Where is agriculture going
Increasing concerns regarding import dependency in the late s prompted a policy focus on stimulating domestic food supplies. While such tightening of governmental assistance was related to, among others, the global economic crisis in as well as local droughts, it also signifies the long-term orientation favouring production growth and import substitution. Yet, the Russian agricultural sector still observed deficiencies that were not being tackled. In particular, considering the amount of land resources in Russia, its agricultural sector requires advanced service and transport infrastructure like no other place.
Moreover, public water and land management systems are also important to the efficiency of agricultural production. While becoming part of the global agricultural economy implied expanding technology transfer and foreign agricultural investments, Russia started to import seeds, livestock and Western farm machinery.
While these imports were opening up new market opportunities, it was to be expected that producers would respond to them for the purpose of improving the efficiency of their operations. The import of hybrid corn seed from the West mainly France and Hungary at first glance produced some favourable outcomes. However, such seeds consistently provide the expected uniform characteristics and high yield performance only during the first harvest.
Therefore, while they can greatly contribute to a dramatic rise in agricultural output, especially during the second half of the 20 th century, hybrid seeds cause increased dependence on seed imports, making them a weak long-term solution from the global dominance point of view.
Moreover, substantial agro-biodiversity loss and increased susceptibility to disease and weather conditions is another potential global consequence of being dependent on the import of hybrid seed. While the goal of a farm, in contrast to natural ecosystems, is to produce a harvestable product, agricultural intensification and monocultural systems have already noticeably decreased biodiversity on farms.
This decreases long-term agricultural sustainability. The preservation of agro-biodiversity provides important ecosystem services and therefore should become a priority within the agriculture industry.
Global food consumption and production created a surge of global money into agriculture, causing the appearance of a different type of agricultural enterprise in Russia — agroholdings. These enterprises acquire existing corporate farms and vertically integrate them, combining primary production, processing, distribution, and sometimes retail sales.
Such a vertical structure helped them to reduce costs caused by the market and infrastructural deficiencies faced by Russian farms.
Although some experts claim that, on the contrary, the large size of agroholdings causes them to suffer from diseconomies of scale, it is clear that these vast, vertically integrated producers have a strong presence in Russia, especially the South district. The area of land owned by the 56 biggest agro-holdings in Russia doubled between and The Federal State Statistics Service Rosstat also notes a stable trend in agricultural production — numbers almost tripled over the same period.
Apart from agricultural enterprises, Russia does offer a good platform for individual farmers. Moreover, there are multiple sources of governmental help to assist local as well as foreign agricultural producers. Beginning in , start-up farms have the right to apply for subsidies and, if approved, some state assistance is provided. In other words, there are growing opportunities for farmers in Russia. As such some 9, loans were granted to small- and mid-sized agricultural businesses in , accounting for RUB Moreover, one should not forget about the absence of qualified and diligent workers.
Lastly, land is one of the biggest sources of profit for governmental officials, meaning that unless agricultural businesses or producers deliver that, they may also meet obstacles on the way. Expanding agricultural land can also lead to deforestation, additional GHG emissions, and a loss of biodiversity. These three challenges — feeding a growing population, providing a livelihood for farmers, and protecting the environment — must be tackled together if we are to make sustainable progress in any of them.
Sometimes, the consequences are positive. For instance, raising farm productivity can generate income growth in agriculture, make more food available for consumers at lower prices, and — in some cases — reduce pressure on the environment.
But sometimes the consequences are negative and require balancing trade-offs. For example, policies to increase the environmental sustainability of agriculture could impose increased costs on farmers and lead to higher prices for consumers. In other words, policies that address one part of the triple challenge often end up creating synergies positive effects or trade-offs negative effects with respect to other objectives—and a single-issue perspective on any objective can lead to unintended impacts on other objectives.
So what can policy makers do to address these important challenges, taking into account their interconnectedness? How should they find out if and when there is a conflict between two or more objectives? How should they deal with stakeholders who may resist an initiative they fear could harm their interests? And how should they co-ordinate with policy makers in other agencies or ministries, and with counterparts in other countries? Consolidation Accelerates The ag census revealed a big shift in farmer ages that holds major implications for the future, says Widmar.
For the first time, growers who are older than 65 outnumber farmers who are younger than The difference is substantial, with 2.
As a result, farm consolidation will be significant and quick, says Widmar. The consolidation will change farm dynamics to larger, more managerial complexities. Expect high-tech solutions like robotics to come to the rescue. Already, dairy farmers use robotic milkers as a substitute for labor. And farm equipment manufacturers are testing prototypes of robotic tractors and sprayers to handle fieldwork without human drivers.
The leap from prototype to commercial operation of robotic machinery may be short.
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