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Agricultural policies in Africa harming the poorest

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Growing for export: May ‘exacerbate poverty’

Growing for export: May ‘exacerbate poverty’

AGRICULTURAL policies aimed at alleviating poverty in Africa could be making things worse, according to new research findings.

University of East Anglia (UEA) researchers this week published a report on so-called ‘green revolution’ policies in Rwanda. Governments, international donors and organisations such as the International Monetary Fund claim these strategies are successfully growing the economy and alleviating poverty, but researchers revealed that they may in fact be having very negative impacts on the poorest people in the country.

One of the major strategies to reduce poverty in sub-Saharan Africa is through policies aiming to increase and ‘modernise’ agricultural production. Up to 90 per cent of people in some African countries are smallholder farmers reliant on agriculture, for whom agricultural innovation, such as using new seed varieties and cultivation techniques, holds potential benefit but also great risk.

In the 1960s and 70s policies supporting new seeds for marketable crops, sold at guaranteed prices, helped many farmers and transformed economies in Asian countries. These became known as “green revolutions”. The new wave of green revolution policies in sub- Saharan Africa is supported by multinational companies and western donors, and is impacting the lives of tens, even hundreds of millions of smallholder farmers, according to Dr Neil Dawson, who led the UEA study.

The UEA research reveals that only a relatively wealthy minority have been able to keep to enforced modernisation because the poorest farmers cannot afford the risk of taking out credit for the approved inputs, such as seeds and fertilisers. Their fears of harvesting nothing from new crops and the potential for the government to seize and reallocate their land means many choose to sell up instead.

PRIVATE AID MAY NOT BE HELPING

The report follows another by social justice organisation Global Justice Now, which suggested the world’s largest private donors, who wield huge amounts of influence and financial power have “Dangerously and unaccountably [distorted] the direction of international development” in a way that could entrench corporate power and poverty. This has been done by, amongst other things, championing highly industrialised agriculture, which is undermining smaller-scale, biologically diverse systems.

Dr Dawson’s findings tie in with recent debates about strategies to feed the world in the face of growing populations, for example the influence of wealthy donors such as the Gates Foundation, initiative’s such as the New Alliance for Food Security and Nutrition, and multinational companies such as Monsanto in pushing for their vision of agriculture in Africa.

There have also been debates about small versus large farms being best to combat hunger in Africa, while struggles to maintain local control over land and food production, for example among the Oromo people in Ethiopia, have been highlighted. In a recent policy document advocating on behalf of small-scale farmers, FAO warned that “The over-arching paradigm of economic growth, considered the highway to secure development, has left the social and environmental dimensions of sustainable development behind.”

Dr Dawson, a senior research associate in UEA’s School of International Development, commented, “Similar results are emerging from other experiments in Africa. Agricultural development certainly has the potential to help people, but instead these policies appear to be exacerbating landlessness and inequality for poorer rural inhabitants.

“Many of these policies have been hailed as transformative development successes, yet that success is often claimed on the basis of weak evidence through inadequate impact assessments. And conditions facing African countries today are very different from those past successes in Asia some 40 years ago.”

‘MODERNISATION’ NOT THE WHOLE ANSWER

Outlining one of the main criticisms with this vision of agriculture and its place in development policies, Dr Dawson added: “Such policies may increase aggregate production of exportable crops, yet for many of the poorest smallholders they strip them of their main productive resource, land. [My research] details how these imposed changes disrupt subsistence practices, exacerbate poverty, impair local systems of trade and knowledge, and threaten land ownership. It is startling that the impacts of policies with such far-reaching impacts for such poor people are, in general, so inadequately assessed.”

The research looked in-depth at Rwanda’s agricultural policies and the changes impacting the wellbeing of rural inhabitants in eight villages in the Country’s mountainous west. Here chronic poverty is common and people depend on the food they are able to grow on their small plots.

Farmers traditionally cultivated up to 60 different types of crops, planting and harvesting in overlapping cycles to prevent shortages and hunger. However, due to high population density in Rwanda’s hills, agricultural policies have been imposed which force farmers to modernise with new seed varieties and chemical fertilisers, to specialise in single crops and part with “archaic” agricultural practices.

Dr Dawson and his UEA coauthors Dr Adrian Martin and Prof Thomas Sikor recommend that not only should green revolution policies be subject to much broader and more rigorous impact assessments, but that mitigation for poverty-exacerbating impacts should be specifically incorporated into such policies. In Rwanda, in their view, that would mean encouraging land access for the poorest and supporting traditional practices during a gradual and voluntary shift.

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NFU Cymru President’s New Year message

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NFU Cymru President John Davies provides his New Year message, looking back over an unprecedented 12 months and assessing what lies ahead in 2021.

“2020 was a year the likes of which we’ve never seen. The Coronavirus pandemic has challenged all of society. My condolences go out to all of those who’ve lost loved ones to this disease. My thoughts are with all whose livelihoods have been affected by the knock-on effects that the pandemic has had on businesses and our general way of life. I’d like to place on record my heartfelt thanks to our NHS workers and those supporting them on the front line for their courage in tackling this global health emergency. So often the term ‘hero’ is attached to those in films or on the sporting stage, but if this year has taught us anything it’s that, in fact, the real heroes are those people in our communities who have gone to work – putting themselves at risk – to care for the sick and keep the rest of us safe. Diolch yn fawr iawn pawb.

“The initial impact of the Covid-19 outbreak and the overnight closure of the hospitality sector had severe consequences for the food supply chain. The resilience of those systems was stretched to the limit as the supply chain frantically sought to redirect produce that would usually be destined for the out-of-home market to the retail sector, where panic-buying had resulted in empty shelves in many stores. I thank all our farmers who have worked throughout the chaos of the Covid-19 fallout to keep the nation fed. I know that for many businesses and sectors this hasn’t always been easy and some experienced significant losses as those supply chains struggled to adapt to new demands. However, the role the entire industry has played during such a fraught period will live long in the memory of many, and indeed recent polls suggests farmers’ favourability with the consumer is higher than it has been in a decade.

“I very much hope that lessons can be learned from this tumultuous year and if the past few months have taught us anything, it’s that the safe, reliable supply of high quality affordable food is now of paramount importance to the public. As farmers we are ready and committed to ensuring that the nation remains fed during this difficult time and through future challenges, too. Our farming systems, underpinned by a fantastic, natural asset base, mean we are well equipped to be the providers of the most climate friendly food in the world. NFU Cymru will continue to lobby Welsh Government to see the importance of food production recognised and protected as a cornerstone of future policy.

“Looking ahead and, with significant changes to how Wales and the UK trades with the EU and the rest of the world, one of the biggest challenges for 2021 is going to be making sure that Welsh farmers have the widest possible range of markets freely open to them, on the best possible terms. We are, of course, relieved that that a deal has finally been agreed between the UK and the European Union, providing some much-needed certainty for the farming sector and allowing Wales’ farmers to continue to send products to the EU27 free of both tariffs and quotas. All efforts must be now be focussed on finding ways of minimising the impact of red tape on the movement of our produce to the EU.

“A heartfelt thanks must go to the one million people from all walks of life who backed our food standards campaign. Their support was instrumental in delivering legislation to ensure that food standards will now have a ‘stronger voice in UK trade policy’.

“Of course, away from the pandemic and agricultural policy, there are still major issues that are affecting the nation’s farmers every day. Bovine TB continues to blight so many businesses across Wales – all too many times this year I have again learned of families’ heartbreak and herds, generations in the making, being decimated due to this horrific disease. Please be assured that NFU Cymru will continue to pressure government to act upon the science and take notice of the proven strategies adopted by so many other countries – an approach that seeks to tackle bovine TB across all its vectors.

“NFU Cymru maintains that a heavy-handed and inflexible approach to water quality through the proposed all Wales Nitrate Vulnerable Zone (NVZ) designation will not deliver the enhancements to water quality that we all want to see. NFU Cymru is committed to helping to deliver these improvements via an effective and proportionate framework that supports farmers to take action to improve water quality where it is needed. I am heartened that our Minister has recognised that these are not regulations to introduce at a time of crisis.

“Climate change remains a major challenge for all of us in society and the farming industry is putting its best foot forward to deliver on its net zero 2040 ambition. With the prestigious COP26 summit rescheduled to be held in Glasgow in 2021, it is clear this topic will, rightly, remain high on the news agenda next year. As a farmer, it’s important to me that farming’s contribution to mitigating the effects of climate change is fairly reflected in this debate. Recent research has pointed to the fact that Welsh livestock production systems are amongst the most sustainable in the world, but we know that there is much more we can and will do.

“With a Senedd election scheduled for May 2021 we will be speaking to candidates from across the political spectrum to push home the importance of Welsh food and farming. We are committed to working with the next government to deliver our ambitions for a productive, profitable and progressive farming sector that delivers for the people and communities of Wales.

“It has been a year like no other. With the vaccine rollout now underway I hope we will soon be able to consign the last pandemic-hit year to the history books and return to some form of normality, where we can soon meet at the agricultural shows and events that we all hold dear to our heart. Let us look ahead to 2021 and what we hope will be a bright, healthy and safe future.

“Blwyddyn Newydd dda.”

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Farmers face hidden tax hike

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POTENTIAL changes to rules on Capital Gains Tax could lead to a tax hike for those inheriting farmland and assets, financial advisers at NFU Mutual have warned.

Many farmers can potentially pass on farms to their children free from Inheritance Tax due to Agricultural Property Relief and Business Property Relief.

As capital gains are wiped away on death, children inheriting can sell and only face Capital Gains Tax on any rise in value between the date of death and a sale.

However, in a review ordered by Chancellor Rishi Sunak, the Office of Tax Simplification has recommended that gains should no longer be wiped away on death where the estate has claimed Agricultural or Business Property relief to reduce Inheritance tax.

Sean McCann, Chartered Financial Planner at NFU Mutual, said: “Many farmers choose to hold on to their farming assets until death on the basis that not only might they be free of Inheritance tax, but also escape Capital Gains Tax if sold shortly after death.

“The Office of Tax Simplification’s recommendation that gains should no longer be wiped on death where Agricultural or Business Property relief has been claimed to reduce inheritance tax will mean bigger tax bills for some farming families.

“The biggest impact will be on those who sell farming assets they’ve recently inherited. Those that retain the assets and continue to farm won’t face any immediate tax liability under the proposed changes.

“The Office of Tax Simplification also recommended a hike in Capital Gains Tax rates that would align them to Income Tax rates, leading to larger tax bills.

“However, it’s likely that any change would be accompanied by an allowance to take account of the rise in value caused by general inflation, so any tax is only levied on ‘real’ gains.

“It’s important to stress Rishi Sunak has not yet confirmed he will agree to these recommendations, but many farming families will be watching the March Budget with interest.”

EXAMPLE

A farmer owns a farm worth £1m which he bought 25 years ago for £300,000. He dies and leaves it to his children, who sell for £1m shortly after his death. Under current rules, if he met the criteria for 100% Agricultural and Business Property relief, they would pay no inheritance tax on the £1m and no Capital Gains Tax on the sale.

Under the proposal to abolish the tax-free update on death, while there would still be no inheritance tax due – if the farmer’s children sold shortly after his death, they would face a Capital Gains Tax bill on the £700,000 gain. Based on the existing rate (20%) that would trigger a Capital Gains Tax bill of £140,000.

“It’s important to stress Rishi Sunak has not yet confirmed he will agree to these recommendations, but many farming families will be watching the March Budget with interest.”

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Consumers ‘sleepwalking’ away from meat

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A LACK of inspiration, rather than a conscious reaction to trends such as veganism, was at the heart of the pre-Covid-19 reduction in meat, fish and poultry consumption, new AHDB research has suggested.
Before the pandemic struck, some 7.8 million (35%) households in Great Britain had unwittingly purchased less meat, fish and poultry products, according to AHDB analysis of Kantar data [52 w/e 26 January]. This figure accounted for 99% of the 1.3% volume drop in retail sales.

However, the twenty per cent of households which had at least one ‘conscious meat reducer’ accounted for just 1% of the losses, with the majority citing other reasons for reducing consumption.

The unconscious reducers were said by the report to mostly be of retirement age and living with fewer people. They were found to be much less likely to experiment with cooking or refer to themselves as a ‘foodie’, preferring more traditional dishes. They were also found to be unsatisfied with shopping for meat, with just 29% of the unconscious reducer group saying they enjoyed browsing meat aisles and only 31% find them to be inspiring.

The report urged the meat industry to focus its efforts on winning this group back as they offered a better route to boosting meat consumption than conscious reducers.

“How unconscious reducers think and feel about meat isn’t any different to those people who are actually increasing their meat consumption – they’re not turning away on purpose so there is a chance to re-engage them with the category,” explained one of the report’s authors, AHDB senior retail insight manager Kim Malley.

“The biggest opportunity is at the point of purchase. The key thing the report highlights is those people are wanting a better in-store experience. There could be simple messaging in-store to remind people why they enjoy meat, give them a bit of inspiration and remind them it’s versatile and convenient.”

Malley added the meat-free category is “excelling” in innovation and convenience through ready-meal and marinated NPD – products which the report said the meat industry had invested less heavily in.

She also praised the packaging of meat alternatives, which tended to be “very colourful and brought recipes and flavours to life” for shoppers, and urged the meat industry to do its own innovation in these areas in a bid to win back “distracted” consumers.

According to the report, distractions included negative media coverage of the meat industry and the prominence of plant-based ranges in stores.

But in positive news for the sector, it found the coronavirus pandemic had seen sales volumes of meat, fish and poultry rise 8% year-on-year in the 52 weeks to 6 September. Unconscious reducers were discovered to have accounted for 35% of this uplift.

Malley said meat “benefited massively” from the rise in in-home occasions this year and consumers thinking more about their food choices. “It has highlighted that it’s quite easy to re-engage people,” she said.

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