Answer to Question #295046 in Microeconomics for Magodi

Question

discuss the role agriculture in economic development. Challenges facing this sector and the necessary strategies to develop the sector.

Answer 1

Discuss the role of agriculture in economic development.

·        Stimulates industrial expansion: The expansion of the agricultural sector resulted in the industrial sector developing as well. When farmers have money saved up, they may buy consumer products and invest in businesses. As a result, the industrial sector expands indirectly.

·        Increasing work opportunities: As the agricultural sector's production grows, more job opportunities will emerge. Agriculture expansion not only generates direct employment in agricultural production but also creates more jobs in other fields.

·        Resources for Capital Formation: This is all the more crucial because the present contemporary capitalist sector is so limited that there are few surpluses or profits available for investment. Agriculture, on the other hand, is a large sector. It has the potential to contribute more to the growth of the industrial sector because primary industries rely on agricultural raw materials.

·        Foreign Exchange Supply: Agriculture may play a significant role in generating foreign currency through the export of agricultural products. The need for increased exports may be readily addressed by simply adding a crop or two to the existing crop pattern, with little or no new capital spending.

·        The Manpower Shift: Employs the vast bulk of the country's workers. The majority of the workforce in the least developed nations works as disguised jobless agricultural labor. Agricultural advancement allows for a transfer of workforce from the agricultural to non-agricultural sectors.

Challenges facing this sector and the necessary strategies to develop the sector.

·        Seeds: Seed is a vital and fundamental resource for increasing crop yields and sustaining agricultural output growth. The distribution of high-quality seed is just as important as its generation. Unfortunately, excellent quality seeds are out of reach for the majority of farmers, particularly small and marginal farmers, due to excessive seed prices. To solve this challenge, the government should ensure it provides quality and subsidized seeds for farmers.

·        Manures, fertilizers, and biocides: For thousands of years, soils have been utilized to raise crops with little regard for replenishment. As a result, soils have been depleted and exhausted, resulting in low production. Almost all of the crops have among the lowest average yields in the world. This is a severe issue that may be addressed by increasing the use of manures and fertilizers.

·        Irrigation: In areas where rainfall is unpredictable, inconsistent, and irregular, irrigation is the most significant agricultural input. Such areas will not be able to make sustained agricultural success unless more than half of the planted land is placed under guaranteed irrigation. Government should construct dams that will assist the farmers to irrigate their lands.

·        Soil erosion. Vast areas of productive land are eroded by wind and water, resulting in soil erosion. These areas need to be treated thoroughly and returned to their former fertility.

·        Agricultural Marketing: In rural regions, agricultural marketing is still in a horrible state. Farmers must rely on local traders and intermediaries for the disposal of their agriculture products, which are sold at a low price due to a lack of adequate marketing facilities. Government and farmers should create cooperatives to seek markets for their products directly to consumers.