CHAPTER 9 TWO BOGEYMEN: "URBAN SPRAWL" AND SOIL EROSION CHAPTER 9: TABLE OF CONTENTS Soil Erosion Afternote: How Environmental Con Artists Work Their Claims This chapter tells at length the saga of the most conclusively discredited environmental-political fraud of recent times. Since the 1970s, many well-intentioned people have worried that population growth produces urban sprawl, and that highways pave over "prime farmland" and recreational land. This fear proved to be groundless. The purpose in giving so much detail here is that this case may serve as a model for many similar issues about which the full story has not come to light, and in which there is not a confession by the official agency involved that the original scare was entirely false. The heart of the matter is that many, in the name of "environmentalism" and under the guise of preventing future food shortage, want to prevent people from building houses on farmland. They are again mobilizing the powers of government to attain their private goals. That is, it may well be that the famine-protection claims are simply a smoke screen for property owners who want a bucolic view. But whatever the motives, this phony scare campaign steals taxpayers' money and prevents young couples from getting the housing they want. Three recent examples: March 6, 1991: A Washington Post editorial comments approvingly on a bill coming before the Maryland General Assembly that will prevent "suburban sprawl" in the name of "protecting farmland." March 28, 1991, front page banner headline in the Press Enterprise, Bloomsburg, Penn.: "Farm Preservation: $100M Mistake?" The State of Pennsylvania is spending $100 million to "purchase development rights to prime farmland in an effort to shield it from development." September 10, 1992, Washington Post (pp. Md 1, 7): "State Preservation Program Stems Loss of Farmland to Development...The easement program was enacted...not only to curb development...but also to help keep the state partially self-sufficient in food production...Loss of farming...also means more food must be imported from out of state, which can drive prices up." By this point in the book, the reader should be aware that these arguments in support of the preservation program are the worst sort of economic nonsense. These and similar programs in 17 other states are founded on the assumption that the U. S. is losing farmland at an unprecedented rate, and that the farmland is needed to stave off hunger in the future. Both those assertions have now been wholly disproven -- and acknowledged to be so by the U.S. Department of Agriculture, which originally raised the alarm. That is, even the original purveyors of the false facts about the "vanishing farmland crisis" agree that the widely reported scare was without foundation. The relevant data are as follows: Figure 9-1 shows that of the 2.3 billion acres in the U.S. as of 1987, all the land taken up by cities, highways, non- agricultural roads, railroads, and airports amounts to only 82 million acres - just 3.6 percent of the total. Clearly there is very little competition between agriculture on the one side, and cities and roads on the other. Fig 9-1 old 16-3 Concerning the trends: from 1920 to 1987, land in urban and transportation uses rose from 29 million acres to 82 million acres - a change of 2.3 percent of the total area of the U.S. During those fifty-seven years, population increased from 106 million to 243 million people. Even if this trend were to continue (population growth has slowed down), there would be an almost unnoticeable impact on U.S. agriculture, just as in past decades (see figure 9-2). Fig 6-y old 16-4 Concerning the notion that the U.S. is being "paved over," as of 1974 the U.S. Department of Agriculture's official view was that "we are in no danger of running out of farmland." But then there occurred a bizarre incident in which the failure of the press and television is undeniable and inexcusable. Even the original purveyors of the false facts have 'fessed up and now agree that the widely reported scare was without foundation. Headlines like these began to appear in the newspapers about 1980: "The Peril of Vanishing Farmlands" (The New York Times) and "Farmland Losses Could End U.S. Food Exports" (Chicago Tribune). "Vanishing Farmlands: Selling Out the Soil" (Saturday Review), and "As World Needs Food, U.S. Keeps Losing Soil to Land Developers" (Wall Street Journal). They asserted that the urbanization-of-farmland rate had jumped by a multiple of three from the 1960's to the 1970's, from less than one million acres per year to three million acres per year. This assertion was wholly untrue, as we shall see. Several scholars - including Fischel, Luttrell, Hart, and me - found that the 3-million-acres-a-year rate was most implausible in light of data from other sources, and given the nature of the surveys from which the estimate was drawn by the National Agricultural Lands Study (NALS), an organization set up by the Department of Agriculture together with other existing government entities. We also got help from H. Thomas Frey, a geographer who had been the keeper of the urbanization and other land-use data for the Economic Research Service of the USDA for many years. Everyone agreed that in 1967 the total urban and built-up area in the United States (excluding highways, railroads, and airports) was between 31 and 35 million acres. It was also agreed that the rate of urbanization was slower in the 1960's than in the 1950's. Yet NALS said that over the ten years from 1967 to 1977, there was a 29 million acre increase in urban and built-up land. That is, over the course of more than two centuries, in the process of reaching a population of about 200 million people, the U.S. built towns on between 31 and 35 million acres. NALS asserted that suddenly in the course of another 10 years, and with a population increase of only 18 million people, the urban and built-up areas increased by 29 million acres (almost none of it due to transportation) -- a near-doubling. To put it differently, the long-run trend in the decades up to 1970 was about one million acres of total land urbanized per year, and constant or slowing down. The Soil Conservation Service in conjunction with NALS asserted that the rate then jumped to between 2 and 3 million acres yearly from 1967 to 1975 or 1977 (depending on which version you read). There were two bases given for the publicized 3 million-acre number; NALS shifted from one to the other when either was criticized: 1) A small-sample re-survey of part of the 1967 sample "inventory" of farms, done by the Soil Conservation Service. (A similar inventory had been done in 1958.) 2) The 1977 sample inventory. Seymour Sudman, an expert in research design, joined me in a technical analysis showing that there were so many flaws in both the 1975 re-survey and the 1977 survey that both should be considered totally unreliable. The flaws included an incredible boo-boo that put the right numbers in the wrong columns for big chunks of Florida. Various government agencies were mobilized to rebut our criticisms. USDA had claimed that farmland was decreasing, to support the idea that farmland was being urbanized. But we showed that farmland was in fact increasing. NALS then got the Census bureau to produce a similar adjustment for the U.S. as a whole. The result: "The latest data show a national decline of 88 million acres in land in farms between 1969 and 1978--an annual rate of 9.8 million acres," wrote The Journal of Soil and Water Conservation. Analysis of the adjustment showed it to be as full of holes as Swiss cheese. And eventually the Census of Agriculture revealed detailed data on the appropriate adjustment showing that land in Illinois farms and in cropland had, as we said, indeed increased from l974 to 1978. After publication of these results, the scare seemed to die down a bit, but not before the private American Farmland Trust was organized in 1980 from former employees of NALS. Annually it spends a couple of million dollars a year to "protect" the U. S. from the danger of vanishing farmland. In 1984, the Soil Conservation Service issued a paper by Susan Lee that completely reversed the earlier scare figures and confirmed the estimates by our side. And the accompanying press release made it clear that the former estimates were now being retracted. "[T]he acreage classified as urban and built-up land was 46.6 million acres in 1982, compared to 64.7 million acres reported in 1977." Please read that again. It means that whereas in 1977 the SCS had declared that 64.7 million acres had been "lost" to built-upon land, just five years later SCS admitted that the actual total was 46.6 million acres. That is, the 1977 estimate was fully fifty per cent too high, a truly amazing error for something so easy to check roughly as the urbanized acreage of the U.S. With unusual candor, the USDA press release added, "The 1982 data, which correlate closely with data from the 1980 U. S. Census of Population, [the census was not available at the time of the argument described above, but later fully corroborated Frey's estimates based on prior data] are considered accurate because of the availability of better maps, more time for data collection, many more sample points, and better quality control." The press release continued: "The 1977 estimate thus appears to have been markedly overstated." A Congressional Research Service report summarized the outcome: "National Agricultural Lands Study indicated that almost three million acres of agricultural land was annually converted to relatively irreversible nonfarm uses between 1967 and 1975...Subsequent analyses and more recent empirical evidence have not supported these results...In conclusion, the most recent reliable information indicates that the conversion of farmland to urban and transportation uses occurred at about half the rate indicated in the National Agricultural Lands Study.... The putative figure of 3 million acres per year from the NALS has been repudiated by subsequent analyses and more recent empirical evidence." This report completely confirms the criticisms that others and I leveled at the NALS claims. Table 9-1 shows the estimates from NALS and three subsequent estimates from other official sources. And figure 9-3 shows a revealing graph drawn from a recent official program; the falsity of the 1977 National Resources Inventory estimate is immediately apparent. Table 9-1 - DELETE? Fig 9-3 jp. 17 from ERS Bulletin 629 The demolition of the NALS estimates - and the conclusion that urbanization of farmland is not a social problem - is not welcomed by either environmentalists or by "specialists" in the field. William Fischel wrote this after a 1988 conference on the subject: It is not a matter about which reasonable people can differ... The argument was advanced orally at the conference that the NALS data ought to be regarded merely as the "high estimates" of the amount of farmland conversion, so that the truth is somewhere in between. This is not acceptable. One does not average the results of scientific studies when one knows that some of the studies used invalid methods. It is relevant that the press did nothing to uncover the scam. The press-release reversal and "confession" did not evoke coverage; yet the original scare story was a front-page headliner for the Chicago Tribune and a cover story for news magazines. Nor did the farmland crisis then vanish for lack of factual support. The false news continues to reverberate. Did the false bad news matter? Following upon NALS publicity, in 1980 Congress provided a tax break to owners who will attach a "conservation easement" to their land which will keep the land out of development and in agriculture in perpetuity. And to ease the owners even more, some states have programs to recompense the owners the difference between the current market value and the value after the easement. That is, as usual the public purse is being tapped to further the purpose of the special interest group. And in 1981 the Farmland Protection Policy Act was enacted by Congress. Hundreds of state and local laws restricting farmland conversion also were passed. And the American Farmland Trust's 1985 Annual Report brags that in that year "Congress adopted...a Conservation Reserve...Conceived and championed by AFT" as part of the 1985 Farm Bill. In June, 1994, the final regulations implementing the 1981 Farmland Protection Policy Act were published in the Federal Register (Washington Post, July 5, 1994, A13), will henceforth govern agriculture in the U. S.All this legislation was based on wrong information, with no reasonable prospect of doing good for the nation but with much prospect of causing harm to individuals and damage to the nation. So it goes in America. The false bad news continues to reverberate in another way, too. As sof 1994, some rich landowners with million-dollar homes individually have filed to pay the federal Farmers Home Administration (FmHA) their delinuent loans of as much as $15 million. And the government does not press the loan abuse because officials say that "most delinquent borrowers are victims [note that word] of a mid-1980s decline in crop prices, farm income and farmland values". The farmland values fell when the land price bubble burst - the very bubble to which the government contributed with false publicity about vanishing farmland. The entire "crisis" was hokum. This was not a regrettable yet understandable exaggeration of a real problem, but a non-problem manufactured by the Department of Agriculture and some members of Congress out of whole cloth under the guise of concern about food production for the starving world. The crisis was created for the benefit of (a) the environmentalists, and (b) people who own homes that abut on areas which might be developed into housing developments, and whose vistas and ambience might thereby be affected. As discussed in Chapter 6, increasingly efficient production methods are the major factor enabling the U.S. to "ensure our domestic food and fiber needs" [25] and yet use less land for crops - not because land is being "taken" for other purposes, but because it is now more efficient to raise more food on fewer acres than it was in the past. But what about the fertility of the land used for human habitation and transportation? Even if the total quantity of land used by additional urban people is small, perhaps the new urban land has special agricultural quality. One often hears this charge, as made in my then-home town in the 1977 City Council election. The mayor "is opposed to urban sprawl because 'it eats up prime agricultural land.'" New cropland is created, and some old cropland goes out of use, as we have seen. The overall effect, in the judgment of the U.S. Department of Agriculture, is that between 1967 and 1975 "the quality of cropland has been improved by shifts in land use ... better land makes up a higher proportion of the remaining cropland." The idea that cities devour "prime land" is a particularly clear example of the failure to grasp economic principles. Let's take the concrete (asphalt?) case of a new shopping mall on the outskirts of Champaign-Urbana, Illinois. The key economic idea is that the mall land has greater value to the economy as a shopping center than it does as a farm, wonderful though this Illinois land is for growing corn and soybeans. That's why the mall investors could pay the farmer enough to make it worthwhile for him or her to sell. A series of corny examples should bring out the point. If, instead of a shopping mall, the corn-and-soybean farmer sold the land to a person who would raise a new exotic crop called, say, "whornseat," and who would sell the whornseat abroad at a high price, everyone would consider it just dandy. The land clearly would be more productive raising whornseat than corn, as shown by the higher profits the whornseat farmer would make as compared with the corn-and-soybean farmer, and as also shown by the amount that the whornseat farmer is willing to pay for the land. A shopping mall is similar to a whornseat farm. It seems different only because the mall does not use the land for agriculture. Yet economically there is no real difference between the mall and a whornseat farm. The person who objects to the shopping mall says, "Why not put the mall on inferior wasteland that cannot be used for corn and soybeans?" The mall owners would love to find and buy such land - as long as it would be equally convenient for shoppers. But there is no such wasteland close to town. And "wasteland" far away from Champaign- Urbana is like land that will not raise whornseat - because of its remoteness it will not raise a good "crop" of shoppers (or whornseat or corn). The same reasoning explains why all of us put our lawns in front of our homes instead of raising corn out front and putting the lawn miles away on "inferior" land. Of course, the transaction between the mall investors and the farmer does not take into account the "external disutility" to people who live nearby and who hate the sight of the mall. On the other hand, the transaction also does not take account of the added external "utility" to shoppers who enjoy the mall. Some of this externality is reflected in changes in property values; some individuals will suffer and others benefit. But neither a market system nor any other system guarantees that everyone is made better off by every transaction. Furthermore, this consideration is a long way from our original concern about the loss of prime agricultural land. Both ignorance and mysticism enter importantly into conventional thinking about farmland. For example, one hears that "once it's paved over, it's gone for good." Not so. Consider the situation in Germany, where entire towns are moved off the land for enormous stripmining operations. After the mining is done, farmland is replaced, and the topsoil that is put down is so well enriched and fertilized that "reconstituted farmland now sells for more than the original land." Furthermore, by all measures the area is more attractive and environmentally pure than before. SOIL EROSION Soil erosion is a related and exactly parallel story. The scare that farmlands are blowing and washing away is a fraud upon the public similar to the urbanization fraud. In the early 1980's there was a huge foofarah about the terrible dangers of farmland being ruined. In a January 11, 1983 speech to the American Farm Bureau Federation the President of the United States said, "I think we are all aware of the need to do something about soil erosion." The headline on a June 4, 1984 Newsweek "My Turn" article typified how the issue was presented: "A Step Away from the Dust Bowl." (It may or may not be coincidence that the soil-erosion scare began just about the time that the paving-over scare seemed to peter out in the face of criticism.) More recently we have such statements as that of a vice presidential candidate, Senator Albert Gore, Jr., about how "eight acres' worth of prime topsoil floats past Memphis every hour," and that Iowa "used to have an average of sixteen inches of the best topsoil in the world. Now it is down to eight inches." It is important to put such isolated claims into context. A tiny proportion of cropland - 3 percent - is so erosive that no management practices can help much. 77 percent of cropland erodes at rates below 5 tons per acre each year - the equilibrium rate at which new soil is formed below the surface, that is, the "no net loss" rate. Only 15 percent of U.S. cropland "is moderately erosive and eroding about a 5 ton tolerance. Erosion on this land could be reduced with improved management practices," though this does not necessarily mean the land is in danger or is being managed uneconomically. In short, the aggregate data on the condition of farmland and the rate of erosion do not support the concern about soil erosion. What's more, the data suggest that the condition of cropland has been improving rather than worsening. Theodore W. Schultz, the only agricultural economist to win a Nobel Prize, and Leo V. Mayer of the USDA, both wrote very forcefully that the danger warnings were false. Schultz cited not only research but also his own life-time recollections starting as a farm boy in the Dakotas in the 1930's. Table 9-2 shows data from soil surveys which make clear that erosion has been lessening rather than worsening since the 1930s. But even a Nobel laureate's efforts could not slow the public-relations juggernaut that successfully co-opted the news media and won the minds of the American public. Table 9-2 The USDA press release of April 10, 1984 contained a second quiet bombshell: "The average annual rate of soil erosion on cultivated cropland dropped from 5.1 tons per acre to 4.8 tons per acre." That is, erosion was lessening rather than getting worse, exactly the opposite of what NALS claimed. But newspapers and television either did not notice or did not credit these criticisms. Even after the USDA admitted that the newer data clearly show that the danger was not as claimed, nothing appeared in print (to my knowledge) to make the public aware of this new non-danger and of how the public was misled. (Ask a few of your acquaintances their impressions about farmland urbanization and cropland erosion.) The main bad effect of soil erosion is not damage to farmland but rather the clogging of drainage systems, which then need costly maintenance; the latter is many times as costly as the former. AFTERNOTE: HOW ENVIRONMENTAL CON ARTISTS WORK THEIR SCAMS Those who perpetrated the "vanishing farmland crisis" followed the usual evasion strategies when confronted with the facts. Perhaps this example will help expose the usual warning signs of a scam artist at work and make such hoaxes harder to accomplish in the future. When I wrote about the sorry "vanishing farmland crisis" fraud for the Washington Journalism Review, my basic assertion that the 3 million acre figure was at least twice too high was attacked frontally in that journal by Robert Gray, head of the American Farmland Trust and former head of NALS. My reply was as follows: Robert Gray has done us a large favor in his reply by committing himself explicitly to the statement that "3 million acres of rural land were lost to non- agricultural uses annually", meaning urbanization, roads, and the like. This enables me to make the following offer: I will wager ten thousand dollars with him that 1 million acres is a more appropriate figure than the 3 million he asserts. If I lose, the money will come from my pocket; if I win, the money will go to a University of Maryland foundation for research. The bet could be judged by a committee of (say) 5 ex- presidents of the American Statistical Association and the American Agricultural Economics Association, or by an expert committee selected by those associations, with the Washington Journalism Review holding the stakes. If Mr. Gray does not accept the bet, the offer is open to anyone else - journalists included, of course. Whether or not Mr. Gray accepts the wager should be a fair test of whether what I write is "false", as he says it is. If he does not accept the wager, perhaps his members and donors might consider whether NALS and the American Farmland Trust constitute a scam, as I say they are, for promulgating the phony figure of 3 million acres. Of course this bet is like shooting fish in a barrel, because even the USDA has retreated from the 3 million acre figure, as stated in the article. The interesting aspect of Gray's repetition of that figure is that he expects readers to believe him anyway. I am also prepared to make a cash wager on the validity of just about any of the hundreds of other statements about resources, environment, and population growth that I have made in my books and articles over the decades. There certainly must be factual and theoretical errors, but luckily none of importance have come to light, which gives me confidence. So how about it, you who shout "lies, damned lies, and statistics" when someone says that resources have become more available rather than more scarce, and that the U.S. air we breathe and the water we drink have been getting less polluted and safer rather than dirtier and more dangerous? Care to put your money where your mouths are? Please forgive the harshness of an offer to wager. It is, however, the last remaining device to bring the doomsayers to book on the statements that they make. Gray was not, of course, willing to bet, but simply equivocated by offering to debate. So my response was: To Mr. Gray: I will be happy to "debate" you under the following conditions: 1) The judges to be a panel of persons both scientifically eminent and expert in a related discipline -- for example, five ex-presidents of the American Statistical Association or of the American Agricultural Economics Association, or such persons as those associations designate. 2) You and I submit in writing full scientific documentation of our positions. This is the same offer I made before. I will not insist on a wager. The wager was simply to get you to put up or shut up. Unfortunately, you have done neither. You have another possibility open to you: I have written that this matter is a scam, and that your organizations have been involved in the responsibility. You could sue if you believe that I have spoken falsely in this regard. Hey readers: Can this fellow Gray really get away with avoiding the issue by crude name-calling like "trivializing", "theatrics", and "unprofessional"? When he is talking to newspeople, will no one "hold his feet to the fire," as you people put it? The continued disinterest of most journalists to this story of purposeful distortion of fact by a government agency and environmental organizations is disheartening. The editor has received only two letters in response, both denouncing me. I have received just one call from a journalist who thinks the matter newsworthy and wishes to pursue it, Howard Banks of Forbes. What does this, and the events chronicled in my original article, say about the disinterested search for truth when the facts make the environmental movement and the press look bad? page# \ultres\ tchar09 February 2, 1994