IDB Report Urges Boost in Agricultural Productivity to Guarantee Food Security in Latin America and the Caribbean

WASHINGTON — Countries in Latin America and the Caribbean face a unique opportunity to boost agricultural productivity to safeguard food security, improve rural livelihoods, and protect the environment, according to a new flagship report from the Inter-American Development Bank (IDB).

The study, titled "Agricultural Productivity in Latin America and the Caribbean: What We Know and Where We Are Heading," reveals that although total output has increased nearly sixfold since 1960, recent growth has relied more on the increased use of inputs – such as land, labor, fertilizers, machinery, and water – than on productivity gains.

Between 2010 and 2020, total factor productivity (TFP) – a key measure of efficiency – grew by just 0.9% per year, compared with an annual average of 1.7% over the previous 60 years.  This deceleration threatens the ability to meet rising food demand in a region where 28% of the population faces food insecurity and nearly four in ten rural residents live in poverty. 

“This report offers a practical, evidence-based roadmap for policymakers to boost agricultural productivity in Latin America and the Caribbean,” said Fabrizio Opertti, manager of the IDB’s Productivity, Trade, and Innovation Sector. “By identifying the drivers of sustainable growth and highlighting technology adoption, climate-smart innovation, and inclusion, the report provides countries with tools to improve yields and efficiency, protect natural capital, and unlock the potential to turn agriculture into an engine of competitive and resilient development,” he added.

To encourage sustainable productivity growth in the region, the report calls for closing the technology-adoption gap by strengthening technical assistance, farmers’ training, and extension services. It also encourages incorporating environmental impacts into productivity metrics and policy design to ensure long-term sustainability. 

The study emphasizes climate adaptation as a key opportunity to enhance resilience and competitiveness, and urges countries to address social disparities through tailored, data-driven interventions. It advocates balancing direct support with investments in public goods, such as infrastructure, research, and innovation, and strengthening agricultural-data systems to enable evidence-based policymaking across Latin America and the Caribbean.

The report includes case studies analyzing agricultural productivity at national and subnational levels in nine countries: Argentina, Bolivia, Brazil, Colombia, Ecuador, Mexico, Paraguay, Peru, and Uruguay.

It also introduces the Sustainable Productivity Index (SPI), which incorporates environmental costs into the measurement of agricultural productivity growth in the region between 1995 and 2021. The SPI shows that while the region has made significant progress in increasing agricultural output, overall performance appears less robust once environmental sustainability is factored in, underscoring the need to balance agricultural production with ecological responsibility for sustainable growth.

Agriculture remains a cornerstone of the region’s economy, contributing 6% of GDP, 15% of employment, and 24% of exports. Bringing together cutting-edge research, the study aims to help countries in Latin America and the Caribbean design policies that promote higher productivity, environmental sustainability, and climate resilience, advancing a more inclusive, competitive, and sustainable agricultural future for the region.

Download the executive summary in Spanish here.