A schematic view of resources,technology and environment in agricultural development

Agricultural production systems can be viewed as consisting of three interrelated components: resources, technology, and environment (R-T-E). The quantities, qualities and terms of availability of resources condition the kinds of technology available to farmers and their choices among them. The technologies employed, in turn, may damage the environment, generating demands for policies to reduce the damages, and they also affect the future terms of availability of resources. The components of R-T-E systems are thus interdependent, and the relations among them change with time.In thinking about the future of world R-T-E systems in agriculture it is useful to group countries in four categories, given presently available technologies: (1) low productivity potential/high land potential; (2) high productivity potential/high land potential; (3) high productivity potential/low land potential; and (4) low productivity potential/low land potential. Given prospective increases in real prices, or scarcity of energy, fertilizer, and water for irrigation, farmers in Category 1 countries (e.g., the United States) are likely to respond by adopting more land-using technologies than in the past, and soil erosion is likely to be the most important resulting environmental problem. In Category 2 countries (e.g., Brazil) also, land-using technologies will appear attractive, but the use of agricultural chemicals will also increase sharply. Environmental problems of erosion, habitat loss and pesticide damage are likely to increase. Category 3 countries (e.g., India) will adopt more land-saving technologies despite rising prices of non-land inputs, and environmental problems associated with large irrigation systems are likely to become more important. The options for Category 4 countries (e.g., Western Europe) are more limited. The most likely response will be towards larger farms rather than major changes in technology. Environmental impacts of agriculture are not now of major importance in these countries and this is not likely to change.Governments have three broad options for dealing with energing problems of agricultural R-T-E systems. The traditional approaches rely on regulations or on a variety of financial inducements to move farmers towards more socially desirable patterns of resource use. A third, less traditional, approach is to invest in development of new technologies which simultaneously are economically attractive to farmers and less damaging to the environment.