Answer to Question #211545 in Microeconomics for Refiloe

Question

Why was agriculturalsector declared as a critical industry and exempt from the hardest lockdown regulations

Answer 1

Following the outbreak and spread of Covid 19 and the subsequent introduction of stringent measures such as lock-downs, roadblocks, and movement halts by governments of various countries such as China, the United States, Europe, and parts of Africa in order to stop the virus's spread, agriculture, the entire food supply, as well as other manufacturing and transportation industries, were significantly affected.

Agriculture, like many other sectors, is regarded as a key business since the whole world society relies on it for food and nutritional supplies; around 23% of agricultural products are consumed by families, while 77% is used as intermediate inputs in food processing. The new strict regulations meant doom for the whole food supply chain, putting many lives and businesses in jeopardy.

As a result, the agricultural industry has been granted preferential exemptions; timely monitoring of food crises, the establishment of green channels for inputs and output supplies as well as for workers, the provision of safety nets, and the preservation of trade are just a few of the strategies used to ensure smooth functioning of the food supply and avoid any possible food crises.

Farmers are obliged to hold back more sale-ready animals, which means they must pay more on feed and basic stock treatments like vaccinations and vitamins, all while losing money on those animals. Farmers, on the other hand, are already purchasing less necessary and preventive medications.