Week 5.2 - Agrarian Change and Agricultural Strategies Flashcards
How much agricultural land has been degraded?
1/3 of global agricultural land has been degraded
How does soil degradation affect global crop production?
Every year, soil degradation erodes 0.5% of global crop production capacity (UNFAO 2015)
What are the key principles of conservation farming?
Stop ploughing
Plant cover crops
Promote crop diversity
What are the potential benefits of conservation farming?
Can feed the world, cool the planet, reduce pollution, and make family farming profitable
What are the major agricultural issues today?
Food security (especially post-pandemic)
Livelihoods of the poor (especially women)
Potential for economic growth
Climate change and sustainability
Land and conflict (e.g. farmer-herder conflicts in Sub-Saharan Africa)
Why is agricultural transformation central to development? (4)
Most of the population in the poorest countries still lives in rural areas
Many people still depend on agricultural incomes due to a lack of structural transformation
Poverty is still concentrated in rural areas
Agricultural transformation is critical for both industrial development and addressing climate challenges
What percentage of the population is rural in LDCs and SSA?
63.6% in LDCs (2023, WDI)
57% in SSA (2023, WDI)
How does demographic pressure on land affect agriculture?
Threatens the environment
Reduces productivity
Worsens farmer-herder conflicts
What is the trend in agriculture’s contribution to GDP?
It is shrinking, even though many livelihoods still depend on the sector
Where was poverty most concentrated in 2015?
75% of the poor were in rural areas
How does agricultural productivity affect poverty reduction?
A 1% increase in GDP per worker in agriculture is twice as effective at reducing poverty as in other sectors
How does agriculture support industrial development? (7)
Labour force supply
Foreign exchange earnings
Cheap food supply
Savings accumulation
Trade revenue
Backward linkages (e.g. fertilisers, pesticides, farm equipment)
Forward linkages (e.g., food processing, chemical products)
What is agriculture’s role in climate change?
Major source of greenhouse gas emissions
Contributes to deforestation, reducing carbon sinks
How does neoclassical economics view agricultural growth?
Key to growth, poverty reduction, and sustainability is increasing total factor productivity (TFP)
Global value chains in agriculture and food are crucial (World Bank, 2019).
How does agro-ecology differ from industrial farming?
Focuses on peasant farming at the local and national levels
Rejects industrial farming and food empires
What is central to the World Bank’s agricultural strategy?
Shift from resource expansion to productivity-led growth (TFP increase)
What is the World Bank’s view on the role of the state? (agriculture)
Limited role, except in agricultural R&D (public good), land tenure security, infrastructure investment
What role does the private sector play?(agriculture)
Global value chains
Private R&D and contract farming
State-private sector partnerships
How does climate change impact agricultural policy?
A 1°C increase reduces cereal yields by 3-10% (UN FAO)
How has agricultural TFP changed globally (1971-2015)?
Varied greatly across countries
Africa and South Asia lag in cereal yield gains
What weaknesses did the pandemic expose in farming and food systems?
Financialisation of capitalism
Industrial farming reliance on large corporations (“food empires”)
Increased vulnerability of small farmers
How did the neoliberal era redefine ‘food security’?
Dependence on international markets for cheap food imports, exporting high-value agricultural products
Which farms were more vulnerable to crises?
Heavily indebted industrial farms (e.g. dairy crisis in Europe after 2008-09 financial crisis)
How does industrial farming depend on migrant labour?
Used extensively in Europe, the US, the UK, Ghana, and Côte d’Ivoire
What alternative agricultural models are proposed?
Food sovereignty
Peasant agriculture
Territorial markets
Agroecology (e.g. La Via Campesina network)
Why can smallholder farms be effective? (6)
Mobilise abundant labour (“sweat equity”)
Flexible and cheap household labour
Knowledge of micro-agro-climatic conditions
Inverse relationship between land size and productivity
Lower supervision costs.
Staples production guarantees food security
What conditions must exist for small farms to work?
Investment in public goods (irrigation, education, research)
Institutions ensuring property rights and reducing risks
Infrastructure to connect rural farms to markets
When have small farms failed?
Unfavourable global value chains
Privatized agricultural research favours large farms
Environmental degradation from intensive farming
Removal of subsidies
Pandemics affecting workers (e.g., HIV/AIDS)
Falling commodity prices
How has China supported smallholder agriculture?
Invested in staple crops
Public R&D tailored to different farm sizes
Why has SSA struggled with smallholder productivity?
Colonial history prioritised cash crops on large farms
What are the arguments for large-scale commercial farming?
Boosts labour productivity (key to poverty reduction)
Most effective way to transform SSA agriculture
What are arguments for large land acquisitions?
Tax revenue, employment, food security, investment, and environmental protection
What are arguments against large land acquisitions?
Displaces the poor, weak property rights, undermines peasant farming
What does land reform involve?
Redistribution of land and provision of productive inputs
What conditions are necessary for redistributive land reform?
State intervention, credit access, rapid implementation, and land ceilings
Why is state intervention necessary for redistributive land reform?
To transform property rights and break landowner-tenant/worker dependence
What must producers have access to for successful land reform?
Credit, input markets, and output markets
Why must land reform be implemented quickly?
To prevent landowner evasion
Why must redistributive reform be comprehensive?
Land ceilings must provide a family livelihood
How should compensation for land be handled?
Less than market-value compensation is required
What role does administrative adjudication play?
Ensures fair and efficient dispute resolution
Why should land markets be limited?
To prevent excessive land concentration and speculation
Why must we rethink high-value agricultural exports?
The “economy of freshness” requires technological advancements and strong backward and forward linkages, similar to manufacturing
How does high-value agriculture affect global labor division?
Differentiates between low-skill retail work and high-skill, tech-intensive roles in education and healthcare
How should industrial policy address agriculture?
Promote advanced horticulture and “just-in-time” fresh produce production
Why must international product classification systems change?
To direct domestic and foreign investment (FDI) into high-value agriculture
How does high-value agriculture contribute to structural transformation?
Redefines agriculture’s developmental potential in industrial and economic growth
Why is bilateral aid to agriculture important?
Low levels of agricultural aid weaken development efforts
How does climate change impact agriculture?
Alters agricultural land and production possibilities
What new trade opportunities exist in agriculture?
High-value, technology-intensive agricultural products
Why is food security a growing concern?
Affected by financial crises, climate change, and pandemics
What food safety concerns exist?
GM crops, chemical farming, and related health risks
How does rural society pose challenges to state authority?
Political and economic instability in rural areas can undermine governance
How did Covid-19 trigger a broader crisis beyond a biomedical emergency?
It led to a deep, global politico-economic crisis affecting food production, processing, distribution, and consumption
What vulnerabilities in the global food system did the pandemic expose?
Highly financialised agricultural sector dependent on credit and capital flows
Fragile balance between food imports and exports across countries
Disconnect between the financial economy and real economy
How has financialisation affected the food system?
Agriculture has become too dependent on financial capital, which often acts as a paralysing force rather than a productive one
Why does financialisation worsen crises instead of solving them?
Financial capital withdraws investments when risks increase, deepening economic instability
How did the economic impact of Covid-19 differ from the 1918 Spanish Flu?
The Spanish Flu was biomedically deadlier, but its economic impact was smaller due to the absence of financialisation in the global economy
Why did food shortages emerge even in food-exporting countries?
Most nations are both importers and exporters of food, so disruptions in trade affect all countries
How did governments respond to the emerging food crisis?
Massive financial intervention packages were deployed to prevent food shortages
What was an example of national food policies exacerbating shortages?
Rice export bans in India, Vietnam, Cambodia, and Myanmar led to immediate food shortages in Africa
Why is the global food supply chain fragile?
Highly interdependent (disruptions at one point affect the entire system)
How do “food empires” contribute to systemic fragility?
Large agribusiness corporations control production, processing, and distribution, rely on credit and debt, and are vulnerable to financial shocks
What role does trade credit insurance play in food supply chains?
It keeps supply chains functioning, if insurers cut coverage, the system collapses
How did governments prevent food chain collapse?
They stepped in to ensure trade credit insurance remained in place
How did Covid-19 reveal structural divides in agriculture?
Large, debt-ridden, mechanised farms struggled while small, peasant-like farms were more resilient
Why were smaller farms more resilient?
They rely on low external inputs, have more diversified production, and carry less debt
What historical example illustrates this divide?
Dairy farms during the 2008–2009 crisis, large debt-heavy farms suffered, while smaller diversified farms remained stable
Why is returning to normal difficult?
The mechanisms that turned Covid-19 into a broader food system crisis still exist
Why is large-scale industrial agriculture slow to recover?
It depends on global supply chains for inputs and labour and is highly specialised and inflexible
Why has peasant agriculture historically been more resilient in crises?
Self-sufficient in inputs, diverse production, strong local networks
What does food sovereignty propose as a solution?
Countries should produce at least 90% of their food domestically and reduce reliance on globalised food chains
How did local, decentralised food systems perform during Covid-19?
More resilient than industrial food supply chains
What adaptive strategies did peasant markets use?
Expanded market spaces, drive-through farmers’ markets, direct home deliveries
How did governments respond to peasant markets?
Some attempted to shut them down, but self-organisation helped them survive
Why is peasant agriculture a stable alternative to industrial farming?
More resilient, creates employment, and reduces economic precariousness
How should peasant agriculture be supported?
Through land reform, agroecological research, and policy incentives
How do privatised profits and socialised losses manifest in agriculture?
Corporations continue profiting while governments absorb financial risks
How does wealth accumulation contrast with growing poverty?
Food empires become richer, while farmers and workers struggle
How does the food system create chronic insecurity for workers?
Migrant labourers face job losses and worsening conditions
How does food waste coexist with hunger?
Food is deliberately destroyed to protect market prices, while millions starve
Why is migrant labour a contradiction in the food system?
Essential for agriculture but simultaneously persecuted
What is the hegemonic response to the crisis?
Policymakers aim to return to “business as usual” despite clear failures
Why is cooperation between the state and social movements necessary?
To coordinate food sovereignty, peasant agriculture, and local markets into a coherent system
What challenges exist in reforming the food system?
Defining the role of the state in supporting alternatives
Strengthening cooperation between governments and social movements
How is industrial agriculture linked to global crises?
Contributes to climate change, biodiversity loss, and low animal welfare
How has the financialisation of agriculture worsened its vulnerabilities?
Made food production highly dependent on financial markets, increasing instability
What weaknesses of industrial agriculture did Covid-19 reveal?
Inability to quickly adapt to disruptions due to reliance on global supply chains
What are the public health risks of industrial agriculture?
Associated with outbreaks of zoonotic diseases
How has the pandemic intensified land concentration?
Capital groups are acquiring land as a safe investment, accelerating rural inequality
How does financial capital influence land use?
Shifts agriculture towards profit-driven production rather than food sovereignty
What impact does land grabbing have on small farmers?
Dispossession and limited access to land for peasant agriculture
How is land being repurposed due to financial capital?
Increasingly used for industrial farming, biofuels, and export crops instead of local food production
How does peasant farming differ from large-scale industrial farms?
Operates on local markets, making it less vulnerable to global supply chain shocks
How does peasant agriculture support sustainability?
Encourages biodiversity and sustainable food production, unlike monoculture systems
Why has agricultural innovation been historically important?
It has driven human advancement for millennia
(India (3000–2500 BCE) – Early Vedic texts mention agricultural technology, China (535 CE) – Jia Sixie’s Qimin Yaoshu emphasized labour-saving techniques, Rome (160 BCE) – Cato the Elder’s De Agricultura stressed farming’s societal importance)
Why is improving agricultural productivity essential today?
Ensures food security for a growing population
Reduces extreme poverty, as 2/3 of the global extreme poor depend on farming
Promotes economic stability, especially in low-income nations
Why does productivity growth in agriculture reduce poverty?
Has the greatest impact on poverty reduction, as seen in China and East Asia
Urban manufacturing and services have not expanded enough to absorb rural labour in developing countries
Despite global productivity increases, why does hunger persist?
821 million people remained undernourished in 2017
Conflict and climate change are major causes
Climate models predict 1–2°C warming by 2050, reducing global cereal yields by 3–10% per 1°C increase
Why does productivity grow slower in poor countries?
Sub-Saharan Africa: crop yields have only doubled in 40 years
South Asia: yields have tripled
East Asia: yields have increased sixfold
What is the shift in agricultural growth strategies?
From resource-led growth (expanding land, water, and inputs) to productivity-led growth (using resources more efficiently)
How has TFP contributed to agricultural growth?
2001–2015 –> over 2/3 of global agricultural growth came from TFP
1960s–> TFP accounted for only 20% of agricultural growth
Developing countries –> 60% of agricultural growth now driven by TFP
Why is better productivity measurement necessary?
Productivity differences between regions must be understood
Environmental factors (land quality, water use, greenhouse gas emissions) should be included in assessments
What are the key technological drivers of TFP growth?
Biotechnology, mechanisation, and digital agriculture
Adoption of high-value crops and quality-focused production
What are the pathways to improving agricultural productivity?
Reallocating resources (moving land, labour, and capital to more productive farms/sectors)
Technology adoption (precision farming, improved irrigation)
Entry of productive farms, exit of inefficient farms
Why do small farms often outperform large farms in developing countries?
More productive per hectare than large farms
Has land redistribution to smallholders improved productivity?
Rarely successful in boosting productivity
How should land markets be structured?
Efficient land markets should allow productive farms (regardless of size) to expand
How can small farms improve productivity?
Mini-tractors, solar-powered irrigation increase smallholder efficiency
Why has the traditional view of labour misallocation been questioned?
Productivity gaps between agriculture and industry may be due to capital differences, not misallocation
What explains much of the wage gap between agriculture and industry?
Human capital differences (education, age, gender)
Why might sectoral productivity differences be smaller than assumed?
Many rural workers engage in non-agricultural activities, reducing the apparent productivity gap
Why is agricultural R&D important?
Yields high returns –> ver 40% per year in developing countries
Why is Africa lagging in agricultural R&D?
Limited research funding
Declining research capacity in universities
What are policy solutions for strengthening R&D? (agriculture)
Autonomy for public research institutions to increase efficiency
Performance-based incentives for scientists
Stable and diversified financing (e.g. farmer levies, public-private partnerships)
International R&D collaboration (e.g. CGIAR institutions)
How can governments encourage private R&D investment?
Reduce regulatory barriers to innovation
Strengthen intellectual property rights
Support public-private partnerships to transfer innovations to farmers
Why do farmers not adopt available technologies? (7)
Policy biases (taxation of agriculture, preference for urban sectors)
Low education levels (limits ability to evaluate new technologies)
Poor information flow (requires better agricultural extension services)
Limited access to finance (restricts investment in modern practices)
High risk of technology adoption (discourages investment)
Weak land tenure security (reduces willingness to invest in improvements)
Poor rural infrastructure (makes technology adoption unprofitable due to high transport costs)
How do value chains benefit farmers?
Provide technology, credit, insurance, and market access through integrated contracts
Improve farm productivity and output prices
Encourage contract-based farming models
What are policy priorities for developing agricultural value chains? (5)
Encourage market competition for fair pricing
Ease trade barriers for agricultural exports
Strengthen contract enforcement between farmers and buyers
Invest in rural infrastructure (roads, cold storage)
Ensure fair profit distribution to benefit smallholders
What are the main challenges? (agricultural productivity growth)
Climate change (rising temperatures reduce crop yields)
Degrading natural resources (soil and water depletion)
Food security threats (especially in Africa, South Asia, Latin America)
How has Sub-Saharan Africa lagged in agricultural productivity growth?
Cereal yields stagnating at 1.5 tons/hectare, compared to growth in South Asia and East Asia
What are the three sources of agricultural growth?
Land expansion (increasing cultivated area, improving land quality)
Input intensification (using more inputs per hectare (labour, fertiliser, machinery))
TFP growth (using inputs more efficiently)
What are the key productivity measurement methods?
Gross output-based TFP (FAO)
Value-added TFP (World Bank)
Labour productivity (output per worker)
Why do different methodologies matter of measuring agricultural productivity?
They can lead to variation in reported productivity growth (e.g. Nigeria’s agricultural growth appears inflated when compared across methods)