How does agriculture contribute to economic development


Agriculture makes a huge contribution to the economic development in the following ways:

  • It provides raw material and food to the non-agricultural sectors
  • It creates demand for goods that are produced in non-agricultural sectors
  • Rural community acquires purchasing power by selling the surplus
  • It also helps to earn valuable foreign exchange through exporting agricultural products

More items…

What is agriculture’s share of the overall U.S.

us is the Internet country code top-level domain (ccTLD) for the United States. It was established in early 1985. Registrants of . us domains must be U.S. citizens, residents, or organizations, or a foreign entity with a presence in the United States. › wiki

economy? Agriculture, food, and related industries contributed $1.055 trillion to the U.S. gross domestic product (GDP) in 2020, a 5.0-percent share. The output of America’s farms contributed $134.7 billion of this sum—about 0.6 percent of GDP.Feb 24, 2022


How does agriculture contribute to economic development?

Contribution of Agriculture to Economic Development

  1. Factor Contribution: Development of agriculture releases some resources for being transferred to the other sectors. …
  2. Product Contribution: The product contribution of agriculture towards an overall economic development takes two forms. …
  3. Market Contribution:

How does agriculture affect the US economy?

agriculture therefore spurs the growth of entire economies and stimulates demand for U.S. exports. Exports and Jobs In 2018, U.S. agricultural exports totaled $140 billion, with developing countries accounting for $90 billion, or nearly two-thirds of total agricultural exports.

Does agriculture contribute to economic growth?

Now, as we can see that agriculture has a big contribution, its growth will stimulate the overall growth of the economy. Now, this has been argued widely that a country prospers when its secondary or industry sector outnumbers other sectors. Most developed nations has witnessed a massive industrial revolution in its history.

How can agriculture help the economy?

Agriculture makes a huge contribution to the economic development in the following ways: It provides raw material and food to the non-agricultural sectors. It creates demand for goods that are produced in non-agricultural sectors. Rural community acquires purchasing power by selling the surplus. It also helps to earn valuable foreign exchange …


Why is agriculture important for the economy?

If agriculture fails to meet the rising demand of food products, it is found to affect adversely the growth rate of the economy. Raising supply of food by agricultura l sector has, therefore, great importance for economic growth of a country.

What is the role of agriculture in the economy?

Agricultural sector plays a strategic role in the process of economic development of a country. It has already made a significant contribution to the economic prosperity of advanced countries and its role in the economic development of less developed countries is of vital importance. ADVERTISEMENTS: In other words, where per capita real income is …

How does rural economy affect social welfare?

The rising agricultural surplus caused by increasing agricultural production and productivity tends to improve social welfare, particularly in rural areas. The living standard of rural masses rises and they start consuming nutritious diet including eggs, milk, ghee and fruits. They lead a comfortable life having all modern amenities—a better house, motor-cycle, radio, television and use of better clothes.

Why is the progress in agriculture important?

The progress in agricultural sector provides surplus for increasing the exports of agricultural products. In the earlier stages of development, an increase in the exports earning is more desirable because of the greater strains on the foreign exchange situation needed for the financing of imports of basic and essential capital goods.

How can agriculture reduce inequality?

In a country which is predominantly agricultural and overpopulated, there is greater inequality of income between the rural and urban areas of the country. To reduce this inequality of income, it is necessary to accord higher priority to agriculture. The prosperity of agriculture would raise the income of the majority of the rural population and thus the disparity in income may be reduced to a certain extent.

Why is increased agricultural output important?

It is seen that increased agricultural output and productivity tend to contribute substantially to an overall economic development of the country, it will be rational and appropriate to place greater emphasis on further development of the agricultural sector.

What is the backbone of an economy?

The agriculture sector is the backbone of an economy which provides the basic ingredients to mankind and now raw material for industrialisation.

Why is agricultural advancement important?

Agricultural advancement is necessary for. improving the supply of raw materials for the agro- . based industries, especially in developing countries. The shortage of agricultural goods has its impact. on industrial production and a consequent increase. in the general price level. It will impede the growth.

How does increase in agricultural production and the rise in the per-capita income of the rural community, together with?

Increase in agricultural production and the rise in the per-capita income of the rural community, together with the industrialisation and urbanisation, lead to an increased demand in industrial production” It is seen that increased agricultural output and productivity tend to contribute substantially to an overall economic development of the country, it will be rational and appropriate to place greater emphasis on further development of the agricultural sector.

How do nanoparticles affect agriculture?

Nanoparticles (NPs) have the potential to transform agriculture affecting plant growth and production . We explored the effect of magnesium oxide NPs (MgO-NPs) on mungbean (Vigna radiata). NPs negatively regulated the growth of mungbean at all the tested concentrations. Reduction in the morphological parameters and fresh biomass content was observed in the MgO-NPs treated mungbean. A considerable decrease in the chlorophyll levels and carbohydrate accumulation was noticed on MgO-NPs treatment. NPs mediated decrease in enzymatic and non-enzymatic levels led to reduced antioxidant potential of mungbean. Moreover, MgO-NPs considerably reduced the protein content and bioavailability. The present study hence, demonstrates the MgO-NPs mediated down-regulation of mungbean growth. However, the plant responses to MgO-NPs depend upon the plant under investigation and cannot be extrapolated to other plants. Therefore, to identify the use of MgO-NPs as nanofertilizers, more plant types need to be investigated for morphological or biochemical alterations on NPs exposure.

How do pesticides affect the environment?

Among all the pollutants, toxic residues of agricultural pesticides cause numerous diseases as they directly pollute soil and water . Biodegradation by microorganisms is a natural process for eliminating pesticides whereas physical adsorption, membrane separation and advanced oxidation process are also used for removing pesticides. These methods are time consuming and unable to attain complete degradation of pesticide residues. Recently, various organic and inorganic compounds have been synthesized to achieve the targeted goal. Semiconductor materials have a tendency to generate electron-hole charge carriers which further contribute towards oxidation and reduction of pesticides. Large band gap value and fast recombination rate of charge carriers in basic semiconductor materials reduces their catalytic properties. Advancement in this field has been achieved by fabricating a composite by combination of two semiconductors having different band gap values. This newly formed composite exhibited excellent results for photocatalytic degradation of pesticides. The present review focuses on discussion of heterojunctions used for pesticide degradation and their catalytic efficiency in UV or visible radiations. Various investigations have proved that these synthesized materials are cost effective and efficient for utilization as photocatalysts for abating the pollution caused by pesticides.

What is the role of agriculture in India?

Agriculture sector play the most important role in the developing country like India where more than fifty percentage of its population relay on the agriculture sector (Annual Report 2016-17 Department of Agriculture, Cooperation and Farmers Welfare, Government of India; Mahesh et al. A cloud computing architecture with wireless sensor networks for agricultural applications 2:34–38 (2020) [1–2]). In India agriculture sector faces many challenges that can be overcome to the large extent with the involvement of Information and Communication Technologies (ICT) into the Agricultural farm field (Food and Agriculture Organization of the United Nations Rome, 2017 Information and Communication Technology (ICT) in Agriculture A Report to the G20 Agricultural Deputies; Ramappa (2008) Information and communication technologies (ICTs) in India: an insight into progress of Rural Economy. Finan Agri–A National J Agri Rural Develop; Shalendra et al. ICT Initiatives in Indian agriculture-an overview. Indian J Agri Econ 66:489-497 (2011) [3–5]). This paper proposed a wireless sensor-based architecture that implement various sensor on the farm field and gather environmental data from agriculture farm field than these data are processed in a central server and passed to the farmer as alert for water needs to crop, protection of crop from animals and fire, diseases detection, crop growth information, weather information.

What is the importance of agriculture in Sri Lanka?

Agriculture plays most important role in Sri Lankan economy like some other developing nations in South Asia such as India, Bangladesh, Pakistan, Nepal and Bhutan. In this way, the agricultural farming sector is identified as a key tool for the economic development in Sri Lanka and it helps to effectively utilize the invaluable resources of the country such as green lands and appropriate climate as it should be and to significantly boost the wealth of the country as well. Furthermore, as it helps to expand the level of GDP, the Interest rates as well as the inflation rates are mostly estimated at present depending on the level of agricultural cultivation sector in the country. It is noteworthy to point out at this occasion that as Sri Lanka is mainly an agricultural nation the most people are involving in individual and joint venture farming activities. At the same time, it is also very important to mention here that most people who involve in agricultural cultivation reach the banks and financial institution for the purpose of getting loans to meet their agricultural financial needs. In this context, this research aims to identify the loan systems which are implemented in agricultural sector among the Muslim community, especially among Muslim farmers who are living in Kekirawa divisional secretariat in Anuradhapura district. The research would be extremely significance due to there is no sufficient previous studies find concerning with agricultural loan systems among Muslim community in particular research area in Sri Lanka. This research is designed as mixed method with the inclusion of qualitative and quantitative data which collected in term of finding the correct solutions and providing appropriate recommendations. The findings of the research reveals that the farmers who live in Kekirawa divisional secretariat of Anuradhapura do not depend and connect with banks or other financial institutions to get any advances, but they use to fulfil their needs of capital for farming from money lenders, shopkeepers, friends relatives and NGOs. Therefore, the system should be introduced under the Islamic banks and financial institutions to promote the Shariah compliance products and interest free loan systems not only for Muslim farmers but also to all citizens who wish to involve in agricultural cultivations. Moreover, NGOs and shopkeepers who provide agricultural credit services should be adapted in accordance with the Islamic Shariah compliance. KEY WORDS: Agriculture, Loan Systems, Farmers, Kekirawa. Shariah Compliance, Islamic Banks

What is the agricultural sector?

The agricultural sector is one of the leading ones in the economy of many countries, as it creates the basis for their economic growth. Every region in every country has its own unique sphere of social reproduction due to different resource potential, i.e., fertile soils, favourable climatic conditions, etc. Under such conditions, it is irrelevant to choose a single development path for this sector. Given these facts, the study formulates development strategies for regional agricultural development of the country. In particular, we grouped regions into clusters according to the level of development of crop production and stockbreeding potential, as well as investment attractiveness. The method of cluster analysis was used to group regions by the level of capacity development, whilst the matrix method was used to formulate a matrix for choice of the strategy to improve the agricultural potential of regions. On the basis of the conducted analysis, the 3D matrix for the choice of investment strategy of the regional agricultural development of the country depending on the level of development of crop production and stockbreeding potential and investment attractiveness was constructed.

How has agriculture contributed to the growth of the economy?

With the advancement of technology , diverse agricultural machineries have further led to the growth of the economy. Agricultural output has improved with the growing development in the agricultural machineries. It has been seen that increased agricultural productivity and output contributes largely to the overall economic development of a country. Some of the farm machineries used is road sweepers, sweeper attachments, low loaders, bale trailers, hydraulic side arms that are usually utilized for horticulture, livestock production, crop production, application of fertilizers and pesticides, harvesting, planting, tilling and so on. Following are the ways in which the introduction of these machineries has helped the economy at large:

Why is agricultural advancement important?

Agricultural advancement is further crucial to improve the productivity of agricultural production. Shortage of agricultural goods has had an impact on industrial production with a consequent increase in the price level. This will further obstruct an economy’s growth.

What is the backbone of an economy?

If economic development needs to be initiated and made self-sustaining, it needs to initially start with agricultural sector. It is the agriculture sector , which is the main backbone of an economy, providing basic ingredients to all humankind along with raw material for the process of industrialization.

What has the introduction of the equipment with a high-end technology brought about?

Introduction of the equipment with a high-end technology has brought about a reduction in the labor work.


Despite the dominant position occupied by the agricultural sector in a traditional economy, many parts of the developing world have continuously denied agricultural and rural development adequate attention.


These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

About this chapter

Hwa EC. (1989) The Contribution of Agriculture to Economic Growth: Some Empirical Evidence. In: Williamson J.G., Panchamukhi V.R. (eds) The Balance between Industry and Agriculture in Economic Development. International Economic Association Series. Palgrave Macmillan, London.

Why is agriculture important?

Agriculture plays a critical role in transforming economies to reach the goal, along with achieving other essential development goals like en suring food security and improving nutrition. Therefore, in order to end hunger and undernutrition while accelerating economic growth, agricultural transformation must become a reality.

How can we make agriculture transform?

There are two key areas to make agricultural transformation a reality. First, it is critical to make modern technologies available. While modern agricultural technologies can come from private and public sectors, national governments need to play a big role in investing in agricultural research and development (R&D). This is due to the difficulty for a private enterprise to fully capture the benefits of developing such technologies. National agricultural research systems must work at provincial levels to find new technologies suitable for local conditions, and the state needs to have extension systems to disseminate these technologies.

Why is modernization important in agriculture?

While the result of this stage is a decreased share of agriculture to GDP and the labor force, the process of agricultural modernization is critical for economic transformation and achieving food security and improved nutrition.

What is the next key area for agricultural transformation?

The next key area for agricultural transformation is adoption of modern technologies, as farmers may not use such technologies even if they are available. Many technologies such as high-yielding seeds require stringent conditions for water, inputs, and knowhow.

What is the central goal of every developing country?

One of the central goals of every developing country is to reach high-income status.

What is economic transformation?

Economic transformation—also called structural transformation—means a country’s shift in the relative contribution of its technology and sectors to its overall Gross Domestic Product (GDP): From traditional technology to modern technology and from agriculture to industry and manufacturing, and then to a high-income service economy.

Why do governments need human capital?

Governments will also need to build human capital to ensure a skilled labor force to master new technology, handle logistics and boost each node of the value chain. Economic development is a process of structural transformation, and agriculture is the essential engine to jumpstart the process.


Leave a Comment