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Automation and social impacts: winners and losers

Background paper for The State of Food and Agriculture 2022












Charlton, D., Hill, A.E. & Taylor, J.E. 2022. Automation and social impacts: winners and losers. Background paper for The State of Food and Agriculture 2022. FAO Agricultural Development Economics Working Paper 22-09. Rome, FAO.



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    Transforming agriculture with digital automation 2022
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    The adoption of digital automation technologies in agriculture has been slow despite its potential to enhance the precision of agricultural operations, improve working conditions, and address environmental challenges, while building resilience to shocks and stresses. Most technologies are still relatively new and costly, especially for low- and middle-income countries, where poor connectivity and energy supply, and limited human capacity further hinder adoption. Incentivizing uptake requires creating a conducive business environment and suiting technologies to local conditions, especially for small-scale agriculture.
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    Agricultural automation reshapes the labour market. In situations of rising wages and labour scarcity, agricultural automation can stimulate employment by allowing producers to expand production and by creating jobs along agrifood systems. Conversely, when labour is plentiful and subsidies lower the cost of automation, there is a risk of job displacement and unemployment, especially for poor and low-skilled workers. Governments should neither subsidize automation, nor restrict it. Instead, they should create an enabling environment for an inclusive process of agricultural automation that ensures access by marginalized groups such as women and small-scale producers, and focuses on building the knowledge and skills of the agricultural workforce to facilitate the transition to new jobs within and outside agriculture.
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    Book (series)
    Economics of adoption for digital automated technologies in agriculture
    Background paper for The State of Food and Agriculture 2022
    2022
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    This working paper investigates the appropriateness of a wide range of digital solutions for agriculture, including in low- and middle-income countries, and, based on available evidence, summarizes the expected (social, economic and environmental) impacts of such technologies. It further discusses the main drivers and barriers to adoption, and the role of policies and regulations in creating an enabling environment.

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