Challenges

There is a need for improved training and education programs to build a skilled workforce within the agribusiness services sector. Limited availability of trained professionals affects the quality and reach of services provided to producers.

The small scale and dispersion of farms increase the transaction costs for service providers, making it less attractive to offer services to small and remote producers. This reduces the availability of services for those who may need them most.

Insufficient access to reliable market data and demand information constrains decision-making for both service providers and producers. This results in inefficiencies in service delivery, pricing, and market opportunities.

The private sector struggles to offer affordable, tailored services to a fragmented and diverse producer base, constraining the sector's growth and innovation potential. This limits the development of a robust agribusiness services market.

There is a disconnect between the services available and the actual needs of producers, leading to inefficiencies and underutilization of available support.

There is limited coordination among service providers, producers, government agencies, and industry groups, hindering collaboration and the development of unified strategies to address systemic issues like service provision, market access, and workforce development.

A significant decrease in private sector agricultural service jobs (14% from 2013 to 2022) and government agriculture employees (45% decrease) has reduced the availability of support services for producers. This decline exacerbates challenges in accessing necessary agribusiness services.

Farmers face high costs and logistical challenges in accessing and maintaining farm equipment due to harsh environmental conditions, and high import costs. Farmers are wary of shared usage models or rental equipment due to biosecurity risks.

There is a gap in the availability of training programs that cater to different levels of farmers' expertise, particularly intermediate-level ("missing middle") training. This limits farmers' ability to advance their skills, adopt advanced practices, and respond to evolving market demands.

The cost of agribusiness services is often prohibitive for many farmers, especially small-scale and part-time producers. High fees for business, financial, and technical services limit access to crucial support needed to enhance productivity and profitability.

There is limited coordination between producers, government agencies, and industry groups, hindering collaboration and the development of unified strategies to address systemic issues like transportation, market access, and workforce shortages.

Data collection, especially from smaller farms and backyard producers, is insufficient. Without comprehensive data, it is difficult to make informed decisions regarding market opportunities and areas for improvement within the value chain.