2012 US SoFA Launch "Investing in Agriculture for a Better Future"
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Transcript of 2012 US SoFA Launch "Investing in Agriculture for a Better Future"
The State of
Food andAgriculture
2010-11
Food and Agriculture Organization of the United Nations
Economic and Social Development Department
#sofa2012
2012
The State of Food and Agriculture
Investing in agriculture for a better future
Keith Wiebe and Sarah Lowder
Food and Agriculture Organization of the United Nations
International Food Policy Research Institute
Washington DC, 22 January 2013
Food and Agriculture Organization of the United Nations
Economic and Social Development Department
#sofa2012
Higher prices have renewed attention to agriculture
Source: FAO
Food and Agriculture Organization of the United Nations
Economic and Social Development Department
#sofa2012
ODA to agriculture has followed price trends
Food and Agriculture Organization of the United Nations
Economic and Social Development Department
#sofa2012
Agriculture has also declined as a share of domestic public expenditures
Food and Agriculture Organization of the United Nations
Economic and Social Development Department
#sofa2012
(WIR 2009)
Food and Agriculture Organization of the United Nations
Economic and Social Development Department
#sofa2012
FDI is increasing, but …
Total FDI in 27 countries averaged $922 billion per year in 2007-08• 6 percent to food and agriculture• 5.6 percent to food, beverages and tobacco, mostly to high-
income countries• Only 0.4 percent to agriculture
FDI in agriculture in 44 countries averaged $5.4 billion per year in 2007-08• More than double the level in 2005-06• 78 percent was to upper-middle-income and high-income
countries
Food and Agriculture Organization of the United Nations
Economic and Social Development Department
#sofa2012
On-farm investment has followed a similar pattern
Source: Authors’ calculations using FAO 2012a
Food and Agriculture Organization of the United Nations
Economic and Social Development Department
#sofa2012
The composition of on-farm capital varies
Food and Agriculture Organization of the United Nations
Economic and Social Development Department
#sofa2012
Farmers are the largest investors in agriculture
Source: Lowder, Carisma and Skoet, 2012.
Food and Agriculture Organization of the United Nations
Economic and Social Development Department
#sofa2012
Investing in agriculture raises productivity
Source: FAO, 2012a.
Food and Agriculture Organization of the United Nations
Economic and Social Development Department
#sofa2012
Investing in agriculture reduces hunger
Source: Authors’ calculations using FAO, 2012a and FAO, IFAD and WFP, 2012.
Food and Agriculture Organization of the United Nations
Economic and Social Development Department
#sofa2012
Progress in reducing hunger has slowed
Source: FAO (SOFI 2012)
Food and Agriculture Organization of the United Nations
Economic and Social Development Department
#sofa2012
Investments are too low in regions that need them most
Source: Authors’ calculations using FAO, 2012a and World Bank, 2012.
Food and Agriculture Organization of the United Nations
Economic and Social Development Department
#sofa2012
North Africa0%
Sub-Saha-ran
Africa17%
Western Asia1%
South Asia33%
Caucasus and Central Asia1%
East Asia27%
South-East Asia14%
Latin America6%
Caribbean1%
Oceania0%
1990–92: 980 million
North Africa1%
Sub-Saharan Africa27%
Western Asia2%South Asia
36%Caucasus and Cen-tral Asia
1%
East Asia20%
South-East Asia
8%
Latin America5%
Caribbean1%
Oceania0%
2010–12: 852 million
Hunger by region, 1990–2012
Source: FAO (SOFI 2012)
Food and Agriculture Organization of the United Nations
Economic and Social Development Department
#sofa2012
The investment climate is critical
Food and Agriculture Organization of the United Nations
Economic and Social Development Department
#sofa2012
Improved governance is a key element
Voluntary Guidelines on the Responsible Governance of Tenure• Endorsed by the CFS in May 2012
Principles for Responsible Agricultural Investment• Land and resource rights• Food security• Transparency and good governance• Consultation and participation• Economic viability• Social sustainability• Environmental sustainability
Food and Agriculture Organization of the United Nations
Economic and Social Development Department
#sofa2012
Good business environments are associated with more investment
Source: Authors’ calculations using FAO, 2012a and World Bank, 2011b.
Food and Agriculture Organization of the United Nations
Economic and Social Development Department
#sofa2012
Policies are also important
Food and Agriculture Organization of the United Nations
Economic and Social Development Department
#sofa2012
Monitoring policy impacts: rice in Mali
Source: MAFAP
Large share of ag budget
-35%
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
2005 2006 2007 2008 2009 2010
Nom
inal
Rat
e of
Pro
tecti
on
… but policies provide price disincentives to producers
Source: MAFAP
Food and Agriculture Organization of the United Nations
Economic and Social Development Department
#sofa2012
Governments must focus onpublic goods with large impacts
Source: Fan, Zhang and Zhang, 2004.
Food and Agriculture Organization of the United Nations
Economic and Social Development Department
#sofa2012
Key messages
Investing in agriculture is one of the most effective strategies for reducing poverty and hunger
Farmers are the largest investors in agriculture, and must be central to agricultural investment strategies
A favourable investment climate is necessary but not sufficient small farmers need special assistance to overcome barriers large-scale investments need special attention to ensure broad and
sustainable benefits
Governments must focus on public goods with high social returns
An improved evidence base is essential
Food and Agriculture Organization of the United Nations
Economic and Social Development Department
#sofa2012
For more information
The State of Food and Agriculture
Investing in agriculturefor a better future
FAO‘s flagship publication.
Available in English, French, Spanish, Russian, Arabic and Chinese
www.fao.org/publications/sofa