Will the Election Change the U.S. Food Policy?

Read the full article in ETF Central here.

Does it seem surprising that politicians with opposing ideologies could converge on food policy goals? Here's why:

1. Food Security as a National Security Priority

For the first time, the Department of Defense has directed approximately 20% of its R&D grants toward food innovation, targeting advancements in alternative proteins, sustainable oils, and novel production methods. While food sufficiency is a given in the West, other regions may face shortages, potentially leading to political instability. Nations like China, Saudi Arabia, and Germany are prioritizing food security innovation.

Reflecting on the supply chain disruptions seen during the COVID-19 pandemic, it's clear that even U.S. food systems are vulnerable. Food insecurity poses national security risks, prompting U.S. government investment.

Result: Across the aisle, both Republicans and Democrats recognize the need to lead in food innovation, accessibility, and autonomy.

2. The Need for a Resilient Food System

The COVID-19 pandemic exposed our food system's lack of resilience, with resources tied up in extended supply chains. Many assume deforestation supports food production for people, but a significant portion is dedicated to growing feed for animals - a process that depletes natural resources and undermines biodiversity. According to the United Nations Environment Programme (UNEP) animal agriculture drives deforestation, with 80 billion factory animals requiring feed over their entire lifespans.

Feeding animals instead of people is not just inefficient; it's also poor business. For example, producing one pound of beef requires 25 pounds of feed. Talk about bad math.

Result: Both sides of the political spectrum support efforts toward a resilient, sustainable food supply system.

3. Environmental Impact of the Food System

According to a New York Times report, the environmental cost of beef is $22.05 per $5.34 serving - an increase of 413%. The disparity exists across various foods, with beef and dairy topping the list. Animal agriculture contributes significantly to global emissions: it accounts for 30% of the world's greenhouse gas emissions, including 8% from food waste and 18% from animal agriculture. Methane, primarily emitted from livestock supply chains, contributes 32% of the world's methane emissions - making it essential to address to mitigate climate change.

Result: Politicians, regardless of party affiliation, share a desire to minimize the risk of climate-related catastrophes.

4. Health and Healthcare Risks Tied to Food Systems

Preventable lifestyle diseases related to diet cost the U.S. $1.1 trillion, based on a 2020 Milken Institute study - equivalent to $3.71 trillion in lost GDP. Additionally, antimicrobial resistance, linked to antibiotic use in animal farming, jeopardizes healthcare effectiveness. Imagine a trip to the hospital without an effective use of antibiotics!

Perhaps most pressing, the United Nations cites animal agriculture as a leading risk for future pandemics due to the close quarters and sanitation challenges of factory farms. Of course, living butt to snout in feces, is breeding ground for disease.

Result: No political leader wants a repeat of COVID-19 or a new pandemic on their watch.

5. Investment Opportunities

Regardless of the election outcome, investing in food supply innovation offers a substantial growth opportunity, addressing urgent societal issues. Transformation of the food system is imminent, and early investors in this secular trend stand to gain both growth and diversification potential.

This is why VegTech? Invest has captured this opportunity with its food innovation-focused ETF, focusing on the growth potential in the evolving food system.

Result: Investors from any political persuasion see the value in aligning profit with positive impact. Win-Win.

Read the full article in ETF Central here.

Elysabeth Alfano is the CEO of?VegTech Invest?and is the host of the?Upside & Impact: Investing for Change podcast on ETFCentral.com.

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