March 5, 2015

Transforming Agriculture into a Sustainable Enterprise

by Carmen in Investments, News

The Green Revolution of the 1960’s and 70’s was a turning point in modern agriculture across developing countries. It increased productivity worldwide, saving an estimated 1 billion from starvation.

This was achieved by the rapid development of transformational farm management techniques, including the use of synthetic fertilizers and pesticides to achieve higher yields. Yet a generation has passed and we are only now beginning to understand the impact on the environment, health and agricultural production in the long term.

Conventional farming techniques now use excessive amounts of water, energy, and chemicals, often with little regard to long-term adverse effects. The environmental costs of this practice is mounting with irrigation systems pumping water from reservoirs faster than they are being recharged, toxic herbicides and insecticides accumulating in ground and surface waters, and chemical fertilizers disrupting ecosystems and getting into our food chain.

Globally the amount of water being used in agriculture has tripled since 1950. Farmers utilizing the Ogallala Aquifer, the largest mass of freshwater in the world,  supply one-fifth of the US agricultural harvest and contribute to an annual crop value of $20 billion. Withdrawing four – six feet of water every year, the aquifer is forecast to run dry by 2063. A reduction in the level of  irrigation will save water, but will inevitably result in higher transport and production costs for food.

The Gulf of Mexico is another prime example. The nitrogen compounds dispersed from synthetic pesticides used in Midwestern farms across the United States have travelled down the Mississippi to the Gulf and created a large ‘dead-zone’ where aquatic life cannot survive.

Organic Farming Exhibits a More Extensive Use of Resources

Organic farming is a sustainable, economically viable and environmentally sound approach to agriculture. Organic plant production management consists of soil fertility management, a choice of species and varieties, multi annual crop rotation, recycling organic materials and cultivation techniques. With sophisticated management practices grounded in agro-ecology, organic farms are now viewed as ecosystems made up of interacting elements that can be modified to maximize yields and conserve resources.

Due to the lower use and price of inputs in the production process in organic farming, net profit margins per unit of production are often higher, despite lower crop yields.

To encourage the shift, governments are supporting organic farmers with higher agri-environment and animal welfare subsidies. These are granted to farmers who voluntarily commit themselves to exceeding minimum relevant standards and are intended to promote agricultural production methods that help to protect and enhance the environment, the landscape, natural resources, the soil and genetic diversity.

Many changes observed in the environment occur only slowly. Organic agriculture considers the medium and long term effect of agricultural interventions on our environment. It aims to produce food while establishing an ecological balance to prevent soil fertility or pest problems, adopting a proactive approach as opposed to treating problems after they emerge.