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Africa owns 60% of the world’s uncultivated land suited for crop production, but accounts for 30% of the world’s malnourished and only 3% of global agricultural exports. If there is one thing global agricultural policy experts Paul Collier and Derek Byerlee can agree on, it’s that Africa’s food system is struggling.Their different views on the causes and investment solutions to put Africa on a more prosperous and food secure path made for a provocative discussion at a symposium hosted last week by Stanford University’s Center on Food Security and the Environment.

Collier, a distinguished economist and author of the award-winning book “The Bottom Billion”, was direct in his opening remarks.

“Smallholder agriculture has been a persistent productivity disaster for Africa,” said Collier. “Despite a huge land area to population ratio and higher proportion of its labor force engaged in food production, Africa is still not able to feed itself. The smallholder business model of the last 50 years is fundamentally flawed…maybe it is time for a Plan B.”

African agricultural productivity remains astoundingly low and stagnant at about $500 per person per year. His solution: debunk the ‘myth of the efficient peasant’ and rural romanticism and support commercial agriculture and urban growth.

Commercial agriculture reaps economies of scale that provide advantages often beyond reach for smallholder farmers yet are critical to agricultural production in Africa—risk finance, liquidity, technology, logistics, and knowledge of markets. Collier points to the success of Brazil and Thailand—two emerging economies that differ in scale of commercial organization, but have become major agricultural exporting countries.

Byerlee, a renowned economist and director of the 2008 World Development Report, agreed with Collier that commercial agriculture is likely Africa’s future, but that market-oriented smallholder farmers will play the lead role.

“We have much to learn from emerging business models,” said Byerlee. “Smallholders and agribusiness have complementary assets that can contribute to commercial agriculture, and states and investors must help facilitate smallholder inclusion in these models.”

Byerlee noted that the choice between small-scale or large-scale production models depend on transaction costs and type of commodity, and are context specific. Small- to medium scale production is best suited to most types of products in Africa especially food staples and many labor intensive products (e.g, diary). This follows the example of Thailand that not only has succeeded in food production but alone exports more than the value of all sub-Saharan Africa. Value chains that require stronger coordination with processing and shipping (e.g., sugar and palm oil), demand market standards (e.g, export horticulture) or are taking pioneering risks (e.g., new crops in new areas) may be better suited for large-scale production. Benefits may still be large if they create good jobs—a major challenge for Africa’s future.

Where to invest in Africa’s future?

"Young Africans are voting with their feet in droves to leave smallholder agriculture because it is impoverishing and boring, “ said Collier. “The economic tragedy for Africa is that cities haven’t been the engines of economic opportunity and wage employment.”

Collier argued investments in cities over agriculture are needed to prepare for an urban future and must be done quickly due to one dangerous fact—climate change.

“Climate change is the train coming down the tracks and it is already happening in Africa,” warned Collier. “The continuing deterioration of African agriculture is already set in stone. The last 50 years of carbon emissions are going to continue to devastate Africa’s climate over the next 50 years.”

Collier fears climate change will shift Africa’s competitive advantage in agriculture to Northern Eurasia and North America. Therefore, limited investment dollars must shift to cities which are more climate resilient. Byerlee disagrees.

“There is overwhelming and convincing evidence that agricultural growth is important for poverty reduction and food security,” said Byerlee. “Look at the Green Revolution in Asia and the institutional reforms in China in the early 1980s.”

The 2008 World Development Report also found GDP growth from agriculture benefits the income of the poor two to four times more than GDP growth from non-agriculture. So why isn’t this working for sub-Saharan Africa?

Byerlee points to Africa’s history of poor macroeconomic policies that have disadvantaged African farmers. Smallholder farmers have traditionally been taxed at high levels (as much as 50 percent 20 years ago before liberalization programs started kicking in). Rates have come down dramatically to 15-20 percent, but are still significantly higher than other countries.

“African states must level the playing field,” said Byerlee.

Government investment in public goods at four percent of agricultural GDP still lags behind that enjoyed by most other countries. That is less than half of what has been spent in Asia over the last couple of decades where investment in core public goods, R&D, rural roads, and irrigation have really made a difference.

Access to land and finance must also improve to support the growth of smallholder agribusiness. This especially includes secure, low cost, and transferrable land rights to allow efficient smallholders to expand.

Greater investment is also needed in technology and information. Research and development in Africa have been traditionally underfunded and understaffed. Despite involvement of agricultural research groups such as CGIAR over the last 40 years, only 35 percent of food crop area is planted to improved varieties. Smallholder farmers also often lack business development skills and access to primary education – a critical constraint to growth.

Reasons for optimism

Many of these macropolicies are slowing changing, and that makes Collier and Byerlee hopeful.

“After four decades in sub-Saharan Africa I feel optimistic about Africa’s food systems and future,” said Byerlee. “I see exciting opportunities in terms of market growth, private interest, and improved policies.”

Yields in Africa are low, but there is room for significant improvement. The continent is home to potentially 240 million hectares of uncultivated land and less then 20 percent of irrigation potential has been tapped.

African agricultural systems are transforming rapidly in response to rising rates of income growth, urbanization, and shifts in demand for high value and processed food, and feed for livestock. Higher food prices are incentivizing farmers to enter the market and increasing farmer income. Regional markets now accounting for only 5-10% of trade have much potential to expand, and Byerlee projects the value of African urban food markets to quadruple over the next 20 years.

Renewed investment in Africa is another reason for optimism. After decades of declining support donor agencies are refocusing their efforts on supporting agricultural development in Africa. Private sector investment, ranging from local to foreign investors, is also increasing. Collier spoke of the value pioneer commercial investors are bringing to unused and underutilized, but arable lands in Africa. These larger investors are better able to internalize the benefits of infrastructure supply while creating jobs and opening new markets.

The spur in foreign investment has drawn some fire from opponents worried about ‘land grabbing’. Collier and Byerlee both pointed out the need to differentiate between commercial investors and land speculators. The latter are being scrutinized, and for good reason.

Land speculators are leasing huge tracts of land over long time horizons and banking on the land’s option value if there is a big spike in food prices. This takes potentially arable land out of near-term production and out of the hands of local communities. Byerlee suggests governments impose controls on how rapidly the land is developed as one way of managing this problem.

What will a successful African food system look like in 2050?

"African peasantry as we know it today will not be preserved," projects Collier.

“If commercialization is successful most Africans will live in big coastal cities like the US and Europe,” said Collier. “Most of the remaining rural population will move to the hinterland of the big cities, because profitable agriculture will be selling into the big cities from close vicinity."

He envisions a mixture of different types of commercial agriculture ranging from consolidated family farms as is the norm in the US to large-scale enterprises as seen Brazil, but agriculture will not employ a lot of people. He sees an opportunity for commercial agriculture to piggyback off the infrastructure put in place by extractive natural resource companies.

Byerlee foresees Africa headed down a path similar to Thailand where a more egalitarian, smallholder commercial farmer model dominates (2-5 hectares). Large-scale farming has a legacy of failure in Africa, he said. He sees better prospects for large-scale irrigated rice and perhaps oil palm. Oil palm was actually an African crop prior to moving primarily to Malaysia and Indonesia. The value of South East Asian exports of palm oil is now greater than all agricultural exports from sub-Saharan Africa. In fact, Africa now imports $3.5 billion in palm oil.

“With billions of dollars at stake, big Asian companies are investing in Africa with the potential to create millions of jobs,” said Byerlee. “Oil palm could be a really big opportunity to transform African agriculture in the humid tropics, but state support is needed to facilitate inclusion of smallholders and safeguard social and environmental standards."

Africa has the natural resources to become a major player in the global agricultural export market and to bring down its alarmingly high malnutrition and poverty rates. What’s needed now is the political will, guidance, and investment to make that happen.

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Successful adaptation of agriculture to ongoing climate changes would help to maintain productivity growth and thereby reduce pressure to bring new lands into agriculture. In this paper we investigate the potential co-benefits of adaptation in terms of the avoided emissions from land use change. A model of global agricultural trade and land use, called SIMPLE, is utilized to link adaptation investments, yield growth rates, land conversion rates, and land use emissions. A scenario of global adaptation to offset negative yield impacts of temperature and precipitation changes to 2050, which requires a cumulative 225 billion USD of additional investment, results in 61 Mha less conversion of cropland and 15 Gt carbon dioxide equivalent (CO2e) fewer emissions by 2050. Thus our estimates imply an annual mitigation co-benefit of 0.35 GtCO2e yr−1 while spending $15 per tonne CO2e of avoided emissions. Uncertainty analysis is used to estimate a 5–95% confidence interval around these numbers of 0.25–0.43 Gt and $11–$22 per tonne CO2e. A scenario of adaptation focused only on Sub-Saharan Africa and Latin America, while less costly in aggregate, results in much smaller mitigation potentials and higher per tonne costs. These results indicate that although investing in the least developed areas may be most desirable for the main objectives of adaptation, it has little net effect on mitigation because production gains are offset by greater rates of land clearing in the benefited regions, which are relatively low yielding and land abundant. Adaptation investments in high yielding, land scarce regions such as Asia and North America are more effective for mitigation.

To identify data needs, we conduct a sensitivity analysis using the Morris method (Morris 1991 Technometrics 33 161–74). The three most critical parameters for improving estimates of mitigation potential are (in descending order) the emissions factors for converting land to agriculture, the price elasticity of land supply with respect to land rents, and the elasticity of substitution between land and non-land inputs. For assessing the mitigation costs, the elasticity of productivity with respect to investments in research and development is also very important. Overall, this study finds that broad-based efforts to adapt agriculture to climate change have mitigation co-benefits that, even when forced to shoulder the entire expense of adaptation, are inexpensive relative to many activities whose main purpose is mitigation. These results therefore challenge the current approach of most climate financing portfolios, which support adaptation from funds completely separate from—and often much smaller than—mitigation ones.

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Environmental Research Letters
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David Lobell
Thomas Hertel
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Rapid population growth, urbanization and rising incomes will present an unprecedented opportunity for growth of commercial agriculture and agribusiness in coming years. The value of food consumed in urban areas is set to expand by four times to 2030, but given evidence of a continuing decline in competitiveness much of this could be sourced from imports even in countries with an apparent comparative advantage in agriculture. At the same time, the number of youth entering the labor force will rise to 25 million annually by 2025 putting tremendous pressure on job creation, especially through agriculture. Rising investments in large-scale farming seen in recent years may contribute to increased food supply (although this is highly uncertain given the track record) but some investment, especially in mechanized grain farms, provide few jobs. Even so there is a dire need for increased investment in the sector, both public and private, if it is to realize its potential for growth and poverty reduction.

This paper lays out a number of models of inclusive agribusiness growth, grouped into three categories (i) institutional arrangements for improving productivity of smallholders operating in spot markets, (ii) various types of contract farming arrangements, and (iii) large-scale farms that generate jobs and/or include community equity shares. The institutional and policy context as well as commodity characteristics that favor these models are discussed within a simple transactions cost framework. Examples of apparent successes with each of these models are provided, many based on direct interviews and case studies of innovative firms.

The final section discusses cross-cutting policy priorities to enable the growth of commercial agriculture and agribusiness. These include continuing reforms to liberalize product and input markets, access to technology and skills, stimulating financial and risk markets, securing land rights, and investment in infrastructure through public-private partnerships. Priorities differ by value chain and implementation presents challenges of delicately balancing state intervention and leadership with private initiative. These challenges are illustrated through examples from Africa as well as emerging countries of Asia and Africa.

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Evaluating the contribution of weather and its individual components to recent yield trends can be useful to predict the response of crop production to future climate change, but different modeling approaches can yield diverging results. We used two common approaches to evaluate the effect of weather trends on maize (Zea mays L.) and wheat (Triticum aestivum L.) production in 12 U.S. counties, and investigate sources of disparities between the two methods. We first used the Decision Support System for Agrotechnology Transfer (DSSAT) model from 1984 to 2008 to evaluate the contribution of weather changes to simulated yield trends in six counties for each crop, each county being located in one of the top 10 U.S. producing states for that crop. A parallel analysis was conducted by multiplying inter-annual weather sensitivity of county-level yields with observed weather trends to estimate weather contributions to empirical yield trends. Weather had a low (maize) to high (wheat) contribution to simulated yield trends, with rain having the largest effect. In contrast, weather and rain had lower contributions to empirical yield trends. Along with evidence from previous studies, this suggests that DSSAT may be too sensitive to water thus inflating the importance of rain. Moreover, the time period used to compute yield trends also had a large effect on the importance of weather and its individual components. Our results highlight the importance of using multiple computation approaches and different time periods when estimating weather-related yield trends.

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Agronomy Journal
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David Lobell
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Sharon Gourdji
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Scientists are making progress in helping millions of wheat farmers adapt to hotter conditions, but the gains have been uneven, reports a new study led by Stanford University. New approaches to breeding are needed to withstand increasingly common heat waves and keep pace with growing global food demand.

Wheat is the most widely grown crop in the world; unfortunately it is also one of the most sensitive to future global warming. Scientists around the world strive to develop new wheat varieties each year that incorporate improved features, much like car companies release new models each year. Different strategies are commonly used; some target fully irrigated conditions that favor very high yields, while others focus on dry and hot conditions where yield maintenance under stress is a priority.

The team, which includes scientists from Stanford and the International Maize and Wheat Improvement Center (known as CIMMYT), evaluated 25 years of data from historical trials around the globe and analyzed the outcome of different past breeding approaches to help prioritize future strategies. The fully irrigated nursery, known as the elite spring wheat yield trials, produces varieties that are released for the majority of wheat farmers in countries like India and Egypt each year. While cultivars selected under stressed conditions showed significant yield progress at higher temperatures, the elite trials did not.

“There has been very impressive progress in improving yields for the elite varieties at the cooler temperatures that wheat prefers,” explains lead author Sharon Gourdji, a post-doctoral scholar in Stanford’s department of Environmental Earth System Science and Center on Food Security and the Environment (FSE).

“However, to date, our analysis shows a lack of yield gains for these varieties in hot environments over the past 25 years. Along with the gains in cool conditions, this means that the yield difference between cool and hot conditions is getting larger.”

A CIMMYT researcher plants wheat seed in pots in the center's greenhouse facilities. Photo credit: X. Fonseca/CIMMYT

"I think we have learned that the current main approach to breeding won't quite cut it in terms of adapting wheat to climate change,” said co-author David Lobell, assistant professor in Environmental Earth System Science and FSE center fellow. “That is useful information as breeding centers try to raise their game to contend with long-term warming."

Lobell notes that there are good reasons why improved heat tolerance for the elite varieties has not happened naturally.

“Breeding is tough since scientists are aiming for so many traits at once – for example, disease resistance, high yields, and good quality for bread making. Adding heat tolerance is like telling a scout looking for a superstar athlete, ‘by the way, make sure he’s a straight A student’,” said Lobell.

One important lesson from the study is that sifting through historical data can help identify what works and what does not.

“It can often be a hard sell to have breeders take the time to send their data back once they have selected their varieties and moved on,” explains CIMMYT wheat physiologist and co-author Matthew Reynolds. “This study clearly demonstrates the advantage of having these data to assess progress. It shows the genetic potential of wheat to adapt to warmer-than-usual conditions, and reinforces the value of screening under stress as a strategy for adaptation to climate change.”

The progress in the nursery targeted towards stress conditions shows that it is possible to make sizable gains in improving heat tolerance. But whether this can be combined with continued high performance under cooler conditions remains to be seen.

“It is critically important for farmers that they not only survive the bad or hot years, but that they can take full advantage of the favorable years” says Gourdji. “What is needed is a breeding strategy that can successfully achieve both.”

This work was supported by a grant from the Rockefeller Foundation. Additional co-authors of the study include CIMMYT’s Ky Mathews and Jose Crossa.

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Genetic improvements in heat tolerance of wheat provide a potential adaptation response to long-term warming trends, and may also boost yields in wheat-growing areas already subject to heat stress. Yet there have been few assessments of recent progress in breeding wheat for hot environments. Here, data from 25 years of wheat trials in 76 countries from the International Maize and Wheat Improvement Center (CIMMYT) are used to empirically model the response of wheat to environmental variation and assess the genetic gains over time in different environments and for different breeding strategies. Wheat yields exhibited the most sensitivity to warming during the grain-filling stage, typically the hottest part of the season. Sites with high vapour pressure deficit (VPD) exhibited a less negative response to temperatures during this period, probably associated with increased transpirational cooling. Genetic improvements were assessed by using the empirical model to correct observed yield growth for changes in environmental conditions and management over time. These ‘climate-corrected’ yield trends showed that most of the genetic gains in the high-yield-potential Elite Spring Wheat Yield Trial (ESWYT) were made at cooler temperatures, close to the physiological optimum, with no evidence for genetic gains at the hottest temperatures. In contrast, the Semi-Arid Wheat Yield Trial (SAWYT), a lower-yielding nursery targeted at maintaining yields under stressed conditions, showed the strongest genetic gains at the hottest temperatures. These results imply that targeted breeding efforts help us to ensure progress in building heat tolerance, and that intensified (and possibly new) approaches are needed to improve the yield potential of wheat in hot environments in order to maintain global food security in a warmer climate.

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Proceedings of the Royal Society B
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David Lobell
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FSE affiliated faculty member Pamela Matson was the keynote speaker at the Senator George J. Mitchell Center at the University of Maine. Her talk focuses on what is needed to transition to a sustainable world. She frames her lecture around FSE's agricultural sustainability research in the Yaqui Valley, Mexico.
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Wheat is a staple crop throughout much of India, but in many areas it is commonly sown past the optimum yield window. A study led by FSE associate director David Lobell uses satellite measurements to estimate a decade’s worth of sow dates in wheat-growing areas of India.

The study finds, among other developments, that wheat was sown one week earlier by 2010 than it was at the beginning of the decade, a change that explains 5% in country-wide yield gains. It also predicts that yield benefits from sow date shifts will likely diminish in the next decade.

"There's an important, one time boost farmers have gotten recently from moving into the optimum sowing window, but the data suggest this effect will run out of steam in the coming years," says Lobell.

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Without coordinated global action on climate change, it will be increasingly hard to reduce poverty in the world's poorest countries, said UN Development Program Administrator Helen Clark. Clark's visit to campus comes a few weeks before global climate negotiations are set to begin in Doha, Qatar. 

She highlighted ways in which climate change will, and is already, impacting food security in the world's most vulnerable regions: 

  • The IPCC’s climate projections indicate that an increasingly dry and hot climate will make sub-Saharan Africa less suitable for agriculture, reducing the length of growing seasons, lowering yields, and shrinking revenue. Some African countries could see agricultural yields decrease by 50 percent by 2050.
  • Researchers studying the Indian Ocean have concluded that human-caused warming there will make rainfall in the Horn of Africa even more erratic and severe drought more frequent.
  • The cumulative impact of extreme weather, rising temperatures and water stress on staple crops is making global food prices more volatile. Food price spikes disproportionately impact the world’s poor who spend up to 75 percent of their income on food--sparking riots and instability.
  • The World Food Programme estimates that climate change will put 20 percent more people at risk of hunger by mid-century.
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