Countries in Latin America and the Caribbean have a critical opportunity to enhance agricultural productivity to ensure food security, improve rural livelihoods, and protect the environment, according to a new flagship report from the Inter-American Development Bank (IDB). The study, titled “Agricultural Productivity in Latin America and the Caribbean: What We Know and Where We Are Heading,” notes that while total agricultural output has increased nearly sixfold since 1960, recent growth has relied more on expanded use of inputs like land, labor, fertilizers, machinery, and water, rather than improvements in efficiency and productivity.
Between 2010 and 2020, total factor productivity (TFP), a key measure of agricultural efficiency, grew by just 0.9% per year, down from an average of 1.7% annually over the previous six decades. This slowdown poses a threat to meeting rising food demand in a region where 28% of the population experiences food insecurity and nearly 40% of rural residents live in poverty.
Fabrizio Opertti, manager of the IDB’s Productivity, Trade, and Innovation Sector, emphasized that the report provides an evidence-based roadmap for policymakers. It identifies drivers of sustainable growth, including technology adoption, climate-smart innovations, and inclusive practices, offering tools to improve yields, protect natural resources, and transform agriculture into a resilient and competitive economic engine.
To promote sustainable productivity growth, the report recommends closing the technology-adoption gap by strengthening farmers’ training, technical assistance, and extension services. It also calls for integrating environmental considerations into productivity metrics and policy design, ensuring long-term sustainability.
The study highlights climate adaptation as a critical avenue for enhancing resilience and competitiveness, while urging governments to address social disparities through targeted, data-driven interventions. Balancing direct support with investments in public goods such as infrastructure, research, and innovation is encouraged, alongside strengthening agricultural-data systems to support evidence-based policymaking.
Case studies across nine countries—Argentina, Bolivia, Brazil, Colombia, Ecuador, Mexico, Paraguay, Peru, and Uruguay—analyze agricultural productivity at national and subnational levels. The report also introduces the Sustainable Productivity Index (SPI), which factors environmental costs into productivity growth between 1995 and 2021, showing that progress in output is less robust when ecological impacts are considered, underscoring the need for sustainable agricultural practices.
Agriculture remains a cornerstone of the region’s economy, contributing 6% of GDP, 15% of employment, and 24% of exports. By combining rigorous research and actionable recommendations, the IDB report aims to guide countries in Latin America and the Caribbean toward policies that foster higher productivity, environmental sustainability, climate resilience, and a more inclusive and competitive agricultural future.
