Lesson 8: Agriculture

AGRICULTURE

sector that contribute to the economic prosperity of advance and less develop countries

 England, USA, Canada, Japan

the historical experience of these country reveal the importance of agriculture in the process of the country's economic development at the outset of the Industrial Revolution.

Prof. Charles Kindleberger, Michael Todaro, William Arthur Lewis and Ragnar Nurkse,

agriculture makes its contribution to economic development in several ways

1. providing food and raw materials

2. creating demands for goods produced in non- agricultural sector

3.  providing investable surplus in the form of savings and taxes

4. earning valuable foreign exchange through the exportation

5. Providing employment to a vast army of uneducated

 CONTRIBUTION TO NATIONAL INCOME

 contribute a very large share of GDP of most of the economies before industrial development takes place in them.

SOURCE OF FOOD SUPPLY

the basic source of food supply of all the countries of the world—whether underdeveloped, developing or even developed.

PRE-REQUISITE FOR RAW MATERIAL

Agricultural advancement is necessary for improving the supply of raw materials for the agro-based industries especially in developing countries.

CONTRIBUTION TO THE EXPORT

progress in the agricultural sector provides a surplus for increasing the exports of agricultural products

Simon Kuznets

he states that “Agriculture was a major source of exports and that the resulting command over the resources of the more developed countries played a  strategic role in facilitating modern economic growth.”

SOURCE of FOREIGN EXCHANGE for the COUNTRY

Most of the developing countries of the world are exporters of primary products. These products contribute 60 to 70 per cent of  their total export earnings.

CREATION OF INFRASTRUCTURE

development of agriculture requires roads, market, storage, transportation, postal services and many other services for an infrastructure creating demand for industrial products and the development of the commercial sector.

EXTENSION OF MARKET SIZE

raises rural income levels and creates an effective market for more and new industrial goods.

EMPLOYMENT OPPORTUNITIES FOR RURAL

provides employment opportunities for rural people on a large scale in underdeveloped and developing countries. It is an important source of livelihood.

LAND

plays a vital role in supporting human life and economic activities like farming, building, and resource extraction.

Landowner

individual or entity that owns land.

Tenants

 farmers who do not own the land they cultivate

Landless laborers

people who do not own or rent any land and instead work on other people's farms in exchange for wages (usually daily or seasonal)

Land Reform

government-initiated policies and actions designed to restructure the ownership, control, access, and use of agricultural land. It seeks to create a more balanced and fair land distribution system

• to address redistributing land more equitably, securing land tenure rights, and providing support systems that empower rural communities

OBJECTIVES OF LAND REFORM

1. Land Distribution

2. Secure Land Ownership

3. Support Services & Development

4. Reduce Poverty

5. Boosting agricultural output

 Japan’s Post-war Agricultural Land Reform (1946)

Goal: Break up large landlord estates, transfer land ownership to tenant farmers, boost productivity, ensure food supply, and stabilize employment.

South Korea – Farmland Reform Act of 1949

To eliminate feudal land ownership, reduce rural inequality, and empower small farmers by giving them ownership of the land they worked on.

Philippines - CARP (June 10, 1988)

Comprehensive Agrarian Reform Program (CARP) was launched in the Philippines in 1988 through Republic Act No. 6657 the goal was to promote To promote social justice and rural development by giving land to landless farmers, ending feudal land ownership, and improving the lives of poor agricultural workers.

Benefits of land reform

1. Promotes social justices

2. Empower farmes

3. reduces rural poverty

4. Boosts agricultural productivity

5. Strengthens rural economies

Challenges of land reform

1. Slow and Delayed Implementation

2. Lack of supportive services

3. fragmented and small landholdings

4. Low agricultural productivity

5. Land conversions

6. beneficiary problems

Agricultural productivity

refers to the efficiency and effectiveness with which various inputs—such as land, labor, fertilizers, seeds, water, and machinery—are converted into agricultural outputs, including crops, livestock, poultry, and other farm products.

Factors why land productivity matters

1. Support Food Security

2. Increases Farmers Income

3. Boosts Agricultural growth

4. Maximize the use of limited resources

Agricultural price

policy involves government actions to regulate agricultural product prices.

 aim to stabilize and support farmers' incomes while ensuring food availability for the population.

Price Support Mechanism

Governments may set minimum prices for certain crops to protect farmers from market fluctuations.

Price Stabilization Strategies

include buffer stocks and strategic reserves to manage supply and demand. effectively.

Minimum Support Prices (MSP)

guaranteed prices set by the government for specific agricultural products.

 By providing this financial safety net, MSP encourages farmers to invest in their crops and maintain production levels

 Procurement

 involves government agencies buying agricultural products directly from farmers at pre-determined prices

Public Distribution System (PDS)

 initiative that distributes essential food grains, such as rice and wheat, to consumers at subsidized prices

Buffer Stocks

strategic reserves of food grains maintained by the government to manage supply and price. fluctuations.