Following the global food crisis in 2007-2008, greater attention has been given to the necessity of increasing agricultural investment. In 2009,Japanprovided USD 2.9 million to FAO to formulate a policy framework that helps countries create an environment to enhance agricultural investment, with the aim of increasing production and productivity in order to enhance food security. To achieve this goal, FAO has conducted research, data collection, analytical work and consultations, through the project “Support to study on appropriate policy measures to increase investments in agriculture and to stimulate food production”.
The project addresses key fundamental concepts and issues on investment such as the definition of terms, roles of different stakeholders (farmers, public, private corporations, etc.), influential factors in decision-making and the relationship between agricultural investment and agricultural production.
FAO has been undertaking studies to collect empirical evidence from 17 countries in Asia, South America andAfrica, and identify policies that contribute to promoting agricultural investment. It also aims to develop datasets on investment, such as capital stock, foreign investment, country profiles with rules, regulations, procedures and incentives. This will provide relevant stakeholders with opportunities to grasp the current status and trends on agricultural investment and formulate investment strategies.
By the completion of the project in March 2013, FAO will produce policy guidance to help Member Countries to promote investments to be made by farmers, the public and private sector- both domestic and foreign- in and for agriculture, for the stimulation of food production and the enhancement of food security.
For more information: http://www.fao.org/tc/policy-support/investment-policy