Groups Say Ag Sector Is More Resilient To Global Crisis

The UN’s Food and Agriculture Organization (FAO) said the global agriculture sector has coped better with the recession than other sectors, but it could begin to suffer if the downturn deepens, BBC News reports. Output and consumption will fall less if recovery starts within three years, said the Organization for Economic Cooperation and Development (OECD) and the FAO.

Average crop prices in the next decade will be 10% to 20% higher in real terms than between 1997 and 2006, according to the report. The groups warn that more hefty price hikes, similar to 2008, cannot be ruled out. The OECD and FAO suggest that governments should target spending on infrastructure, research and development and provide incentives for sustainable use of soil and water to improve access to food.