Friday, February 23, 2024

On the Role of Agribusiness in Global Warming

Agriculture is a major source of carbon and methane emissions, which in turn are responsible for the general trend of the warming of the planet’s atmosphere and oceans. In fact, agriculture emits more than all of the cars on the roads. 10 percent of the emissions carbon dioxide and methane in the U.S. come from the agricultural sector. Livestock is the biggest source of methane. Cows, for example, emit methane. Methane from a number or sources, including the thawing permafrost, accounted for 30 percent of global warming in 2023. As global population has grown exponentially since the early 1900s, herds of livestock at farms have expanded, at least in the U.S., due to the increasing demand.[1] We are biological animals, and we too must eat. More people means that more food is needed, and the agricultural lobby in the U.S. is not about to let the governments require every resident to become a vegetarian. Indeed, the economic and political power of the large agribusinesses in the U.S. have effectively staved off federal and state regulations regarding emissions. It comes down to population, capitalism, and plutocracy warping democracy.

In the early 80s, the farm lobby in the U.S. “began to get concerned about environmental regulations” and made sure the FDA would not regulate American farms.[2] The EPA has delegated permits to the States, but they have been “uneven in issuing permits. In 2009, a law barring the EPA from applying clear air regulations to livestock” took effect.[3] The agriculture lobby has thus been “extremely effective.”[4] This has been so even in spite of the Paris Agreement reached in 2016, and the steadily increasing average global temperatures. A U.S. Government-sponsored report admits that increased demand/consumption of meat impacts climate change, which in itself is interesting given all the political donations and lobbying by the agribusiness companies in the U.S., but the report concludes that people in developing countries should eat less meat.[5] Apparently Americans are uniquely privileged to die of heart-disease. Perhaps the hospital lobby wants to encourage more business thanks to third-party payors.

The figures on the political contributions and lobbying by agribusinesses (and oil companies) are mind-blowing. For instance, American agribusiness spent a record $165 million on federal lobbying in 2022.[6] A total of $128 million went to political contributions to campaigns in the 2021-2022 cycle.[7] The sheer amounts spent lend credibility to the claim that wealth rather than votes rule: plutocracy over the veneer of democracy in America. The capture of regulatory agencies by the companies or industries being regulated has existed in the academic literature since at least the 1980s. So too has the strategic use of regulation. For example, the capture of methane at farms through technology qualifies for government subsidies, but only the bigger agribusinesses can afford this technology. Additionally, JP Morgan and other large banks have been lending primarily to large agribusinesses because they are less risky than smaller farms. It is no surprise, when all is said and done, that medium and small farms have been going out of business for decades. I submit that this cannot be explained by economies of scale alone.

To be sure, a lot of agribusinesses have pledged to be more transparent on the emissions from operations, but very few of the businesses report on the bulk of their emissions.[8] Transparency only goes so far until entrenched concentrations of economic wealth (e.g., agribusinesses) find that holding the curtains open too much can hurt business. Moreover, both the political donors and their “elected representatives” both have an interest in maintaining the veneer that the public interest is being served. Adam Smith’s invisible hand only works in a competitive market, whereas neither agribusiness nor the market for political donations in Congress is a competitive market. In Wealth of Nations, Smith does not apply the competitive-market price mechanism to government. In fact, political contributions from businesses can be thought of as a special case of price-fixing.

The encroachments of plutocracy on representative democracy are largely hidden from view, and the corruption does seem to be ineluctable. Given large enough concentrations of private wealth, the buying of political power seems inevitable. Smith wrote as much concerning the use of government by managements outweighing the ability of labor unions to do just that. He predicted the strikes and the one-sided involvement of police and even military troops. The cost of plutocracy at the expense of the public good is much more since public good and the viability of our species came to depend on our baleful impact on the earth’s climate and ecosystems.  Even so, the negative impact of a political economy of business is dwarfed by the negative impact from the sheer growth of the human population on this planet since the 1800s. As intractable as the partisan, self-serving, and narrow involvement of business in government is, it would be difficult for a population that has gone from 2 billion to 7 billion in the twentieth century to begin to trim the sails by discouraging population growth. For one thing, reducing the number of potential consumers would be bad for business.


1. Georgina Gustin, “Climate Change and Agriculture,” Yale University, February 22, 2024.
2. Ibid.
3. Ibid.
4. Ibid.
5. Ibid.
6. Madison McVan, “GRAPHIC: Agribusiness Spent a Record-breaking $165 million on Federal Lobbying Last Year,” Investigate Midwest, February 16, 2023.
7.Agribusiness Top Contributors,” Open Secrets.
8. Georgina Gustin, “Climate Change and Agriculture,” Yale University, February 22, 2024.