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The State of Food and Agriculture Report 2014 (#SOFA2014)

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In recognition of the International Year of Family Farming, the 2014 edition focuses on how to promote innovation among family farms to achieve sustainable food security and poverty alleviation. More: http://bit.ly/1qB6jF5

©FAO/www.fao.org

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The State of Food and Agriculture Report 2014 (#SOFA2014)

  1. 1. FAO Economic and Social Development Department The State of Food and Agriculture 2014 Innovation in family farming
  2. 2. Family farms are key to food security and sustainable development  The vast majority of the world’s farms are family farms.  They can and must produce more with fewer resources.  If they are enabled to innovate, they can: • increase production • preserve natural resources • raise rural incomes.  We need an innovation system that meets the needs of family farms. #sofa2014
  3. 3. More than 570 million farms in the world 47% Upper-middle-income countries 36% Lower-middle-income countries 13% Low-income countries 4% High-income countries Number of farms by income group World total = 570 million #sofa2014
  4. 4. More than 90 percent of farms are family farms  Many definitions of family farming.  Most refer to ownership/management and family labour.  More than 90 percent of farms are managed by an individual or a household.  There are more than 500 million family farms.  They operate about 75 percent of farmland.  They produce more than 80 percent of food. #sofa2014
  5. 5. Most of the world’s farms are small… Share of farms, by land size class 72% <1 ha 12% 1–2 ha 10% 2–5 ha 3% 5–10 ha 1% 10–20 ha 2% >20 ha #sofa2014
  6. 6. … but most of the world’s farmland is on large farms Distribution of farms and farmland worldwide 100 80 60 40 20 0 <2 ha 2-5 ha 5-10 ha 10-20 ha 20-50 ha >50 ha Percentage Land size class (ha) Holdings Area #sofa2014
  7. 7. Smaller farms hold large shares of land in lower-income countries #sofa2014 100 80 60 40 20 0 Low-income countries (8) Holdings Area < 1 1-2 2-5 5-10 10-20 20-50 > 50 Land size class (ha) Percentage 100 80 60 40 20 0 Lower-middle-income countries (17) Holdings Area < 1 1-2 2-5 5-10 10-20 20-50 > 50 Land size class (ha) Percentage Upper-middle-income countries, exc. China(28) 100 80 60 40 20 0 Holdings Area < 1 1-2 2-5 5-10 10-20 20-50 > 50 Land size class (ha) Percentage 100 80 60 40 20 0 High-income countries (34) Holdings Area < 1 1-2 2-5 5-10 10-20 20-50 > 50 Land size class (ha) Percentage
  8. 8. Farm households have many sources of income Average share of household income by source and farm size quartile 0% 20% 40% 60% 80% 100% 1st quartile 3rd quartile 2nd quartile 4th quartile 1st quartile 3rd quartile 2nd quartile 4th quartile 1st quartile 3rd quartile 2nd quartile 4th quartile 1st quartile 3rd quartile 2nd quartile 4th quartile United Republic Viet Nam of Bangla desh Nicarag Tanzani ua Nepal Kenya Ethiopia Bolivia a #sofa2014 Crop and livestock production Agricultural wages Non-farm income Transfers and remittances
  9. 9. Small farms have higher yields than large farms … Selected crop yields, by farm size 0 5 10 15 20 Bolivia (maize) Ethiopia (teff) Kenya (maize) Nepal (rice) Tanzania (maize) Vietnam (rice) Tonnes per hectare 1st quartile (smallest) 2nd quartile 3rd quartile 4th quartile #sofa2014
  10. 10. … but they have lower labour productivity Value of agricultural production per worker per day (constant 2009 PPP dollars) 0 2 4 6 8 10 Bangladesh Bolivia Ethiopia Kenya Nepal Nicaragua Tanzania Viet Nam 1st quartile 2nd quartile 3rd quartile 4th quartile #sofa2014
  11. 11. Small farms sell less on the market Share of agricultural production sold (percent) #sofa2014 0 10 20 30 40 50 60 70 Bangladesh Bolivia Ethiopia Kenya Nepal Nicaragua Tanzania Viet Nam 1st quartile 2nd quartile 3rd quartile 4th quartile
  12. 12. Role of innovation in family farming  Family farms are central to global food security and sustainable productivity.  In low- and middle-income countries small and medium-sized family farms: • occupy most of farmland • produce most of the food.  Agricultural innovation systems must meet the needs of family farms while recognizing diversity. #sofa2014
  13. 13. What are key components of an innovation system for family farming?  An enabling environment that promotes capacity to innovate  Agricultural R&D for family farms  Inclusive extension services #sofa2014
  14. 14. Agricultural R&D is crucial but most takes place in only a few countries Gecogorauphnict drisiteribsution of public expenditure on agricultural R&D, 2009 13% United States of America 5% Middle East and North Africa 5% Latin America and the Caribbean, excluding Brazil 5% Brazil 5% Asia and the Pacific, excluding China and India 7% India 19% China 6% Sub-Saharan Africa 35% High-income countries, excluding United States of America #sofa2014
  15. 15. Many countries need to invest more in agricultural R&D Agricultural research intensity, averages by decade and income group 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 1960–69 1970–79 1980–89 1990–99 2000–09 Percentage Low-income countries World Lower-middle-income countries Upper-middle-income countries High-income countries
  16. 16. Agricultural R&D can be made more effective  International cooperation can make research efforts more effective.  Farmer-led innovation and formal research complement each other.  Inclusive and participatory research can meet the needs of family farms. #sofa2014
  17. 17. Agricultural extension is also a priority area Shares of farms accessing information through agricultural extension, selected countries most recent years Percentage 25 20 15 10 5 0 #sofa2014
  18. 18. Extension models have changed …  Areas of advice broadening beyond technical production  Increasing environmental concerns  Diversification of farm household income sources  Multiple actors involved in advisory services #sofa2014
  19. 19. … but governments still have a role in extension  Recognize the role of pluralistic and mixed systems  Create conditions for private delivery of advisory services  Coordinate and regulate  Ensure that advice from the private sector and civil society is technically sound and socially and environmentally appropriate #sofa2014
  20. 20. Certain types of advisory services will only be provided with government initiative  Sustainability and environmental preservation  Addressing crop and livestock diseases  Food security and poverty eradication  A key concern: making services available for small family farms, especially in remote areas • but need to consider trade-offs between costs and broad delivery #sofa2014
  21. 21. Capacity to innovate must be developed at different levels Capacity development in different dimensions The enabling environment dimension is the broad social system in which organizations and individuals function The organizational dimension refers to all public, private and civil society organizations The individual dimension relates to all individuals in organizations and communities #sofa2014
  22. 22. Different family farms need different things from an agricultural innovation system  Large family farms – similar to large business ventures  Small or medium-sized farms that: • are already commercial (generating a surplus for the market) • have potential to become commercial  Subsistence smallholders with little or no potential for commercial production #sofa2014
  23. 23. For more information … The State of Food and Agriculture 2014 Innovation in family farming FAO‘s major annual flagship publication Available in English, French, Spanish, Russian, Arabic and Chinese www.fao.org/publications/sofa #sofa2014

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