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The structure and behavior of agricultural input markets, such as fertilizer or seed markets, can have significant regional and global effects on agricultural development and, thus, food security. Prohibitively high costs and other constraints can limit the use of beneficial inputs and lead to decreased agricultural productivity, which can negatively impact farmers as well as consumers. On the other hand, input producers may benefit from higher prices.

The 2007-08 food crisis saw the international price of staple agricultural commodities (such as wheat, maize, soybeans, and rice) more than double; today the international price of many of these commodities is again on the rise. A common assumption is that as the international price of such commodities increases, the domestic consumer price of basic food items such as bread, flour, wheat, corn, tortillas, and rice will also increase. However, the degree of this transmission may vary from country to country and from commodity to commodity.

Social protection encompasses safety net programs such as conditional cash transfers, insurance programs such as microinsurance or weather securities , and social sector programs such as free primary education. In addition to creating a fairer society, social protection programs can also be key in promoting economic growth through reducing risk and encouraging investment and innovation.

Biofuel production has increased drastically in recent years and is expected to continue doing so—by 2020, it is estimated that more than 110 million tons of oil equivalent will be generated by first generation biofuels. With this rapid growth, the role of biofuels in global energy and food markets has come under increasing scrutiny. In particular, the argument that the production of biofuels threatens world food supplies has heightened the sensitivity and controversy surrounding the subject.

With a growing global population putting increasing stress on agricultural productivity, there is a clear need for new policies and tools to meet this rising food demand. Promoting improvements in policies, institutions, and markets to generate agricultural growth will be crucial to stimulate productivity and improve the welfare of poor and disadvantaged populations worldwide.

IFPRI is at the forefront of efforts to increase agricultural productivity through research and capacity-building.