RED 2026 - Chapter 3: Agricultural productivity

The agriculture and livestock sector plays a central role in the economies of Latin America and the Caribbean, both because of its contribution to production and foreign trade and because of its links to other sectors of the economy. This chapter analyzes the main determinants of agricultural productivity, as well as its evolution and that of its factors, such as land, labor, and capital. It also examines how two global transformations—technological change and climate change—are reshaping the sector’s production conditions. Finally, it discusses a range of policies needed to promote improvements in agricultural productivity, including those related to land tenure, the adoption and modernization of machinery, improvements in practices—particularly irrigation—improved access to financial instruments and rural infrastructure, and the promotion of innovation and digitalization in agriculture.

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