Promoting Investment In Agriculture For Increased Production And Productivity
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Promoting Investment in Agriculture for Increased Production and Productivity by Saifullah Syed,Masahiro Miyazako Pdf
Investing in agriculture is one of the most effective ways of reducing hunger and poverty, promoting agricultural productivity and enhancing environmental sustainability. Covering the development of sustainable agriculture, food production and food security, this paper explains the relationship between all levels of investment and their interdependence to be successful. It also describes how to drive increased investment, at what stage and where, providing a useful overview of investment in agriculture for policymakers and researchers.
Productive public investment in agriculture for economic recovery with rural well-being: an analysis of prospective scenarios for Uganda by Sánchez, M.V., Cicowiez, M., Pereira Fontes, F. Pdf
This study highlights how, through a series of scenarios, public investments promoting agricultural productivity in Uganda could drive growth in agrifood production, with favourable impacts on the economy, on well-being and on poverty, especially in rural areas. Using a modelling tool to represent the Ugandan economy, with its multiple sectors and current fiscal constraints, the study ranked the subsectors of Uganda’s agriculture that, through the productivity impact of public investments representing 0.25 percent of GDP (on average, about 373 billion 2017 Uganda shillings) during the years 2023–2025, will generate the greatest socio-economic benefits, maximizing the cost-effectiveness of the public investments. Generally, economic growth and the welfare of households, as measured by their consumption, will be positively impacted, but the impacts will ultimately depend on the sector that receives the investment, which is shown in a ranking. The agricultural sectors targeted for government investment will increase their output (and food prices will thus fall), and this will stimulate growth in non-agricultural sectors, both by increasing final demand for non-agricultural products and by lowering input prices and fostering upstream processing. Lower food prices will have a significant impact since food represents a relatively large proportion of the consumption basket of poorest households. Furthermore, labour income for rural households will increase with productivity growth, and this will reduce rural poverty. The findings of this study provide important information about the priorities of Uganda’s National Development Plan (NDP) III and vision for agriculture, as well as new priorities to be considered for enabling economic recovery with increased well-being post-COVID-19.
Productive public investment in agriculture for economic recovery with rural well-being: an analysis of prospective scenarios for Mexico by Sánchez, M.V., Cicowiez, M., Ortega, A. Pdf
Mexico's gross domestic product (GDP) contracted unprecedentedly as a result of the COVID-19 crisis. While the primary sector has relatively been the most resilient, the agriculture sector lacks sufficiently strong productive dynamism and has high rates of informal work and low wages. Investing more in the sector's productive infrastructure would help accelerate economic recovery while improving people’s well-being. A public investment policy should be developed on the basis of evidence, such as that provided in this study. In 21 prospective scenarios that simulate the allocation of additional public investment in productive infrastructure across subsectors of agriculture, equivalent to 0.25 percent of GDP (around MXN 50 billion) between 2021 and 2023, there is an improvement in total and agrifood GDP, and in the well-being of the Mexican people, as measured by private consumption and rural poverty reduction. However, it is recommended that new investment be focused on certain subsectors and that it be financed through foreign borrowing. According to a ranking of subsectors that receive new investment, the sugar cane subsector ranks first in three of the four variables considered (private consumption, total GDP, agrifood GDP and rural poverty). Cereals, mainly maize, but also others (rice, sorghum, oats, barley and other cereals), and the more export-oriented crops, such as flowers and coffee, also appear at the top of the ranking.
Geographic prioritization of agricultural investments by Maruyama, Eduardo,Schollard, Phoebe Pdf
Through the Notification of Funding Opportunity (NOFO) for the project “Advisory Services – Program Management for Development and Implementation within the Agricultural Sector” (DCO-PR-18-0293) issued a to the International Food Policy Research Institute (IFPRI), the Millennium Challenge Corporation (MCC) described a series of information needs and how IFPRI could provide research and analysis that would help the MCC maximize the effectiveness of their agricultural interventions. This report focuses on how agricultural investment should be prioritized across territories within countries to maximize economic returns. With this purpose in mind, we develop a spatial and economic tool for strategic analysis and visioning to help understand where the best opportunities for investments in agriculture, with specific examples for investments in irrigation and roads in Ethiopia and Malawi. For such investments to be effective for poverty alleviation, it is necessary that they lead to farm-level increases in productivity and are translated into higher incomes and better livelihoods for rural households. Our proposed approach utilizes stochastic frontier analysis (SFA) to estimate smallholders’ agricultural potential under optimal conditions and compare it with their current performance to assess their efficiency levels. SFA allows the econometric exploration of the notion that, given fixed local agroecological and economic conditions in a region and the occurrence of random shocks that affect agricultural production, the decisions farmers and policymakers make translate into higher or lower production and profits. Inefficiency is then defined as the loss incurred by operating away from an ideal production frontier, and by estimating where this frontier lies, and how far each producer is from it, SFA helps to identify local potential and efficiency levels to construct the typology. For this report, we show how this approach can allow us to compare estimated agricultural potential and efficiency levels under current conditions and hypothetical investment scenarios and calculate what are the agricultural profit gains linked to each case. We can then extrapolate these results at the regional level for the whole country and combine them with GIS data on local agroecological conditions, water availability, topography, and road infrastructure to construct our typology. In particular, we use our typology results to assess where investments in agriculture would be more effective in bringing rural households out of poverty (closing the poverty gap), and how two different types of investments can increase rural households’ incomes through an increase in the profitability of smallholder agriculture. The first scenario looks at the impact of an increase in access to irrigation through river diversion methods, while the second scenario looks at the impact of an increase in market access, which we simulate by analyzing what would be the impact of reducing travel time to the nearest market (city of least 25,000 inhabitants) from any farm in the country by 50%. For Ethiopia, we find pockets of considerable unattained farm profits located throughout the central and western parts of the country, where opportunities for investments to close efficiency gaps in agricultural production and marketing can yield high returns. Low potential in the eastern lowlands limit opportunities for gains from efficiency-oriented investments, and development efforts in these regions should be focused in long-term, large scale interventions that shift the agricultural frontier. With respect to poverty alleviation, our results show that for many regions in the country, especially in the high central plateau, investing in increasing the efficiency of smallholders would be enough to close the poverty gap. In contrast, many areas in the Somali, Tigray, Afar, Oromia, and SNNP regions would require unrealistically high shifts in their agricultural potential due to its current low level combined in many cases with higher than average poverty gaps. The results from the improved irrigation access scenario are heavily constrained by the surface water availability constraint and show that the largest impacts would be observed in Somali and Afar, while in the case of the improved market access scenario, these benefits would extend to Tigray as well. For Malawi, our maps show higher agricultural potential in the Northern and Central regions of the country, consistent with the higher precipitation levels and the agroecological suitability for horticulture in the Kasungu Lilongwe Plain (central), and the staple crop producing areas in the north (such as Chipita). The southern region suffers from lower potential due to poorer general weather conditions and lower rainfall levels. The unattained potential map shows that despite high levels of efficiency, potential in the north is high enough for the remaining gap to be significant, and that the levels of efficiency in the southern tip of the country are low enough to offer some opportunities for efficiency enhancing investments in those areas as well. The poverty analysis shows that the incidence and depth of poverty are higher in the Southern Region of Malawi, but that the poverty gap in all districts of the country could be closed by investing in efficiency enhancing interventions in agriculture without depending on investments that shift the agricultural profit frontier. The results from the improved irrigation access scenario show a larger impact in the Central Region of the country, particularly the districts of Kasungu, Dowa, and Salima, while the improved market access scenario benefits are more evenly spread out across the country.
Trends and Impacts of Foreign Investment in Developing Country Agriculture by Pascal Liu Pdf
Substantial increases in agricultural investments in developing countries are needed to combat poverty and realize food security and nutrition goals. There is evidence that agricultural investments can generate a wide range of developmental benefits, but these benefits cannot be expected to arise automatically and some forms of large-scale investment carry risks for host countries. Although there has been much debate about the potential benefits and risks of international investment, there is no systematic evidence on the actual impacts on the host country and their determinants. In order to acquire an in-depth understanding of potential benefits, constraints and costs of foreign investment in agriculture and of the business models that are more conducive to development, FAO has undertaken research in developing countries.This publication summarizes the results of this research, in particular through the presentation of the main findings of case studies in nine developing countries. It presents case studies on policies to attract foreign investment in agriculture and their impacts on national economic development in selected countries in Africa, Asian and Latin America.
Agricultural Investment and Productivity by Randall Bluffstone,Gunnar Köhlin Pdf
Agricultural Investment and Productivity provides a deep and systematic look at the opportunities for and constraints to investments in sustainable agriculture in East Africa, offering important insights into what works and how to analyze agricultural investments in one of the poorest regions of the world. The book critically examines the reasons behind East Africa's stagnant agricultural productivity over the past forty-five years, using the primary lens of investments in fertilizers, seeds, and sustainable land management technologies, These investments have a tremendous impact on production volume, ultimately affecting the income of millions of families throughout the region.
Author : World Bank Publisher : World Bank Publications Page : 532 pages File Size : 44,8 Mb Release : 2005-04-08 Category : Business & Economics ISBN : 0821383523
Agriculture Investment Sourcebook by World Bank Pdf
Investing to promote agricultural growth and poverty reduction is a central pillar of the World Bank's current rural strategy, 'Reaching the Rural Poor' (2003). This 'Sourcebook' addresses how to implement the rural strategy, by sharing information on investment options and identifying innovative approaches that will aid the design of future lending programs for agriculture. It provides generic good practices and many examples that demonstrate investment in agriculture can provide rewarding and sustainable returns to development efforts. It is divided into eleven self-contained modules. Each module contains three different types of subunits that can also be stand-alone documents: I. Module Overview II. Agricultural Investment Notes III. Innovative Activity Profiles. The stand-alone nature of the subunits allows flexibility and adaptability of the material. Selected readings and web links are also provided for readers who seek more in-depth information. The 'Sourcebook' draws on a wide range of experiences from donor agencies, governments, institutions, and other groups active in agricultural development. It is an invaluable reference tool for policy makers, professionals, academics and students, and anyone with an interest in agricultural investments.
Agriculture as an Alternative Investment by Stefano Gatti,Carlo Chiarella,Vitaliano Fiorillo Pdf
Under the pressure of climate and social changes, agriculture is called to play a fundamental role in the world food challenge of the next few decades. A severe reduction of arable land and water scarcity combined with a growing food demand, changes in the dietary preferences in many countries and, more recently, a growing threat to food security and logistics from supply chains interruptions and global trade fragmentation, all require the implementation of processes, techniques, and innovations able to increase productivity and make a better use of scarce resources. Against this backdrop, a growing number of investors and asset managers have started looking at agriculture as an interesting investment theme to exploit the long-term strategic opportunities emerging from technological innovation and social changes. The industry is undergoing a process of transformation driven, on the one hand, by the emergence of new data and technologies that promise enhancing process efficiency and improve yields and, on the other hand, by an increased attention on the GHG emissions of agricultural processes and the impact of farmland on climate change, water and land scarcity. All these factors call for a radical rethinking of many agriculture business models. This book provides a detailed overview and analysis of those new technologies with the greatest potential to disrupt agriculture products and processes by improving productivity and the management of food loss and waste, making a more efficient and sustainable use of resources and enhancing food security. Then, it discusses the implications for investors and asset managers, starting with an assessment of the status quo of agriculture investing and providing a thorough description of the agriculture asset class with an emphasis on its distinctive characteristics and the innovations in the technological processes used in agriculture and farming with the greatest potential to obtain long-term sustainable returns.
Agricultural Growth and Investment Options for Poverty Reduction in Rwanda by Xinshen Diao,Shenggen Fan,Sam Kanyarukiga,Bingxin Yu Pdf
Although Rwanda has made considerable progress in recovering politically and economically from the devastating effects of the 1994 genocide, the poverty rate is still higher and the gross domestic product lower than before the genocide. Poverty reduction and economic growth would receive much-needed support from increased agricultural growth. This study assesses alternative agricultural development strategies, identifying areas in which policy reforms, together with public and private investment, can best promote Rwandan agriculture. The authors evaluate the potential of several different agricultural subsectors-grains, root crops, livestock, and others-to contribute to national agricultural growth and poverty reduction. They conclude that growth in staple crops, particularly root crops such as cassava and potatoes, has the greatest potential to encourage economywide growth and poverty reduction. Promoting the necessary staple crop growth will require the allocation of public resources to the agricultural sector to increase significantly, reaching 10 percent of the total government budget. It will also require rethinking Rwanda's earlier emphasis on promoting export crop growth, which has proved inadequate in encouraging poverty reduction while also posing environmental problems. This study makes an important contribution to the debate over the most effective development strategies for Rwanda and other Sub-Saharan African nations.Show More Show Less
OECD-FAO Agricultural Outlook 2021–2030 by Food and Agriculture Organization of the United Nations Pdf
The Agricultural Outlook 2021-2030 is a collaborative effort of the Organisation for Economic Co-operation and Development (OECD) and the Food and Agriculture Organization (FAO) of the United Nations. It brings together the commodity, policy and country expertise of both organisations as well as input from collaborating member countries to provide an annual assessment of the prospects for the coming decade of national, regional and global agricultural commodity markets. The publication consists of 11 Chapters; Chapter 1 covers agricultural and food markets; Chapter 2 provides regional outlooks and the remaining chapters are dedicated to individual commodities.
African commitments for agricultural development goals and milestones for Cote d’Ivoire by Diallo, Souleymane Sadio,Fofana, Ismaël,Diallo, Mariam Amadou Pdf
The main purpose of this study is to assess the contribution of agricultural investment to the achievement of Côte d'Ivoire's development objectives. More specifically, it aims to analyze the extent to which the implementation of the National Agricultural Investment Programme can contribute to the achievement of the objectives and targets of the Comprehensive Africa Agriculture Development Program (CAADP), the United Nations’ Sustainable Development Goals (SDGs) and the African Union's Agenda 2063. The methodological used combines a computable general equilibrium (CGE) model and a microsimulation model to assess the impact of agricultural investment options on different outcomes related to the different agendas above. The simulation results indicate that the implementation of the NAIP would enable Côte d'Ivoire to make significant progress and achieve some of the CAADP, SDGs and the African union’s 2063 Agenda’s targets. Thus, the country could achieve investment targets by slightly exceeding the 10% share of public expenditure in total government expenditure and a significant increase in private investment in agriculture. This progress in terms of investment could result in an acceleration of agricultural growth so that Côte d'Ivoire's agricultural GDP would increase at a growth rate above the target of 6% per year. It would also make it possible to achieve several SDGs by 2030, as well as certain targets of the African Union's Agenda 2063. However, despite progress in terms of productivity in some segments of the agricultural value chain, the fight against poverty will remain a major challenge that the country will not be able to meet.
Harvesting Prosperity by Keith Fuglie,Madhur Gautam,Aparajita Goyal,William F. Maloney Pdf
Back cover blurb Rising agricultural productivity has driven improvements in living standards for millennia. Today, redoubling that effort in developing countries is critical to reducing extreme poverty, ensuring food security for an increasing global population, and adapting to changes in climate. This volume presents fresh analysis on global trends and sources of productivity growth in agriculture and offers new perspectives on the drivers of that growth. It argues that gains from the reallocation of land and labor are not as promising as believed, so policy needs to focus more on the generation and dissemination of new technologies, which requires stepping up national research efforts. Yet, in many of the poorest nations, a serious research spending gap has emerged precisely at the time when the challenges faced by agriculture are intensifying. The book focuses on how this problem can be redressed in the public sector, as well as on reforms aimed at mobilizing new private sector actors and value chains, particularly creating a better enabling environment, reforming trade regulations, introducing new products, and strengthening intellectual property rights. On the demand side, the book examines what recent research reveals about policies to reduce the barriers impeding smallholder farmers from adopting new technologies. Harvesting Prosperity is the fourth volume of the World Bank Productivity Project, which seeks to bring frontier thinking on the measurement and determinants of productivity to global policy makers. “As rightly argued by the authors, growth in agricultural productivity is the essential instrument to promote development in low-income agriculture-based countries. Achieving this requires research and development, upgrading of universities, reinforcement of farmer capacities, removal of constraints to adoption, and the development of inclusive value chains with interlinked contracts. As important, such efforts also need to be placed within a context of comprehensive agricultural, rural, and structural transformations. However, in many countries implementation of the requisite policies has been lagging. This book, with contributions from many top experts in the field, provides the most up-to-date presentation of this argument and explains in detail how to successfully put its ideas into practice. Governments, the private sector, and civil society organizations need to study it carefully to turn the promise of agriculture for development into a reality.“ Alain de Janvry and Elisabeth Sadoulet Professors of the Graduate School, University of California at Berkeley
Sustainable Agricultural Development by Mohamed Behnassi,Shabbir A. Shahid,Joyce D'Silva Pdf
Due to many challenges (i.e. climate change, energy, water and land shortage, high demands on food, land grabbing, etc.), agriculture production potential is expected to be seriously affected; thus, increasing food insecurity and hunger in many already affected regions (especially in Africa). In this context, sustainable agriculture is highly recommended as an eco-system approach where soil, water, plants, environment and living organisms live in harmony. Innovative technologies and research should be developed to ensure sustainable agriculture and productivity using modern irrigation systems, improved varieties, improved soil quality, etc. In the meantime, the preservation of natural environment should be based on resource conservation technologies and best management practices. Sustainable Agricultural Development, not only raises the serious ethical and social issues underlying these huge environmental problems, but also aims at presenting successful experiences from all over the world in relation with sustainable farming, sustainable management of water and land resources, and innovative processes in livestock production. It also aims at providing inputs to decision making processes and encouraging the transfer of relevant know-how, technologies and expertise to different countries where similar agro-climatic conditions may exist; thus saving precious resources and promoting sustainable agricultural development as a relevant approach to tackle the food security challenge. Finally, this book focuses on the paradigmatic and policy dimensions and call for an innovative approach by analyzing the key themes in a complex and interrelated manner.
Agricultural Transformation Centres in Africa - Practical guidance to promote inclusive agro-industrial development by Food and Agriculture Organization of the United Nations Pdf
Over the next ten years, the African rural space will be the theatre of profound changes as the activities envisaged for agricultural transformation are drastically scaled up. Increased food demand and changing consumption habits driven by demographic factors, such as population growth and urbanization, are already leading to a rapid increase of net food imports, opening a huge opportunity for the agribusiness sector of many African countries. Against this backdrop and in line with its mission to spur sustainable economic development and social progress, the African Development Bank (AfDB) in 2016 launched Feed Africa, a strategy that is intended to contribute substantially to the transformation of African agriculture by 2025, and to reverse Africa's dependence on imported foods. As part of this strategy, AfDB is promoting the concept of staple crops processing zones (SCPZs), which are agrobased spatial development initiatives, designed to concentrate agro-processing activities within areas of high agricultural potential to boost productivity and integrate the production, processing and marketing of selected commodities. As essential components, SCPZs include an agro-processing hub, a number of agricultural transformation centres (ATCs) and agricultural production areas. The ATCs are designed to link smallholder farmers to the agro-processing hub and are strategically located in high production areas, with the aim of serving as aggregation points to accumulate products from the community to supply the hub for further value addition, or to send them to centres of great demand for distribution and retail to consumers. This study has attempted to assess the feasibility and applicability of the ATC concept to selected regions in Zambia, Côte d'Ivoire and the United Republic of Tanzania. Findings from the field have demonstrated the potential of ATCs to address community needs and constraints for a range of selected value chains, and have helped to identify different ATC models that could work in each specific context.
