Capital stock and investment in agriculture

Given its strong impact on welfare, investment is particularly important in agriculture: countries that performed best in terms of reducing poverty and hunger are also those that achieved higher net investment rates per agricultural worker. However, during the period 1991-2007, the rate of capital formation was only 0.5 percent.

Change in agricultural capital stock, share of GDP (1987 - 2007)

Source: FAO & World Bank

FAO Statistics has compiled a new series of capital stock data based on 2005 prices. Data on quantity of physical assets ''in use'' have been collected from the member countries and the same are multiplied by 2005 (purchasers) price to get estimates of gross capital stock in agriculture. 

Source FAO
Gross capital stock 2007. Source: FAO statistics

Data on quantity of physical assets used for the estimates are given below:

1. Improvement of land
  a. Arable land
  b. Irrigated area
2. Structure for livestock
3. Machinery and equipment
4. Livestock (fixed asset & inventory)


The development of the FAO agriculture capital stock dataset was facilitated by the Government of Japan Trust Fund project - support to study on appropriate policy measures to increase investments in agriculture to stimulate food production