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Executive Summary

At the dawn of the 21st Century, dramatic developments are continuing to transform global agriculture and rural economies. Continued growth in the world population, demands to feed and improve the quality of life of that population, the reach of human influence to the remotest corners of the Earth, direct manipulation of nature at the genetic level, increasing globalisation of the world economy, and the immediacy and profound impact of communication and information technologies are among the most striking examples.

Throughout the 1970s and 1980s, international interest focused on developments in agriculture that could directly address growing concerns about future food security, productivity and sustainability. Thinking crystallised in the 1990s as an approach that became known as "Sustainable Agriculture and Rural Development (SARD)." The SARD approach aims to foster sustainable development (in the agricultural, fisheries and forestry sectors) that "conserves land, water, plant and animal genetic resources, is environmentally non-degrading, technically appropriate, economically viable and socially acceptable."

More recently, a new analytical approach and interpretative framework built on an understanding of the Multifunctional Character of Agriculture and Land (MFCAL) has emerged which helps to capture the complexity and continuing importance of the new agricultural patterns and land-use systems that have emerged throughout the world and assess their relationships with other sectors of the economy and society. The concept of MFCAL has evolved from and builds upon SARD. It encompasses the entire range of environmental, economic and social functions associated with agriculture and related land-use. Analysis of the multifunctional character of agriculture contributes to understanding the potential linkages, synergies and trade-offs necessary to achieve sustainability in agriculture and rural development. The MFCAL approach provides a policy-oriented analytical framework for the achievement of SARD goals.

THE MULTIPLE FUNCTIONS OF AGRICULTURE AND LAND

The first and foremost role of agriculture remains the production of food and other primary goods and contributing to food security. Attaining food security is a complex task which requires an enabling environment and policies that ensure social, cultural, political and economic stability and equity. Combining the economic, social, and environmental functions of agriculture can help to achieve these goals. Agricultural activity and related land use also result in a wide range of non-food goods and services, shape the environment, affect social and cultural systems and contribute to economic growth.

Agriculture and related land use have several major functions:

The Environmental Function. Agriculture and related land use can have beneficial or harmful effects on the environment. The MFCAL approach can help to identify opportunities to optimise the linkages between agriculture and the biological and physical properties of the natural environment. It is relevant to a number of critical global environmental problems including biodiversity, climate change, desertification, water quality and availability, and pollution.

The Economic Function. Agriculture remains a principal force in sustaining the operation and growth of the whole economy, even in highly industrialised countries. Valuation of the various economic functions requires assessment of short, medium and long-term benefits. Important determinants of the economic function include the complexity and maturity of market development and the level of institutional development.

The Social Function. The maintenance and dynamism of rural communities is basic to sustaining agro-ecology and improving the quality of life (and assuring the very survival) of rural residents, particularly of the young. On another level, the capitalisation of local knowledge and the forging of relationships between local and external sources of expertise, information and advice are fundamental to the future of existing rural communities. Social viability includes maintenance of the cultural heritage. Societies still identify intensely with their historical origins in agrarian communities and rural lifestyles.

The three functions are clearly inter-related. Their relative importance depends on strategic choices at the local and national levels. The multiple functions may be relevant at many scales, from local, through national and regional, to global. Different functions and their implications may operate over different time horizons - indeed some innovations and transformations may have short-term disadvantages, such as lower productivity, before leading to longer-term, overall economic and environmental benefits. At a further level of complexity, multiple functions may generate various impacts that vary in time and space. Informed decision-making requires a transparent assessment of the advantages of possible synergies as well as trade-offs between options for agriculture and land.

For example, in an industrialised country with established industries, increasing emphasis on the service economy and a small rural population, a local agricultural system can still have multiple functions. In a mountainous region, seasonal crops continue to have economic value for food and fodder, while animal husbandry can furnish a variety of goods. The landscape has value as a place of leisure and recreation for visitors from near and far. The watershed has an environmental function to maintain water quality and quantity, and prevent downstream erosion. Forested areas provide gathered products, timber and benefits to the air and soil. Finally, the continuing vitality of the overall rural economy preserves the common cultural heritage and guarantees the availability of labour for managing natural resources. Choices about land use and employment generation involve striking a balance between short and longer-term economic benefits, and considerations of scale in land use - changes at the top of a watershed can affect activities and resources far downstream.

In a developing country, agriculture may remain central to the economy as a source of goods for national consumption and processing, and for trade, as raw materials and finished goods. The employment of much of the population is tied mainly to these activities, but also extends to management of local resources that affect the environment. The economic function also extends to the longer-term care and sustainable use of natural resources, and increasingly to other activities such as cottage industries and tourism. Decisions on investment in new forms of land use involve striking a balance between short and long-term costs and benefits (for example, immediate revenue for export crops as compared to loss of natural habitats and their capacities), and considerations of the social implications of some developments (for example, the conversion of smallholder fields to large-scale plantation, mechanised or irrigated agriculture).

A CONCEPTUAL FRAMEWORK

Although agriculture and related land use have long been recognised as inherently multifunctional, the paper proposes a new, coherent framework for the comparative assessment and valuation of the multiple functions in order to achieve sustainability in agriculture and rural development. The framework charts relationships between the market, institutional, and geographic and resource-based aspects of multifunctional agriculture. Dimensions of space, scale and time can be incorporated. Regions with different characteristics can be located within this framework, to assist in the development of optimal policies which take local circumstances and preferences into account. A general relationship is postulated between the development of institutional capacity and the potential contribution of multifunctional agriculture and land use to sustainable development.

Use of the conceptual framework in the light of case studies allows three conclusions to be drawn for further empirical confirmation:

THE WAY FORWARD

Our understanding of the factors crucial to achieving greater sustainability in agriculture has increased through building on the potential scope of multiple functions in rural areas. This requires the involvement of all stakeholders and effective mechanisms to co-ordinate action and make decisions, collaborating with other actors at the local level and from civil society. Residents of rural communities, in particular farmers, continue to play a central role as stewards of agricultural land and the environment. An appreciation of their vital contribution has progressively permeated government and private agencies in urbanised, industrialised and developing countries. However, ultimate responsibility for ensuring the viability of agricultural systems and the environment remains in the public arena, and there must be mechanisms for addressing competing interests, immediate needs and conditions for long-term sustainability that take proper account of the general goals of equity and poverty reduction.

Possible domains of action include:

Processes at the National and International Levels

The ability to distinguish the functions of agriculture in precise contexts offers insights into possible directions for future policy and activities. Contribution to the overall objective of sustainable development encompasses improving food security and strengthening the synergies between the environmental, economic and social functions of agriculture and related land use. National priorities and processes for establishing these priorities will vary, and choices between options will depend on public decision-making processes. National bodies for governance and management will continue to shoulder the primary responsibility for arriving at and executing such decisions.

Regional and international bodies will play an increasing role in formulating joint policies that focus on comparative advantages for trade and development, with explicit social goals affecting equity and gender issues and access to resources. Perhaps the greatest challenge to the development of sustainable agriculture and related land use is to reconcile the primary objective of achieving food security with environmental objectives. Both have an inherently international character. The Commission on Sustainable Development (CSD) process offers a common venue to recognise the enduring and irreplaceable role of agriculture for the future, building on possible synergies between the environment and different sectors of economy and society.

However, this may not be sufficient. There is a need to collaborate on ways forward that combine global mechanisms and institutions that are responsible for all dimensions of land use. The relevant mechanisms and institutions also encompass macro-economy, public policy and overall planning. Initiatives must also be developed in the context of the many relevant Conventions regulating international concerns about the environment, commerce and society.

Particular areas of continuing concern for the future include:

Distinguishing the environmental, economic and social functions of agriculture and land already add significantly to appreciation of changes in the traditional role of agriculture. Further progress towards sustainability will require closer collaboration between institutions responsible for agriculture and land use, the economy, public policy and overall planning. As a neutral platform for international debate, FAO will continue to dedicate its efforts to issues critical to the future of food and agriculture.

Acknowledgements

The "Taking Stock" and "Issues" Papers are the two principal technical documents for the conference. The principal contributors to the preparation of these documents were Michel Griffon, Parviz Koohafkan, who guided an important part of the stock-taking process, Jules Pretty and Thomas L. Price, with Miguel A. Altieri, Nadine Azzu, Prem Bindraban, Hans Jansen, Ivo Morawski, Lawrence Smith and Leo van der Berg. Peter Saunders played an essential role as the Technical Editor.

Louise Fresco has supervised the process of preparation and finalisation of the papers. The overall support and guidance of H. Carsalade, J. de Leeuw and A. Sawadogo are gratefully acknowledged.

Important comments and suggestions have been received from many quarters. The extensive review process has included contributions within FAO from: Doyle Baker, Gustavo Best, Luis Botero, David Cooper, Jacques-Paul Eckebil, Louise Fresco, Kisan Gunjal, Lucas Janssen, Peter Kenmore, Kay Killingsworth, Eric Kueneman, Andrew MacMillan, Wendy Mann, John Monyo, Terri Raney, Dirgha Tiwari, Richard Trenchard, Loy Van Crowder, Niek Van Der Graaff, Annemarie VanZeijl and Jacques Vercueil. Special thanks are reserved for the extensive recommendations from the external reviewers: W.H.B. Aarnink, J.J. Neeteson, E.M.A. Smaling and G.G.J. Thissen in the Netherlands; Douglas Forno and his colleagues at the World Bank; Gérard Viatte and Wilfrid Legg at OECD and Tim Aldington and Robert Brinkman as consultants.

Constance Neely and Robert Hart at the University of Georgia (SANREM) were central to the success of the Electronic Conference to contribute to "taking stock".

Thomas L. Price served as Secretary for the drafting and review process. His contribution was possible due to support from the Government of the United States of America.

The preparation of the documents was possible thanks to the financial contribution of the Government of the Netherlands.

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