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Tag: economics

Agricultural research adds billions of dollars to economy

As the world searches for effective solutions to mitigate and adapt to climate change while navigating the cost-of-living crisis, delivering food security goals alongside robust economic value is more imperative than ever in agricultural research.

CGIAR plays a vital role in this mission, aiming to transform food, land, and water systems in collaboration with its 15 Research Centers, such as CIMMYT. Now, a new study published in World Development comprehensively analyzes CGIAR’s fiscal impact on global agricultural over nearly 60 years.

The economic impact of CGIAR-related crop technologies on agricultural productivity in developing countries, 1961–2020 suggests that adoption of these technologies equates to US $47 billion annually in economic benefits, with an overall economic benefit of US $1,334 billion for the years covered by the study.

Additionally, investment in productivity gains for staple crops in developing countries has aided entire populations by securing lower food prices and generating large local growth multipliers, thus achieving a greater impact on poverty reduction when compared to productivity growth in other sectors.

CIMMYT contributes 40% of total CGIAR varietal impact

At least 221 million hectares in at least 92 countries were occupied by CGIAR crop technologies in 2020. Between 2016 and 2020, CIMMYT maize varieties accounted for 24.5 million hectares (11%) of this figure, while CIMMYT wheat varieties made up almost 74 million hectares (33%).

An example of how these CIMMYT varieties impact farmers can be seen in sub-Saharan Africa, where using improved maize seed led to an overall average increase of 38.9% in yields to 1,104 kilograms per hectare (kg/ha), equal to an increase of 429 kg/ha. With increased yields come increased profits and employment security for farmers and their families.

The frequency with which technologies are upgraded also signifies the impact of agricultural research and development (R&D) on crop productivity and the economy. On the 221 million ha planting area, many farmers utilize second or third generation technologies. For example, average varietal generation in maize is estimated to be 1.1, meaning that 10% of farmers use a second-generation variety, and most wheat farmers were also using second or third generation modern varieties. This highlights that ongoing crop research continued to impact productivity, even when the size of the adoption area remained constant.

Expanding the impact

As CGIAR’s reach and capacity have grown, economic benefits are now apparent in an increased number of global regions compared to when its work began. Initially, most economic benefits came from wheat and rice farming in Asia; however, 30% of CGIAR crop technologies now occupy sub-Saharan Africa, generating a significant share of its impact. This region remains heavily reliant upon CGIAR-related varieties, so continued investment is encouraged to maintain and build on the positive outcomes achieved to date.

“Considering the urgent need to attain nutrition security, CIMMYT always seeks ways to assure global food systems,” said Bram Govaerts, director general of CIMMYT. “This thorough analysis is a strong validation of CIMMYT’s work and its significance not just for farmers and their immediate families, but for communities and generations into the future. Our collaborative partnerships with CGIAR Research Centers and National Agricultural Research Systems (NARS) are integral in delivering successful projects that enable smallholder farmers to maximize the potential of their land.”

While similar studies have been undertaken in the past, this work takes a unique approach by drawing on a wider range of evidence built on country- and crop-specific data, such as the adoption of crop improvement technologies and productivity impacts per hectare, thereby providing a more granular assessment of CGIAR’s economic inputs.

Read the full study: The economic impact of CGIAR-related crop technologies on agricultural productivity in developing countries, 1961–2020.

Capacitating farmers and development agents through radio

Representing CIMMYT, Kinde Tesfaye (on the left) took part in the live radio programs. (Photo: CIMMYT)

The continuing increase in the number of farming families has led to a growing emphasis on approaches on how to reach more people at a time. Among others, individual, group and mass-media approaches to agricultural extension and advisory services have been used concurrently.

This year, the global COVID-19 pandemic presented yet another challenge to the agriculture sector due to travel restrictions and limited face-to-face interactions. This has obstructed capacity building for farmers as well as development agents to deliver seasonal and intra-seasonal agroclimate advisories for farmers to support farm decisions.

Realizing the importance of mass media in extension, the International Maize and Wheat Improvement Center (CIMMYT) in collaboration with the Ministry of Agriculture, the Ethiopian Institute of Agricultural Research (EIAR) and Climate Change, Agriculture and Food Security (CCAFS)-EA used live show radio program on Sunday mornings to provide climate advisories on the 2020 Kiremt (main cropping) season to farmers and extension workers on a two-weekly basis between June and November. The live show also allows listeners to call in and ask questions and provide feedback. Besides the climate agro-advisories, COVID-19 alerts and precautionary measures were provided to the radio audience.

Extremely low climate induced risk perception

CIMMYT-CASCAID II project baseline assessment indicates that the rural communities in the project intervention areas have an extremely low climate induced risk perception and are also quite resistant to change. The areas are also highly prone to recurring droughts. Erratic rainfall distribution and dry spells are common. Large areas of barren and uncultivable land, water shortage, poor soil quality, soil erosion due to high run off rate are adversely affecting the farming systems. Research shows that simple adaptation actions such as watershed management, changing planting dates and crop varieties could greatly reduce the climate variability and change impacts. However, communities being poorly linked to scientists and policy makers lack information about climate change adaptation options and government schemes related to the same. There are also challenges of communicating scientific research in simplified ways that are appropriate to local stakeholder needs.

In recent years, the use of improved technologies has been increasing due to the progressive national agricultural development policy and strategy that is in place coupled with advisories provided to help farmers to make timely and appropriate farm level decisions and practices.

Agroclimate advisory – the fourth production factor

The provision of agroclimate advisory is considered as the fourth production factor after labor, land, and capital and critical to the agricultural sector as climate and its associated adverse effects can negatively affect agricultural activities and productivities. Thus, ensuring the accessibility of relevant time sensitive forecast based advisory information to farming communities helps improve productivity and yields higher returns.

The advice will also assist smallholder farmers to manage climate risks through informed decisions such as identifying optimum planting time/sowing windows, planting density at the start of the rainy season, while at the same time managing fertilizer application. Moreover, it also benefits farmer decisions and practices on soil water, weeds, diseases, and pest management throughout the growing season. By monitoring weather and crop growth during the season, the same forecast information can assist in predicting crop yields well in advance of crop maturity and to allow farmers to decide whether to sell the product immediately after harvest or store it until it commands better prices later in the year.

Radio for disseminating agroclimate information

In Ethiopia, the use of ICT for the accumulation and dissemination of agroclimate information and other agricultural updates is still low. Radio transmission covers a large percentage of the country with most of the households own a radio. This makes the use of radio programs one of the most cost-effective channels for conveying weather forecast information and agricultural knowledge to rural communities which ultimately facilitate informed decision-making and adoption of new technologies and practices.

In collaboration with its partners, the CIMMYT-CASCADE II project through Fana FM radio implemented a six-month (June-November 2020) live radio program providing seasonal advisories at the start of the main season in June using seasonal forecast from the National Meteorology Agency which was downscaled to Woreda/Kebele level by EIAR, CCAFS-EA and CIMMYT. This was followed by a biweekly or monthly Wereda specific agro-climate advisories which focus on fertilizer application, weeding, crop protection, soil and water management and climate extremes such as flood and droughts.

The program also included experts from the Ministry of Agriculture, EIAR, and CGIAR Centers to provide professional explanations and updates from the perspective of in situational readiness to support issues coming from the radio audience. The program created an opportunity for the federal government to prepare in time on some activities like importing agricultural inputs such as pesticides and fungicides to control the outbreak of pests and diseases (e.g., desert locust infestation and wheat rust outbreak). The platform also provided an opportunity to reach to millions of farmers to convey COVID-19 prevention messages such as physical distancing, use of masks, handwashing and other precautions that need to be taken while working in groups.

The value of research on plant resistance to insects

Crop pest outbreaks are a serious threat to food security worldwide. Swarms of locusts continue to form in the Horn of Africa, threatening food security and farmer livelihoods ahead of a new cropping season. The devastating fall armyworm continues cause extensive damage in Africa and South Asia.

With almost 40% of food crops lost annually due to pests and diseases, plants resistance to insects is more important than ever. Last month, a group of wheat breeders and entomologists came together for the 24th Biannual International Plant Resistance to Insects (IPRI) Workshop, held at the International Maize and Wheat Improvement Center (CIMMYT) global headquarters outside Mexico City.

Watch Mike Smith, entomologist and distinguished professor emeritus at Kansas State University explain the importance of working with economists to document the value of plant insect resistance research, and why communication is crucial for raising awareness of the threat of crop pests and insect resistance solutions.

Breaking Ground: Santiago López-Ridaura supports farmers facing tough decisions

Postcard_santiago lopez

Farmers frequently encounter trade-offs between maximizing short-term profits and ensuring sustainable, long-term production. Santiago López-Ridaura, a senior scientist at the International Maize and Wheat Improvement Center (CIMMYT), says these trade-offs are even more complicated for small-scale farmers who grow a mix of crops and raise livestock. With computer models to play out different scenarios, he and his team are helping them find optimal solutions.

“If you have $100, one hectare of maize, a half hectare of beans and three cows, you have limited resources,” indicates López-Ridaura. “You have to decide how you allocate those resources.”

Should the farmer use the money to buy new equipment or vaccinate the cows? What would happen if the farmer replaced the half-acre of beans with maize? These trade-offs, López-Ridaura explains, are one aspect of a farming system’s complexity.

“The other is that these farmers are trying to satisfy multiple objectives,” he adds. “They want to generate income. They want to produce enough food to feed their family and they may be trying to maintain cultural values.”

For example, a hybrid maize variety may produce higher yields under certain growing conditions, but the farmer could decide to continue growing the native variety because it carries cultural or even religious importance. Seasonal migration for off-farm jobs, climate change and access to markets are just some of the other factors that further complicate the decision-making process. López-Ridaura points out many models in the past have failed to capture these complexities because they have focused on one objective: productivity at the plot level.

“Our models show the bigger picture. They take a lot of time to develop, but they’re worth it,” says López-Ridaura.

Custom solutions to farming challenges

The models start with hundreds of in-depth household surveys from a specific region. López-Ridaura and his team then organize the large pool of data into several categories of farming systems.

“We make a model that says, ‘OK, this farm in Oaxaca, Mexico, has five hectares, 20 sheep and five people,” he explains. “We know how much the animals need to eat, how much the people need to eat, how much the farm produces and how much production costs.”

He and his team can then adjust certain factors in the model to explore different outcomes. For example, they can see how much water the farmer could use for irrigation to maximize his/her yields without depleting the local water supply during a drought. They can see which farmers would be the most vulnerable to a commodity crop price drop or who would benefit from a new policy.

Senior scientist Santiago Lopez-Ridaura (left) asks a farmer in Guatemala about his priorities — produce food, generate income, maintain soil health and feed his livestock — and the reasons behind his agricultural practices. (Photo: Carlos Sum/Buena Milpa)
Santiago López-Ridaura (left) asks a farmer in Guatemala about his priorities — produce food, generate income, maintain soil health and feed his livestock — and the reasons behind his agricultural practices. (Photo: Carlos Sum/Buena Milpa)

“The political guys often want a simple solution so they may say, ‘We should subsidize inputs such as seeds and fertilizers.’ In Mexico, for example, you might miss 60-70% of farmers as they don’t use much of these inputs,” López-Ridaura says. “So that’s great for 30% of the population, but why don’t we think about the other 70%? We must be able to suggest alternatives from a basket of options, considering the diversity of farming systems.”

López-Ridaura emphasizes that the models on their own do not provide solutions. He and his research team work with farmers to learn what they identify as their main challenges and how best to support them.

“We have networks of farmers in Guatemala and Oaxaca, and some may say, ‘Well, our main challenge is being self-sufficient with forage crops,’ and we’ll say, ‘OK, why don’t we try a crop rotation with forage crops? Our model suggests that it might be an appropriate option.’”

He and his team can then help the farmers access the right kind of seed and find out how best to grow it. This relationship is not a one-way street. The farmers also provide feedback on what is or is not working on the ground, which helps the researchers improve the accuracy of their models. This approach helps the researchers, farmers and policymakers understand different pathways forward and develop locally adapted, sustainable solutions.

Santiago López-Ridaura and his team work in Africa, Latin America and South Asia. Their funding often comes from development agencies such as IFAD and USAID.