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Food Security: Investing in Sustainable Agricultural Practices

Food Security: Investing in Sustainable Agricultural Practices

12/11/2025
Giovanni Medeiros
Food Security: Investing in Sustainable Agricultural Practices

Ensuring reliable access to sufficient, safe, and nutritious food for all is one of the defining challenges of our time. Food security underpins health, economic stability, and social cohesion, yet remains out of reach for millions worldwide.

According to the latest global review, 295 million people faced acute hunger last year, marking the sixth straight year of rising crises. Although recent declines in commodity prices offer hope, entrenched drivers such as conflict, climate extremes, and economic shocks continue to threaten progress.

Without urgent action, the lives and livelihoods of vulnerable communities will face deeper setbacks, jeopardizing decades of development gains and undermining global stability.

Understanding the Drivers of Food Insecurity

The complexity of food insecurity arises from multiple, interlinked factors. Conflict displaces families and disrupts supply chains, while extreme weather events—from droughts to floods—erase harvests and degrade soils. Economic instability and persistent price inflation hinder communities’ ability to purchase essentials, and displacement due to war or disaster compounds vulnerability.

Regions such as Sub-Saharan Africa bear the heaviest burden, with 332.3 million people, or 26.9 percent of the population, experiencing food insecurity in 2025. Meanwhile, nearly 2.3 billion individuals, or 28 percent of the global population, struggled with uncertain access to food—far above levels recorded in 2015.

The Business Case for Sustainable Agriculture

Investing in sustainable agricultural practices is not only an environmental imperative but also a compelling economic opportunity. The global market for sustainable agriculture was valued at $15.36 billion in 2024 and is projected to reach $28.36 billion by 2030, reflecting robust demand for solutions that balance productivity with ecological stewardship.

Beyond market growth, investors are recognizing clear returns. A transformation effort in Brazil’s Cerrado biome highlights a $93 billion opportunity to restore pastures and adopt regenerative methods across more than 50 million hectares, delivering an average 19 percent internal rate of return to 610,000 farmers.

  • Blended finance mechanisms are being used to de-risk transitions for smallholder farmers and mobilize new capital.
  • Public finance remains dominant but is increasingly channeled into dual-benefit projects that address both adaptation and mitigation.
  • Place-based programs at scale—covering more than 10,000 hectares each—account for over half of all regenerative initiatives.

Innovations and Best Practices in the Field

Across diverse geographies, leading-edge practices are proving their worth. Regenerative agriculture restores soil health through cover cropping, crop rotations, and minimal tillage. Agroforestry integrates trees with crops and livestock, boosting biodiversity and creating new revenue streams. Climate-smart techniques leverage drought-resistant and high-yield varieties to adapt to shifting weather patterns.

Data and digital tools are transforming decision-making on farms. Farmers equipped with AI-driven recommendations can optimize planting schedules, irrigation, and input use, thereby increasing resilience against erratic weather and market fluctuations.

  • In Mali, the adoption of climate-smart rice practices led to yield gains of nearly 0.9 ton per hectare and additional income of $320 per hectare.
  • Brazil’s Cerrado restoration project demonstrates a transformation effort in Brazil’s Cerrado biome with high returns and large-scale impact.
  • Energy-related solutions like agrivoltaics combine solar power with crop production, improving land use efficiency.

Investment Mechanisms for Scaling Impact

Effective financial structures are essential to scale promising approaches. Blended finance models leverage concessional funds to lower risks for commercial investors, while public–private partnerships bring technical expertise and market access. Multilateral programs such as the Food Systems Resilience Programs commit billions to crisis response and long-term modernization efforts in Eastern, Southern, and Western Africa.

Emergency interventions continue to play a vital role. Recent allocations include $50 million for farmers in the Central African Republic, $15 million in Guinea-Bissau, $125 million for Syrian and Jordanian agricultural support, and $300 million for production enhancement in Bolivia, illustrating the importance of rapid-response funding.

Enabling Productivity Gains and Climate Mitigation

Productivity in agriculture is projected to increase by 14 percent over the next decade, driven by innovation and the spread of sustainable practices. These gains are crucial to meet rising food demand while limiting greenhouse gas emission growth to just 6 percent.

Scenario modeling indicates that a combined strategy—boosting yields by 15 percent and deploying emission-reduction technologies—could eliminate undernourishment by 2034. Such a dual focus ensures that increased output does not come at the expense of environmental health.

Regional Focus and Disparities

Although global investments are rising, key agrarian regions remain underfunded. Sub-Saharan Africa and South Asia receive a fraction of the $95 billion agrifood climate finance, and less than 8 percent of global climate finance flows to food systems. Domestic public finance accounts for 78 percent of agrifood climate investments, underscoring the need for innovative funding sources in lower-income economies.

Without targeted action, these disparities risk entrenching cycles of poverty and hunger. Policy interventions must prioritize financial inclusion, infrastructure development, and technology transfer to ensure smallholders can adopt resilient practices.

Policy Frameworks and Global Coordination

International cooperation is gathering momentum. The UN Pact for the Future, launched in 2024, and the Action Agenda on Regenerative Landscapes at successive COP conferences aim to align finance, trade, and sustainability objectives. Ensuring trade policies facilitate rather than restrict food flows during crises is a key priority.

National governments are updating agricultural and climate strategies to integrate sustainable practices, set targets for productivity gains, and mobilize private capital. Robust measurement and reporting remains essential to track progress and direct resources efficiently.

Challenges and Barriers Ahead

  • Underinvestment in critical regions due to real and perceived risks.
  • Data gaps and measurements and reporting frameworks slow progress by obscuring impact evidence.
  • Limited access to finance, technology, and markets for smallholder farmers.
  • Increasing frequency of extreme weather events that disrupt supply chains.

Pathways Forward: Scaling Solutions Through Collaboration

Unlocking the potential to eliminate undernourishment by 2034 requires coordinated investments that boost productivity and cut emissions. Modeling suggests that strategic spending on emission-reduction technologies and a 15 percent productivity increase could achieve this goal within a decade.

Governments, investors, farmers, and civil society must work together. By scaling successful pilot programs, expanding blended finance mechanisms, and harmonizing policy frameworks, the world can move toward a future where no one goes hungry and agricultural landscapes thrive.

Investing in sustainable agriculture is more than a moral imperative—it is an investment in our collective resilience, prosperity, and environmental health.

References

Giovanni Medeiros

About the Author: Giovanni Medeiros

Giovanni Medeiros