Food and agriculture systems generate a variety of environmental, health, social, and economic impacts that are not generally reflected in the prices consumers pay for food, referred to as externalities in economics. True Cost Accounting (TCA) is an evolving, holistic framework for measuring and valuing the positive and negative externalities of the food system.

TCA seeks to make the impacts of food production, processing, distribution, and consumption more visible to support improved decision making by policymakers, farmers, and consumers and reduce the true costs of food. Drawing from the four-capitals framework of the TEEBAgriFood Evaluation Framework, TCA assesses four key capitals: natural, human, social, and produced.

The agrifood system generates myriad positive and negative externalities, says Salman Hussain, Coordinator The Economics of Ecosystems and Biodiversity for Agriculture and Food initiative (TEEBAgriFood).