Price volatility remains a concern, with weather-related yield variability the main threat as long as stocks remain low. With a rebound in crop production, stocks have improved somewhat and markets in 2012 appear less turbulent. The key issue facing global agriculture is how to increase productivity in a more sustainable way to meet the rising demand for food, feed, fuel and fibre.
Nominal prices of the commodities covered in this Outlook are expected to trend upwards over the next ten years. Prices in real terms (adjusted for inflation) will remain flat or decline from current levels, but are projected to average 10%-30% above those of the previous decade.
Global agriculture is increasingly linked to energy markets. Oil price projections contained in the macroeconomic assumptions are on average about USD 25 above those used last year (ranging from USD 110 to USD 140 per barrel over the outlook period).
These higher oil prices are a fundamental factor behind the higher agricultural commodity price projections, affecting not only oil-related costs of production but also increasing the demand for biofuels and the agricultural feedstocks used in their production. More from the content:

What are the land and water constraints for agriculture? page 52
What has been the performance in agricultural productivity growth?p.55
What is the potential for future partial and total factor productivity growth?p. 57
What would be the impact of reducing the yield gap in developing countries? p.59
Why the need for sustainable agricultural productivity growth? p. 65
What farm practices can increase sustainable agricultural productivity growth?p. 69