Capital requirements of developing countries’ agriculture to 2050
The report examines the capital needs for agriculture in developing countries until 2050, focusing on investments required to meet projected food demand.
(Generated with the help of GPT-4)
| Quick Facts | |
|---|---|
| Report location: | source |
| Language: | English |
| Publisher: | |
| Authors: | Gerold Boedeker, Jelle Bruinsma, Josef Schmidhuber |
| Time horizon: | 2050 |
| Geographic focus: | Sub-saharan Africa, Caribbean, South Asia, East Asia, Latin America, Global |
Methods
The methodology used in the report involves calculating imputed capital stocks and investment requirements based on projected agricultural production activities in 93 developing countries. The assessment includes 26 different capital items linked to specific unit costs and lifespans. The approach accounts for net investments, depreciation, and gross investment requirements, considering both primary agriculture and downstream industries. The analysis is based on imputed estimates rather than actual investments, and it does not distinguish between public and private sources of capital.
(Generated with the help of GPT-4)
Key Insights
This report presents an analysis of the capital requirements for agriculture in developing countries up to the year 2050. It estimates a cumulative gross investment need of nearly US$9.2 trillion over 44 years to support agricultural production and downstream services, consistent with FAO's long-term outlook. The study breaks down investment by type, activity, and region, highlighting the significant differences between regions in terms of capital intensity, productivity, and potential for poverty reduction. It also discusses the implications of these investments for agricultural output, labor productivity, and the potential for income generation within the sector. The report underscores the importance of capital intensity and suggests that regions with higher capital per worker, such as Latin America, will have better agricultural income growth prospects compared to regions like sub-Saharan Africa, where capital per worker is expected to stagnate. The report concludes by examining the investment rates and incremental capital-output ratios (ICORs) across regions, suggesting that investments in sub-Saharan Africa may yield higher returns than in other regions.
(Generated with the help of GPT-4)
Additional Viewpoints
Categories: 2050 time horizon | 2050s time horizon | East Asia geographic scope | English publication language | Global geographic scope | Caribbean geographic scope | Latin_America_Geographic_Scope South Asia geographic scope | Sub-saharan Africa geographic scope | agricultural capital requirements | agricultural investment | capital intensity | capital requirements | crop production | food | income generation | incremental capital-output ratios | investment rates | investment requirements | labour productivity | livestock production | poverty reduction | production projections | regional differences