Tuesday, August 11, 2020

The Impotance Of Agriculture

For many years now, agriculture has been established as the production of basic food crops. Currently, agriculture above and beyond the old agricultural systems includes forestry, piggery, mushrooms, poultry, dairy, beekeeping, fruit production, arbitrary, plantation, etc. Today, the processing, marketing, and distribution of agricultural products, including crops and cattle, are all regarded as part of modern agriculture. Thus, agriculture is typically referred to as the production, processing, promotion, and distribution of agricultural goods.

Agriculture plays a substantial function in the whole existence of a given economy. Agriculture is the core pillar of the economic systems of many countries in the world. In addition to producing food and raw materials, it also gives work possibilities to a relatively large percentage of the world population. Below is the relevance of agriculture:

 The Source of Livelihood

The principal source of livelihood for many people around the globe is agriculture. About 70 percent of the world's population directly relies on agriculture as a means of livelihood or survival. This high percentage is dependent on agriculture as a result of no or little development of non-agricultural activity to absorb the quick population rise. However, most people in affluent countries do not engage more in agriculture.

Contribution to National Income (GDP) (GDP)

Agriculture is the major source of national income for practically all developing countries. Some developing countries that depend on agriculture as a major source of national income are Liberia (76.9 percent of GDP), Somalia (60.2 percent of GDP), Guinea-Bissau (55.8 percent of GDP), etc. However, for industrialized countries, agriculture contributes a smaller amount to their national revenue (GDP) than industrialized countries. For example, the United States made $100 billion from agriculture in the year 2019.

Supply of food as well as fodder.

The agricultural industry provides fodder for domestic animals. The cows we rear generate milk, which is a sort of protective nourishment. Moreover, livestock also meets people’s food requirements. That being said, if agriculture doesn’t fulfill the huge demand for food, then the country’s economic growth rate could be badly affected. In short, when your labor is well fed, then the entire production will undoubtedly grow.

Marketable Surplus

The significant expansion of the agriculture sector contributes to an expanded marketable surplus. Many people deal in manufacturing, mining, as well as other non-agricultural industries as the nation advances. All these people rely on food production that they might get from the nation’s marketable surplus. When agriculture sector development takes place, production increases and it leads to the expansion of marketable surplus. This may be exported to other nations of the world.

Importance in International Trade

Agricultural products, including milk, sugar, wheat, tea, rice, spices, tobacco, coffee, etc., represent the primary items for exports of countries that heavily rely on agriculture. If there is smooth development in agriculture, imports are lowered and exports increase greatly. This helps to reduce countries' unfavorable balance of payments as well as conserve foreign exchange. This will be utilized to import other vital inputs such as machinery, raw materials, and other infrastructure that will be useful for the support of the country’s economic development.

Source of raw material.

The essential source of raw materials for major businesses such as cotton, tobacco, sugar, cloth, and edible as well as non-edible oils, is derived from agriculture. Moreover, many other businesses, such as the processing of fruits, milk, as well as vegetables and rice husking, obtain their raw materials mostly from agriculture.

Importance in Transportation

Bulk agricultural products are carried via trains and roadways from farms to factories. Most of the internal trade is in agricultural products. Moreover, the revenue of the government, to a larger extent, rests on the success of the agricultural sector.

Foreign Exchange Resources

Almost all the nation's export commerce rests primarily on the agricultural industry. Agricultural commodities such as jute, tobacco, spices, oilseeds, raw cotton, tea, and coffee, for example, account for approximately 18% of a country's total export value. This illustrates that agricultural products also continue to be a significant source of profits for a country's foreign exchange.

Great Employment Opportunities

The development of irrigation schemes, drainage systems and other such activities in the agriculture industry is significant as it increases employment opportunities. The agriculture industry provides greater work options for the labor force than any other industry, which minimizes the high rate of unemployment in emerging countries caused by the fast-growing population.

Economic Development

Since agriculture employs a huge number of people, it helps with economic development. As a result of this, the national income level and people’s standard of life are improved. The quick rate of development in the agriculture sector delivers a progressive view as well as an enhanced drive for development. Hence, it helps to produce a suitable climate for the general economic development of a country. Hence, economic development depends on the agricultural growth rate.

Source of Savings: Development in agriculture may also increase savings. The wealthiest farmers of today started saving, notably following the green revolution. This surplus amount will be reinvested further in the agricultural industry to develop and expand the agricultural sector.

Food Security

A robust agriculture sector provides a nation with food security. The main need of any country is food security. Food security prevents malnutrition, which has long been regarded as one of the key difficulties faced by developing countries. Most countries depend on agricultural goods as well as associated businesses for their major source of income.

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