INTRODUCTION TO AGRICULTURE
PART I Paying farmers for environmental services 1 Introduction and overview 3 Ecosystem services and agriculture 4 The role of farmers 4 Payments for environmental services 7 Current experience with payments for environmental services 8 Implications for poverty 9 Main messages from the report 9 2 Environmental services and agriculture 12 How can agricultural producers generate environmental services? 13 Agriculture and climate change mitigation 14 Water quantity and quality 18 Biodiversity conservation 23 Importance of scale, location and coordination in supplying environmental services 28 Technical versus economic potential to supply environmental services 29 Conclusions 32 3 Demand for environmental services 33 Value and beneficiaries of environmental services 33 Who are the potential buyers? 36 Demand for three main environmental services 40 Farmers and landholders as buyers of services 45 Future developments affecting potential growth of PES programmes in developing countries 46 Conclusions 48 4 Supplying environmental services: farmers’ decisions and policy options 50 The role of individual farmers’ decisions 50 Constraints against the provision of environmental services 51 Policy options to shape farmers’ incentives 58 Why payments? 60 Supply response to payments for environmental services 62 Conclusions 71 5 Designing effective payments for environmental services 73 What should payments be made for? 74 Who should be paid? 80 How much should be paid? 84 How should payments be made? 87 Reducing transaction costs 90 Establishing an enabling environment 92 Conclusions 95 6 Implications for poverty 97 The poor as suppliers of environmental services 98 Indirect impacts of PES programmes on the poor 107 Payments for environmental services and poverty reduction: where are the synergies? 108 Conclusions 109 7 Conclusions 111 The way forward 114 Part II World and regional review: a longer-term perspective Agricultural production 120 Food consumption 124 Agricultural trade 126 Food insecurity 130 Opportunities and challenges in the future 134 Part III Statistical annex Table A1 Total and agricultural population 139 Table A2 Land use 144 Table A3 Water use and irrigated land 149 Table A4 Production of cereals and meat 154 Table A5 Production of fish and forest products 159 Table A6 Value of agricultural exports and share in total exports 164 Table A7 Value of agricultural imports and share in total imports 169 Table A8 Share of processed food products in total food trade 174 Table A9 Per capita GDP and per capita agricultural GDP of the agricultural population 179 Table A10 Dietary energy, protein and fat consumption 184 Table A11 Number of undernourished and proportion in total population 189 Table A12 Life expectancy and child mortality 194