich, newly-irrigated farm areas of
the Northeast. All inputs, from fertilizers to tractors and irrigation,
required petroleum and other inputs from advanced industrial
suppliers in the United States. Oil and agriculture joined forces
under the Rockefeller aegis.
In India, the Green Revolution was limited to 20 percent of land
in the irrigated North and Northwest. It ignored the huge disparity
of wealth between large feudal landowners in such areas and the
majority of poor, landless peasants. Instead, it created pockets of
modern agribusiness tied to large export giants such as Cargill.
The regions where the vast majority of poorer peasants worked
remained poor. The introduction of the Green Revolution did
nothing to change the gap between rich feudal landowners and
poor peasants, but overall statistics showed significant rises in
Indian wheat production.
Training Cadre for the Bio-Revolution
In 1960, the Rockefeller Foundation, John D. Rockefeller Ill's
Agriculture Development Council and the Ford Foundation joined
forces to create the International Rice Research Institute (IRRI) in
Los Banos,the Philippines. By 1971, the Rockefeller Foundation's
IRRl, along with their Mexico-based International Maize and Wheat
Improvement Center and two other Rockefeller and Ford
Foundation-created international research centers, the UTA for
tropical agriculture, Nigeria, and IRRI for rice, Philippines, combined
to form a global Consultative Group on International
Agriculture Research (CGIAR).3
CGIAR was shaped at a series of private conferences held at the
Rockefeller Foundation's conference center in Bellagio, Italy. Key
participants at the Bellagio talks were the Rockefeller Foundation's
George Harrar, Ford Foundation's Forrest Hill, Robert McNamara
of the World Bank and Maurice Strong, the Rockefeller family's
international environmental organizer, who, as a Rockefeller
Foundation Trustee, organized the UN Earth Summit in Stockholm
in 1972.
To ensure maximum impact, CGIAR drew in the United
Nations' Food and Agriculture Organization (FAO), the UN
Development Program (UNDP) and the World Bank. Thus,
through a carefully-planned leverage of its initial funds, Rockefeller
by the beginning of the 1970's was in a position to shape global
agriculture policy.4
Financed by generous Rockefeller and Ford Foundation study
grants, CGIAR saw to it that leading Third World agriculture
scientists and agronomists were brought to the US to "master" the
concepts of modern agribusiness production, in order to carry it
back to their homeland. In the process, they created an invaluable
network of influence for US agribusiness promotion in those countries,
all in the, name of science and efficient free market agriculture.
This Rockefeller Foundation network of institutes and research
centers had gradually laid the basis for control over agricultural
research and policy for much of the developing world by the time
Kissinger was commissioned to draft NSSM 200.
John D. Rockefeller III's Agricultural Development Council also
deployed US university professors to select Asian universities to
train a new generation of scientists. The best scientists would then
be selected to be sent to the United States to get their doctorate in
agriculture sciences, and coming out of the American universities,
would follow the precepts close to the Rockefeller outlook on agriculture.
This carefully-constructed network was later to prove crucial
in the Rockefeller Foundation's subsequent strategy to spread
the use of genetically-engineered crops around the world.
In a widely read handbook, Arthur Mosher, Executive Director
of the Rockefeller Agriculture Development Council, insisted on
teaching peasants to "want more for themselves:' They were to be
urged to abandon "collective habits" and get on with the "business
of farming:' Rockefeller's Mosher called for extending educational
programs for women and building youth clubs, to create more
demand for store-bought goods. He argued that, the "affection of
husbands and fathers for their families" would make them responsive
to these desires and drive them to work harder. Of course they
would have to take out loans to invest in all this new technology,
tying them even more to the new market economy.5
Through the Green Revolution, the Rockefeller and Ford
Foundations worked hand-in-hand with the foreign policy goals of
the United States Agency for International Development (USAID)
and of the CIA.
One major effect of the Green Revolution was to depopulate
the countryside of peasants who were forced to flee into shantytown
slums around the cities in desperate search for work. That was no
accident; it was part of the plan to create cheap labor pools for
forthcoming US multinational manufactures.
When the self-promotion around the Green Revolution died
down, the true results were quite different from what had been
promised. Problems had arisen from indiscriminate use of the new
chemical pesticides, often with serious health consequences. The
mono-culture cultivation of new hybrid seed varieties decreased soil
fertility and yields over time. The first results were impressive: double or even triple yields for some crops such as wheat and later
corn in Mexico. That soon faded. 6
The Green Revolution was typically accompanied by large irrigation
projects which often included World Bank loans to construct
huge new dams, and flood previously settled areas and fertile farmland
in the process. Also, super-wheat produced greater yields by
saturating the soil with huge amounts of fertilizer per acre, the fertilizer
being the product of nitrates and petroleum, commodities
controlled by the Rockefeller-dominated Seven Sisters major oil
companies.
Huge quantities of herbicides and pesticides were also used,
creating additional markets for the oil and chemical giants. As one
analyst put it, in effect, the Green Revolution was merely a chemical
revolution. At no point could developing nations pay for the huge
amounts of chemical fertilizers and pesticides. They would get the
credit courtesy of the World Bank and special loans by Chase Bank
and other large New York banks, backed by US Government
guarantees.
Applied in a large number of developing countries, those loans
went mostly to the large landowners. For the smaller peasants the
situation worked differently. Small peasant farmers could not afford
the chemical and other modern inputs and had to borrow money.
Initially various government programs tried to provide some loans
to farmers so that they could purchase seeds and fertilizers.
Farmers who could not participate in this kind of program had
to borrow from the private sector. Because of the exorbitant interest
rates for informal loans, many small farmers did not even get the
benefits of the initial higher yields. After harvest, they had to sell
most if not all of their produce to payoff loans and interest. They
became dependent on money-lenders and traders and often lost
their land. Even with soft loans from government agencies, growing
subsistence crops gave way to the production of cash crops.7
The Green Revolution also introduced new machines for land
preparation. Most notable was the so-called power tiller or turtle
tiller. This machine, which puddled the rice paddy soil, also destroyed much of the natural soil structure. But, it was very efficient
in doing that.
Another crucial aspect driving the interest of US agribusiness
companies was the fact that the Green Revolution was based on
proliferation of new hybrid seeds in developing markets. One vital
aspect of hybrid seeds was their lack of reproductive capacity.
Hybrids had a built in protection against multiplication. Unlike
normal open pollinated species whose seed gave yields similar to
its parents, the yield of the seed borne by hybrid plants was significantly
lower than that of the first generation.
That declining yield characteristic of hybrids meant farmers
must normally buy seed every year in order to obtain high yields.
Moreover, the lower yield of the second generation eliminated the
trade in seed that was often done by seed producers without the
breeder's authorization. It prevented the redistribution of the commercial
crop seed by middlemen. If the large multinational seed
companies were able to control the parental seed lines in house,
no competitor or farmer would be able to produce the hybrid. The
global concentration of hybrid seed patents into a handful of giant
seed companies, led by Pioneer Hi Bred and Monsanto's Dekalb
. laid the ground for the later GMO seed revolution.8
In effect, the introduction of modern American agricultural
technology, chemical fertilizers and commercial hybrid seeds all
made local farmers in developing countries, particularly the larger
more established ones, dependent on foreign inputs. It was a first
step in what was to be a decades-long, carefully planned process.
Agribusiness was making major inroads into markets which were
previously of limited access to US exporters. The trend was later
dubbed "market-oriented agriculture:' In reality it was agribusiness~
controlled agriculture.
The Green Revolution and its hybrid seeds promised a major
new controlled market for US agribusiness. Henry Wallace, Franklin
Roosevelt's Secretary of Agriculture, had built the first major hybrid
seed company, Pioneer Hi-Bred, largely by encouraging selective
USDA government research on the positive yield gains of hybrids
and down playing their negative features. It enabled the growth of huge commercial seed companies. This laid the basis for the later
development of genetic patented seeds by a handful of Western
agribusiness giants.
The chemical industry also claimed that the increased crop
yields were only possible with the help of their products. The US
Government, through US AID and other government aid programs,
backed this view, and convinced the host developing sector governments
to support them. This led to a situation where farmers disregarded
other more traditional means of yield improvement,
which were labeled primitive and inefficient by the Rockefeller and
Ford country advisers.9
Use of High Yield Varieties (HYV) of hybrid wheat, corn or rice,
and major chemical inputs soon became the dominant practice.
Local government officials no longer considered the option of
possible yield improvement based on traditional practices. Often,
the international chemical industry intervened to suppress or hinder
research programs that would challenge their high input approach.
This was a worldwide trend. 10
In 1959, a team led by the US Department of Agriculture
published the Ford Foundation's Report on India's Food Crisis and
Steps to Meet It. In place of fundamental changes such as redistribution
of land and other rural assets from the large quasi-feudal
landowners as the foundation for a more effective Indian agricultural
development, the Ford report stressed technological change
including improved seeds, chemical fertilizers, and pesticides in
small, already irrigated pockets of the country. It was the "Green
Revolution" strategy.
Ford even funded India's Intensive Agricultural Development
Program (IADP) as a test case of the strategy, providing rich farmers
in irrigated areas with subsidized inputs, generous credit and price
incentives. The World Bank backed the strategy with generous
loans.
Soon, the Rockefeller-Ford Green Revolution was adopted by
the Indian government, with far-reaching effects. Agricultural production
of rice and wheat in the selected pockets grew immediately
with the new hybrids and chemical inputs. Talk of land reform, tenancy reform, abolition of usury, was dropped from the official
Indian Government agenda, never to return.11
The initial spectacular growth rates eventually slowed, though
this aspect was not widely publicized, leaving the one-sided impression
of success. On average, overall agricultural production in India
grew more slowly after the Green Revolution than before, and in
much of the country, per capita agricultural output stagnated or
fell. 12 But the Green Revolution had one success: it created a large
new market for US and foreign agribusiness multinational firms
to sell their chemicals, petroleum, machinery and other inputs to
developing countries. It was the beginning of what was called
agribusiness.
Rockefeller Finances the
Creation of Agribusiness
While the Rockefeller brothers were expanding their global business
reach from oil to agriculture in the developing world through their
Green Revolution scheme, they were financing a little-noticed
project at Harvard University, which would form the infrastructure
to globalize world food production under the central control
of a handful of private corporations. Its creators gave it the name
"agribusiness;' in order to differentiate it from traditional farmer based
agriculture-that is, the cultivation of crops for human sustenance
and nutrition.
Agribusiness and the Green Revolution went hand-in-hand.
They were part of a grand strategy which included Rockefeller
Foundation financing of research for the development of genetic
alteration of plants a few years later.
John H. Davis had been Assistant Agriculture Secretary under
President Dwight Eisenhower in the early 1950's. He left Washington
in 1955 and went to the Harvard Graduate School of Business, an
unusual place for an agriculture expert in those days. He had a clear
strategy. In 1956, Davis wrote an article in the Harvard Business Review
in which he declared that "the only way to solve the so-called farm
problem once and for all, and avoid cumbersome government programs,
is to progress from agriculture to agribusiness:' He knew precisely
what he had in mind, though few others had a clue back then.13
Davis, together with another Harvard Business School professor,
Ray Goldberg, formed a Harvard team with the Russian-born economist,
Wassily Leontief, who was then mapping the entire US economy,
in a project funded by the Rockefeller Foundation. During
the war, the US Government had hired Leontief to develop a
method of inter-sectoral analysis of the total economy which he
referred to as input-output analysis. Leontief worked for the US
Labor Department as well as for the Office of Strategic Services
. (OSS), the predecessor of the CIA.14
In 1948, Leontief got a major four-year $100,000 grant from
the Rockefeller Foundation to set up the Harvard "Economic
Research Project on the Structure of the American Economy." A
year later, the US Air Force joined the Harvard project, a curious
engagement for one of the prime US military branches. The transistor
and electronic computers had just been developed along with
methods of linear programming that would allow vast amounts
of statistical data on the economy to be processed. Soon the Ford
Foundation joined in the Harvard funding.
The Harvard project and its agribusiness component were part
of a major attempt to plan a revolution in US food production. It
was to take four decades before it dominated the food industry.
Goldberg later referred to the agribusiness revolution and the development of gene-modified agribusiness as "changing our global
economy and society more dramatically than any other single event
in the history of mankind."
Monopoly and Vertical Integration
Return with a Vengeance
As Ray Goldberg boasted years later, the core idea driving the
agribusiness project was the re-introduction of "vertical integration"
into US food production. By the 1970's, few Americans realized
that bitter battles had been fought to get Congress to outlaw vertical
integration by giant conglomerates or trusts such as Standard Oil,
in order to prevent them from monopolizing whole sectors of vital
industries.
It wasn't until the David Rockefeller-backed Presidency of Jimmy
Carter in the late 1970's that the US multinational business establishment Was able to begin the rollback of decades of carefully
constructed US Government regulations of health, food safety and
consumer protection laws, and open the doors to a new wave of
vertical integration. The vertical integration process was sold to
. unaware citizens under the banner of "economic efficiency" and
"economy of scale."
A return to vertical integration and the accompanying agribusiness
were introduced amid a public campaign in prominent media
claiming that government had encroached far too much into the
daily lives of its citizens and had to be cut back to give ordinary
Americans "freedom." The war cry of the campaigners was "deregulation."
What they carefully left out of their propaganda was that
deregulation by government merely opened the door to de facto private
regulation by the largest and most powerful corporate groups
in a given industry.
The person who first called openly for deregulation of government
controls and privatization, well before Jimmy Carter, Ronald
Reagan or Margaret Thatcher, was John D. Rockefeller III. In 1973,
he published The Second American Revolution. In the book and in
numerous public addresses, Rockefeller called for a "deliberate, consistent,
long-term policy to decentralize and privatize many government
functions ... to diffuse power throughout the society."15
Well before that, however, Davis and Goldberg had begun to
industrialize specific sectors of American agriculture into agribusiness
through vertical integration, ignoring anti-trust laws, and
using Leontief's input-output approach to identify the entire production
and distribution chain.
The first result of the collaboration between Davis, Goldberg
and Leontief was a project to industrialize the Florida citrus industry.
The control of small citrus farmers soon gave way to large
national orange juice processors such as Sunkist, who dominated
prices paid to the farmer through control of distribution and
processing. 16
Their next target was to develop a strategy for the industrialization
of the US wheat -to-consumer chain as well as the soybean
market for animal feed. As the Government, step-by-step, removed regulatory controls on agriculture or on monopoly, the vertical
integration of the food industry accelerated.
Significantly, the first American industry to be completely vertically
integrated had been oil, under the Rockefeller Standard Oil
Trust in 1882. Despite repeated attempts by numerous states to
outlaw Rockefeller's monopolistic control of oil and freight prices,
even a Supreme Court decision in 1911 failed to break up the cartel
in oil, which wenton to dominate the global oil trade for the following
century. The Standard Oil model, not surprisingly, was the
model for the Harvard Rockefeller Foundation project to create
agribusiness from agriculture.
In the 1920's, a series of laws had been passed by the US Congress
to control food monopolies, especially in the meat sector, following
the revelation of shocking practices in the US meatpacking and
processing industry, by writers such as Upton Sinclair whose book
The Jungle described the fetid, unsanitary and often inhuman conditions
of the meatpacking industry.
Five major companies-Armour, Swift, Morris, Wilson and
Cudahy-were then in a position, as the US Government's newly founded
Federal Trade Commission (FTC) accused them, of trying
"to monopolize all the nation's food supply" by the 1920's. The five
had systematically and illegally acquired a near monopoly in meatpacking.17
The Big Five then controlled who had access to public stockyards
for the cattle. They interfered with the livestock marketing
process through monopoly control, controlled wholesale distribution
channels, and restricted what retailers could buy. With the
invention of the refrigerated railcar and assembly-line continuous
meat processing plants, the meat companies vertically integrated.
They integrated forward into marketing the beef, and backward
into monopolizing supply of raw material-beef cattle and hogs.
An FTC investigation in the early 1920's found that the five
companies had dominated the purchase of livestock by controlling
major stockyards, terminal railroads, livestock credit, market
news media, and sites for potential rival packing plants.
Furthermore, they had used their domination to force out new competitors and had cartelized the remaining market among themselves
illegally. They controlled the retail level by owning refrigerator
transport cars, cold storage warehouses and severely reduced
competitor market access. Not content with all that, according to
the Government investigation, the Big Five meat packers also controlled
the market for substitute foods by buying or controlling
them. 18
By the 1970's, the US food supply was once more going into the
hands of a tiny, monopoly of agribusiness producers. ThIs time,
aided by the Rockefeller and Ford Foundation funding of the Harvard
Economic Research Project on the Structure of the American
Economy under Leontief, Goldberg and Davis were spearheading a
new corporate rush into vertical integration and monopoly control
of not only American but global food supply. The scale was without
precedent.
Goldberg and Davis and their colleagues at Harvard were at the
forefront of educating a new generation of corporate managers
who would be infected with the prospect of staggering profits in the
effort to totally restructure the way Americans grew food to feed
themselves and the world.
As US Government regulatory barriers fell under the drumbeat of deregulation, especially during the Presidency of Ronald Reagan, agribusiness rushed in to fill the regulation vacuum with its own private industry rules and standards. The standards were not set by all players, but typically rather by the top four or five monopoly players.
The process led to a concentration and transformation of American agriculture. Independent family farmers were driven off the land to make way for "more efficient" giant corporate industrial farm businesses, known as Factory Farms or corporate agriculture. Those who stayed on the land were mostly forced to work for the hig agribusiness firms as "contract farmers."
What began to take place instead was the wholesale merger and consolidation, one-by-one, of American food production, out of the hands of family farmers and into giant corporate global concentrations. The farmer gradually became a contract employee responsible only for feeding and maintaining concentrations of thousands of animals in giant pens. He no longer owned the animals or the farm. He was effectively becoming like a feudal serf, indentured through huge debts, not to a Lord of the manor, but to a global multinational corporation such as Cargill, Archer Daniels Midland, Smithfield Foods or ConAgra.
For the new corporate agribusiness giants, the transformation was quite profitable. Family farmers' income for the vast majority of farm families plunged as they lost control of their market entirely to the agribusiness giants by the end of the 1990's. Their returns on equity had fallen from an average of 10% in the mid-1970's to only 2% a year, according to a study by the Senate Agriculture Committee. At the same time, the average annual return on stockholder equity for the industrialized food processing sector rose to 23% by 1999 from 13% in 1993.19
Hundreds of thousands of independent family farmers were forced out of business with the spread of agribusiness and its large operations. They simply couldn't compete. Traditional farming was by its nature labor intensive, while factory farming was capital intensive. Farmers who did manage to raise the money for animal confinement systems quickly discovered that the small savings in labor costs were not enough to cover the increasing costs of facilities, energy, caging, and drugs.
The increase in factory farms led to a decrease in the price independent farmers got for their animals, forcing thousands out of business. The number of US farmers dropped by 300,000 between 1979 and 1998.20
The number of hog farms in the US decreased from 600,000 to 157,000, while the number of hogs sold increased. Consolidation resulted in just 3 percent of US hog farms producing more than 50 percent of the hogs. A report to the US Secretary of Agriculture in the late 1990's described the enormous social costs of the destruction of the American family farm by agribusiness, as the economic basis of entire rural communities collapsed and rural towns became ghost towns. The USDA report was buried.21
Another minority report led by Senator Tom Harkin, released just before the November 2004 US Presidential elections, and also buried; revealed that by then the degree of concentration and near monopoly in the food and agriculture economy of the United States was impressive to say the least. The report found that the four largest beef packers controlled 84% of steer and heifer slaughter and 64% of hog slaughter. Four companies controlled 89% of the breakfast cereal market.22
When Cargill acquired the grain handling operations of Continental Grain in 1998, that one company, Cargill controlled 40% of national grain elevator capacity. The US Justice Department approved the merger. Four large agro-chemical seed companies Monsanto, Novartis, Dow Chemical, and DuPont-control more than 75 percent of the nation's seed corn sales and 60 percent of soybean seed sales, at the same time that these companies control large shares of the agricultural chemical market. 23
As traditional farmers abandoned their family land in droves during the 1980's and 1990's, agribusiness moved in to fill the void. The extent of the dramatic shift was largely hidden by clever government statistical accounting methods to make it appear that family farmers were simply getting larger, not that American farming had become giant corporate agribusiness.24
Municipalities, often desperate to attract jobs in regions of rural depression, offered the new agribusiness giants attractive concessions, tax benefits and others, to locate their industrial farms in ,the region, hoping to create new jobs and economic growth. The main growth created by the huge animal concentrations was fecal matter-animal waste in unimagined volumes.
What was termed a revolution in animal factory production began in the early 1980's. It was unpublicized for obvious reasons. Techniques of mass production and factory efficiency were introduced by the large corporations much as had been done in the auto industry assembly line production. Hogs, cattle and chickens were no longer produced on open fields or small farms where animals received individual attention from the farmer in event of illness or disease. The new production involved what was called "confinement feeding" or what came to be called CAFOs-Concentrated Animal Feeding Operations. Their goal was maximum corporate profit at minimum cost-Shareholder Value was the Wall Street term. Gone was a system in which direct attention and care to the individual pig or cow or pasture land or crop soil mattered. Profit was the bottom line of the corporate agribusiness giant driving the transformation.
The CAFOs brought impressive concentrations of animal flesh into the smallest possible confinement space. From birth to slaughter,a factory pig, often weighing 500 to 600 pounds, would never leave a typical gestation cage of concrete and bars, a cell only as large as the animal. The animal would never be able to lie down, and as a result developed severe foot problems. The unnatural confinement created madness in the sows, including "bar biting" and senseless chewing. Never in their entire life did they see daylight.
The US Department of Agriculture estimated that 10% of all animals confined in CAFOs died annually due to stress, disease and injury, and up to 28% for some types of chickens.The factory managers had no incentive to spend time or invest in individual animals, arguing that it was more "cost effective" to take some "loss on inventory" rather than invest in proper veterinary care. Factory farming, as a result of generous campaign contributions to Congressmen, enjoyed an exempt status from normal laws against cruelty to animals.25
Cattle were packed into similar cages by the thousands. The London Economist magazine, in a May 2000 report, described the transformation of Iowa into the largest pig production center in America under factory farming. "Take take a trip to hog heaven;' they wrote. "This ten-mile stretch of countryside north of Ames, Iowa, produces almost a tenth of America's pork. But there is not an animal in sight. In massive metal sheds, up to 4,000 sows at a time are reared for slaughter, their diets carefully monitored, their waste regularly siphoned away, their keepers showered and begowned, like surgeons, to avoid infecting the herd."26
OMB Watch, an organization monitoring the role of US Government regulators in the area, reported the effects of the drastic reduction in Government rules on pollution and animal waste contamination from giant factory farm installations beginning during the Carter Presidency in the seventies.
Under the George W. Bush Administration, the Environmental Protection Agency, at the request of agribusiness, repealed a rule that held corporate livestock owners liable for damage caused by animal waste pollution. They noted that the factory farm owners often evaded responsibility by hiring contractors to raise their animals. The EPA also dropped a requirement that would have forced facilities to monitor groundwater for potential contamination by animal waste, which often seeped into the earth, leaving communities vulnerable to potentially dangerous drinking water supplies. The EPA had refused to change the allowed levels of which livestock operations met their definition of CAFO with attendant pollution limits despite repeated lawsuits.27
Because of the huge scale of the CAPOs or Factory Farms, animal waste and pollution of ground water was no minor affair. The huge animal farms housed tens of thousands of cattle, pigs or chickens in small concentrations, hence the name, CAFO. It was estimated that the factory farms produced more than 130 times the waste that humans did, or some 2.7 trillion pounds of animal waste a year.28 That waste would then be channelled into enormous "lagoons" that often leaked, ruptured or overflowed-killing fish and other marine life, spreading disease and contaminating community drinking water supplies. The CAFO farms also routinely over-applied liquid waste to land areas, known as "sprayfields;' causing it to run into waterways. "Water contaminated by animal manure contributes to human diseases such as acute gastroenteritis, fever, kidney failure, and even death:' according to a 2005 study by NRDC.29
Among the findings documented by the NRDC study were some alarming consequences to the cartelization of US agribusiness. They documented that in 1996 the US Government's Centers for Disease Control established a link between spontaneous abortions and high nitrate levels in Indiana drinking water wells located close to animal feedlots. As well, the high levels of nitrates in drinking water also increase the risk of methemoglobinemia, or "blue-baby syndrome:' which can kill infants. Further, animal waste contains disease-causing pathogens, such as Salmonella, E. coli, Cryptosporidium, and fecal coliform, which can be 10 to 100 times more concentrated than in human waste. More than 40 diseases can be transferred to humans through manure.30
Typically, the corporations running the CAFOs would hire illegal immigrants at dirt low wages to deal with the huge waste concentrations, channelling them into vast "lagoons" which often ruptured or overflowed, killing fish and contaminating drinking water supplies.31
By the end of the 1990's, factory farming had made agriculture . into the United States' largest general source of water pollution. One study showed that a growing hog produced two to four times as much waste asa human and a milk cow the waste of 24 people. Spread over large fields in a traditional family farm, such waste had never been a serious ecological problem. Concentrated into industrial centers of maximum animal density per square foot, it created staggering new environmental and health hazards. Because of the financial muscle of the giant corporate agribusiness farms, the Government catered to their needs to maximize profits, ignoring their legislative mandate to guard public health.
To deal with the large manure problem, the CAPOs typically would build earth pits to hold tens of millions of gallons of festering manure with an estimated "pollution strength" 130 times greater than human sewage. Putrid manure and urine waste contaminated countless streams and ground water sources across the United States.32
In California's Central Valley, giant mega-dairy CAFOs, with a total of 900,000 dairy cows, leaked fecal matter into the ground water, pushing nitrate levels of drinking water up 400%. The waste produced by the animals was equivalent to that of 21 million people.33
Not only waste, but consumption of drugs, especially antibiotics
to keep diseases under control in the concentrated breeding
spaces, became staggering. By the end of the 1990's the largest users
of antibiotics and similar drugs from the large pharmaceutical
firms were not humans, but animals, who consumed 70% of all
pharmaceutical antibiotics.34 The big pharmaceutical industry was
becoming an integral part of the agribusiness chain.
In 1954, just as Harvard's Goldberg and Davis were developing their ideas on agribusiness, American farmers used about 500,000 pounds of antibiotics a year raising food animals. By the year 2005, it had increased to 40 million pounds, an eighty-fold rise. And some 80% of the antibiotics were poured directly into the animal feed to make the animals grow faster. Penicillin. and tetracycline were the most commonly used antibiotics on the factory farms.
One result was the evolution of new strains of virulent bacteria appearing in humans and resistant to antibiotics. The Center for Disease Control and the USDA reported that the spread of food related disease in humans resulting from eating meat pumped with antibiotics and other substances was "epidemic." Most of the food related diseases were caused by contamination of the food, milk or water from animal fecal matter.35
The ability for corporations to merge and vertically integrate created a corporate concentration never before seen in agriculture. By the end of the 1990's, four large corporations-Tyson, Cargill, Swift and National Beef Packing-controlled 84% of all beef packing in the United States. Four corporations-Smithfield Foods, Tyson, Swift and Hormel-controlled 64% of all pig packing. Cargill, ADM and Bunge controlled 71 % of all soybean crushing, and Cargill, ADM and ConAgra controlled 63% of all flour milling. Two GMO giants, Monsanto and Pioneer-Hi Bred of Dupont controlled 60% of the US corn and soybean seed market, which consisted entirely of patented Genetically Modified seeds. The ten largest food retailing corporations, led by Wal-Mart, controlled a total global market of $649 billion by 2002.36
By the beginning of the new millennium, corporate agribusiness had vertically integrated into a concentration of market power never before experienced even in the trust heyday of the early 1920's. Agribusiness as a sector had become the second most profitable industry in America next to pharmaceuticals, with annual domestic sales of well over $400 billion 37 And the next phase was clearly mergers between the pharmaceutical giants and the agribusiness giants.
It was not surprising that the Pentagon's National Defense University, on the eve of the 2003 Iraq war, issued a paper declaring: "Agribusiness is to the United States what oil is to the Middle East 38 Agribusiness had become a strategic weapon in the arsenal of the world's only Superpower.
The giant factory farms also destroyed the viability of traditional farming, killing an estimated three traditional farm jobs for every new, often low-paid, job it created. Shareholder Value had come to American agriculture with a vengeance.
The United States Department of Agriculture had been established in 1862 by President Abraham Lincoln who called it "the peoples" department. Its original mandate had been to serve farmers and their families, about half the population of the country at the time. By the end of the 20th Century, the number of family farmers had been decimated. The traditional farmer had become a near extinct species under the driving pressures of agribusiness and its power to control entire sectors through vertical integration.
The US Department of Agriculture or USDA had been transformed into a lobby for agribusiness. Between 1995 and 2003 American taxpayers paid over $100 billion for USDA crop subsidies. The subsidies went not to struggling family farmers, however. They went overwhelmingly to the giant new agribusiness operators, corporate farms, including millions to David Rockefeller, the ardent advocate of less government subsidies.39 Some ten percent of the largest farm groups received 72% of USDA crop subsidies.
More worrisome was the fact that the US Government itself admitted in published reports that its statutory oversight in the health and safety of the nation's meatpacking and processing industry was worse than inadequate. In January 2006, the USDA issued the following report, apparently only in required response to a lone Senator who asked: The Grain Inspection, Packers and Stockyards Administration has not established an adequate control structure and environment that allows the agency to oversee and manage its investigative activities for the Packers and Stockyards Programs (P&SP) .... P&SP's tracking system could not be relied upon, competition and complex investigations were not being performed, and timely action was not being taken on issues that impact day-to-day activities. These material weaknesses should be reported in the agency's next FMFIA report because they represent essential activities for administering and enforcing the Packers and Stockyards Act of 1921 (Act). The Act prohibits unfair, unjustly discriminatory, and deceptive acts and practices, including certain anti~competitive practices. We also found that the agency has not taken sufficient actions to strengthen operations in response to findings previously reported by the Office of Inspector General (OIG) in February 1997 and the Government Accountability Office (GAO) in September 2000. Our current work was initiated in response to concerns raised by a US Senator in April 2005.40
The last statement implied they would not have undertaken such an inquiry on their own.
It was no accident. The powerful Washington lobbyists of agribusiness drafted the Farm Bills that dispersed the funds, and influenced which policies got enforced, as well as the appointment of agribusiness-friendly bureaucrats and officials to enforce them. The 1921 Packers and Stockyards Act had become an empty construct, honored in its breach.
The now powerful forces of the agribusiness lobby scored a major victory in 1996 with passage of the new Farm Bill by the US Congress. US farm policy from 1933, as explicitly stated in the Agricultural Adjustment Act of 1938, during the Great Depression, granted authority to the Secretary of Agriculture to attempt to balance demand and supply, by idling land,implementing commodity storage programs, establishing marketing quotas for some crops and to encouraging exports of commodities including food relief programs and sales of farm commodities for soft currencies. However, after 1996, the Secretary's authorities were suspended, if not repealed, in the 1996 and 2002 farm bills.
Before 1996, sharp price swings were moderated through the use of storage programs and land idling. The costs for the stabilization were relatively modest compared with the costs incurred after 1997. The 1996 farm bill, enacted during a brief period of economic euphoria in 1996, temporarily stripped the Secretary of Agriculture of all authority to manage inventories and set the stage for all-out production of the major program crops. That authority to idle resources, which every other CEO has authority to do when inventories become excessive, was swept away despite overwhelming evidence that agriculture's capacity to produce has consistently exceeded the capacity of markets to absorb the production without resorting to unacceptably low prices. With the transition away from government programs, it was expected that market forces would appropriately throttle resource use in agriculture. The results were a huge boon for agribusiness in their pursuit of ever-larger land at a cheap price. For the family farmer, the price was staggering.
As a report done by Iowa State University concluded:
Prices declined because the 1996 farm bill no longer authorized the government to idle land to balance demand and supply. Production decisions were left to the market .... When no land is idled, production increases, crop prices fall, and land values come under pressure until there is less profitability for crop production on the least productive land. The market squeezes out the thinner soils and steeper slopes, the higher per-unit cost of production areas. This land then transitions ... to another crop or to grazing land.41
Few Americans had the slightest idea of what was going on. By the mid-decade of the new century, however, the general level of public health, the epidemic-scale incidence of obesity, allergies, diseases once rare in the general population such as salmonella poisoning, e-coli, all were becoming everyday events.
The stage was set by the end of the 1990's for what Ray Goldberg termed a transformation that he described as "changing our global economy and society more dramatically than any other single event in the history of mankind."42
By 1998, Goldberg was 77 years old and extremely active, sitting on the boards of numerous large agribusiness companies such as ADM and Smithfield Foods and advising the World Bank on agribusiness for the developing world. That year, he organized a new university-wide research group at Harvard to examine how the genetic revolution would affect the global food system.
The creator of agribusiness was integrating the gene revolution into the agribusiness revolution as the next phase. He mapped out the transformation of world food consolidation thirty years into the future.
His study calculated that "the traditional agribusiness system, without the pharmaceutical, health and life science segments will be an $8 trillion global industry by 2028. The farming sector value added;' he went on, "will have shrunk from 32% in 1950 to 10% .... Whereas food processing and distribution accounted for half of 1950's value added, it will account for over 80% in 2028."43 For Goldberg, the farmer would become a tiny player in the giant global chain.
Goldberg calculated the addition of entire new sectors created by the latest developments in genetic engineering, including GMO creation of pharmaceutical drugs from genetically-engineered plants, which he called "the agri-ceutical system." He declared, "The addition of life science (biotechnology-ed.) participants in the new agri-ceutical system will increase total value added in 2028 to over $15 trillion and the farmers' share will shrink even further to 7%:' He proclaimed, enthusiastically, "the genetic revolution is leading to an industrial convergence of food, health, medicine, fiber and energy businesses."44
He might have added that all this was virtually without government regulation or scientific supervision by neutral scientific research organizations. How the gene revolution evolved, would again find the Rockefeller Foundation in a central role. From Green Revolution to Gene Revolution, the foundation was in the center of developing the strategy and means for transforming how the planet fed itself, or didn't feed itself.
next
Food is Power ...161s
As US Government regulatory barriers fell under the drumbeat of deregulation, especially during the Presidency of Ronald Reagan, agribusiness rushed in to fill the regulation vacuum with its own private industry rules and standards. The standards were not set by all players, but typically rather by the top four or five monopoly players.
The process led to a concentration and transformation of American agriculture. Independent family farmers were driven off the land to make way for "more efficient" giant corporate industrial farm businesses, known as Factory Farms or corporate agriculture. Those who stayed on the land were mostly forced to work for the hig agribusiness firms as "contract farmers."
"Where Have all the Farmers Gone?"
As Government regulations, food safety standards and monopoly
laws were systematically loosened, especially during the 1980's Reagan-Bush era, agribusiness began to transform the face of
traditional American farming in ways so drastic as to be incomprehensible
to ordinary consumers. Most people simply went to
their local supermarket, took a nicely packed cut of beef or pork
from the meat counter and thought they were still buying the
product of the family farm. What began to take place instead was the wholesale merger and consolidation, one-by-one, of American food production, out of the hands of family farmers and into giant corporate global concentrations. The farmer gradually became a contract employee responsible only for feeding and maintaining concentrations of thousands of animals in giant pens. He no longer owned the animals or the farm. He was effectively becoming like a feudal serf, indentured through huge debts, not to a Lord of the manor, but to a global multinational corporation such as Cargill, Archer Daniels Midland, Smithfield Foods or ConAgra.
For the new corporate agribusiness giants, the transformation was quite profitable. Family farmers' income for the vast majority of farm families plunged as they lost control of their market entirely to the agribusiness giants by the end of the 1990's. Their returns on equity had fallen from an average of 10% in the mid-1970's to only 2% a year, according to a study by the Senate Agriculture Committee. At the same time, the average annual return on stockholder equity for the industrialized food processing sector rose to 23% by 1999 from 13% in 1993.19
Hundreds of thousands of independent family farmers were forced out of business with the spread of agribusiness and its large operations. They simply couldn't compete. Traditional farming was by its nature labor intensive, while factory farming was capital intensive. Farmers who did manage to raise the money for animal confinement systems quickly discovered that the small savings in labor costs were not enough to cover the increasing costs of facilities, energy, caging, and drugs.
The increase in factory farms led to a decrease in the price independent farmers got for their animals, forcing thousands out of business. The number of US farmers dropped by 300,000 between 1979 and 1998.20
The number of hog farms in the US decreased from 600,000 to 157,000, while the number of hogs sold increased. Consolidation resulted in just 3 percent of US hog farms producing more than 50 percent of the hogs. A report to the US Secretary of Agriculture in the late 1990's described the enormous social costs of the destruction of the American family farm by agribusiness, as the economic basis of entire rural communities collapsed and rural towns became ghost towns. The USDA report was buried.21
Another minority report led by Senator Tom Harkin, released just before the November 2004 US Presidential elections, and also buried; revealed that by then the degree of concentration and near monopoly in the food and agriculture economy of the United States was impressive to say the least. The report found that the four largest beef packers controlled 84% of steer and heifer slaughter and 64% of hog slaughter. Four companies controlled 89% of the breakfast cereal market.22
When Cargill acquired the grain handling operations of Continental Grain in 1998, that one company, Cargill controlled 40% of national grain elevator capacity. The US Justice Department approved the merger. Four large agro-chemical seed companies Monsanto, Novartis, Dow Chemical, and DuPont-control more than 75 percent of the nation's seed corn sales and 60 percent of soybean seed sales, at the same time that these companies control large shares of the agricultural chemical market. 23
As traditional farmers abandoned their family land in droves during the 1980's and 1990's, agribusiness moved in to fill the void. The extent of the dramatic shift was largely hidden by clever government statistical accounting methods to make it appear that family farmers were simply getting larger, not that American farming had become giant corporate agribusiness.24
Municipalities, often desperate to attract jobs in regions of rural depression, offered the new agribusiness giants attractive concessions, tax benefits and others, to locate their industrial farms in ,the region, hoping to create new jobs and economic growth. The main growth created by the huge animal concentrations was fecal matter-animal waste in unimagined volumes.
What was termed a revolution in animal factory production began in the early 1980's. It was unpublicized for obvious reasons. Techniques of mass production and factory efficiency were introduced by the large corporations much as had been done in the auto industry assembly line production. Hogs, cattle and chickens were no longer produced on open fields or small farms where animals received individual attention from the farmer in event of illness or disease. The new production involved what was called "confinement feeding" or what came to be called CAFOs-Concentrated Animal Feeding Operations. Their goal was maximum corporate profit at minimum cost-Shareholder Value was the Wall Street term. Gone was a system in which direct attention and care to the individual pig or cow or pasture land or crop soil mattered. Profit was the bottom line of the corporate agribusiness giant driving the transformation.
The CAFOs brought impressive concentrations of animal flesh into the smallest possible confinement space. From birth to slaughter,a factory pig, often weighing 500 to 600 pounds, would never leave a typical gestation cage of concrete and bars, a cell only as large as the animal. The animal would never be able to lie down, and as a result developed severe foot problems. The unnatural confinement created madness in the sows, including "bar biting" and senseless chewing. Never in their entire life did they see daylight.
The US Department of Agriculture estimated that 10% of all animals confined in CAFOs died annually due to stress, disease and injury, and up to 28% for some types of chickens.The factory managers had no incentive to spend time or invest in individual animals, arguing that it was more "cost effective" to take some "loss on inventory" rather than invest in proper veterinary care. Factory farming, as a result of generous campaign contributions to Congressmen, enjoyed an exempt status from normal laws against cruelty to animals.25
Cattle were packed into similar cages by the thousands. The London Economist magazine, in a May 2000 report, described the transformation of Iowa into the largest pig production center in America under factory farming. "Take take a trip to hog heaven;' they wrote. "This ten-mile stretch of countryside north of Ames, Iowa, produces almost a tenth of America's pork. But there is not an animal in sight. In massive metal sheds, up to 4,000 sows at a time are reared for slaughter, their diets carefully monitored, their waste regularly siphoned away, their keepers showered and begowned, like surgeons, to avoid infecting the herd."26
OMB Watch, an organization monitoring the role of US Government regulators in the area, reported the effects of the drastic reduction in Government rules on pollution and animal waste contamination from giant factory farm installations beginning during the Carter Presidency in the seventies.
Under the George W. Bush Administration, the Environmental Protection Agency, at the request of agribusiness, repealed a rule that held corporate livestock owners liable for damage caused by animal waste pollution. They noted that the factory farm owners often evaded responsibility by hiring contractors to raise their animals. The EPA also dropped a requirement that would have forced facilities to monitor groundwater for potential contamination by animal waste, which often seeped into the earth, leaving communities vulnerable to potentially dangerous drinking water supplies. The EPA had refused to change the allowed levels of which livestock operations met their definition of CAFO with attendant pollution limits despite repeated lawsuits.27
Because of the huge scale of the CAPOs or Factory Farms, animal waste and pollution of ground water was no minor affair. The huge animal farms housed tens of thousands of cattle, pigs or chickens in small concentrations, hence the name, CAFO. It was estimated that the factory farms produced more than 130 times the waste that humans did, or some 2.7 trillion pounds of animal waste a year.28 That waste would then be channelled into enormous "lagoons" that often leaked, ruptured or overflowed-killing fish and other marine life, spreading disease and contaminating community drinking water supplies. The CAFO farms also routinely over-applied liquid waste to land areas, known as "sprayfields;' causing it to run into waterways. "Water contaminated by animal manure contributes to human diseases such as acute gastroenteritis, fever, kidney failure, and even death:' according to a 2005 study by NRDC.29
Among the findings documented by the NRDC study were some alarming consequences to the cartelization of US agribusiness. They documented that in 1996 the US Government's Centers for Disease Control established a link between spontaneous abortions and high nitrate levels in Indiana drinking water wells located close to animal feedlots. As well, the high levels of nitrates in drinking water also increase the risk of methemoglobinemia, or "blue-baby syndrome:' which can kill infants. Further, animal waste contains disease-causing pathogens, such as Salmonella, E. coli, Cryptosporidium, and fecal coliform, which can be 10 to 100 times more concentrated than in human waste. More than 40 diseases can be transferred to humans through manure.30
Typically, the corporations running the CAFOs would hire illegal immigrants at dirt low wages to deal with the huge waste concentrations, channelling them into vast "lagoons" which often ruptured or overflowed, killing fish and contaminating drinking water supplies.31
By the end of the 1990's, factory farming had made agriculture . into the United States' largest general source of water pollution. One study showed that a growing hog produced two to four times as much waste asa human and a milk cow the waste of 24 people. Spread over large fields in a traditional family farm, such waste had never been a serious ecological problem. Concentrated into industrial centers of maximum animal density per square foot, it created staggering new environmental and health hazards. Because of the financial muscle of the giant corporate agribusiness farms, the Government catered to their needs to maximize profits, ignoring their legislative mandate to guard public health.
To deal with the large manure problem, the CAPOs typically would build earth pits to hold tens of millions of gallons of festering manure with an estimated "pollution strength" 130 times greater than human sewage. Putrid manure and urine waste contaminated countless streams and ground water sources across the United States.32
In California's Central Valley, giant mega-dairy CAFOs, with a total of 900,000 dairy cows, leaked fecal matter into the ground water, pushing nitrate levels of drinking water up 400%. The waste produced by the animals was equivalent to that of 21 million people.33
In 1954, just as Harvard's Goldberg and Davis were developing their ideas on agribusiness, American farmers used about 500,000 pounds of antibiotics a year raising food animals. By the year 2005, it had increased to 40 million pounds, an eighty-fold rise. And some 80% of the antibiotics were poured directly into the animal feed to make the animals grow faster. Penicillin. and tetracycline were the most commonly used antibiotics on the factory farms.
One result was the evolution of new strains of virulent bacteria appearing in humans and resistant to antibiotics. The Center for Disease Control and the USDA reported that the spread of food related disease in humans resulting from eating meat pumped with antibiotics and other substances was "epidemic." Most of the food related diseases were caused by contamination of the food, milk or water from animal fecal matter.35
The ability for corporations to merge and vertically integrate created a corporate concentration never before seen in agriculture. By the end of the 1990's, four large corporations-Tyson, Cargill, Swift and National Beef Packing-controlled 84% of all beef packing in the United States. Four corporations-Smithfield Foods, Tyson, Swift and Hormel-controlled 64% of all pig packing. Cargill, ADM and Bunge controlled 71 % of all soybean crushing, and Cargill, ADM and ConAgra controlled 63% of all flour milling. Two GMO giants, Monsanto and Pioneer-Hi Bred of Dupont controlled 60% of the US corn and soybean seed market, which consisted entirely of patented Genetically Modified seeds. The ten largest food retailing corporations, led by Wal-Mart, controlled a total global market of $649 billion by 2002.36
By the beginning of the new millennium, corporate agribusiness had vertically integrated into a concentration of market power never before experienced even in the trust heyday of the early 1920's. Agribusiness as a sector had become the second most profitable industry in America next to pharmaceuticals, with annual domestic sales of well over $400 billion 37 And the next phase was clearly mergers between the pharmaceutical giants and the agribusiness giants.
It was not surprising that the Pentagon's National Defense University, on the eve of the 2003 Iraq war, issued a paper declaring: "Agribusiness is to the United States what oil is to the Middle East 38 Agribusiness had become a strategic weapon in the arsenal of the world's only Superpower.
The giant factory farms also destroyed the viability of traditional farming, killing an estimated three traditional farm jobs for every new, often low-paid, job it created. Shareholder Value had come to American agriculture with a vengeance.
The United States Department of Agriculture had been established in 1862 by President Abraham Lincoln who called it "the peoples" department. Its original mandate had been to serve farmers and their families, about half the population of the country at the time. By the end of the 20th Century, the number of family farmers had been decimated. The traditional farmer had become a near extinct species under the driving pressures of agribusiness and its power to control entire sectors through vertical integration.
The US Department of Agriculture or USDA had been transformed into a lobby for agribusiness. Between 1995 and 2003 American taxpayers paid over $100 billion for USDA crop subsidies. The subsidies went not to struggling family farmers, however. They went overwhelmingly to the giant new agribusiness operators, corporate farms, including millions to David Rockefeller, the ardent advocate of less government subsidies.39 Some ten percent of the largest farm groups received 72% of USDA crop subsidies.
More worrisome was the fact that the US Government itself admitted in published reports that its statutory oversight in the health and safety of the nation's meatpacking and processing industry was worse than inadequate. In January 2006, the USDA issued the following report, apparently only in required response to a lone Senator who asked: The Grain Inspection, Packers and Stockyards Administration has not established an adequate control structure and environment that allows the agency to oversee and manage its investigative activities for the Packers and Stockyards Programs (P&SP) .... P&SP's tracking system could not be relied upon, competition and complex investigations were not being performed, and timely action was not being taken on issues that impact day-to-day activities. These material weaknesses should be reported in the agency's next FMFIA report because they represent essential activities for administering and enforcing the Packers and Stockyards Act of 1921 (Act). The Act prohibits unfair, unjustly discriminatory, and deceptive acts and practices, including certain anti~competitive practices. We also found that the agency has not taken sufficient actions to strengthen operations in response to findings previously reported by the Office of Inspector General (OIG) in February 1997 and the Government Accountability Office (GAO) in September 2000. Our current work was initiated in response to concerns raised by a US Senator in April 2005.40
The last statement implied they would not have undertaken such an inquiry on their own.
It was no accident. The powerful Washington lobbyists of agribusiness drafted the Farm Bills that dispersed the funds, and influenced which policies got enforced, as well as the appointment of agribusiness-friendly bureaucrats and officials to enforce them. The 1921 Packers and Stockyards Act had become an empty construct, honored in its breach.
The now powerful forces of the agribusiness lobby scored a major victory in 1996 with passage of the new Farm Bill by the US Congress. US farm policy from 1933, as explicitly stated in the Agricultural Adjustment Act of 1938, during the Great Depression, granted authority to the Secretary of Agriculture to attempt to balance demand and supply, by idling land,implementing commodity storage programs, establishing marketing quotas for some crops and to encouraging exports of commodities including food relief programs and sales of farm commodities for soft currencies. However, after 1996, the Secretary's authorities were suspended, if not repealed, in the 1996 and 2002 farm bills.
Before 1996, sharp price swings were moderated through the use of storage programs and land idling. The costs for the stabilization were relatively modest compared with the costs incurred after 1997. The 1996 farm bill, enacted during a brief period of economic euphoria in 1996, temporarily stripped the Secretary of Agriculture of all authority to manage inventories and set the stage for all-out production of the major program crops. That authority to idle resources, which every other CEO has authority to do when inventories become excessive, was swept away despite overwhelming evidence that agriculture's capacity to produce has consistently exceeded the capacity of markets to absorb the production without resorting to unacceptably low prices. With the transition away from government programs, it was expected that market forces would appropriately throttle resource use in agriculture. The results were a huge boon for agribusiness in their pursuit of ever-larger land at a cheap price. For the family farmer, the price was staggering.
As a report done by Iowa State University concluded:
Prices declined because the 1996 farm bill no longer authorized the government to idle land to balance demand and supply. Production decisions were left to the market .... When no land is idled, production increases, crop prices fall, and land values come under pressure until there is less profitability for crop production on the least productive land. The market squeezes out the thinner soils and steeper slopes, the higher per-unit cost of production areas. This land then transitions ... to another crop or to grazing land.41
Few Americans had the slightest idea of what was going on. By the mid-decade of the new century, however, the general level of public health, the epidemic-scale incidence of obesity, allergies, diseases once rare in the general population such as salmonella poisoning, e-coli, all were becoming everyday events.
The stage was set by the end of the 1990's for what Ray Goldberg termed a transformation that he described as "changing our global economy and society more dramatically than any other single event in the history of mankind."42
By 1998, Goldberg was 77 years old and extremely active, sitting on the boards of numerous large agribusiness companies such as ADM and Smithfield Foods and advising the World Bank on agribusiness for the developing world. That year, he organized a new university-wide research group at Harvard to examine how the genetic revolution would affect the global food system.
The creator of agribusiness was integrating the gene revolution into the agribusiness revolution as the next phase. He mapped out the transformation of world food consolidation thirty years into the future.
His study calculated that "the traditional agribusiness system, without the pharmaceutical, health and life science segments will be an $8 trillion global industry by 2028. The farming sector value added;' he went on, "will have shrunk from 32% in 1950 to 10% .... Whereas food processing and distribution accounted for half of 1950's value added, it will account for over 80% in 2028."43 For Goldberg, the farmer would become a tiny player in the giant global chain.
Goldberg calculated the addition of entire new sectors created by the latest developments in genetic engineering, including GMO creation of pharmaceutical drugs from genetically-engineered plants, which he called "the agri-ceutical system." He declared, "The addition of life science (biotechnology-ed.) participants in the new agri-ceutical system will increase total value added in 2028 to over $15 trillion and the farmers' share will shrink even further to 7%:' He proclaimed, enthusiastically, "the genetic revolution is leading to an industrial convergence of food, health, medicine, fiber and energy businesses."44
He might have added that all this was virtually without government regulation or scientific supervision by neutral scientific research organizations. How the gene revolution evolved, would again find the Rockefeller Foundation in a central role. From Green Revolution to Gene Revolution, the foundation was in the center of developing the strategy and means for transforming how the planet fed itself, or didn't feed itself.
next
Food is Power ...161s
Notes
1. Peter Grose, Continuing the Inquiry: The Council on Foreign Relations from 1921
to 1996, New York, Council on Foreign Relations Press, 1996. pp. 23-26. This official
account by the CFR of the War and Peace Studies project states: "More than
two years before the Japanese attack on P~arl Harbor, the research staff of the
Council on Foreign Relations had started to envision a venture that would
dominate the life of the institution for the demanding years ahead. With the
memory of the Inquiry in focus, they conceived a role for the Council in the
formulation of national policy. On September 12, 1939, as Nazi Germany invaded
Poland, (CFR's Hamilton Fish) Armstrong and Mallory entrained to Washington
to meet with Assistant Secretary of State George S. Messersmith. At that time the
Department of State could command few resources for study, research, policy
planning, and initiative; on such matters, the career diplomats on the eve of World
War II were scarcely better off than had been their predecessors when America
entered World War I. The men from the Council proposed a discreet venture
reminiscent of the Inquiry: a program of independent analysis and study that
would guide American foreign policy in the coming years of war and the challenging
new world that would emerge after. The project became known as the
War and Peace Studies. "The matter is strictly confidential," wrote (Isaiah)
Bowman, "because the whole plan would be 'ditched' if it became generally known
that the State Department is working in collaboration with any outside group.~'
The Rockefeller Foundation agreed to fund the project, reluctantly at first, but, once
convinced of its relevance, with nearly $350,000. Over the coming five years,
almost 100 men participated in the War and Peace Studies, divided into four functional
topic groups: economic and financial, security and armaments, territorial,
and political. These groups met more than 250 times, usually in New York, over
dinner and late into the night. They produced 682 memoranda for the State
Department, which marked them classified and circulated them among the appropriate
government departments." .
2. Ibid., pp. 10,15.
3. U.S. Supreme Court, US v. US Steel Corporation, U.S. 417,1920, p. 25I.
4. Henry Luce, "The American Century:' Life, 17 February 1941.
5. Handbook, The New York Council on Foreign Relations, Studies of American
Interests in the War and the Peace, New York, 1939-1942, cited in Neil Smith,
American Empire: Roosevelt's Geographer and the Prelude to Globalization, University
of California Press, Berkeley, 2003, pp. 325-328.:
6. Neil Smith, op. cit., p. 287.
7. Joseph S. Nye Jr, "Propaganda Isn't the Way: Soft Power", The International
Herald Tribune, 10 January 2003. Nye defines what he coined as "soft power":
"Soft power is the ability to get what you want by attracting and persuading others
to adopt your goals. It differs from hard power, the ability to use the carrots and
sticks of economic and military might to make others follow your will. Both hard
and soft powers are important ... but attraction is much cheaper than coercion, and
an asset that needs to be nourished."
8. Kramer, Paul, "Nelson Rockefeller and British Security Coordination", Journal
of Contemporary History, Vol. 16, 1981, pp. 77-81.
9. Charles Higham, Trading with the Enemy: An Expose of the Nazi-American
Money Plot, 1933-1947, Delacorte, New York, 1983, pp.53-54.
10. Ibid., p. 56.
11. Ibid., pp. 67-69.
12. William Stevenson, A Man Called Intrepid, Ballantine Books, New York, 1976,
pp.308-311.
13. Gerard Colby and Charlotte Dennett, Thy Will Be Done: The Conquest of the
Amazon-Nelson Rockefeller and Evangelism in the Age of Oil, HarperCollins, New
York, 1995,pp. 115-116.
14. Thomas O'Brien, Making the Americas: U.S. Business People and Latin
Americans from the Age of Revolutions to the Era of Globalization, History Compass
2, LA 067,2004, pp. 14-15.
15. Los Angeles Times, Mexico 75 Years Later, Today's Zapatistas Still Fight the
Rockefeller Legacy, 14 May 1995.
16. William Stevenson, op. cit., p. 309.
17. John Loftus and Mark Aarons, The Secret War Against the Jews: How Western
Espionage Betrayed the Jewish People, St. Martin's, New York, 1994, pp. 165-171.
18. Margaret Carroll Boardman, Sowing the Seeds of the Green Revolution: The
Pivotal Role Mexico and International Non-Profit Organizations Play in Making.
Biotechnology an Important Foreign Policy Issue for the 21st Century,
http://www.isop.ucla.edu/profmexivolume4/3summer99/Green_Finalm.htm.
19. Gerard Colby and Charlotte Dennett, op. cit., pp. 116, 168.
20. Ibid., p. 166.
21. Ibid., p. 169.
22. Committee on Rules and Administration, U.S. Senate, 9yd Congress, 2nd
Session, Hearings, The Nomination of Nelson A. Rockefeller of New York to be Vice
President of the United States, Washington D.C., Government Printing Office,
1974, cited in Gerard Colby and Charlotte Dennett, op. cit., p. 373. In addition to
the known holdings in the Standard Oil companies, Rockefeller's investments
included such prime defense contractors as McDonnell Aircraft, Chrysler Corp., Boeing, Monsanto, Dow Chemical, Hercules, Bendix, Motorola and numerous
other defense contractors.
23. John Freivalds, Brazil Agriculture: Winning the Great Farms Race, 3 March
2005, http://www.brazilmax.com/news.cfm/tborigem/fe_business/id/5.
24. Lester Brown, Seeds of Change, Praeger, New York, 1969, Chapter 1: New Seeds
and Mechanization.
25. Gerard Colby and Charlotte Dennett, op. cit., pp. 212-214.
Notes
1. UN Food and Agriculture Organization, Mobilizing Science for Global Food Security, Fourth External Review of CIMMYT, (Consultative Group on International Agricultural Research-CGIAR, Rome )-SDR/TAC:IAR/97 /9. Also CGIAR, The Origins of the CGJAR, http://www.cgiar.orglwho/history/origins.htrnI. details the role of the Rockefeller Foundation in creation of both CIMMYT and later CGIAR as the larger global agriculture research body to advance the Rockefeller Foundation's growing agribusiness agenda. See also Robert Anderson, American Foundations, the Green Revolution and the CGIAR: Intentions, Implementation and Contingencies, Simon Fraser University, November 2003, http://les.man.ac.uk!governmentlpublications/working...papers_docs/GlobalisationlFoundations%20papers %20Anderson.pdf. One of the most detailed critiques of Rockefeller's Green Revolution is made in Harry Cleaver, The Contradictions of the Green Revolution, http://www.eco. utexas.edu/facstaff/Cleaver/ cleavercontradictions. pdf.
2. Harry Cleaver, op. cit., p. 3.
3. CGIAR, The Origins of the CGIAR, in http://www.cgiar.org/who/history/ origins.html.
4. Ibid. For background on the very influential Rockefeller friend, Maurice Strong, see Elaine Dewar, Cloak of Green, Lorimar & Co., Toronto, 1995, p. 254, and Henry Lamb, Maurice Strong: The New Guy in Your Future!, January 1997, http://www.sovereignty.netlp/ sd/ strong.html#3.
5. Harry Cleaver, op. cit., p. 5. A. T. Mosher, Getting Agriculture Moving, ADC, New York, 1966, p. 34.
6. Ibid., P. 11. Also, "Who's for DDT?", Time, 22 November 1971.
7. A. Parsons, "Philippines: Rebellious Litde Brother", Pacific Research and World Empire Telegram, January 1971.
8. Jeroen van Wijk, "Hybrids Bred for Superior Yields or for Control?", Biotechnology and Development Monitor, 1994, No. 19, pp. 3-5.
9. Harry Cleaver, op.cit:, p. 9.
10. Ibid., p. 9.
11. Research Unit for Political Economy (R.U.P.E.), "Economics and Politics of the World Social Forum, Appendix I: Ford Foundation-A Case Study of the Aims of Foreign Funding", Aspects of India's Economy September 2003. For background on the postwar close ties between the Ford Foundation and the CIA during the 1950's and 1960's see James Petras, "The Ford Foundation and the CIA: A Documented Case of Philanthropic Collaboration with the Secret Police", Rebelion; 15 December 2001, http://www.rebelion.orglpetras/english/ford010102.htm.
12. Debashis Mandai and S. K. Ghosh, "Precision Farming-the Emerging Concept of Agriculture for Today and Tomorrow", Current Science, 25 December 2000. The authors, authorities on Indian agriculture summarize the impact of the Green Revolution in India: "The green revolution has not only increased productivity, but it has also several negative ecological consequences such as depletion of lands, decline in soil fertility, soil salinization, soil erosion, deterioration of environment, health hazards, poor sustainability of agricultural lands and degradation of biodiversity. Indiscriminate use of pesticides, irrigation and imbalanced fertilization has threatened sustainability."
13. John H. Davis, Harvard Business Review, 1956, cited in Geoffrey Lawrence, "Agribusiness", Capitalism and the Countryside, Pluto Press, Sydney, 1987. See also Harvard Business School, The Evolution of an Industry and a Seminar: Agribusiness Seminar, http://www.exed.hbs.edu/programs/agb/seminar.html.
14. Martin Kohli, "Leontief and the U.S. Bureau of Labor Statistics, 1941-54: Developing a Framework for Measurement;' History of Political Economy, Vol. 33, Annual Supplement, 2001, pp. 190-19l.
15. John D. Rockefeller III, The Second American Revolution, Harper & Row, New York, 1973, p. 108.
16. Current Biography, 1967, W. Leontief and Ray Goldberg, "The Evolution of Agribusiness", Harvard Business School Executive Education Faculty Interviews, http://www.exed.hbs.edu/faculty/rgoldberg.html. W. Leontief, Studies in the Structure of the American Economy, International Science Press Inc., White Plains, New York, 1953. In its 1956 Annual Report, the Ford Foundation noted the following grant: "Harvard Economic Research Project': In addition to these overall programs, a grant of $240,000 was made to support the activities of the Harvard Economic Research Project over a six-year period. This center, under the direction of Professor Wassily Leontief, was engaged in a series of quantitative studies of the structure of the American economy, focusing mainly on inter-industry relationships and the interconnections between industry and other sectors of the economy. Equal support was contributed by the Rockefeller Foundation, Ford Foundation, Annual Report, New York, 1956. A fascinating and controversial report of the implementation of the Leontief Harvard Economic Research Project on the Structure of the American Economy is a document titled, Silent Weapons for Quiet Wars. Its authorship is disputed, with attribution to Hartford Van Dyke and to William Cooper, and much speculation exists as to whether it is fact or fiction. The discussion in the report of aspects of the Leontief research, its Rockefeller funding and how it was linked actively with the work of Ray Goldberg and John H. Davis in creating the model of corporate agribusiness is too incisive to dismiss the full report completely. The document for this reason alone is worth reading. http://www. universalway.orglForeign/ silentweapons.html.
17. Roert M Aduddell, and Louis P. Cain, "Public Policy Toward The Greatest Trust in the World", Business History Review, Summer 1981, Harvard College, Cambridge, p. 217.
18. Ibid., p. 218.
19. James MacDonald et aI., Growing Farm Size and the Distribution of Farm Payments, United States Departent of Agriculture, Economic Research Service, Economic Brief No.6, Washington, D.C. March, 2006, p. 2.
20. The Humane Farming Association, Factory Farming: The True Costs, San Rafael California, 31 July 2005,http://www.hfa.org.
21. Ibid.
22. Tom Harkin, Economic Concentration and Structural Change in the Food and Agriculture Sector, Prepared by the Democratic Staff of the Committee on Agriculture, Nutrition, and Forestry United States Senate, 29 October 2004, p.6.
23. Ibid., pp. 5-6. Also Mark Spitzer, "Industrial Agriculture and Corporate Power", Global Pesticide Campaigner, August 2003, http://www.panna.orgliacp.
24. James MacDonald, et al., op.cit., pp.I-4.
25. The Humane Farming Association, op. cit.
26. The Economist, "Growing Pains:' The Economist, US Edition, 25 March 2000.
27.0MB Watch, OMB Waters Down Standards on Factory-Farm Runoff,
28 May 2003, http://www.ombwatch.org/article/articleviewI1540. See also Natural Resources Defense Council (NRDC), Facts about Pollution from Livestock Farms, Washington, D.C., 15 July 2005. 28.0MB Watch, op. cit.
29. NRDC, op. cit. 30. NRDC, op. cit.
31. Ibid.
32.0MB Watch, op. cit.
33. The Humane Farming Association, op. cit.
34. NRDC, op. cit.
35. The Humane Farming Association, op. cit. See also, Brian DeVore, "Greasing the Way for Factory Bacon, Corporate hog operations-and their lagoonsThreaten the Financial and Physical health of Family Farms': Sustainable Farming Connection, http://www.ibiblio.orglfarming-connection.
36. Tom Harkin, op. cit., pp. 6-7.
37. Ray Goldberg, The Genetic Revolution: Transforming our Industry, Its Institutions, and Its Functions, address to The International Food and Agribusiness Management Association (lAMA), Chicago, 26 June 2000, pp. 1-2. Goldberg founded and headed the lAMA as well as holding seats on the boards of agribusiness giants Archer Daniels Midland, Smithfield Foods and DuPont Pioneer HiBred. He practiced what he preached.
38. Col. Eddie Coleman, US Army, Agribusiness Group Paper National Defense University, 2003, in http://www.ndu.edu/icaf/industry/IS2003/papersl 20030/020Agribusiness.htm#.
39. Tom Harkin, op. cit.
40. U.S. Department of Agriculture, Office of Inspector General, Northeast Region, Grain Inspection, Packers and Stockyards Administration's Management and Oversight of the Packers and Stockyards Programs, Report No. 30601-01-Hy, Washington D.C., January 2006, p. 3.
41. Leopold Center for Sustainable Agriculture Iowa State University, Toward a Global Food and Agriculture Policy, January 2005, http://www.leopold.iastate.edu/ pubslstaff/policy/globalag.pdf.
42. Ray Goldberg, The Genetic Revolution, op.cit., p. 1.
43. Ibid. p. 2. Also see PR Newswire, Agriceuticals: The Most Important Economic Event in our Lifetime, Says Harvard Professor Dr. Ray Goldberg, 8 December 1999.
44. Ibid. p. 2.
Notes
1. UN Food and Agriculture Organization, Mobilizing Science for Global Food Security, Fourth External Review of CIMMYT, (Consultative Group on International Agricultural Research-CGIAR, Rome )-SDR/TAC:IAR/97 /9. Also CGIAR, The Origins of the CGJAR, http://www.cgiar.orglwho/history/origins.htrnI. details the role of the Rockefeller Foundation in creation of both CIMMYT and later CGIAR as the larger global agriculture research body to advance the Rockefeller Foundation's growing agribusiness agenda. See also Robert Anderson, American Foundations, the Green Revolution and the CGIAR: Intentions, Implementation and Contingencies, Simon Fraser University, November 2003, http://les.man.ac.uk!governmentlpublications/working...papers_docs/GlobalisationlFoundations%20papers %20Anderson.pdf. One of the most detailed critiques of Rockefeller's Green Revolution is made in Harry Cleaver, The Contradictions of the Green Revolution, http://www.eco. utexas.edu/facstaff/Cleaver/ cleavercontradictions. pdf.
2. Harry Cleaver, op. cit., p. 3.
3. CGIAR, The Origins of the CGIAR, in http://www.cgiar.org/who/history/ origins.html.
4. Ibid. For background on the very influential Rockefeller friend, Maurice Strong, see Elaine Dewar, Cloak of Green, Lorimar & Co., Toronto, 1995, p. 254, and Henry Lamb, Maurice Strong: The New Guy in Your Future!, January 1997, http://www.sovereignty.netlp/ sd/ strong.html#3.
5. Harry Cleaver, op. cit., p. 5. A. T. Mosher, Getting Agriculture Moving, ADC, New York, 1966, p. 34.
6. Ibid., P. 11. Also, "Who's for DDT?", Time, 22 November 1971.
7. A. Parsons, "Philippines: Rebellious Litde Brother", Pacific Research and World Empire Telegram, January 1971.
8. Jeroen van Wijk, "Hybrids Bred for Superior Yields or for Control?", Biotechnology and Development Monitor, 1994, No. 19, pp. 3-5.
9. Harry Cleaver, op.cit:, p. 9.
10. Ibid., p. 9.
11. Research Unit for Political Economy (R.U.P.E.), "Economics and Politics of the World Social Forum, Appendix I: Ford Foundation-A Case Study of the Aims of Foreign Funding", Aspects of India's Economy September 2003. For background on the postwar close ties between the Ford Foundation and the CIA during the 1950's and 1960's see James Petras, "The Ford Foundation and the CIA: A Documented Case of Philanthropic Collaboration with the Secret Police", Rebelion; 15 December 2001, http://www.rebelion.orglpetras/english/ford010102.htm.
12. Debashis Mandai and S. K. Ghosh, "Precision Farming-the Emerging Concept of Agriculture for Today and Tomorrow", Current Science, 25 December 2000. The authors, authorities on Indian agriculture summarize the impact of the Green Revolution in India: "The green revolution has not only increased productivity, but it has also several negative ecological consequences such as depletion of lands, decline in soil fertility, soil salinization, soil erosion, deterioration of environment, health hazards, poor sustainability of agricultural lands and degradation of biodiversity. Indiscriminate use of pesticides, irrigation and imbalanced fertilization has threatened sustainability."
13. John H. Davis, Harvard Business Review, 1956, cited in Geoffrey Lawrence, "Agribusiness", Capitalism and the Countryside, Pluto Press, Sydney, 1987. See also Harvard Business School, The Evolution of an Industry and a Seminar: Agribusiness Seminar, http://www.exed.hbs.edu/programs/agb/seminar.html.
14. Martin Kohli, "Leontief and the U.S. Bureau of Labor Statistics, 1941-54: Developing a Framework for Measurement;' History of Political Economy, Vol. 33, Annual Supplement, 2001, pp. 190-19l.
15. John D. Rockefeller III, The Second American Revolution, Harper & Row, New York, 1973, p. 108.
16. Current Biography, 1967, W. Leontief and Ray Goldberg, "The Evolution of Agribusiness", Harvard Business School Executive Education Faculty Interviews, http://www.exed.hbs.edu/faculty/rgoldberg.html. W. Leontief, Studies in the Structure of the American Economy, International Science Press Inc., White Plains, New York, 1953. In its 1956 Annual Report, the Ford Foundation noted the following grant: "Harvard Economic Research Project': In addition to these overall programs, a grant of $240,000 was made to support the activities of the Harvard Economic Research Project over a six-year period. This center, under the direction of Professor Wassily Leontief, was engaged in a series of quantitative studies of the structure of the American economy, focusing mainly on inter-industry relationships and the interconnections between industry and other sectors of the economy. Equal support was contributed by the Rockefeller Foundation, Ford Foundation, Annual Report, New York, 1956. A fascinating and controversial report of the implementation of the Leontief Harvard Economic Research Project on the Structure of the American Economy is a document titled, Silent Weapons for Quiet Wars. Its authorship is disputed, with attribution to Hartford Van Dyke and to William Cooper, and much speculation exists as to whether it is fact or fiction. The discussion in the report of aspects of the Leontief research, its Rockefeller funding and how it was linked actively with the work of Ray Goldberg and John H. Davis in creating the model of corporate agribusiness is too incisive to dismiss the full report completely. The document for this reason alone is worth reading. http://www. universalway.orglForeign/ silentweapons.html.
17. Roert M Aduddell, and Louis P. Cain, "Public Policy Toward The Greatest Trust in the World", Business History Review, Summer 1981, Harvard College, Cambridge, p. 217.
18. Ibid., p. 218.
19. James MacDonald et aI., Growing Farm Size and the Distribution of Farm Payments, United States Departent of Agriculture, Economic Research Service, Economic Brief No.6, Washington, D.C. March, 2006, p. 2.
20. The Humane Farming Association, Factory Farming: The True Costs, San Rafael California, 31 July 2005,http://www.hfa.org.
21. Ibid.
22. Tom Harkin, Economic Concentration and Structural Change in the Food and Agriculture Sector, Prepared by the Democratic Staff of the Committee on Agriculture, Nutrition, and Forestry United States Senate, 29 October 2004, p.6.
23. Ibid., pp. 5-6. Also Mark Spitzer, "Industrial Agriculture and Corporate Power", Global Pesticide Campaigner, August 2003, http://www.panna.orgliacp.
24. James MacDonald, et al., op.cit., pp.I-4.
25. The Humane Farming Association, op. cit.
26. The Economist, "Growing Pains:' The Economist, US Edition, 25 March 2000.
27.0MB Watch, OMB Waters Down Standards on Factory-Farm Runoff,
28 May 2003, http://www.ombwatch.org/article/articleviewI1540. See also Natural Resources Defense Council (NRDC), Facts about Pollution from Livestock Farms, Washington, D.C., 15 July 2005. 28.0MB Watch, op. cit.
29. NRDC, op. cit. 30. NRDC, op. cit.
31. Ibid.
32.0MB Watch, op. cit.
33. The Humane Farming Association, op. cit.
34. NRDC, op. cit.
35. The Humane Farming Association, op. cit. See also, Brian DeVore, "Greasing the Way for Factory Bacon, Corporate hog operations-and their lagoonsThreaten the Financial and Physical health of Family Farms': Sustainable Farming Connection, http://www.ibiblio.orglfarming-connection.
36. Tom Harkin, op. cit., pp. 6-7.
37. Ray Goldberg, The Genetic Revolution: Transforming our Industry, Its Institutions, and Its Functions, address to The International Food and Agribusiness Management Association (lAMA), Chicago, 26 June 2000, pp. 1-2. Goldberg founded and headed the lAMA as well as holding seats on the boards of agribusiness giants Archer Daniels Midland, Smithfield Foods and DuPont Pioneer HiBred. He practiced what he preached.
38. Col. Eddie Coleman, US Army, Agribusiness Group Paper National Defense University, 2003, in http://www.ndu.edu/icaf/industry/IS2003/papersl 20030/020Agribusiness.htm#.
39. Tom Harkin, op. cit.
40. U.S. Department of Agriculture, Office of Inspector General, Northeast Region, Grain Inspection, Packers and Stockyards Administration's Management and Oversight of the Packers and Stockyards Programs, Report No. 30601-01-Hy, Washington D.C., January 2006, p. 3.
41. Leopold Center for Sustainable Agriculture Iowa State University, Toward a Global Food and Agriculture Policy, January 2005, http://www.leopold.iastate.edu/ pubslstaff/policy/globalag.pdf.
42. Ray Goldberg, The Genetic Revolution, op.cit., p. 1.
43. Ibid. p. 2. Also see PR Newswire, Agriceuticals: The Most Important Economic Event in our Lifetime, Says Harvard Professor Dr. Ray Goldberg, 8 December 1999.
44. Ibid. p. 2.
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