The agricultural sector is facing a period of slow growth in productivity, combined with challenges such as decreased investment, unpredictable weather, and volatile commodity prices. At the same time, there is a need to increase food production for a growing global population while protecting natural resources.
Historically, technological advances such as those during the green revolution have led to large increases in crop yields and helped prevent widespread hunger. However, these gains have sometimes resulted in negative impacts on water quality, biodiversity, soil health, and greenhouse gas emissions.
The current debate about whether agriculture must choose between productivity and sustainability may be misplaced. There is now greater alignment between these goals among both producers and consumers.
According to experts at RTI International, supply-side innovation remains essential for sustainable and profitable farming. Three areas are highlighted as particularly promising:
Agricultural biotechnology: “Genetically modified organisms and gene editing, along with biostimulants, biofertilizers and biocontrols, received $1.9 billion in venture capital investment last year, representing the top investment in the farm tech category. Powered by artificial intelligence, there is potential to accelerate even more rapidly, making crops more drought resilient, increasing their nutritional content and combatting emerging pests and diseases.”
Precision/digital agriculture: “Enabled by GPS, precision agriculture allows farmers to boost yields while using fewer inputs. However, these technologies have been adopted mainly by large-scale farms and have yet to be successful in reaching smaller, less technologically advanced farms. Growth in precision and newer digital technologies, including agri-fin tech, remote sensing and blockchain, is expanding opportunities to reach farmers both directly and passively through innovations in track and trace technologies, digital commerce and improved access to finance. They are also showing promise in developing countries.”
Regenerative agriculture: “Regenerative agriculture embodies principles and management practices aimed at improving soil health, including minimizing tillage, planting cover crops, leaving residues on the soil and diversifying cropping and livestock systems. These principles have become increasingly sophisticated, and the body of evidence around their benefits is growing. Localized benefits to farmers include reduced input costs, decreased erosion, increased soil moisture content and enhanced soil carbon sequestration.”
On the demand side of the market for sustainable food innovation:
Private sector commitments: “More than 600 large commercial food and beverage companies…have set ambitious targets for reducing greenhouse gas emissions as part of the Science Based Targets Initiative. Companies are also addressing sustainability issues like food loss and waste and finding alternatives to plastic packaging. If companies stick with these targets a significant amount of investment currently sitting on the sidelines will need to be deployed.”
Food is Medicine movement: “This movement has grown out of recognition that nutrition-based interventions can be more cost-effective than traditional medical treatments. It is gaining public and private sector support as evidenced by the Make America Healthy Again Commission in the U.S. And driven by consumer demand for foods that contain less additives are less processed and are grown using fewer chemical inputs.”
Innovative financing mechanisms involving foundations as well as national governments are being developed to help cover transition costs associated with adopting new sustainable technologies.
Looking ahead at future solutions for balancing productivity with environmental protection needs within agriculture:
“Agriculture sector innovation has been able to overcome fears that our food supply could not meet the rising demands of a growing population. However looking ahead it’s unlikely that a single solution will emerge for all productivity and sustainability challenges. Instead it will require collective action…and investment in interconnected innovations with environmental social economic sustainability at their core supporting a healthier population planet meeting market demands.”
RTI International continues its work analyzing trends affecting agriculture economics worldwide.
