Chapter 3: An Enabling Environment for Productivity Growth | Global Agricultural Productivity Initiative at Virginia Tech

Sustainable productivity growth is not just about how and which foods are produced.

The escalating risk and uncertainty of climate change, market volatility, population trends, and shifting consumer preferences are reshaping agricultural systems worldwide. There are no one-size-fits-all solutions given such a broad set of environmental, economic, and social challenges.

Public investments in foundational agricultural research and extension services are the building blocks of productivity. (Fuglie et al., 2012) Productivity-enhancing innovations and information need to be tailored to meet the needs of producers, be they small-scale aquaculture producers in Indonesia or large-scale canola growers in Canada. (Fuglie et al., 2019)

Innovative inputs alone are insufficient to address the interwoven environmental, economic, and social uncertainties that hinder agricultural systems from reaching their potential. Innovations need to be accompanied by attention to ecosystem services and investment in human and social capital: improvements in education, healthcare, and racial and gender equality. (Carter, 2020)

Reliable access to stable, well-managed markets and financial systems incentivize growers to make sustained and sustainable investments in their operations. Risk management tools, such as weather index insurance and social protection programs, reduce the shock of a lost harvest or fluctuating output and input prices.

Producers cannot accommodate growing consumer demand by simply producing more food. Food system sustainability can only be secured by a sizable decrease in post-harvest loss and food waste.

Effective public policies and investments improve the quality and access to agronomic knowledge and best management practices and increase the resilience of food systems and the livelihoods of the people who depend on them.

This chapter describes these goals, accompanied by stories from the GAP Initiative’s Consultative Partners showing how policies, investments, and innovations strengthen the climate for sustainable agricultural growth and improve the lives and livelihoods of producers and consumers.

USDA LAUNCHES THE COALITION FOR SUSTAINABLE PRODUCTIVITY GROWTH

In preparation for the UN Food Systems Summit, USDA established the Coalition for Sustainable Productivity Growth for Food Security and Resource Conservation. The goal is to accelerate the transition to more sustainable food systems through productivity growth that optimizes agricultural sustainability across social, economic, and environmental dimensions. Coalition members will include countries, farmer and producer groups, agribusinesses, NGOs, civil society groups, youth organizations, UN agencies, universities, think tanks, and research institutions. The SPG Coalition will advance a holistic approach to productivity growth that considers impacts and tradeoffs among multiple objectives. Members will be responsible for implementing actions, tracking progress, and reporting on achievements and lessons learned.

SIX KEY STRATEGIES TO ACCELERATE PRODUCTIVITY GROWTH

Invest in Publicly-Funded Agricultural R&D and Extension Systems

Publicly-funded agricultural R&D and extension programs are the principal drivers of agricultural productivity growth. Along with the private sector and collaborative research, public R&D plays an essential role in fostering agricultural innovation. Innovations, technologies, and practices developed through publicly-funded agricultural research help producers worldwide remain competitive by increasing the productivity and sustainability of production, reducing loss and waste in the value chain, and enabling them to adapt to, and even mitigate, climate change. Consumers of agricultural products benefit from the lower, more stable prices and increased access to safe, nutritious food resulting from these investments.

Funding agricultural research and development to spark critical, needed innovation

Researchers at Virginia Tech aim to build a suite of affordable, small-scale technologies for use on small- and medium-sized livestock operations to facilitate meaningful improvements in rural land management and agricultural water quality, and ultimately a more resilient agricultural landscape.

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Embrace Science- and Information-Based Technologies

Innovations such as drought-tolerant seeds, data analytics, veterinary medicine, mobile phone market platforms, and nutrient management techniques must be available, scalable, and affordable for all farmers. Science-based and information technologies help producers manage the ever-present risks in agriculture while improving sustainability and competitiveness.

Advanced plant breeding through biotechnology and the use of naturally occurring microbials enhances drought tolerance and yields, while disease management practices keep livestock healthy and productive. Efficient irrigation and cultivation technologies improve water productivity and reduce labor burdens, particularly for women and smallscale farmers, enabling them to increase their output and profitability.

Innovative storage and cold chain technologies ensure that more agricultural products reach markets rather than landfills. Information technology allows farmers to access vital information on market prices, weather, pests, soil health, and precision agriculture, and data management tools help producers reduce costs and conserve scarce resources. New bio-innovation is building a bio-economy with broad benefits for the environment and society.

Making soil maps for African development

Recent advances in procedures for making soil maps and soil data visualization make it possible to deliver soil information directly to farmers in the field via mobile electronic devices.

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Improve Infrastructure for Transportation, Information, and Finance

Infrastructures for transportation, electricity, banking, and communications facilitate the dissemination of agricultural inputs, outputs, technology, services, and agronomic knowledge. Without this infrastructure, small-scale farmers have limited access to the things they need to increase their productivity sustainably. Nor do they have access to markets where they can sell their products.

Farmers make 78 percent of the on-farm agricultural investments. Without efficient and affordable infrastructure, they have little opportunity or incentive to invest.

Infrastructures are essential public goods benefiting all citizens and are the primary responsibility of government. Sadly, the countries that most need to develop their infrastructure do not have the resources available. As a result, there is a $1 trillion (USD) gap between current and needed investment for infrastructure in low- and middle-income countries. (Runde et al., 2016)

The private sector, international development agencies, and foundations have vital roles in bridging the investment gap. Coordinating their efforts with local communities is the most effective way of securing a productive, sustainable agricultural future.

Digital technology for family farmers in Latin America

In recent decades, family farming (FF) has demonstrated that, with support from wellcoordinated policies on productive inclusion, it has the capacity to generate employment and income for rural dwellers, and to become a pillar for the development of rural territories.

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Cultivate Partnerships for Sustainable Agriculture, Economic Growth, and Improved Nutrition

Public-private-producer partnerships supporting agricultural development, equity, and nutritious food systems leverage public and private investments in economic development, natural resource management, and human health. Technology alone is not sufficient to strengthen productivity and resilience. Partnerships play an important role in enhancing human capital: a set of skills and knowledge possessed by producers and others in the agricultural value chain that are essential in a time of pandemics. Likewise, social networks among people who live and work in a particular society provide many forms of support.

Interventions to improve economic and social outcomes for small-scale farmers

The Sustainable Development Goals have become a standard set of metrics behind a movement, “a shared blueprint for peace and prosperity for people and the planet.” While we have the will to reach these ambitious goals, our collective efforts remain siloed.

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Partnership pursues new approaches to productive, sustainable food systems

A multi-disciplinary team of agricultural researchers and development practitioners proposes a new approach to tackle unwieldy global problems and find solutions that prioritize sustainably and collaboratively improving food security and nutrition through targeted, custom practices and technologies for agricultural productivity growth.

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Expand and Improve Local, Regional, and Global Trade

Only eight percent of fruit and vegetable production is traded internationally, an impediment to availability and affordability. (FAO, 2020), (Miller et al., 2016) Forward-looking trade agreements, including transparent policies and consistently enforced regulations, facilitate the efficient and cost-effective movement of agricultural inputs, services, and products to those who need them. Trade plays several essential roles during times of pandemics. It brings food to places where food crops have been devastated by pests. Animal vaccines and crop protection products, such as pesticides, need to be brought into impacted areas. Access to agricultural inputs, such as seed and fertilizer, helps farmers recover quickly following a crisis.

Strengthening the sale and trade of safe, affordable foods in Africa

Two factory workers load fruit into yellow trays. Food Enterprise Solutions (FES) is bringing more attention to the role of business in the food supply chain with its Business Drivers for Food Safety (BD4FS) program, launched in collaboration with USAID’s Feed the Future program in June 2019.

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Reduce Post-Harvest Loss and Food Waste

Reducing post-harvest losses and food waste increases the availability and affordability of nutritious food, eases the environmental impact of food and agricultural production, and preserves the value of the land, labor, water, and other inputs used in the production process. COVID-19 has underscored for many people around the world the critical importance of reducing food waste. When food was not as readily available in stores, many consumers realized how much they were wasting and took measures to waste less. However, COVID-19 also saw a significant increase in post-harvest loss.

Addressing the Pandemic food system supply chain disruption by connecting farmers to consumers

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Chapter 2: Accelerating Sustainable Productivity Growth

Partner Stories

Endnotes

Alston, J.M., Beddow, J.M. and Pardey, P.G., 2009. Agricultural research, productivity, and food prices in the long run. Science, 325(5945), pp.1209-1210.

Carter, M. (2020, March 17). Resilience: How and why risk management innovations reduce poverty and spur agricultural growth. Global Food For Thought. https://perma.cc/BG9Y-R66W

FAO (2020). Fruit and vegetables – your dietary essentials: The International Year of Fruits and Vegetables, background paper. (2020). http://www.fao.org/documents/card/en/c/cb2395en

Fuglie, K. O., Wang, S. L., Ball, V. E., & C.A.B. International (Eds.). (2012). Productivity growth in agriculture: An international perspective. CABI

Fuglie, K., Gautam, M., Goyal, A., & Maloney, W. F. (2019). Harvesting prosperity: Technology and productivity growth in agriculture. World Bank Group.

Miller, V., Yusuf, S., Chow, C.K., Dehghan, M., Corsi, D. J., Lock, K., Popkin, B., Rangarajan, S., Khatib, R., Lear, S. A., Mony, P., Kaur, M., Mohan, V., Vijayakumar, K., Gupta, R., Kruger, A., Tsolekile, L., Mohammadifard, N., Rahman, O., Mente, A. (2016). Availability, affordability, and consumption of fruits and vegetables in 18 countries across income levels: Findings from the Prospective Urban Rural Epidemiology (PURE) study. The Lancet Global Health, 4(10), e695–e703. https://doi.org/10.1016/S2214-109X(16)30186-3

Moser, H., Nealer, E., Runde, D. F., & Center for Strategic and International Studies (Washington, D.C.), Project on U.S. Leadership in Development. (2016). Barriers to bankable infrastructure: Incentivizing private investment to fill the global infrastructure gap.