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Agricultural digitalization and automation in low- and middle-income countries: Evidence from ten case studies

Background paper for The State of Food and Agriculture 2022












McCampbell, M. 2022. Agricultural digitalization and automation in low- and middle-income countries: Evidence from ten case studies. Background paper for The State of Food and Agriculture 2022. FAO Agricultural Development Economics Technical Study No. 25. Rome, FAO.




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    Digital and automation solutions for precision agriculture can improve efficiency, productivity, product quality and sustainability. Nevertheless, barriers to adoption of such solutions – including their cost, lack of knowledge and skills, and the absence of an enabling environment and infrastructure – can prevent producers from realizing these benefits. Building on findings from 22 case studies worldwide, this study finds that national data policies and infrastructure are key enablers of adoption, as is investment in connectivity (e.g. internet) and electricity in rural areas. Further research and information on the economic, environmental and social impacts of the solutions are also needed to provide evidence on their benefits. So too is investment in human capacity development, particularly digital literacy. To ensure an inclusive process, solutions must be adapted across agricultural production systems, regions and farm types. Partnerships and networks for exchanging information and promoting collaboration will key. Finally, awareness raising and communication are important since consumers can be skeptical about food being produced by new technologies. In summary, by focusing on a variety of solutions, this study provides a landscape analysis of digital and automation solutions and offers guidance to accelerate adoption for more inclusive, sustainable and resilient agrifood systems.
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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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