Globalization and agriculture are inextricably connected, with each one having permanently altered the other in both subtle and profound ways. The growing demands of an increasingly interconnected world have driven innovation and technology transfer in the agricultural sector, while the improved market access of these more advanced and efficient farms has, in turn, allowed the world’s population to boom.
As a result of the trend toward globalization, farmers experience both challenges and opportunities. We’ll take a close look at some of the most notable below, including increasing demand, environmental impact, price competition, and innovation.
Increased Crop Demand
Prior to the rise of globalization, each country was mostly focused on growing its own food, meaning that the demand for crops remained consistent as long as the population did. If a person traveled from one country to the next, they could expect to eat very different foods in each, particularly if they moved between geographical regions with different climates. Few, if any, crops existed that could be called global staples, and a shortage of food would be disastrous in the country where it occurred but would usually remain relatively localized.
The increase in trade that has accompanied globalization has permanently, fundamentally altered the business of agriculture. With crops such as grains, cereals, and potatoes now easily shipped worldwide, they have become staples of the food supply in hundreds of countries. Foods that were once found in only one region of the world are now widely available. For example, a little over two centuries ago, the only way to eat a pineapple was to visit South America or be wealthy enough to access one of Europe’s specially built “pinery” greenhouses. Now, they can be found in millions of grocery stores across the world.
This has also had a significant impact on the global economy. Whether directly or indirectly, farms are responsible for employing over one billion people worldwide. This vast segment of the population is continuously working to meet the needs of billions more and collectively makes up one of the largest and most complex industries in the history of the world.
Environmental Impacts
With the world’s population steadily increasing, globalization and agriculture have also directly created a growing need for sustainable food sources. Farmers in major food-producing regions must be more conscious than ever before of the environmental impact that agriculture has, in terms of both resource consumption and the potential threat of pollution caused by the presence of farms in a region.
With regard to resource usage, farmers are now developing methods for reducing their overall consumption of not only water, but also the essential nutrients needed for crops to thrive. Advanced software systems allow for precision irrigation techniques that can reduce water waste, and crop rotation allows soil to be recycled, reducing the amount of land required to grow crops. Other techniques, including organic fertilization and integrated pest management, also help to reduce the amount of environmentally harmful pesticides and other chemicals used by farms.
Innovation
Modern innovations in packing, shipping, and storage technology have led to a massive increase in demand that continues to grow. Now, billions of people across the world depend greatly on foods that are grown in countries other than their own. The worldwide demand for these major agricultural commodities has, in turn, driven innovation both on and off the farm.
One example of cutting-edge technology that has been applied to agriculture in recent years is the driverless tractor. Able to be controlled by an operator using only a smartphone, this technology allows for more efficient and streamlined agricultural processes than ever before, which improves yield and reduces up-front costs for farms. Other automated systems, as well as advanced sensors and similar technologies, allow for greater output and reduced costs, both of which are critical to meeting the demands of an ever-more interconnected world.
Price Competition
One reality of globalization and agriculture that has created both benefits and challenges for small-scale farms is an economic one: namely, the impact of an interconnected world on price competition. Small farms, which are frequently family-owned and passed down through generations, have historically provided their communities with much-needed food resources. However, in the modern world, these small farms are frequently forced to compete with large-scale, corporate megafarms, which are often hundreds or even thousands of miles away from the communities they serve.
The benefits of this increased competition are clear: A greater supply of any product places downward pressure on the prices, lowering the costs for the end user. However, if they aren’t able to sell their produce at prices sufficient to sustain them, small farms may eventually lose their ability to remain competitive, a fact which can ultimately be harmful for end users in their local communities. Farms combat this by forming coalitions like the Washington State Potato Commission, a league of local potato farmers devoted to improving sustainability and reducing food insecurity worldwide.
Shifts in Local Farming Practices
Globalization has greatly affected the way all of us live, and nowhere is this clearer than on the farms that grow our food and provide other basic needs. The changes brought on by the increasing reliance of communities on farms in faraway geographical regions have led to multiple major shifts in farming practices: chief among these, the need for greater productivity, sustainability, and efficiency.
Farms must now adapt to a changing world to survive. While the opportunities are greater than ever before, the risks have also increased proportionally. Farms must now contend with the reality of globalization, even as they continue to serve their local communities. Whether you are a farmer yourself or simply a consumer, it is critical to support local operations to ensure the farms you depend on can continue to provide needed resources for not only their local communities but the world at large.