Back Icon Return to blog

Why is Agriculture Significant?

Keira Campbell Keira Campbell April 24, 2024

Key Highlights

  • Agriculture is essential for global food security, providing the food, fiber, and fuel needed to support a growing population
  • The food system is a major driver of climate change, water use, and biodiversity loss, making agriculture central to sustainability challenges
  • Agriculture supports economic livelihoods for billions, especially in developing regions where farming is a primary income source

The Anthropocene Epoch is an unofficial unit of geologic time used to describe the most recent period where humans have had a geologically-notable impact on the planet, in which Earth’s population has increased by more than 5 billion people over the past 70 years.

This of course has led to an ever rising demand for food and clothing – two of the most basic human needs according to Maslow’s Hierarchy of Needs. The production of both of these necessities begins on farmland and as the demand has increased, so have the emissions associated with their production.

Scientists estimate that about 22% of anthropogenic GHG emissions – pollution that originates from human activity – are a direct result of agriculture, forestry, and other land use, or AFOLU. This suggests it is essential to look to our agricultural practices to see where improvements and new developments can be made.

What is Sustainable Agriculture?

Sustainable agriculture involves practices that produce a wide variety of products that are “adapted to local conditions and regional markets”. In this context, being sustainable means that farms need to make use of an area’s landscape in a way that preserves the natural ecosystem as much as possible. This will ensure the soil maintains its organic matter while limiting the amount of erosion and soil degradation. It is also beneficial for farms to implement crop rotation and more efficient forms of irrigation, such as drip irrigation or subsurface irrigation, to limit overuse of the land and wasted natural resources.

New Methods and Technological Advancements

An up-and-coming method of sustainable agriculture is mixed farming, in which crops and livestock are incorporated on the same farm and benefit from each other, dramatically increasing agrobiodiversity. This satisfies a number of the components of sustainable agriculture by enriching the soil with natural nutrients and avoiding poor techniques such as monocropping.

Another advancement in sustainable agriculture is regenerative agriculture, which focuses on “soil and ecosystem restoration” with an emphasis on improving “farmland economic viability” and producing food with more nutrients and fibers.

ADM, a food processing company that plays a major role in the agricultural industry, is one of the key players paving the way in regenerative agriculture practices. ADM is working with large companies in the Food and Beverage industry including Nestle and PepsiCo to ensure that these corporations are implementing responsible business practices all the way down their production lines.

How this Relates to the Corporate World

There are many business sectors that heavily rely on agriculture to carry out their practices. The most obvious is the food and beverage sector, but the apparel and textile industry is also very important as they are large consumers of cotton, wool, and flax- materials used to make clothing fabrics.

According to the International Institute for Sustainable Development, “cotton supports a USD $3 trillion global fashion industry” – which means apparel and textile companies alone are investing billions of dollars directly into the agricultural industry.

In the past, where companies source their products was not information openly available to consumers, but in recent years, many companies have made it a marketing strategy. For example, many food and beverage companies, such as Starbucks, as well as companies in the apparel and textile sector have started advertising that their ingredients and materials are produced using sustainable agricultural practices in order to elevate their environmental credentials.

The Bottom Line

It is becoming increasingly important to educate and inform stakeholders of agribusiness firms about sustainable practices, so they can advocate for changes in the industry. With the planet’s population continuing to grow, more resources will be needed than ever before, making this an issue that needs to be at the forefront of every business that relies on farming to grow its materials. While it will take more research and careful decision-making on the corporate end, it is critical that large businesses pivot towards sustainable agribusiness practices.

Globe

Build your sustainability strategy.

Founded in 2006, Governance & Accountability Institute (G&A) is a New York–based sustainability consulting and research firm advising corporate leaders and investors at the intersection of strategy, governance, and regulation. For two decades, we have partnered with executive teams and boards to translate sustainability strategy into durable enterprise value — helping organizations navigate shifting market expectations, evolving policy landscapes, and increasing capital markets scrutiny. Set up a call to learn more about how we can help your company.

Tagged:  #apparel and textile industry #food and beverage sector #GHG Emissions #Mixed Farming #Soil and Ecosystem Restoration #Sustainable Agriculture #Technological Advancements