How does agriculture improve 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 through exporting agricultural products

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America’s farmers and ranchers make an important contribution to the U.S. economy by ensuring a safe and reliable food supply, improving energy security and supporting job growth and economic development.Sep 8, 2013


What is the economic impact of Agriculture?

The economic impact of agriculture goes far beyond the traditional farming areas of “cows, plows and sows,” said Department of Agriculture spokeswoman Christi Miller. “Agriculture touches so many things.

How does agriculture affect the economy?

  • The farmer is producing the most basic goods for human livelihood.
  • The farmer is providing social stability through his hard work and the particular structure of the rural society.
  • The farmer’s livelihood is subject to the volatility of weather conditions.

Why is agriculture important and its role in everyday life?

Agriculture Important and its Role in Everyday Life. In most parts of the world, agriculture is an important source of livelihood. This entails hard work, but it contributes to the nation’s food safety and health. Agriculture was the primary source of the economy prior to the industrial revolution.

Why is agribusiness important?

  • According to WHO, “ 1 in 3 women worldwide have experienced physical and/or sexual violence, mostly by an intimate partner. …
  • As per WHO research, “Globally, 30% of women have experienced physical and/or sexual violence by an intimate partner in their lifetime.”
  • “Globally between 38%-50% of murders of women are committed by intimate partners.”

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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.

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.

Why did farmers become important to the American economy?

Early in the nation’s life, farmers were seen as exemplifying economic virtues such as hard work, initiative, and self-sufficiency. Moreover, many Americans — particularly immigrants who may have never held any land and did not have ownership over their own labor or products — found that owning a farm was a ticket into the American economic system. Even people who moved out of farming often used land as a commodity that could easily be bought and sold, opening another avenue for profit.

What are the factors that contributed to the success of American agriculture?

Large capital investments and increasing use of highly trained labor also have contributed to the success of American agriculture. It is not unusual to see today’s farmers driving tractors with air-conditioned cabs hitched to very expensive, fast-moving plows, tillers, and harvesters.

Why are American farmers so successful?

American farmers owe their ability to produce large yields to a number of factors. For one thing, they work under extremely favorable natural conditions. The American Midwest has some of the richest soil in the world. Rainfall is modest to abundant over most areas of the country; rivers and underground water permit extensive irrigation where it is not.

What is the role of the American farmer?

The American Farmer’s Role in the US Economy. The American farmer has generally been quite successful at producing food. Indeed, sometimes his success has created his biggest problem: the agricultural sector has suffered periodic bouts of overproduction that have depressed prices.

Is farming important in 2020?

From the nation‘s earliest days, farming has held a crucial place in the American economy and culture. Farmers play an important role in any society, of course, since they feed people. But farming has been particularly valued in the United States.

Do farmers have to repeal laws?

Farmers have not repealed some of the fundamental laws of nature, however. They still must contend with forces beyond their control — most notably the weather. Despite its generally benign weather, North America also experiences frequent floods and droughts. Changes in the weather give agriculture its own economic cycles, often unrelated to the general economy.

How has agriculture changed?

To illustrate the changes agriculture has undergone two sets of figures may be useful. The Stresa Conference in 1958 worked on the basis that employment in agriculture on average in the six original member states was 25 percent, whereas its contribution to GDP did not go beyond 14 percent. The respective figures for the Community of 15 in 1994 are 5.7 percent and 2.5 percent. A fraction of the workforce in the 1950s is now producing a much higher quantity of food. It is well known that this is due to technical progress through mechanisation, better seed and breeding qualities, better resource management etc. It is, however, surprising to note that this tremendous technical and economic development has certainly led to a change in values considered important, but not to a reversal of attitude towards agriculture.

Why did agriculture come under attack?

Agriculture also came under attack because of its negative impact on the environment due to the application of pesticides and fertilisers. Sympathy for farmers did not evaporate and the perception that the farmer was entitled to support did not wane. But support was more and more considered excessive and the budgetary implications unbearable.

How did the traditional farm structure change?

Employment in agriculture fell with increasing mechanisation and the average size of exploitations increased. But this did not affect the essence of the traditional family farm.

Why was agriculture so slow in the 1980s?

Going slow was possible because the British market opened up in 1973. Furthermore, the first oil-shock in 1972 increased world wide demand for agricultural products. But things were changing at the beginning of the 1980s and public perception of agriculture, too.

What was the importance of the family farm?

The family farm was recognised unanimously as the way to provide this stability. Mr. Houdet, the then French Minister was the most outspoken when he said that the State has to ensure that all farmers enjoy the appropriate income and their proper place in the economy and in society. The then-Commission President Walter Hallstein mentioned independence and freedom based on the ownership of his farm as the particular virtues of the European farmer. Judging from the speeches made and the reports submitted, employment in agriculture was not a major concern.

Why is rural life important in Western Europe?

In Western Europe there is a focus on rural life and its symbolic values for all who felt uncomfortable with the hostile modernisation of society triggered by industrialisation and urbanisation. I think that rural life is becoming attractive for highly developed countries.

How did market organizations affect the economy?

The market organizations for all main production sectors which were created during the first 10 years of Community existence were, not surprisingly, biased towards stabilising markets and increasing the income of farmers which did not flow exclusively from increase of productivity. The consumer had to pay higher prices than world market prices, but he did not complain very much. In some member states prices even fell in comparison with the situation before the market organizations came into effect (e.g., for cereals in Germany). But the prices of food-stuff became less and less relevant when the general income level increased and the share of food in household expenditure diminished. At the same time the offer of food in terms of variety of products and quality improved considerably.

How does Livelihoods help farmers?

In addition to reforesting the area, Livelihoods offers training sessions to the local communities on productive agricultural practices and how to best market and process their products. Read more >>

Why is fertilizer important in Africa?

Improved access to fertilizer is key for improving yields, and subsequently boosting incomes in Africa, as 75% of sub-Saharan Africa’s soils are degraded. However, sub-Saharan Africa represents 10% of the total global population yet only 0.8% of total fertilizer use. Read more >>

What are the value chains of feed the future?

As USAID/Nigeria’s flagship program under Feed the Future, the project works in five value chains and two sub-value chains: cocoa, cassava, rice, sorghum, aquaculture, soybean, and maize. By putting low-cost technologies and best practices in the hands of hundreds of thousands of smallholder farmers, the Chemonics-implemented project has achieved a 60 percent increase in soybean yields and added 231,823MT of cassava to the domestic food supply since FY2012, among other results. Read more >>

How does malnutrition affect Africa?

Widespread malnutrition is undermining the health and limiting the opportunities of almost one in four people in Africa. Malnutrition can impact a society as a whole, it is estimated that malnutrition can reduce a country’s economic advancement by 8 per cent or more.

How did Thai Meng help his fish farm?

Thai Meng from Cambodia was ready to give up on his fish farm, until a Fintrac/Feed the Future project intervened with some life changing technologies. Thai was introduced to Secchi disks ($6 each) which helped him monitor and manage water clarity and nutrients in ponds, resulting in better fingerlings (small fish that serve almost like seeds in a fish farm). Low-cost, locally available water-quality test strips also helped him to monitor and manage water quality and nutrient content, as well as detect and respond to diseases early in order to maximize fingerling survival. Click the image below to read the 2015 Feed the Future report that features Thai’s story:

How many trees are planted in the Livelihoods Fund?

Now, the Livelihoods Fund is now working in the community to plant 5 million trees and crops over 20 years, which will not only improve the livelihoods of the local rural people, but also sequester an impressive 2 million tons of CO2.

How can agriculture improve health?

How agriculture can improve health and nutrition. The agricultural sector presents key opportunities for improving nutrition and health. But this connection is often not given due attention, despite parallel initiatives across the three sectors. The potential impacts of agricultural activities on health and nutrition extend across a number …

Why is agriculture important for the poor?

Given the importance of agriculture for the livelihoods of the rural poor, agricultural growth has the potential to greatly reduce poverty – a key contributor to poor health and undernutrition.

Why is agricultural intensification important?

Agricultural intensification has been essential to feed the world’s growing population, but it has also brought its own risks for people’s health, including zoonotic diseases, water- and food-borne diseases, occupational hazards, and natural resource degradation and overuse. Similarly, water, energy (electricity) and fertilizer subsidies have been linked to distorted consumption and production choices and the crowding out of public investment.

Why is it important to have partnerships between the private and public sectors?

Partnerships between the private and public sectors play an especially important role in improving the efficiency of post-harvest value chains.

What was the Green Revolution?

Over the past 40 years, agricultural advances, such as the Green Revolution, led to the doubling of cereal production and yields, improving the well-being of many people and providing a springboard for remarkable economic growth.


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