Disasters Cause $3.26 Trillion in Global Agricultural Losses

FAO’s 2025 report reveals $3.26 trillion in agricultural losses over 33 years and shows how digital technologies transform disaster risk management.

Disasters caused $3.26 trillion in agricultural losses globally, averaging $99 billion per year—about 4% of global agricultural GDP. These losses from 1991 to 2023 include destruction of cereals, fruits, vegetables, meat, and dairy, leading to significant impacts on food availability and nutrition worldwide.

Asia represents the largest share of losses at 47%, equaling $1.53 trillion, mainly due to floods, storms, and droughts, according to a new report by the Food and Agriculture Organization of the United Nations (FAO).  The Americas follow with 22% of losses ($713 billion), driven by droughts, hurricanes, and extreme heat. Africa, while facing lower absolute losses ($611 billion), sustains the largest relative burden, losing 7.4% of its agricultural GDP.

Small Island Developing States (SIDS) suffer disproportionately high losses relative to their agricultural output, reflecting their vulnerability to cyclones and sea-level rise.

Hidden Impact on Fisheries and Aquaculture

Marine heatwaves caused $6.6 billion in losses between 1985 and 2022, affecting 15% of global fisheries and harming livelihoods of approximately 500 million people. These losses are often underreported in disaster assessments despite their significance.

Digital Transformation Enhances Disaster Risk Management

The report highlights the transformative role of digital tools such as artificial intelligence, remote sensing, mobile connectivity, drones, and sensors. These technologies provide hyperlocal, real-time data, improving early warnings, advisory services, parametric insurance access, and anticipatory actions.

FAO Director-General QU Dongyu emphasizes that digital platforms helped 9.1 million farmers access insurance and enabled evacuation of 90% of people at risk before disasters struck.

Inclusion and Capacity Building are Essential

Despite advances, 2.6 billion people remain offline, mostly in vulnerable rural settings. Effective digital transformation must be human-centered, inclusive, and complemented by policy frameworks, capacity development, and infrastructure investments. Prioritizing access for smallholder farmers, women, youth, and Indigenous groups is critical.

Calls for Integrated Government and Private Sector Action

To build resilient agrifood systems, the report urges governments, partners, and industry to scale digital innovation within agricultural policies and increase investment in digital infrastructure and literacy. Such efforts can accelerate disaster risk reduction and help protect global food security.

Questions and Answers

Q: How much has agriculture lost due to disasters globally?
A: $3.26 trillion between 1991 and 2023, averaging $99 billion annually.

Q: Which regions are most affected?
A: Asia suffers the largest absolute losses; Africa bears the highest relative losses by GDP.

Q: How is digital technology improving disaster management?
A: Tools like AI, drones, sensors, and mobile platforms provide real-time insights for proactive risk reduction.

Q: What challenges remain in reaching vulnerable farming communities?
A: Limited internet access and need for inclusive, human-centered digital solutions.

FAQ

What types of disasters affect agriculture most?
Droughts, floods, storms, pests, marine heatwaves, and extreme temperatures significantly disrupt production.

Are fisheries included in disaster loss assessments?
They are often overlooked, though marine heatwaves alone have caused billions in losses.

How can digital tools help farmers?
By offering early warnings, insurance access, real-time advisories, and better decision-making data.

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