Information and Communication Technology (ICT) in Agriculture- A Report to the G20 Agricultural Deputies

World population is expected to surpass the 9 billion mark by 2050, and agriculture has to increase the production of nutritious food to meet the growing demand and ensure food security for all. It has to generate jobs, improve incomes and contribute to poverty eradication and rural economic growth. And it has a major role to play in the sustainable management of natural resources. Most of the increase in food production will have to take place in developing countries. Agriculture is increasingly becoming knowledge-intensive and millions of smallholder farmers around the world are confronted by constraints such as poor access to markets and financial services, low levels of human and physical capital, poor access to education and weak information flows. With missing markets, low skills and weak capacity, agriculture across the developing world will have to
overcome a number of challenges in the future. The information needs of farmers in both developing and developed countries will only increase as they have to make more and more complex decisions on how to use their land, what crops to produce and how, in which markets to buy inputs and sell their products. Their decisions, which also include choices on how to finance their business and reduce the risk they face, impact the livelihoods of their families and society.

ICTs have been a significant contributor to growth and socio-economic development in business sectors, countries and regions where they are well adopted and integrated. Nearly 40 percent of the global population has access to the Internet, and among the bottom fifth of the poor, 7 out of 10 households have a mobile phone.1 The large adoption and integration of ICTs has reduced information and transaction costs, improved service delivery, created new jobs, generated new revenue streams and saved resources. In agriculture and food sectors across the world, ICT companies, multinational farm input business, large machinery manufacturers, but also small and medium farm input suppliers provide a number of services to farmers through ICTs, including extension advice. Downstream, supermarkets and agricultural product buyers also engage in the food value chain through ICTs, where the technology is also used by farmers’ cooperatives, international organizations, the civil society and governments to effectively provide information on many aspects of farming, including regulation.

ICTs have transformed how businesses, people and governments work. They reduce transaction costs and facilitate communication. People can be informed and communicate with each other at significantly lower costs than before. With this, digital technologies promote efficiency and inclusion – many tasks can be carried out at low costs and many services can reach people that previously lacked access...