Sustainability, Risk and Future Challenges in Agricultural Economics

Abstract

Agricultural economics has traditionally focused on improving productivity, efficiency and farm incomes through better allocation of scarce resources. However, in the contemporary context, the discipline faces a far more complex and demanding task. Agriculture today operates under mounting pressures arising from environmental degradation, climate variability, market volatility, demographic changes and technological disruptions. Sustainability and risk have emerged as central themes shaping agricultural decision-making at farm, regional, national and global levels. This chapter presents an in-depth academic discussion on sustainability, risk and future challenges in agricultural economics. It examines the concept of sustainability in its economic, environmental and social dimensions; analyzes different forms of risk inherent in agriculture; and explores how farmers, institutions and policymakers respond to uncertainty. The chapter also reflects on emerging challenges such as climate change, resource scarcity, globalization, technological transformation and inequality.