Global Threats to Agriculture (2024)

In this post, we’ll dive into the main threats the agricultural industry is facing on a global scale, as well as highlight ways in which you can invest in agriculture to help American farmers prepare for the challenges ahead.

Agriculture, an essential industry at the backbone of our society, is undergoing immense global stress. Pressing issues such as climate change, depleted resources, and soil erosion – to name a few – are negatively impacting the industry as we know it. And while not all parts of the world will feel the effects to the same magnitude, the world’s overall food security is in jeopardy. As a result, agriculture demands both study and action to successfully combat the full effects of climate change.

In this post, we’ll dive into the main threats the agricultural industry is facing on a global scale, as well as highlight ways in which you can invest in agriculture to help American farmers prepare for the challenges ahead.

The Global Threats To Agriculture

Climate Change

One of the most well-known threats to the global agriculture industry is, of course, climate change. Time Magazine covers the issue, stating that a “recent IPCC report predicted a 2 to 6 percent decline in global crop yields every decade going forward...potentially millions of acres phasing out annually — due to drought, heat, flooding, superstorms, weather volatility, shifting seasons, insect infestations and other symptoms of a warming planet.”

Statistics like these plant the seed for future devastation: the collapse of food systems. The shifting of weather patterns is causing adverse effects for crop growth – from heat waves to an overabundance of rain – resulting in food supply disruptions.

These changes in climate affect various regions of the world differently, but the adverse effects appear on a global scale. What’s more, because of climate change, farmers face stricter restrictions on what practices they can use. The UK's Government Office for Science, for example, in their 2011 report on The Future of Food and Farming, stated that “policies for climate change mitigation will also have a very significant effect on the food system – the challenge of feeding a larger global population must be met while delivering a steep reduction in greenhouse gas emissions.”

A Scarcity of Resources: Water and Land

Another growing threat to agriculture is resource scarcity, with water being at the forefront of the issue. Climate change has affected water availability by increasing water demand while shrinking the available water supply. Since rising temperatures lead to greater evaporation, the atmosphere’s capacity to hold water increases, resulting in an imbalance between heavy rainfall in some areas and extreme dryness in others. If temperatures continue to rise at these faster rates, ensuring that food crops and livestock continue to thrive will, in turn, require a larger water supply – especially in areas affected by a lack of regular precipitation that are subjected to droughts. According to the EPA, this shifting balance between water supply and demand is one of the greatest challenges for farmers, ranchers, and agricultural communities as they strive to meet consumers’ needs.

And what’s more, the water scarcity issue doesn’t just create droughts.. The areas affected by excess rainfall suffer from another issue: poorer water quality. As precipitation increases, existing systems that make up the water infrastructure – that the agriculture industry heavily relies on to operate – become overwhelmed. More rain results in more runoff, and more runoff results in an increased amount of things like “sediment, nutrients, pollutants, trash, animal waste” polluting our water supply and making it unusable or even potentially unsafe without proper treatment.

For farmers in both dry and wet areas, maintaining a proper water supply means ever-growing costs: whether it’s the increased financial stress of treating the polluted water supply or offsetting the effects of a drought. That said, a recent report presented by Nuveen points out an interesting trend that highlights how farmland investing can help – as well as potentially lead to increased returns. The report notes that “as water becomes increasingly scarce, farmland with sustainable water resources, including surface and groundwater, should see enhanced valuations.” Investing directly into agricultural land, in turn, creates a potentially compelling opportunity as these projections indicate relatively stable returns in the near future since climate change, unfortunately, will remain a threat for time to come.

Urbanization and land scarcity

Land is another resource that is becoming increasingly scarce and putting a strain on the agricultural industry. As the population grows, there are a number of reasons why land availability is negatively impacted, foremostly a result of the fight for industrialization, urbanization, and housing versus agricultural growth. While some argue that increased urbanization poses a threat to agricultural growth, some studies indicate that the threat is a bit more complex.

At a glance, urbanization is usually considered a threat to agricultural growth: as urban expansion increases at the expense of agricultural land, we generally see a loss of physical resources when it comes to agricultural growth.

The scientific journal, “Philosophical Transactions of the Royal Society B: Biological Sciences,explores this issue on a more intricate level, however, concluding that urbanization might have some positive effects. The journal notes that “urban demand for agricultural products has great importance for rural incomes,” and that ultimately, “agricultural producers and rural consumers also rely on urban-based enterprises for a wide range of goods and services—including access to markets.” So, the relationship is arguably synergistic – and in order to account for this, we might once again look towards farmland investing.

Without a doubt, as climate change continues to ravage many of our existing systems and infrastructures, agricultural enterprises that seek success must find ways to adapt. Those who do so will find new ways to disrupt both agriculture and urban demand in ways that benefit both producer-consumer, as well as rural populations. In short, agricultural investing that goes directly towards farms can help them with climate change mitigation, as well as adaptation to new systems and technologies that will continue to change the agricultural industry.

Invasive species and disease

Invasive species were on everyone’s minds earlier this year with the infamous Murder Hornet reports, but species like these have been posing a threat to agriculture and native species across the globe for much longer than most realize.

A report published in the Proceedings of the National Academy of Sciences of the United States of America explains that due to the increase in worldwide trade, species have been able to spread across the globe to regions where they would normally be absent and wreak havoc upon the native species – like bees. As globalization increases, this can have costly effects, with the report quoting an estimated annual $40 billion valuation linked directly to “crop and forest production losses from invasive insects and pathogens” in the United States alone. Additional costs, thus, continue to stack up as farmers constantly need to invest in new pesticides to combat the new species that threaten crops.

With foreign bodies come foreign pathogens: as the demands placed on the agriculture industry grow so too does the risk of the disease spreading amongst crops and livestock. An article in Food Security explains that the prevalence of transboundary animal diseases is a result of these illnesses being highly contagious.

The negative effects of urbanization particularly come into play here: the study notes that urbanization increases, “small-scale, backyard animal production in cities, where there is bound to be contact between humans and animals.” These changes in ecosystems directly affect livestock populations, as infections can spread worldwide via “international travel and through trade in animals, animal products, and foodstuffs, threatening livestock production.”

And, as animal production becomes larger-scale to meet global demands, so too does the potential devastation an outbreak of disease can cause. Farmers need to increasingly account for these illnesses and set up food safety systems for both livestock and workers who handle and process meat. Thus, we face a direct threat to the economic health of the global livestock sector, with both farmers’ livelihoods and consumers’ food security becoming affected. To stay equipped for these costly risks, farmers will need additional financial support – especially during trying times such as the COVID-19 pandemic.

Invest and Prepare for the Future of Farming

While all the threats the agricultural industry is facing are daunting, potential solutions do exist. Technology, in particular, continues to lead at the forefront of agricultural innovation, and with it comes greater accessibility to participating in the agricultural industry directly. By enacting new policies, new practices, and new technologies, agricultural enterprises can mitigate losses and offset costs caused by climate change – and these costly steps towards mitigation create opportunities for farmland investment to go a long way. Helping agricultural businesses afford new solutions – such as water treatment systems and protective gear for meat plant workers – allows them to adapt to these challenges more efficiently and even offset future health crises.

Investing in agriculture today directly helps farmers ready themselves for these changes and stay ahead of the technological curve. FarmTogether allows you to directly invest in handpicked, vetted farmland from trusted businesses, as well as purchase farmland for your clients.

The FarmTogether team believes that there is a new era coming to American farming. With our current farmers aging, there will be a new generation operating and owning much of our farmland. Market trends and sustainability requirements will reward the farms with the capital to make this transition smoothly.

At FarmTogether, we consider it our mission to channel funding for these upgrades and transitions. Our investors in turn share in the rewards with cash income, capital appreciation, a balanced portfolio, and the satisfaction of helping to preserve the best of our rural land and communities.

FarmTogether also offers extensive monitoring and reporting on your investment, keeping you up to date on your farmland’s performance. By investing in the highest-quality farmland, you can meaningfully support American agriculture as it continuously faces global threats – both economic and natural.

Disclaimer: FarmTogether is not a registered broker-dealer, investment adviser or investment manager. FarmTogether does not provide tax, legal or investment advice. This material has been prepared for informational and educational purposes only. You should consult your own tax, legal and investment advisors before engaging in any transaction.

Global Threats to Agriculture (2024)

FAQs

Global Threats to Agriculture? ›

Insufficient Agricultural Land

Only 12% of the global land surface is used for crop production and it is unlikely this number will increase mostly due to urbanisation. That's why the pressure remains to preserve the existing arable land, despite most of it already starting to degrade..

What is the global problem with agriculture? ›

Insufficient Agricultural Land

Only 12% of the global land surface is used for crop production and it is unlikely this number will increase mostly due to urbanisation. That's why the pressure remains to preserve the existing arable land, despite most of it already starting to degrade..

What is the current greatest threat to agriculture? ›

The Global Threats To Agriculture
  • Climate Change. One of the most well-known threats to the global agriculture industry is, of course, climate change. ...
  • A Scarcity of Resources: Water and Land. ...
  • Urbanization and land scarcity. ...
  • Invasive species and disease.
Jul 14, 2020

What are the challenges of agriculture globally? ›

The challenges we often hear of — drought, pests, producing more food on less land to feed a growing global population and in profitable ways that improve the environment — we have a lot of smart people working on those challenges from scientists to producers to policymakers.

What are the 3 biggest threats to global food security? ›

Threats to food stability include natural disasters, climate change, conflict, and economic factors such as volatile price fluctuations.

What is the #1 issue facing agriculture today? ›

The main challenges that agriculture faces today are climate change, increased input costs, growing population, volatility, and lack of agricultural equipment.

What is the greatest threat to agriculture in the next 10 years? ›

The greatest danger: extreme droughts supercharged by climate change, affecting multiple grain-growing areas simultaneously, causing “food shock” events that could trigger food prices spikes leading to mass starvation, war, and a severe global economic recession.

What is the biggest killer in agriculture? ›

Livestock incidents were the number one cause of work-related death in British agriculture in 2022/23. The finding has driven the Health and Safety Executive (HSE) to focus on the dangers of livestock as its Your Farm, Your Future campaign relaunches.

What are the threats to the U.S. agriculture? ›

Threats to U.S. agriculture are often thought of as invasive pests and diseases that are introduced by imported cargo. However, conveyances such as commercial shipments or passenger vehicles are pathways for invasive pests and diseases as well.

What are the biggest issues facing agriculture in 2024? ›

Tighter margins due to cost-related pressures will continue in 2024. These include damages from extreme weather-related events, high interest rates, the labor market and rising input costs.

What are 3 challenges farmers are facing in today's world? ›

Farmers need to deal with many problems, including how to: Cope with climate change, soil erosion and biodiversity loss.

What are the three major issues facing the agricultural industry today? ›

2022's Top Ag Issues and A Look Ahead
  • Rising input costs. An issue at the forefront last year was the rising cost of everything. ...
  • Ag labor. The lack of farmworkers continues to be U.S. agriculture's most frustrating challenge. ...
  • Trade. ...
  • Water regulation and rights. ...
  • Farm bill.
Jan 4, 2023

Why is agriculture the biggest problem to the planet today? ›

Pollution. Agriculture is the leading source of pollution in many countries. Pesticides, fertilizers and other toxic farm chemicals can poison fresh water, marine ecosystems, air and soil.

What is the biggest threat to global food production? ›

Seven important factors that constrain the availability of food and that are thus threats to food security include:
  1. Conflicts and corruption. ...
  2. Politics and trade barriers. ...
  3. Unequal food distribution. ...
  4. Food loss. ...
  5. Food waste. ...
  6. Climate change. ...
  7. Biodiversity loss.
Sep 1, 2023

Will there be a food shortage in 2024? ›

This surge in demand, coupled with unpredictable weather patterns and climate change, sets the stage for an expected shortage in 2024.

What is the biggest threat to food production? ›

Soil erosion. Heavy rainfalls can lead to more soil erosion, which is a major environmental threat to sustainable crop production.

How does agriculture affect the global economy? ›

Agriculture impacts society in many ways, including: supporting livelihoods through food, habitat, and jobs; providing raw materials for food and other products; and building strong economies through trade.

What are the 6 main global challenges around agriculture and food addressed here? ›

Poverty, increasing population, environmental setbacks, impacts of biofuel production, food waste, climate change – they all present obstacles to what a thriving planet should look like. So, let's dive into some of the specific challenges and see how we can shift perspective to find the gateways for a better future.

What is the biggest issue facing the agriculture industry in 2024? ›

In 2024, aim to implement active risk management practices, obtain sufficient insurance and improve employee benefits and training to deal with the labor crunch. Continued labor shortages and rising costs for farm inputs and insurance are a few of the issues those in agribusiness must contend with in 2024.

What are the problems with agriculture in third world countries? ›

Agriculture, being the most important sector of the economy for these countries, has been hard hit by conflicts, leading to high costs of agricultural inputs and fertilizer shortages, a result of which “about two thirds of people facing extreme poverty in the world are workers and families in the agriculture sector”.

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