RESHAPING THE RURAL ECONOMY

Akila Wijerathna assesses the impact of agricultural policies on farming

The agricultural landscape is undergoing a transformation driven by demographic shifts, urbanisation, technological advancements and changing patterns of land use.

As the economic importance of and employment levels in agriculture decline in many rural regions, it’s essential to ensure coherence between agricultural and rural development policies to manage these structural changes effectively.

In recent years, rural regions have experienced a decline in the economic significance of agriculture and reduction in related employment.

These trends are attributable to several factors including demographic changes such as ageing populations, closer urban-rural linkages, technological advances (e.g. mechanisation and digitalisation), and changing land use driven by urbanisation and farm land size concentrations.

These shifts have led to increased agricultural labour productivity and the development of off farm employment alternatives, which contribute to the diversification of rural economies.

To navigate these changes effectively, agricultural and rural policies must be coherent and coordinated. There are significant areas of complementarity between these policies, which can be leveraged to benefit agricultural and rural communities.

For instance, policies that provide transferable benefits to agriculture include investments in rural infrastructure such as roads and digital connectivity, as well as public services – for example healthcare and education.

These investments not only enhance the quality of life in rural areas but also create conducive environments for agricultural activities.

Conversely, agricultural policies with wider rural benefits encompass investments in agricultural innovation systems, extension services, and improvements in land and water management.

These policies improve the productivity and resilience of the sector while simultaneously benefiting the broader rural population.

As rural economies transition to a diversified low carbon model, additional synergies can be developed between agricultural and rural policies that include regulations for better land and water governance, and the adoption of circular economy models.

One of the primary challenges in aligning agricultural and rural policies is ensuring coherence and coordination across different levels of government and policy domains. Both agricultural and rural development policies intersect in the same spatial areas, and share common goals of improving land use efficiency and providing environmental services.

However, their scope and objectives often differ – agricultural policies focus on sector specific goals such as productivity and sustainability, while rural policies adopt a territorial approach targeting the overall wellbeing and quality of life of rural populations.

Government support for agriculture has increased in recent years, partly due to global crises. Nevertheless, a large part of this support has been directed towards immediate needs rather than long-term goals such as climate change mitigation and food system resilience.

To address the growing demand for safe and nutritious food sustainability, policies must focus on increasing productivity growth, enhancing environmental sustainability, and improving adaptation and resilience in the face of climate change and other unforeseen shocks.

Efficient agricultural policies are essential for meeting the triad of challenges faced by food systems. These include ensuring food security and nutrition, providing livelihoods for farmers and rural communities, and enhancing the sector’s contribution to sustainability.

This also helps reduce greenhouse gas emissions through improved land use and management practices such as carbon sequestration. Addressing these calls for exploiting synergies and mediating tradeoffs across different policy areas, highlighting the need for better synergies between agricultural and rural policies.

In Sri Lanka, agricultural policy plays a pivotal role in shaping the socioeconomic landscape of rural communities, which accounts for a substantial share of the population. The rural economy is heavily dependent on agriculture with the sector providing livelihoods for a large segment of the populace.

Much like global trends however, the country is witnessing a gradual decline in agricultural employment due to demographic shifts, urbanisation and tech advancements. To address these challenges, Sri Lanka must adopt a coherent policy framework that integrates agricultural and rural development policies.

Investments in rural infrastructure – such as improved road networks, digital connectivity, and access to healthcare and education – can improve the quality of life in rural areas and support agricultural activities.

Additionally, agricultural policies that focus on innovation, extension services, and sustainable land and water management can boost productivity and resilience.