Increased investment in agriculture and food systems—from both the private and public sectors—is critical to enhance food security and nutrition, reduce poverty, and adapt to climate change. To generate sustainable benefits, this investment must be responsible. What role should investment incentives play in encouraging such investment? This Guide helps to answer that question. Specifically, the Guide provides policymakers and government technical staff with guidance on how investment incentives can be used (and how they should not be used) to enhance responsible investment in agriculture and food systems. The Guide provides an overview of responsible investment in agriculture and food systems; examines common types of incentives; offers general considerations on how incentives can be used; and discusses how to plan for, design, monitor, and evaluate investment incentives for responsible investment in agriculture and food systems.

This guide provides a methodology for the review of national legal and institutional frameworks related to responsible investments in agriculture and food systems. It also identifies key areas of regulation within a thematic context, with a focus on larger scale private agricultural investments in primary agriculture.

OECD and FAO have developed this guidance to help enterprises observe standards of responsible business conduct and undertake due diligence along agricultural supply chains in order to ensure that their operations contribute to sustainable development.

These guidelines have been drawn up as part of the AgrInvest-Food Systems Project (AgrInvest-FS), a collaboration between the Food and Agriculture Organization of the United Nations (FAO) and the European Centre for Development Policy Management (ECDPM) to promote private investments in African food systems that contribute to sustainable development objectives. The purpose of these guidelines is to serve as a reference and provide practical country-customized guidance to foster sustainable investments in agrifood systems in the four African countries covered by the AgrInvest-FS project of FAO-ECDPM.

Sustainable agricultural practices enable more efficient use of natural resources, mitigate the impact of agriculture on the environment, and strengthen capacity for adaptation to climate change and climate variability. Because these practices usually require substantial effort or resource allocation from farmers, incentives are necessary to support farmer adoption. Despite growing interest, there has been little systematic evaluation of the incentives–adoption–outcome chain—that is, which incentives best promote adoption and which lead to desired sustainability outcomes. This brief presents the results of a literature review that examined (1) uptake agricultural practices under three kinds of incentives, market and nonmarket, regulations, and cross-compliance, and (2) the impact on productivity, profitability, and environmental sustainability. Based on this review, it offers a set of seven tested principles to follow in designing and implementing incentives for sustainable agriculture.

Measures that empower young agri-entrepreneurs should be a key component of a sustainable development-centred investment promotion strategy. The very realization of future generations’ food security, the sustainable transformation of food systems and the combat against unemployment and distress migration all depend upon the successful implementation of strategies that make the agri-food sector more attractive for the youth. This, in turn, requires smart policy responses that will help young investors overcome the numerous barriers they face – access to finance, land, information and technical services, to name but the most crucial ones.Since 2017, FAO has provided support to African and South-East Asian countries in identifying key challenges for young agri-entrepreneurs and good practices through participatory capacity analyses and strategic planning processes which were carried out with, and for the youth. This report summarizes the main findings and lessons learned from FAO’s work with eleven African countries – Côte d’Ivoire, Guinea Conakry, Malawi, Mali, Mauritania, Mozambique, Namibia, Senegal, South Africa, Tunisia and Uganda. It identifies key challenges and policy recommendations regarding youth’s access to finance; land; technical services and information; as well as the engagement of youth in policy-making processes. The report also contains a set of five overall key policy recommendations for the empowerment of young agri-entrepreneurs.