48
Future TFP growth in North America will be driven by innovations such as
advanced crop and livestock breeding and data systems that monitor plant growth
and animal health. However, public sector investments in the research and
development (R&D) that drive agricultural innovation has slowed in the United
States and in many high-income countries (Fig. 2.8).
For high-income countries, the growth rate in spending for public agricultural
R&D averaged 4% annually between 1960 and 1990. Between 1990 and 2009, the
growth rate declined to just 1.3% annually and then began to contract between 2009
and 2013, declining on average 1.5% annually.
Public R&D provides discoveries that are the foundation for further private sector innovation; lower public investments constrict the innovation pipeline. Private
sector research investments, while significant, cannot make up the public R&D
funding gap. Increased public sector R&D investments are needed to reinvigorate
productivity growth. Additionally, as urbanization increases, so does competition
for land and water resources. Continued farm consolidation will create some additional efficiencies, but land and water-use policies must balance the resource needs
of agricultural producers with those of their urban customers.
2.6.2 Growing Productivity While Protecting Against Risk
Globally, productivity growth must continue to be a priority to sustainably meet the
demand for food, feed, fiber, and biofuel. Yet productivity alone is insufficient to
achieve economically, environmentally, and socially sustainable food and agriculture systems.
farms, experimenting with practices that can boost their own production, individually they do not have the capacity to conduct long-term research and
development activities.
Public R&D provides foundational results that the private sector can further develop to improve specific crops, livestock, machinery, or food manufacturing industries. R&D and extension services help producers control
costs, reduce loss and waste, and become resilient to weather challenges and
climate change while conserving natural resources.
Countries that build national agricultural research systems (NARS) capable of producing a steady stream of innovations suitable for local farming
systems, such as Brazil’s EMBRAPA, have generally achieved higher growth
rates in agricultural productivity than countries that do not make these
investments.
(continued)
A. Steensland and M. Zeigler
Future TFP growth in North America will be driven by innovations such as
advanced crop and livestock breeding and data systems that monitor plant growth
and animal health. However, public sector investments in the research and
development (R&D) that drive agricultural innovation has slowed in the United
States and in many high-income countries (Fig. 2.8).
For high-income countries, the growth rate in spending for public agricultural
R&D averaged 4% annually between 1960 and 1990. Between 1990 and 2009, the
growth rate declined to just 1.3% annually and then began to contract between 2009
and 2013, declining on average 1.5% annually.
Public R&D provides discoveries that are the foundation for further private sector innovation; lower public investments constrict the innovation pipeline. Private
sector research investments, while significant, cannot make up the public R&D
funding gap. Increased public sector R&D investments are needed to reinvigorate
productivity growth. Additionally, as urbanization increases, so does competition
for land and water resources. Continued farm consolidation will create some additional efficiencies, but land and water-use policies must balance the resource needs
of agricultural producers with those of their urban customers.
2.6.2 Growing Productivity While Protecting Against Risk
Globally, productivity growth must continue to be a priority to sustainably meet the
demand for food, feed, fiber, and biofuel. Yet productivity alone is insufficient to
achieve economically, environmentally, and socially sustainable food and agriculture systems.
farms, experimenting with practices that can boost their own production, individually they do not have the capacity to conduct long-term research and
development activities.
Public R&D provides foundational results that the private sector can further develop to improve specific crops, livestock, machinery, or food manufacturing industries. R&D and extension services help producers control
costs, reduce loss and waste, and become resilient to weather challenges and
climate change while conserving natural resources.
Countries that build national agricultural research systems (NARS) capable of producing a steady stream of innovations suitable for local farming
systems, such as Brazil’s EMBRAPA, have generally achieved higher growth
rates in agricultural productivity than countries that do not make these
investments.
(continued)
A. Steensland and M. Zeigler