Exploring agricultural transformation through the new frontier of space economics

In an era of rapidly growing global population and the looming threat of climate change, the Food and Agriculture Organization (FAO) of the United Nations has taken a proactive approach to ensure food security for generations to come. The FAO has introduced an ambitious strategic framework called the 'Four Betters', focusing on technology, data, and innovation.

The FAO's vision is not just a pipe dream. Potential funding for advances in Earth observation technology for agriculture comes from various sources. These include European Union missions like "A Soil Deal for Europe", research projects such as BENCHMARKS supported by EU and national stakeholders, government ministries like Germany's Federal Ministry for Economic Affairs and Climate Action (BMWK), space technology companies such as OroraTech, international space agencies investing in advanced radar satellites like NISAR, private investors and venture capital backing agri-tech startups (e.g., agriBIOME), and even large agrifood companies that are significant consumers of satellite imagery.

However, the cost of these cutting-edge services remains substantial for regular users. High-quality satellite imagery processing can incur significant additional costs, depending on the complexity of the requested service. The cost of satellite imagery for precision farming and irrigation ranges from 2€/km2 for a low-quality hyperspectral image to 35€/km2 for a very high-quality one.

The global population is projected to surpass 10 billion by 2060. By 2050, global agriculture will need to produce nearly 50% more food than it did in 2012. Production in South Asia and sub-Saharan Africa needs to more than double by 2050 to meet this demand. Wheat, maize, and barley yields have plateaued in many parts of the world, making it crucial to find innovative solutions.

Climate change poses a significant threat to agricultural production. The farming model adopted by higher income countries in the 1950s is reaching its limits. To satisfy the new demand, substantial adjustments in production capacity and output will be necessary.

Public funds, perhaps in the form of Public-Private Partnerships (PPP), could be a viable short-term solution for funding agricultural advancements. Releasing more public funds for these purposes entails intense and prolonged political efforts, and is no easy feat in today's uncertain geopolitical environment.

The private sector may shift its attention to more lucrative industries, such as Defense or Mining, to satisfy the ROI requirements of their investors. Government agencies are another potential funding source, often calling on private technology providers to improve their services.

Rapid urbanization and increasing average incomes in developing countries are expected to bring about significant shifts in dietary preferences. To address these changes, the FAO set up an open-access platform for geospatial data, tools, and resources in 2020 to support more targeted interventions and decision-making in agriculture.

Despite these challenges, cutting-edge services with high added value in the agricultural domain may remain out of reach for many farmers. The FAO's 'Four Betters' strategy aims to bridge this gap, ensuring that innovative technologies are accessible and beneficial for all farmers, regardless of their economic status.

In conclusion, the FAO's strategic framework and the potential funding sources offer a promising path towards a sustainable and productive agricultural future. However, it is crucial to address the financial burden on regular users and ensure that these innovations are accessible to all farmers. Only then can we hope to meet the challenges of feeding a growing population while combating climate change.

Exploring agricultural transformation through the new frontier of space economics