The Food and Agriculture Organization of the United Nations (FAO), the International Food Policy Research Institute (IFPRI) and the CGIAR Research Program on Policies, Institutions, and Markets (PIM) today virtually launched the agriculture human capital Investment case study carried out in Kenya.

This case was part of a global study started in early 2020 aimed to provide governments, international financing institutions, the private sector and other partners with the evidence and analysis needed to make more and better investments in agriculture human capital.  

“Today more than ever, farmers face profound changes – from climate change, labour shortages and global pandemics such as COVID-19, to an explosive rise in digital technologies, shifting diets and rigorous global and national food safety standards,” said John Preissing, the Deputy Director – FAO Investment Centre.

“Agricultural producers need the capacity to analyse, innovate and respond, to keep up with this rapidly changing environment to optimise their efforts. At the same time, they must manage their own businesses,” he added.

Improved income and quality of life

Kenya’s agriculture sector contributes 24 percent to the country’s Gross Domestic Product, with 65 percent of the agricultural produce exported. The sector also employs about 40 percent of the total population, with 73 percent of farmers being small-scale producers in rural areas.

The Kenya study recounts experiences from the Smallholder Horticulture Empowerment and Promotion project (SHEP), which set out to train farmers to grow for market – to motivate them to commercialize production. Kenya’s farming population. Funded by the Japan International Cooperation Agency in three phases from 2006 to 2020, the project succeeded in increasing the average net income of farmers. In the third phase of the project, the average real incomes increased by 104 percent for participating farmers.

SHEP empowered farmers to conduct market surveys to determine what was in high demand. Farmers interacted with a wide range of market actors through the Farm Business Linkage Stakeholder (FABLIST) Forum, where they established links with farm input suppliers, horticultural traders, financial institutions, non-governmental organizations, research institutions and other market players.

“As a result of SHEP training, many farmers started contacting the market stakeholders they met during the market surveys or FABLIST Forums on their own to obtain advice on production and marketing,” said co-author Maina Mwangi, from Kenya’s Kenyatta University and Forum for Agricultural Advisory Services – Kenya. “They also changed their attitude that farming is really a business after realizing the availability of markets for their produce.”

Importance of investing in agriculture human capital

Agriculture plays an important role in feeding the country and other countries Kenya exports to, and in generating income for those working in the food value chain.

Investing in farmers – or agriculture human capital – is therefore crucial to addressing challenges in our agrifood systems. There is growing evidence that when you invest in farmers, their capacity and motivation to produce food profitably and sustainably increases.

The global study showed that investments in developing the human capital of smallholder producers resulted in new technical and business capacities and empowered farmers with various useful skills. This led to increased incomes, yields and the inclusion of marginalized groups.

Note to editors:

Human capital, as an economic term, refers to assets that improve individual productivity. These include skills development, training and education, as well as public health and migration. They also include more abstract aspects such as self-esteem, empowerment, creativity, increased awareness and mindsets.

In addition to Kenya, the study included cases from Rwanda, Cameroon, Chile, India, Indonesia, Peru, the United States of America, and West and Central Africa, along with the global report. 

For more information

Contact

Lydia Limbe,

Communication Expert – FAO Investment Centre

Email: [email protected]

Twitter: @FAOInvest