Disasters cost global agriculture $3.26 trillion over three decades, FAO report reveals | FAO News

Rome –Disasters have inflicted an estimated $3.26 trillion in agricultural losses worldwide over the past 33 years – an average of $99 billion annually, roughly 4 percent of global agricultural GDP – according to a new report by the Food & Agriculture Organization of the United Nations (FAO). The Impact of Disasters on Agriculture & Food Security 2025 highlights how digital technologies are transforming how farmers, governments & communities can monitor risks, anticipate impacts, & protect livelihoods.

The report provides the most comprehensive global assessment to date of how disasters – from droughts & floods to pests & marine heatwaves – are disrupting food production, livelihoods & nutrition. It also demonstrates how digital innovations are shifting agrifood systems from reactive crisis management to proactive data-driven resilience-building.

“Digital technologies are already revolutionizing how we monitor risks, deliver early warnings & support farmers’ decision-making. From the 9.1 million farmers now accessing parametric insurance through digital platforms to the communities using our early warning systems to evacuate 90 percent of at-risk populations before disasters strike, we are witnessing a fundamental shift from reactive response to proactive risk reduction.” said FAO Director-General QU Dongyu in the foreword to the report.

Heavy toll on global food security

Between 1991 & 2023, disasters wiped out 4.6 billion tonnes of cereals, 2.8 billion tonnes of fruits & vegetables, & 900 million tonnes of meat & dairy. These losses translate to a daily per capita reduction of 320 kilocalories – 13–16 percent of average energy needs.

Asia accounts for the largest share of global losses of 47 percent, totaling $1.53 trillion, reflecting both the scale of agricultural production & the region’s high exposure to floods, storms & droughts.

The Americas represent 22 percent of global losses or $713 billion, driven by recurrent droughts, hurricanes, & extreme temperature events that heavily impact large commodity crop systems.

Africa, while recording lower absolute losses of $611 billion, suffers the highest proportional impacts, losing 7.4 percent of agricultural GDP to disasters – the largest relative burden of any region. In economies where agriculture accounts for a significant share of employment & income, these losses have had severe consequences for food security & rural stability.

Small Island Developing States (SIDS) remain among the world’s most vulnerable to disasters such as cyclones, floods, & sea-level rise. Despite relatively small agricultural output, disaster-related losses represent a disproportionately high share of agricultural GDP.

The report also finds that marine heatwaves caused $6.6 billion in losses between 1985 & 2022, affecting 15 percent of global fisheries. Yet, losses in fisheries & aquaculture remain largely invisible in disaster assessments, despite supporting the livelihoods of 500 million people.

Digital technologies transforming risk management

FAO’s report identifies digital transformation as a game-changer for agricultural disaster risk reduction. Emerging tools such as artificial intelligence (AI), remote sensing, mobile connectivity, drones & sensors are now enabling hyperlocal, real-time insights that improve early warning, advisory services, risk transfer mechanisms & anticipatory action.

Examples include:

• FAO’s Climate Risk Toolbox (CRTB), which integrates global datasets to guide agricultural planning in more than 200 projects.
• Rift Valley Fever Early Warning Decision Support Tool (RVF-DST) has accurately forecasted Rift Valley fever outbreaks in countries like Tanzania, Kenya, & Uganda, allowed for timely vaccinations & limited the spread of disease.
• Soil Mapping for Resilient Agrifood Systems (SoilFER), a geospatial platform that matches soil & fertilizer data to promote efficient, sustainable farming.
• Fall Armyworm Monitoring & Early Warning System (FAMEWS), FAO’s mobile-based system for tracking fall armyworm infestations across 60+ countries.
• Parametric insurance platforms, which have insured over 9 million farmers through digital risk assessment tools.
• Early warning systems, like the Global Information & Early Warning System (GIEWS), which have enabled anticipatory actions that can yield returns of up to seven dollars for every dollar invested.
• FAO’s first integrated Risk Monitoring & Situation Room at FAO headquarters delivering real-time monitoring to coordinate early detection, warning, & response.
• The Financing for Shock-Driven Food Crisis (FSFC) Facility, a mechanism that builds on the existing initiatives to anticipate & prevent escalating food emergencies before they occur. 
• Digital innovation allows farmers & policymakers to make better decisions & act earlier. From predictive analytics to mobile insurance, these tools are saving lives, protecting livelihoods & strengthening food systems.

From innovation to inclusion

Over 2.6 billion people remain offline, many in rural areas, most exposed to disaster risks. While digital solutions are expanding rapidly, the report warns that their full potential can only be realized through human-centred design.

FAO stresses that digital transformation must go hand in hand with capacity development, institutional strengthening, & coherent policy frameworks to ensure that innovations reach smallholder farmers, women, youth & Indigenous communities.

The report calls on governments, international partners & the private sector to advance digital innovation to enhance efficient & effective disaster risk reduction in agriculture & food security. It also emphasizes the need for integration of these digital solutions into national agricultural policies & strategies & calls for increased investments to support agrifood system transformation. Furthermore, the report underscores the critical importance of scaling up digital infrastructure & literacy to enhance accessibility & enable innovation to influence decision-making.