Massimo Giovanola
Platform for Agricultural Risk Management (PARM) Lead Technical Specialist
In 2020, the world woke up to the reality of risk. COVID-19 not only exposed the vulnerability of human health but shattered social and economic stability.
We have witnessed increased incidences of chronic food insecurity, food price spikes and a host of other agricultural risks. But people are not all equally vulnerable; poverty and inequality amplify their exposure and undermine their capacity to manage risks.
In 2020, between 720 and 811 million people faced hunger, an increase of about 118 million over 2019. The world’s 510 million smallholder-farming families produce about 35% of our food and yet they are among the poorest people on the planet. Their food security and livelihoods are largely dependent on the performance of rain-fed agriculture, which is acutely vulnerable to multiple, interlocking risks related to climate change, the environment, conflicts, production and markets.
Investing in agricultural risk management
Building resilience in the agricultural sector is becoming increasingly urgent. We have the chance now to take the greatest risk of our time and turn it into an opportunity to reshape the way risks are managed. A holistic approach to agricultural risk management must be integrated into agri-food systems to assess the multitude of risks and their interrelations, and to identify and design risk management tools tailored to each context.
In 2020, between 720 and 811 million people faced hunger, an increase of about 118 million over 2019.
This is the approach adopted by the Platform for Agricultural Risk Management (PARM) and INSURED, which are special programmes hosted by IFAD, the UN organisation mandated to eradicate rural poverty.
Agricultural risk management is fundamental for a future in which productive, sustainable and healthy agri-food systems are able to support a population expected to exceed 9.5 billion people by 2050.