Agricultural R&D is increasing after years of stagnation. As the price of food, measured in real terms, fell over the last 20 years, so did R&D investment. However, demand increased, leading to lower productivity. R&D is critical to address the growing scarcity of water, soil and other natural resources. DNA sequencing and bioinformatics are among the tools used to increase productivity by improving the traits of food crops through genetic engineering and traditional hybridization. The Gates Foundation allocates 6% of its R&D spending to agriculture, primarily to projects involving hybridization. More efficient fertilizers are also needed, as are replacements for traditional fertilizers that are made from natural resources. Similarly, agricultural-chemical R&D is focused on alternatives to fossil fuels as well as increasing the strength of chemicals so that their usage can be reduced. According to Shenggen Fan of the International Food Policy Institute, developing countries spend an average of 0.5% to 0.6% of their agricultural GDP on agricultural R&D.

Source: Financial Times