Importance of Agriculture
We believe innovation is the answer to today’s agricultural challenges.
A slice of bread we eat connects a global web of farmers, seed companies, pesticide retailers, shipping services, storage, food processing, bakery and many other people involved in getting food from farm to table. However, people usually take it for granted, and hardly think about the stories behind food, the basic necessity of human existence.
Challenges and Expectations
The challenges for agriculture is to ensure global food security for a growing population and providing a livelihood for farmers, while mitigating negative impact on environment and preserving natural resources for future generation.
Food is a trivial thing for some people, but for others, it is a matter of life. The global food supply chain is supposed to feed a population of 7.5 billion today, to around 10 billion by 2050. Farming often represents the most important economic sector for vulnerable households in emerging and developing countries, who rely upon farming to provide food and support for their families.
Hunger is not evenly distributed around the world. According to World Bank statistics, more than 700 million people, or 10 percent of the world population, are living in extreme poverty and under-nourished, despite the fact that there is enough food to feed everyone. The primary reason of hunger is rooted on fragility, conflict and violence in particular country area and regions.
Agricultural land area is approximately five billion hectares, which occupies nearly 40% of the earth’s surface. Only 12% of this is used as cropland, while the remaining others are used for livestock farming. Agricultural water is used for irrigation, fertilizer and pesticide applications, and comprises about 70% of global freshwater withdrawals.
Policy makers have put forward higher requirements and expectations for the planting industry:
- Improve land productivity to combat hunger
- Boost farmer income
- Set up a system of farming standards
- Enhance farming management practices
- Minimize pollution discharges
- Curtail damages to biodiversity
Consumers also raise standards and expect to have:
- Easy food accessibility with reasonable prices
- Better food quality and taste
- Green and more sustainable diet
Modes of Agricultural Production
Land ownership is a determinant of agricultural income. In more developed counties, large-scale farming allows farmers to take advantage of economies of scale. While in emerging and developing countries, fragmented landownership often results in unprofitability for small farmers.
Here are four classic agricultural production modes in the world:
- Large-scale agriculture with mechanized farming, typical countries include United States, Canada, Australia, Brazil, etc.;
- High-quality agriculture with certain degree of scale, especially those with branding strength of local landmarks, such as Spain, Italy, France, Germany, etc.;
- High-value agriculture with elongated value chain based on agriculture and related industry development, like tourism. Typical representatives include Japan, South Korea, etc.;
- Small-scale agriculture with unstable output and low profit. Half of the developing countries are still belong to this stage.
Reality Lies before Farmers
Farmers are expected to meet the higher demand of government and consumers, but there is still a gap between reality and expectations. Farmers at different stages of agricultural development will encounter different problems. Disparity in basic conditions listed below will result in problems vary from small to big, easy to difficult:
- Nature resources, like suitable climate, arable land, water resources for irrigation;
- Demographic factors, like population growth or distribution in different regions;
- Social economic factors. Urbanization usually results in higher demand and lower local supply of food because labor force shifts from agriculture to industry and service sectors;
- Science and innovation. Modern technology like digital agriculture and drones allow farmers to use resources more wisely and efficiently;
- Government infrastructure, like water reservoir, warehouse, electricity, transportation;
- Politics, like globalization, international trade and most importantly, political stability.
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