The changing nature of farm financialization (Safaa)

Name

The changing nature of farm financialization: - Farming of subsidies - Direct to consumer sales - Growth of carbon accounting

Description

Agriculture finance empowers poor farmers to increase their wealth and food production to be able to feed 9 billion people by 2050. The work in agriculture finance helps clients provide market-based safety nets, and fund long-term investments to support sustainable economic growth. Demand for food will increase by 70% by 2050; at least $80 billion annual investments will be needed to meet this demand. There is an ever increasing need to invest in agriculture due to a drastic rise in global population and changing dietary preferences of the growing middle class in emerging markets towards higher value agricultural products. In addition, climate risks increase the need for investments to make agriculture more resilient to such risks. Estimates suggest that demand for food will increase by 70% by 2050 and at least $80 billion annual investments will be needed to meet this demand, most of which needs to come from the private sector. Financial sector institutions in developing countries lend a disproportionately lower share of their loan portfolios to agriculture compared to the agriculture sector’s share of GDP.

Enablers

There is an ever increasing need to invest in agriculture due to a drastic rise in global population and changing dietary preferences of the growing middle class in emerging markets towards higher value agricultural products. In addition, climate risks increase the need for investments to make agriculture more resilient to such risks. Estimates suggest that demand for food will increase by 70% by 2050 and at least $80 billion annual investments will be needed to meet this demand, most of which needs to come from the private sector. Financial sector institutions in developing countries lend a disproportionately lower share of their loan portfolios to agriculture compared to the agriculture sector’s share of GDP.

Inhibitors

Agriculture is the mainstay of the economy: 70 percent of the active population is engaged in the sector that generates nearly one-third of the national gross domestic product (GDP). The GoN has prioritised agriculture in its periodic plans and annual development programmes, but these remain to be strengthened in terms of implementation. The majority of farmers, who are increasingly likely to be women as males have been migrating in search of more remunerative work, are poor and climate-vulnerable. The women workers’ share in agriculture has remained significant and dropped only marginally as compared to male workers.Agriculture has already been adversely impacted

Paradigms

- It creates a lack of transparency of land ownership and production units. - It makes it possible to circumvent existing regulations. - It undermines farmers’ independence - It impedes the generational transition - It fosters the development of farm corporations operating solely on the basis of salaried work

Experts

- Bruno Larue: Agricultural economics, agricultural policies: bruno.larue@eac.ulaval.ca - John Reilly: Agriculture economics. Air pollution and emissions Biofuels Climate change policy

Timing

- 1800-1870: Level of carbon dioxide gas (CO2) in the atmosphere, as later measured in ancient ice, is about 290 ppm (parts per million). - 1960: Mitchell reports downturn of global temperatures since the early 1940s.=>Modern temp's

Keeling accurately measures CO2 in the Earth's atmosphere and detects an annual rise. =>CO2 greenhouse

- 1985: Ramanathan and collaborators announce that global warming may come twice as fast as expected, from rise of methane and other trace greenhouse gases.

Web Resources

- https://www.worldbank.org/en/topic/financialsector/brief/agriculture-finance - https://legal-dictionary.thefreedictionary.com/Agriculture+Subsidies - https://history.aip.org/climate/timeline.htm - https://reliefweb.int/sites/reliefweb.int/files/resources/UNDP_NP-Impact-of-Climate-Change-Finance-in-Agriculture-on-the-Poor.pdf - https://www.arc2020.eu/combating-the-financialisation-of-agriculture-your-land-my-land-our-land/