Cambodia’s agricultural sector is at a crossroads, undergoing a significant transformation that could reshape the nation’s rural economy. Recent data from the 2023 Census of Agriculture Cambodia (CAC) highlights a 13 percent decline in agricultural households over the past decade, dropping from 2.13 million in 2013 to 1.85 million in 2023. Yet, even as the number of farming households shrinks, the average size of landholdings has increased, signaling a shift from subsistence farming to a more commercial, technology-driven model. This structural change, while promising for Cambodia’s development goals, brings with it a host of challenges, from infrastructure gaps to climate vulnerabilities, as the country aims to become a middle-income nation by 2050.
A Move Toward Commercial Farming
The decline in agricultural households does not equate to a shrinking sector. On the contrary, the value added by agriculture has risen substantially, from 19,501.1 billion riel in 2013 to 29,721.1 billion riel in 2023, according to the National Institute of Statistics (NIS). Rin Virak, chairman of the NIS Board of Directors, emphasized this during the release of the census findings, stating “We are seeing clear evidence of structural change in Cambodia’s rural economy. The agriculture sector is modernising. This is a necessary step in our national development strategy.” Though agriculture’s share of GDP has fallen from 24.4 percent in 2014 to 16.6 percent in 2024, its absolute economic contribution continues to grow, driven by larger, more productive farms. 
This shift is evident in the changing nature of farming practices. Nor Vanndy, NIS director-general and technical lead on the survey, noted that farmers are increasingly moving away from traditional subsistence methods. “We are seeing fewer people in agriculture, but more productivity per farm. That is the path toward commercialisation” he said. Land consolidation is underway, with farmers adopting high-value crops such as aromatic rice, which now covers 465,000 hectares, alongside permanent crops like mango, coconut, banana, and cashew. These trends reflect a broader push toward market-oriented production, tailored to regional strengths and global demand.
Technology as a Game-Changer
At the heart of this transformation is the adoption of technology. Minister of Agriculture, Forestry and Fisheries Dith Tina, speaking at the launch of the Cambodian Agricultural Forum and Exhibition 2025 (CAFÉ 2025) on April 7, highlighted the dramatic impact of mechanization. Recalling past struggles, he asked “How many hectares could be done in a day with a bullock cart — planting, transplanting, harvesting and threshing?” Today, a single farmer can manage up to 100 hectares thanks to modern machinery, a far cry from the labor-intensive methods of previous decades. This technological leap is not just a convenience but a necessity, as Cambodia seeks to align its agricultural sector with broader economic ambitions.
The government is actively supporting this transition through initiatives like the deployment of 1,600 Commune Agricultural Officers (CAOs) nationwide to provide direct support and extension services to farmers. Additionally, the establishment of Modern Agricultural Cooperatives (MACs) aims to enhance market-driven production, aggregate land for economies of scale, and promote the use of advanced equipment. A $100 million Marketability and Price Stability Programme further underscores the state’s commitment to stabilizing prices and expanding market access for priority crops, ensuring farmers can compete in domestic and international markets.
Persistent Challenges: Irrigation and Climate Risks
Despite these advances, significant hurdles remain. One of the most pressing issues is the lack of irrigation infrastructure. According to the CAC, only 15 percent of agricultural land is irrigated, and just 21 percent of farming households have access to irrigation systems. This is particularly concerning given that 48 percent of villages reported experiencing drought and 39 percent faced flooding in the five years prior to the census. Nor Vanndy warned “We can’t reach our development goals without addressing these infrastructure gaps.” He stressed the need for irrigation, access to technology, and sustainable practices to build long-term resilience against climate challenges.
The vulnerability to climate change is a critical concern for a sector that remains the backbone of Cambodia’s rural economy. While Minister Tina claimed “We are becoming increasingly resilient to climate change” citing improved farming techniques and better inputs, the data suggests that much work remains. Without substantial investment in infrastructure, the gains from modernization risk being undermined by unpredictable weather patterns and environmental stressors. If left unaddressed, these gaps could exacerbate rural inequality, particularly for smaller farmers who lack the resources to adapt.
Rice: A Cornerstone of Growth and Export
Rice continues to play a dominant role in Cambodia’s agricultural landscape, contributing 13.89 million tonnes to the crop sub-sector in 2024 and generating an export surplus of 8.2 million tonnes. This not only ensures national food security but also positions Cambodia as a key player in the global rice market. The crop sub-sector as a whole accounted for 61 percent of agricultural output last year, producing 39.4 million tonnes of various crops, an increase of 2.59 million tonnes from the previous year. These figures highlight the sector’s capacity to drive economic growth, even as fewer households depend on farming for their livelihoods.
The focus on high-value varieties, such as aromatic rice, reflects a strategic pivot toward premium markets. Coupled with government efforts to establish modern agricultural communities in six provinces—specializing in rice, vegetables, cashews, and pepper—this approach aims to maximize returns for farmers. Partner banks are also offering low-interest loans to support these initiatives, reducing financial barriers for rural producers looking to scale up operations.
Policy and Investment: Charting the Future
Cambodia’s agricultural strategy is underpinned by robust data collection and forward-looking policy design. The CAC, conducted with technical support from the UN Food and Agriculture Organization (FAO), alongside the annual Cambodian Agricultural Survey (CAS), provides critical insights for shaping investments and monitoring sustainable development. These tools are guiding the government’s efforts to attract domestic and international investment, particularly through events like CAFÉ 2025, scheduled for November. Rebekah Bell, FAO representative in Cambodia, described the event as “the most ambitious event that FAO Cambodia has been associated with in our long history in Cambodia” emphasizing its focus on modernization and improving the ease of doing business for agri-food enterprises.
The agriculture ministry is also developing nine key agricultural value chain investment plans as part of CAFÉ 2025, aiming to accelerate the transformation of Cambodia’s agri-food system. These plans prioritize market access, technological adoption, and sustainability, aligning with the country’s broader economic targets. Minister Tina’s vision is clear: agriculture should not be a trap but a pathway to prosperity, allowing Cambodians to pursue the livelihoods they desire while contributing to national growth.
Balancing Progress and Equity
As Cambodia modernizes its agricultural sector, questions linger about the social implications of this shift. The decline in agricultural households suggests a migration of labor to industrial and service sectors, a trend Minister Tina views as positive. “Our goal is not to trap anyone in the agricultural sector” he said, advocating for a future where individuals can choose their paths. However, this transition must be managed carefully to avoid leaving behind vulnerable rural communities, particularly those without access to the technology or infrastructure needed to compete in a commercialized landscape.
The government’s initiatives, from cooperatives to extension services, are steps in the right direction, but their success will depend on implementation and inclusivity. Smaller farmers, who may struggle to consolidate land or invest in machinery, risk being marginalized unless targeted support reaches them. Moreover, the persistent irrigation deficit and climate risks underscore the need for a balanced approach that pairs modernization with resilience-building measures.
As Cambodia navigates this pivotal moment, the agricultural sector’s evolution offers both promise and uncertainty. With strategic investments and policies, the country could solidify its position as a regional agricultural powerhouse, lifting rural communities in the process. Yet, the path forward requires addressing deep-rooted challenges to ensure that progress benefits all, not just a few. As reforms and innovations unfold, the resilience of Cambodia’s farmers—and the nation’s commitment to supporting them—will be put to the test.
