How is ODA for agriculture evolving over time?

ODA to agriculture declined 21% from US$10.9 billion in 2020 to US$8.6 billion in 2024, with the sector experiencing volatility throughout the period. Bilateral ODA fell from US$5.2 billion in 2020 to US$4.4 billion in 2024, while multilateral core funding dropped from US$3.6 billion to US$3.2 billion during the same period. Agriculture's share of total ODA also decreased, falling from 5% in 2020-2021 to 4% by 2022-2024.

Who are the top donors of agricultural ODA?

The US led agricultural ODA in absolute terms, contributing US$1.6 billion, followed by Germany at US$1.1 billion and France at US$1 billion. Smaller donors showed stronger prioritization of agriculture, with New Zealand allocating 9% of its total ODA to the sector, followed by Korea and Belgium at 8%. Among major donors, France and the Netherlands allocated 6% of their total ODA to agriculture.

What are the key debates and topics surrounding agriculture?

Increasing funding for agricultural adaptation to build smallholder farmers’ capacity to adapt to climate change: According to the World Bank’s 2016 report Shock Waves: Managing the Impacts of Climate Change on Poverty, climate change could push an additional 100 million people into extreme poverty by 2030 if no action is taken. Climate change could cause the incomes of smallholder farmers in Africa, South Asia, and Latin America to decline by up to 20%.

Accordingly, donors need to scale up funding for adaptation programs, such as providing access to climate-smart agricultural technologies, improving water management systems, and promoting diversification of livelihoods to increase the climate resilience of smallholder farmers.

In 2024, the World Bank announced plans to doubling annual investments in the agribusiness sector to US$9 billion by 2030, as part of a 'strategic pivot' aimed at generating jobs in LICs. Bucking the trend of swindling ODA commitments, the IFAD saw a record US$1.4 billion in pledges in 2024, a nearly 10% increase from its previous replenishment in 2021. The increase in pledges was attributed to IFAD's unique investment approach and focus on small-scale farmers.

Supporting food security and protect those impacted by malnutrition: In the wake of ongoing crises in Gaza and Sudan, food insecurity is projected to continue to worsen in 2025 with 1.9 million people already on the brink of famine and 733 million facing hunger in 2023, a steep increase from 2019. As such, the world is not currently on track to achieve SDG #2 by 2030. More funding is needed for agricultural development, food assistance programs, nutrition, as well trade support programs. Moving forward, donors should prioritize sustainable, long-term interventions that are evidence-based, context-specific, and designed to meet the needs of vulnerable populations as well as maximize the impact of each dollar spent.

As part of its G20 presidency in 2024, Brazil launched the Global Alliance Against Hunger and Poverty, which aims to eliminate world hunger by 2030. The alliance is intended to make it easier for countries to access existing resources.

Targeting agricultural sustainability as a lever for climate change adaptation: Despite the massive potential to mitigate climate change by making agriculture more sustainable, there is a lack of funding for agriculture sustainability initiatives, particularly in low- and middle-income countries.

As such, increased funding for the adoption of sustainable agricultural practices, such as conservation agriculture, agroforestry, and integrated crop-livestock systems is critical to developing sustainable agriculture systems while reducing greenhouse gas emissions and increasing carbon sequestration.

Advancing agricultural data as an important lever for reaching zero hunger: Sound agricultural data is crucial for effective policymaking in low- and middle-income countries and the achievement and evaluation of SDG #2. As such, advocates should promote the collection and analysis of agricultural data to inform policy and improve productivity, net outputs, and farmer income levels.