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2012 US SoFA Launch "Investing in Agriculture for a Better Future"

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US Launch of The State of Food and Agriculture 2012 "Investing in Agriculture for a Better Future" presentation at IFPRI on 22 January 2013 by Keith Wiebe, Food and Agriculture Organziation of the United Nations.

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2012 US SoFA Launch "Investing in Agriculture for a Better Future"

  1. 1. Food and Agriculture Economic and Social Development Department Organization of the United Nations The State of Food and2012 AgricultureInvesting in agriculture for a better future The State ofKeith Wiebe and Sarah Lowder Food andFood and Agriculture Organization of the United Nations AgricultureInternational Food Policy Research Institute 2010-11Washington DC, 22 January 2013 #sofa2012
  2. 2. Food and Agriculture Economic and Social Development Department Organization of the United Nations Higher prices have renewed attention to agricultureSource: FAO #sofa2012
  3. 3. Food and Agriculture Economic and Social Development Department Organization of the United NationsODA to agriculture has followed price trends #sofa2012
  4. 4. Food and Agriculture Economic and Social Development Department Organization of the United NationsAgriculture has also declined as a share ofdomestic public expenditures #sofa2012
  5. 5. Food and Agriculture Economic and Social Development DepartmentOrganization of theUnited Nations (WIR 2009) #sofa2012
  6. 6. Food and Agriculture Economic and Social Development Department Organization of the United NationsFDI is increasing, but … Total FDI in 27 countries averaged $922 billion per year in 2007-08 • 6 percent to food and agriculture • 5.6 percent to food, beverages and tobacco, mostly to high- income countries • Only 0.4 percent to agriculture FDI in agriculture in 44 countries averaged $5.4 billion per year in 2007-08 • More than double the level in 2005-06 • 78 percent was to upper-middle-income and high-income countries #sofa2012
  7. 7. Food and Agriculture Economic and Social Development Department Organization of the United NationsOn-farm investment has followed a similarpattern #sofa2012Source: Authors’ calculations using FAO 2012a
  8. 8. Food and Agriculture Economic and Social Development Department Organization of the United NationsThe composition of on-farm capital varies #sofa2012
  9. 9. Food and Agriculture Economic and Social Development Department Organization of the United NationsFarmers are the largest investors in agricultureSource: Lowder, Carisma and Skoet, 2012. #sofa2012
  10. 10. Food and Agriculture Economic and Social Development Department Organization of the United NationsInvesting in agriculture raises productivity Source: FAO, 2012a. #sofa2012
  11. 11. Food and Agriculture Economic and Social Development Department Organization of the United NationsInvesting in agriculture reduces hungerSource: Authors’ calculations using FAO, 2012a and FAO, IFAD and WFP, 2012. #sofa2012
  12. 12. Food and Agriculture Economic and Social Development Department Organization of the United NationsProgress in reducing hunger has slowed #sofa2012 Source: FAO (SOFI 2012)
  13. 13. Food and Agriculture Economic and Social Development Department Organization of the United NationsInvestments are too low in regions that needthem mostSource: Authors’ calculations using FAO, 2012a and World Bank, 2012. #sofa2012
  14. 14. Food and Agriculture Economic and Social Development Department Organization of the United Nations Hunger by region, 1990–2012 1990–92: 980 million 2010–12: 852 million Caribbean Oceania 0% North Latin Caribbean Oceania 1% North Africa America 1% 0% Latin Africa 0% 5%America 0% Sub- South- 6% Saharan East Asia 8% Sub- South-East Africa Western Saharan Asia 17% Asia Africa 14% 1% 27% East Asia 20% East Asia South Asia 27% 33% Western Caucasus South Asia Asia and 36% 2% Caucasus and Central Central Asia Asia 1% 1% Source: FAO (SOFI 2012) #sofa2012
  15. 15. Food and Agriculture Economic and Social Development Department Organization of the United NationsThe investment climate is critical #sofa2012
  16. 16. Food and Agriculture Economic and Social Development Department Organization of the United NationsImproved governance is a key element Voluntary Guidelines on the Responsible Governance of Tenure • Endorsed by the CFS in May 2012 Principles for Responsible Agricultural Investment • Land and resource rights • Food security • Transparency and good governance • Consultation and participation • Economic viability • Social sustainability • Environmental sustainability #sofa2012
  17. 17. Food and Agriculture Economic and Social Development Department Organization of the United Nations Good business environments are associated with more investmentSource: Authors’ calculations using FAO, 2012a and World Bank, 2011b. #sofa2012
  18. 18. Food and Agriculture Economic and Social Development Department Organization of the United NationsPolicies are also important #sofa2012
  19. 19. Food and Agriculture Economic and Social Development Department Organization of the United Nations Large share of ag budgetMonitoring policyimpacts: rice in Mali Source: MAFAP… but policies provide price disincentives to producers 5% 0% 2005 2006 2007 2008 2009 2010 Nominal Rate of Protection -5% -10% -15% -20% -25% -30% -35% #sofa2012Source: MAFAP
  20. 20. Food and Agriculture Economic and Social Development Department Organization of the United Nations Governments must focus on public goods with large impactsSource: Fan, Zhang and Zhang, 2004. #sofa2012
  21. 21. Food and Agriculture Economic and Social Development Department Organization of the United NationsKey messages Investing in agriculture is one of the most effective strategies for reducing poverty and hunger Farmers are the largest investors in agriculture, and must be central to agricultural investment strategies A favourable investment climate is necessary but not sufficient  small farmers need special assistance to overcome barriers  large-scale investments need special attention to ensure broad and sustainable benefits Governments must focus on public goods with high social returns An improved evidence base is essential #sofa2012
  22. 22. Food and Agriculture Economic and Social Development Department Organization of the United NationsFor more information The State of Food and Agriculture Investing in agriculture for a better future FAO‘s flagship publication. Available in English, French, Spanish, Russian, Arabic and Chinese www.fao.org/publications/sofa #sofa2012

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