Achieving SDG2 (zero hunger) in a situation of rapid global population growth requires a continued focus on food production. Farming not merely needs to sustainably produce nutritious diets, but should also provide livelihoods for farmers, while retaining natural ecosystems and services. Rather than focusing on production principles, this article explores the interrelations between farms and farming systems in the global food system. Evaluating farming systems around the world, we reveal a bewildering diversity. While family farms predominate, these range in size from less than 0.1 ha to more than 10,000 ha, and from hand hoe use to machine-based cultivation, enabling one person to plant more than 500 ha in a day. Yet, farming in different parts of the world is highly interdependent, not least because prices paid for farm produce are largely determined by global markets. Furthermore, the economic viability of farming is a problem, globally. We highlight trends in major regions of the world and explore possible trajectories for the future and ask: Who are the farmers of the future? Changing patterns of land ownership, rental and exchange mean that the concept of ‘what is a farm’ becomes increasingly fluid. Next to declining employment and rural depopulation, we also foresee more environmentally-friendly, less external input dependent, regionalised production systems. This may require the reversal of a global trend towards increasing specialisation to a recoupling of arable and livestock farming, not least for the resilience it provides. It might also require a slow-down or reversal of the widespread trend of scale enlargement in agriculture. Next to this trend of scale enlargement, small farms persist in Asia: consolidation of farms proceeds at a snail’s pace in South-east Asia and 70% of farms in India are ‘ultra-small’ – less than 0.05 ha. Also in Africa, where we find smallholder farms are much smaller than often assumed (< 1 ha), farming households are often food insecure. A raft of pro-poor policies and investments are needed to stimulate small-scale agriculture as part of a broader focus on rural development to address persistent poverty and hunger. Smallholder farms will remain an important source of food and income, and a social safety net in absence of alternative livelihood security. But with limited possibilities for smallholders to ‘step-up’, the agricultural engine of growth appears to be broken. Smallholder agriculture cannot deliver the rate of economic growth currently assumed by many policy initiatives in Africa.
This study examines the nature of the relationship between formal agricultural credit and agricultural GDP in India, specifically the role of the former in supporting agricultural growth, using state level panel data covering the period 1995-96 to 2011-12
AbstractThis study examines the nature of the relationship between formal agricultural credit and agricultural GDP in India, specifically the role of the former in supporting agricultural growth, using state level panel data covering the period 1995-96 to 2011-12. The study uses a mediation analysis framework to map the pathways through which institutional credit relates to agricultural GDP relying on a control function approach to tackle the problem of endogeneity. The findings from the analysis suggest that over this period, all the inputs are highly responsive to an increase in institutional credit to agriculture. A 10 % increase in credit flow in nominal terms leads to an increase by 1.7% in fertilizers (N, P, K) consumption in physical quantities, 5.1% increase in the tonnes of pesticides, 10.8% increase in tractor purchases. Overall, it is quite clear that input use is sensitive to credit flow, whereas GDP of agriculture is not. Credit seems therefore to be an enabling input, but one whose effectiveness is undermined by low technical efficiency and productivity. Notwithstanding these aggregate findings detailed microstudies would be necessary to provide insights into this issue.
This article is part of a larger research effort to understand the consequences of the lockdown in response to Covid 19 on agri-food markets and supply chains. We thank volunteers from Hard Work, No Pay for participating in the Food Price Survey. We also thank Karthikeya Naraparaju for his assistance, Meraj Ahmed, Nishant Gupta and Aaditeshwar Seth for support with data. We remain responsible for the contents of this paper.
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