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Book (stand-alone)Agricultural value chains and social and environmental impacts: Trends, challenges, and policy options
Background paper for The State of Agricultural Commodity Markets (SOCO) 2020
2020Also available in:
No results found.With the global population approaching 8 billion, the role of agricultural value chains (VCs) is increasingly important in ensuring sustainable and equitable food production. However, in developing countries, market failures can prevent small farmers from fully participating in domestic and global value chains, and issues related to climate change create further challenges. Moreover, greening policies and actions, as well as concerns regarding nutritional outcomes, add complexity to providing nutritious high-quality food to feed a growing population. In this context, it is critical to examine how markets can be shaped to be pro-poor and to reduce negative social and environmental externalities. The current paper examines policies, institutional arrangements, and initiatives that target and affect different agricultural supply chain actors to improve environmental and social outcomes. Specifically, it reviews the non-economic consequences associated with the current operation and structure of global and domestic food value chains and identifies successful private and public strategies to shape food markets that foster non-economic benefits (social and environmental). The paper provides key lessons and discusses policy implications on how markets can generate balanced economic objectives that also achieve desired nutritional, social, and environmental outcomes. It also highlights areas of future research to further understand the linkages between market forces shaping food value chains (FVCs) and non-economic outcomes. -
BookletCredit to agriculture
Global and regional trends 2012–2021
2022Also available in:
No results found.Access to formal credit is critical to farmers for purchasing inputs such as seeds, fertilizers, plant protection materials or animal feed. In the absence of personal savings, borrowing from informal sources (such as moneylenders, relatives and friends) may involve unduly high interest rates and unfavourable conditions, which may make many agricultural operations uneconomical. The lack of access to credit is particularly problematic for farmers as there is a gap between the time that money is spent on cultivating crops or raising livestock, and the time money is made from the sale of the products. Credit to agriculture measures the amount of loans and advances given by the banking sector to farmers or to rural households, to agricultural cooperatives or to any agri-related businesses. FAOSTAT provides credit data series from 1991 to 2021. This briefs analyses the global and regional trends for the period 2012 to 2021. -
BookletCredit to agriculture
Global and regional trends 2014–2023
2024Also available in:
No results found.Affordable credit is critical in agriculture due to the natural gap between expenditure and revenue. Farmers usually invest in inputs like seeds, fertilizers, plant protection materials or animal feed during the planting or livestock-raising phase but only generate income after selling their production. Without timely access to affordable credit, farmers may struggle to sustain or expand their operations.FAOSTAT provides total credit data series from 1991 to 2023 for over 212 countries and credit to agriculture data series for over 130 countries. According to the latest data, credit to agriculture increased by 28 percent in real terms, rising from USD 952 billion in 2014 to USD 1 215 billion in 2023, while total loans across all industries grew by 46 percent, from USD 36.3 trillion to USD 52.8 trillion.
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