New Report Reveals Ag Isn’t On Track To Meet Rising Demand

A Virginia Tech report finds global agricultural productivity growth has slowed from 1.9% to 0.7% annually.

Harvest
Harvest
(AGCO)

Virginia Tech’s College of Agriculture and Life Sciences recently released its 2024 Global Agricultural Productivity (GAP) report, showing global agriculture productivity is falling behind the curve.

“Global agricultural productivity growth has slowed from 1.9% annually during 2001-2010 to 0.7% annually during 2013-2022,” said Tom Thompson, the report’s executive editor, associate dean of the College of Agriculture and Life Sciences, and director of CALS Global at Virginia Tech. “This dramatic slowdown will prevent us from reaching our agricultural production and sustainability goals by 2050, with potentially dire impacts on food and nutrition security, unless we reverse this trend.”

Agricultural productivity growth during this period was even lower in the U.S. – averaging 0.21% annually. The report’s authors attribute this in part to the lack of public funding in agricultural research and development. At the same time, South Asia led progress at 1.4%.

“South Asia’s TFP growth highlights the critical role of innovation and investment,” said Tabila Nakelse, the report’s research lead. “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.”

Global total factor productivity should be at 1.91% annually to meet the demand projected in 2050, according to the report. But due to current productivity being so far below that level, it may actually need to rise to 2%.

“Tackling agricultural productivity growth will require cooperation across political and philosophical lines throughout the food system,” said Jessica Agnew, associate director of CALS Global and the report’s managing editor. “Using our resources wisely and most efficiently is applicable to every farmer, in every farming system, at every scale of production.”

Some of the risks of not ramping up growth include:

  • Reduced competitiveness in global agricultural markets
  • Deterred investment in the agricultural sector
  • Increased inequalities, particularly for smaller farms and rural communities
  • Limited ability to adapt to climate change
  • Higher food prices
  • Overuse of inputs or natural resources

5 Recommended Priorities To Help Bridge The Gap
In order to meet these growth goals, the report emphasizes the importance of closing the disconnect between the development of new innovations and their delivery to producers, something the authors call “the valley of death”.

It outlines five main priorities to help solve this issue and drive agricultural productivity growth:

  1. Invest in agricultural innovation systems, including the infrastructure, human capital and skills development, financial systems, partnerships, socio-cultural considerations and environmental conditions required for producers at all scales of production.
  2. Expand market access so all levels of producers can access competitive input and output markets to make informed decisions.
  3. Strengthen regional and global trade.
  4. Reduce food loss and improve output quality as climate, pest, disease and resource challenges intensify.
  5. Cultivate partnerships to accelerate the development and dissemination of technologies, practices, and knowledge.
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