Agricultural productivity growth falls short of meeting global demands, Virginia Tech report says
Agricultural productivity growth falls short of meeting global demands, Virginia Tech report says Virginia Tech
sdgtalks
Why is lagging total factor productivity growth such a concern?
Reduced total factor productivity growth reduces competitiveness in global agricultural markets, adversely affecting trade balances and economic stability. It also deters investment in the agricultural sector, further stifling innovation and growth. Socially, the slowdown exacerbates inequalities, particularly impacting smallholder farmers and rural communities, and widens the gap between urban and rural prosperity.
Reduced productivity growth also hampers the agricultural sector’s ability to adapt to climate change, compromising global food supply stability. A failure to reverse the declining total factor productivity growth trend also may lead to rising food prices, disproportionately affecting low-income households and exacerbating poverty and hunger. Environmentally, to compensate for lower productivity growth, countries may overuse inputs or natural resources, causing environmental degradation and long-term ecological damage.
“Tackling agricultural productivity growth will require cooperation across political and philosophical lines throughout the food system,” said Agnew, associate director of CALS Global. “Using our resources wisely and most efficiently is applicable to every farmer, in every farming system, at every scale of production.”
South Asia’s total factor productivity surge
The 2024 GAP Report finds that South Asia has emerged as a global leader in average annual total factor productivity growth during 2013-22 through significant public and private investment in research and development, mechanization adoption, and information, communication, and technology innovations. The region experienced 1.4 percent annual growth, outpacing other regions, including North America.
During 2013-22, the United States experienced negative total factor productivity growth, averaging -0.21 percent annually. This downturn can be attributed, in part, to a reduction in public funding for agricultural research and development.
As the home of the Green Revolution, South Asia is using evolving approaches to pursuing sustainable productivity growth, offering actionable policy and investment insights to other world regions that are struggling with lagging total factor productivity growth. However, the report makes it clear that public and private research and development alone will not suffice to achieve the target annual total factor productivity (TFP) growth rate. Bridging the “valley of death” must be a top priority in the coming decade.
“South Asia’s TFP growth highlights the critical role of innovation and investment,” Nakelse said. “Achieving sustainable productivity growth requires bridging the gap between research and widespread adoption. This lesson is vital for all regions seeking to overcome challenges and boost agricultural efficiency.”
GAP Report launch event
The launch event at the National Press Club brought together policymakers, farmers, and private sector leaders from around the world to discuss the report’s findings and explore innovative solutions to accelerate agricultural productivity growth.
The event featured two panel discussions: a multisectoral panel on successful bundling approaches and an all-farmer panel providing firsthand insights from the field.
Notable experts contributing to the launch event included Basil Gooden, under secretary for rural development in the U.S. Department of Agriculture; Robert Bertram, chief scientist in the U.S. Agency for International Development’s Bureau of Resilience and Food Security; and Alejandra Castro, global head of partnerships-international organizations for Bayer.
Beyond the GAP Initiative, Virginia Tech was represented in a panel discussion by Mario Ortez Amador, collegiate assistant professor of agribusiness and entrepreneurship in the Department of Agricultural and Applied Economics, and in closing remarks by Mario Ferruzzi, the recently appointed dean of the College of Agriculture and Life Sciences.
Recommended priorities
The 2024 GAP Report outlines several policy and investment priorities to drive agricultural productivity growth:
- Invest in agricultural innovation systems: Agriculture innovation systems create dissemination and adoption pathways for existing and new knowledge, technologies, and practices. This includes the infrastructure, human capital and skills development, financial systems, partnerships, socio-cultural considerations, and environmental conditions required for producers at all scales of production, but especially smallholder producers, to access and sustainably adopt productivity-enhancing tools.
- Expand robust and resilient market access: Producers at all scales of production must be able to access competitive input and output markets. Price discovery, minimized search costs, and information transparency help producers to make informed decisions on the inputs required to optimize productivity and profitability.
- Strengthen regional and global trade: Regional and global trade have demonstrated positive impacts on agricultural productivity growth by opening up larger markets, creating opportunities for specialization, and encouraging adoption of productivity-enhancing tools.
- Improve quality and reduce loss of outputs: Reducing food loss and waste and improving output quality contribute to agricultural productivity growth by increasing both the value and quantity of usable output from the same or fewer inputs. As pressures from changing climate, pests, disease, and limited access to resources such as affordable financing continue to intensify, it is essential to tailor food loss and waste reduction policies and technologies to specific commodities and local contexts.
- Cultivate partnerships and cooperation: Partnerships activate strong agricultural innovation systems and accelerate the development and dissemination of technologies, practices, and knowledge by tailoring productivity-enhancing tools for different contexts.
By strategically bundling production tools with socio-economic, policy, and distribution mechanisms, we can power productivity growth and create bridges across the “valley of death” tailored to local contexts and cultures, according to the report.
SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 2: Zero Hunger | Target 2.3: By 2030, double the agricultural productivity and incomes of small-scale food producers, in particular women, indigenous peoples, family farmers, pastoralists, and fishers, including through secure and equal access to land, other productive resources and inputs, knowledge, financial services, markets, and opportunities for value addition and non-farm employment. | Indicator 2.3.1: Volume of production per labor unit by classes of farming/pastoral/forestry enterprise size |
| SDG 8: Decent Work and Economic Growth | Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading, and innovation, including through a focus on high-value added and labor-intensive sectors. | Indicator 8.2.1: Annual growth rate of real GDP per employed person |
| SDG 9: Industry, Innovation, and Infrastructure | Target 9.3: Increase the access of small-scale industrial and other enterprises, in particular in developing countries, to financial services, including affordable credit, and their integration into value chains and markets. | Indicator 9.3.1: Proportion of small-scale industries in total industry value added |
| SDG 12: Responsible Consumption and Production | Target 12.3: By 2030, halve per capita global food waste at the retail and consumer levels and reduce food losses along production and supply chains, including post-harvest losses. | Indicator 12.3.1: Food loss index |
| SDG 13: Climate Action | Target 13.A: Implement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possible. | Indicator 13.A.1: Mobilized amount of United States dollars per year between 2020 and 2025 accountable towards the $100 billion commitment |
1. Which SDGs are addressed or connected to the issues highlighted in the article?
SDG 2: Zero Hunger
The article discusses the importance of agricultural productivity growth for global food supply stability and mentions the impact on smallholder farmers and rural communities. SDG 2 aims to end hunger, achieve food security and improved nutrition, and promote sustainable agriculture.
SDG 8: Decent Work and Economic Growth
The article highlights how reduced total factor productivity growth affects competitiveness in global agricultural markets and economic stability. SDG 8 aims to promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.
SDG 9: Industry, Innovation, and Infrastructure
The article emphasizes the role of innovation and investment in achieving sustainable productivity growth in the agricultural sector. SDG 9 aims to build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation.
SDG 12: Responsible Consumption and Production
The article mentions the importance of reducing food loss and waste to increase agricultural productivity growth. SDG 12 aims to ensure sustainable consumption and production patterns.
SDG 13: Climate Action
The article discusses how reduced productivity growth hampers the agricultural sector’s ability to adapt to climate change. SDG 13 aims to take urgent action to combat climate change and its impacts.
2. What specific targets under those SDGs can be identified based on the article’s content?
Target 2.3: By 2030, double the agricultural productivity and incomes of small-scale food producers
The article mentions that reduced productivity growth exacerbates inequalities, particularly impacting smallholder farmers and rural communities. Achieving higher agricultural productivity is crucial for improving the incomes and livelihoods of small-scale food producers.
Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading, and innovation
The article highlights the importance of innovation and investment in driving agricultural productivity growth. Achieving higher levels of economic productivity in the agricultural sector requires technological upgrading and innovation.
Target 9.3: Increase the access of small-scale industrial and other enterprises to financial services and their integration into value chains and markets
The article emphasizes the need for small-scale producers to access competitive input and output markets. Increasing their access to financial services and integrating them into value chains and markets can contribute to agricultural productivity growth.
Target 12.3: By 2030, halve per capita global food waste and reduce food losses along production and supply chains
The article mentions the importance of reducing food loss and waste to increase agricultural productivity growth. Halving per capita global food waste and reducing food losses can contribute to achieving higher agricultural productivity.
Target 13.A: Implement the commitment to mobilize $100 billion annually to address the needs of developing countries in the context of meaningful mitigation actions
The article discusses the impact of reduced productivity growth on the agricultural sector’s ability to adapt to climate change. Mobilizing financial resources to support developing countries in addressing climate change impacts is crucial for achieving sustainable agricultural productivity growth.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
The article does not explicitly mention specific indicators to measure progress towards the identified targets. However, the following indicators can be relevant:
– Indicator 2.3.1: Volume of production per labor unit by classes of farming/pastoral/forestry enterprise size can measure the productivity and incomes of small-scale food producers.
– Indicator 8.2.1: Annual growth rate of real GDP per employed person can measure the economic productivity in the agricultural sector.
– Indicator 9.3.1: Proportion of small-scale industries in total industry value added can measure the integration of small-scale enterprises into value chains and markets.
– Indicator 12.3.1: Food loss index can measure progress in reducing food loss and waste.
– Indicator 13.A.1: Mobilized amount of United States dollars per year between 2020 and 2025 accountable towards the $100 billion commitment can measure progress in mobilizing financial resources for climate change adaptation in the agricultural sector.
Overall, the article provides contextual information and highlights the importance of addressing the identified targets, but does not explicitly mention specific indicators.
4. Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 2: Zero Hunger | Target 2.3: By 2030, double the agricultural productivity and incomes of small-scale food producers, in particular women, indigenous peoples, family farmers, pastoralists, and fishers, including through secure and equal access to land, other productive resources and inputs, knowledge, financial services, markets, and opportunities for value addition and non-farm employment. | Indicator 2.3.1: Volume of production per labor unit by classes of farming/pastoral/forestry enterprise size |
| SDG 8: Decent Work and Economic Growth | Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading, and innovation, including through a focus on high-value added and labor-intensive sectors. | Indicator 8.2.1: Annual growth rate of real GDP per employed person |
| SDG 9: Industry, Innovation, and Infrastructure | Target 9.3: Increase the access of small-scale industrial and other enterprises, in particular in developing countries, to financial services, including affordable credit, and their integration into value chains and markets. | Indicator 9.3.1: Proportion of small-scale industries in total industry value added |
| SDG 12: Responsible Consumption and Production | Target 12.3: By 2030, halve per capita global food waste at the retail and consumer levels and reduce food losses along production and supply chains, including post-harvest losses. | Indicator 12.3.1: Food loss index |
| SDG 13: Climate Action | Target 13.A: Implement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possible. | Indicator 13.A.1: Mobilized amount of United States dollars per year between 2020 and 2025 accountable towards the $100 billion commitment |
Source: news.vt.edu
