The global population is rising at an alarming rate, and producing sufficient food is becoming more challenging each day.
Recent advancements in agriculture technology offer a glimmer of hope. Now, the question remains, as Agri-tech evolves, what role will governments play in the future of agriculture?
Historically, governments have intervened considerably, mainly to increase efficiency of agricultural production, protect farmers’ incomes and ensure a sufficient and affordable food supply for their populations.
Strategies such as tariffs, import duties and quotas, export subsidies, direct payments to farmers and output restrictions are all used as mechanisms to influence the domestic market and control prices. The strategies that a government needs to employ vary based on the needs and objectives of the country.
The Food and Agriculture Organization has determined that in under-developed countries, the agricultural sector accounts for the largest share of GDP (ranging from 30-60%), employs a large portion of the labour force (40 – up to 90% in some cases), contributes to a major chunk of foreign exchange (25 – 95% in ¾ of the countries) and supplies the bulk of food for sustenance and income to more than half of the population.
Therefore, in order to promote economic growth, reduce poverty and enhance food security the governments of these nations must focus on improving the human and productive capacity of the agriculture sector.
Despite Globalization offering development and growth opportunities and trade liberalisation in recent years, these nations have not benefited and there has been a decline in their exports from 5% to roughly 1%.
Governments need to commit to a comprehensive and long-term plan for the overall development of agriculture. This requires designing, implementing and closely monitoring.
- Measures surrounding stable macroeconomic and trade policies to encourage investment in agriculture
- Investment in campaigns for rural areas to strengthen human capital through health and education
- Establishment of an institutional environment that ensures access to markets, information, set standards and a legal and regulatory framework. This includes adopting a more open culture and providing support to private sector entrants by granting access to government resources such as labs and data, and satellite imagery.
- Enabling research and extension programmes to foster development and innovations in agriculture technologies. Targeting efforts towards sustainable agricultural potential e.g. new varieties of seeds (climate and pest resistant), production methods and water management.
- Incentivizing private sector initiatives to recapitalize agriculture through robust and productive technologies. Implement policies to aid businesses by providing duty free import of equipment and uniform drone policy
- Upgrading transport, communication and market infrastructure to support farmers access and facilitate the agriculture value chain
- Develop financing strategies and provisions for access to seasonal and longer-term capital and inputs. Encourage the flow of foreign direct investment to improve productivity and competitiveness
- Safeguarding natural resource and environment capacity
Going forward, government bodies must not underestimate the market power of small-scale farmers. While larger farms and production initiatives no doubt have a significant influence on the agricultural sector, it is the smaller players in the market that will pave the way toward long-term sustainability, as the market adopts new and innovative technologies.