April 15, 2014

Dr. Ernesto A. Brovelli
Independent Consultant; Former President, Sustainable Agriculture Initiative (SAI) Platform

Beyond a Moral Duty – Maximizing the Power of Agricultural Investments

Increasingly today, consumers demand more from their food supplies than they did years ago. Echoing this sentiment, both governments and civil society worldwide are imposing further accountability measures on food producers. And as the issue becomes more entrenched in society, the media and public relation specialists are using a magnifying glass to expose what fails, or to showcase what seems to work.

All of these factors combined, may lead food producers to undertake special efforts in an attempt to satisfy these pressing demands. While there is nothing wrong with following the Voice of the Customer (VOC) and its sphere of influence, there is much more to be gained by all involved if agricultural investments follow a thoughtful and deliberate trajectory.

In this context, Sustainable Agriculture, one that operates in agreement with environmental, social, and economic precepts, appears as the underlying proposition to guide agricultural investments. However, while Sustainable Agriculture has garnered much more attention in recent years, it is in its implementation that victory for all involved can be claimed.

As a mechanism of primary production, agriculture is fundamentally meant to provide value whether as farmer self-sufficiency and/or as an income producing activity. Clearly, the economic pillar of Sustainable Agriculture is one to be dealt with early on in all kinds of agricultural investments. Looking at investments through the lens of Sustainable Agriculture leads to take a closer examination at the economic performance at all stages in the agricultural value chain. Furthermore, it has been shown that as growers advance the understanding of the economic performance of their own operations, risks are mitigated throughout the value chain.

But focusing the economic performance of farming solely on yearly harvest output is shortsighted. Long-term successful farming is contingent on functioning ecosystems and ex-ante assessments should guide agricultural investments. Lessons on almost-depleted aquifers, polluted water bodies, and ‘empty’ soils tell us that the right crop and site combinations, followed by specific management practices are bound to pay off. At the same time, environmental upsides associated with certain crops should be investigated, whether related to carbon sequestration, or attracting beneficial insects, or building soil fertility and structure.

Likewise, measuring only yearly harvest output falls short of explaining the multitude of benefits that a crop can offer. Even judging crops in terms of their calorie production misses the mark as it ignores the myriad of benefits that result from crops such as the production of macro and micronutrients, phytochemicals and known (and yet to be discovered) by-products. Besides harvest quantity and quality, not to be overlooked is the most critical aspect of food safety, as harvests that do not meet safety standards have only wasted resources in its production.

Even when economic and environmental factors have been optimized, the central pillar of agricultural operations, no matter how mechanized, is the farmer and surrounding social network. Sustainable farming systems rely on farmers who are good stewards and who feel a broader sense of purpose – and who are able to transmit these values to the new generations of farmers. That is quite a tall order to achieve. It is very important that agricultural investments focus on the complex social issues involving farmers and their communities and make measurable efforts to address them.

When it is all said and done…

While great progress is being made in understanding how to better deploy agriculture to address the three principles of Sustainable Agriculture, much remains to be done. As stated earlier, Sustainable Agriculture should bring tangible benefits for all involved, from the grower and his/her surrounding network, the food processors and the consumers.

If agricultural investments are to be enduring, care should be taken to avoid possible fallacies. Some observations follow:

• Pursuing only one dimension of Sustainable Agriculture without considering broader implications is not prudent. Various examples exist of where emphasis was placed on environmental stewardship, for example, at the expense of other critical factors.
• Sustainable agriculture is rewarding but complex, and should be tackled by subject matter experts – we need to deep dive more than snorkel.
• Sustainable farming is not farming as usual. There is an educational component that needs to take place to ground all actors on what it means and, more critically, what is there for each of them.
• Neither top-down nor bottom-up models are advisable, but rather systemic and consultative approaches.
• PR and communication efforts should be based on verifiable accomplishments.
• Establishing sustainable agricultural investments is a journey, with a clear roadmap and pre-set milestones.
• At the end of the day, customers and consumers will take a holistic view on their foodstuff selection. How food was grown, along with safety, quality, pricing and health and wellness considerations, will be part of an equation that reflects the demand for specific food items.

Dr. Brovelli spoke on responsible agricultural investing at Global AgInvesting 2014, April 28-May 1 at the Waldorf Astoria in New York City.

The opinions expressed in this editorial are the author's own and do not reflect the view of Global AgInvesting.