Public, private investment in innovation needed for Asia-Pacific farming sector: ADB

ASIA-PACIFIC policymakers must invest in agricultural innovation, the Asian Development Bank (ADB) said on Wednesday in a call to address rural poverty.

Arrangements such as farm machine rental services could help smallholders mechanise operations, while technologies such as remote water-sensing and control systems and satellite-based irrigation advisory systems could make water use more efficient, for instance.

That's as a report from the organisation argued that conventional government support for the sector has strained fiscal positions and adversely affected the environment over the years.

Traditional production support schemes have intensified the use of fertiliser, pesticides and water, leading to environmental concerns, according to the report, which cited government policies such as fertiliser subsidies in Indonesia and the Philippines from the 1970s onwards.

"While intensified fertiliser use contributed to past improvement in agricultural production and food security, their fiscal and environmental costs have outweighed their benefits," the authors argued. As such, "innovative solutions are required to help farmers raise productivity while ensuring long-term environmental sustainability".

Other recommendations made by the ADB included advanced early warning systems for extreme-weather events, disaster risk insurance schemes for the sector, and a diversification into higher-value crops.

Digital transformation of the supply chain can enhance market connectivity and overcome information and knowledge barriers, as well as benefit traceability and food safety, the report added, while noting that the private sector can play an important role.

"At the same time, governments must protect the rights of farmworkers, including migrants and women, to ensure everyone benefits from the sector's transformation," said the ADB in a statement.

Said ADB acting chief economist Joseph Zveglich, Jr: "Agriculture has supported Asia and the Pacific's rapid economic growth in recent decades, but multiple challenges are driving the need to modernise and transform the sector - from Covid-19 to climate change and urbanisation.

"Policies that support this transformation are crucial in order to put food on the table and protect the region's recovery and sustainable development."