Agriculture research traditionally is the fuel for higher farm productivity, which indirectly benefits consumers. Two USDA economists say that in high-income countries, such as the United States, France and Australia, spending on agricultural research and development is seeing its first sustained drop in half a century, with implications for future farm output.
In an article in USDA’s Amber Waves magazine, economists Paul Heisey and Keith Fuglie say that, adjusted for inflation, total spending on ag R&D fell by 6 percent from 2009-13 in high-income countries, “the first sustained drop in over 50 years. If this decline in R&D investment continues, the growth of agricultural productivity and output may eventually slow.” By contrast, public investment in ag R&D grew significantly following World War II. The global financial crisis of 2008-09 appears to have ended the pattern of investment in ag research.
Various methods are being used to generate funding, ranging from producer-funded checkoff programs and government matching of privately generated research money to attracting non-traditional sources. They can include government agencies interested in public health or environmental issues as well as foundations and the private sector.
“So far, the decline in agricultural R&D spending by governments in high-income countries has been at least partially offset by increased R&D spending by the private sector and governments in developing countries. But these other sources of R&D are imperfect substitutes for the role that public agricultural R&D,” write Heisey and Fuglie. Global agricultural growth “may depend on whether countries like China, India, and Brazil can increase not only the quantity but also the fundamental quality of the work of their public research institutes and universities.”