Publication / 15 Oct 2015

Natural Capital Impacts in Agriculture

Trucost was commissioned by the FAO to assess the true magnitude of the economic and natural capital costs associated with agricultural commodity production.

This report assesses impacts from the farm gate back along the upstream supply chain, which includes the production of agricultural inputs such as energy and feed.

The natural capital costs associated with crop production in this study represent nearly USD 1.15 trillion, over 170 percent of its production value, whereas livestock production in this study produces natural capital costs of over USD 1.81 trillion, 134 percent of its production value.

Farming practices have been analyzed in over 40 countries, which contribute to about 80% of global production for each commodity, and the highest combined operational and supply chain costs of natural capital impacts in this study have been attributed to beef production in Brazil (USD 596 million) and the USA (USD 280 million), as well as pork production in China (USD 327 million).

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