Investments in Research and Innovation are changing lives in rural Latin America

Agricultural research and innovation are important elements to increase agriculture productivity and contribute to economic development. A recent report estimates that in the U.S., the real annual internal rate of return on investments in public agricultural research is 67%, and for agricultural and natural resource extension it exceeds 100%. These large returns are unmatched by other public sector investments in a country that ranked 5th in the Global Innovation Index last year.

In Latin America and the Caribbean, the history of public investment in agricultural research, development and innovation has been one with ups and downs. Many countries have struggled to invest sufficiently in their public research institutions and higher education centers, and many practically dismantled their extension services during the 1980s. However, a recent study by the International Food Policy Research Institute (IFPRI) has concluded that agriculture research spending and capacity have increased progressively since the year 2000, albeit with significant differences between the countries. Brazil outperforms every other country in the region with its well qualified research staff, research infrastructure and outputs. Argentina, Colombia, Costa Rica, Mexico, and Uruguay also have relatively well-developed agricultural research systems.

IFPRI’s findings indicate that many countries lack the critical mass of PhD-qualified scientists required for agricultural research to have a substantial impact on agricultural growth. Among these countries are Ecuador, Guatemala, Honduras, Nicaragua, Panama, and Paraguay.  A worrying trend is the advanced age of many scientists; a large number of highly experienced researchers will be retiring in the short to medium term, which will create substantial knowledge gaps and concerns about the quality of future research outputs.

Given the tremendous challenges in the region, IICA, in collaboration with the Regional Fund for Agricultural Technology (FONTAGRO), and the Inter-American Development Bank (IDB), are promoting partnerships between public and private organizations to develop and undertake high quality research to complement other efforts. The emphasis is on research that develops into innovations for small farmers.  Innovations are defined as technologies and or practices implemented in a new context.

Many examples in the region indicate that this strategy is functioning and contributes to improve the lives of rural dwellers. For instance, a competition to recognize innovations to adapt family agriculture to climate change identified eleven cases where farmers supported by local and international organizations are improving their lives by implementing climate smart agriculture practices.

Among the innovations identified are the reintroduction of native goats, which are more prolific and better suited to the harsh increasingly drier conditions in the Rio Negro Province of Argentina. Researchers and farmers working together developed a goat production system that increases productivity in 119%, satisfying 40% of demand for goat meat and displacing frozen poultry sourced from neighboring towns as the main source of protein.

A second case involved farmers and researchers improving water harvesting in the dry corridor of Central America, one region most severely affected by climate change. In Nicaragua, for instance, farmers supported by the International Center for Tropical Agriculture (CIAT) have demonstrated that with improved water harvest and use, and better technologies it is possible to double and even triple maize, beans and rice production. Traditionally, these basic crops are dependent on rains, which are increasingly scarce due to climate change.

While in many countries investments in research are stalling due to economic adverse situations, FONTAGRO has guaranteed funding available every year for innovation platforms. Annually, an average $3 million from FONTAGRO is invested in initiatives that produce results like the ones described above. While this amount is certainly insufficient for the needs of the region, it is an important mechanism to mobilize resources from other agencies. Last year alone, US $1,816,500 were mobilized from the Fund for Global Environment Facility (GEF) for climate smart agriculture projects. In addition, US$2,368,318 were contributed by the Government of New Zealand for livestock projects and climate change in the Andean Region and Central America.

IICA continues to support these activities and advocates for impact investments that generate social and environmental impacts along with financial performance.

More information: priscila.henriquez@iica.int

*This post appears in the IICA Delegation in the USA Newsletter - May- June 2016