Reaction or Essay on The Role of Agriculture in a Country’s Growth and

Development

Significant majority of the population in most developing countries live in rural areas and

mainly earn their livelihoods from agriculture. Agriculture also accounts for a large fraction of

developed world economic activity with some added value coming from that sector in poor

countries. The scale of the agricultural sector suggests significant aggregate effects of changes

affecting agriculture. Therefore, it seems fair that the increase in agricultural productivity should

have major effects on economic growth. The large scale of the agricultural sector does not

inherently mean that economic growth needs to be a leading field. In fact, agriculture has very

low productivity in most developed countries, compared to the rest of the economy. Expanding a

low productivity sector may not be unambiguously good for growth. Economies experiencing

aggregate output growth could be the beneficiaries of good institutions that is also benefiting the

agricultural sector. Agricultural production is important for economic growth in countries with

large inland populations and restricted access to foreign markets. The value of agricultural

growth for other countries would rely on the relative feasibility and the cost of importing food.

Successful adjustment to agriculture's changing role determines not only the pace and

pattern of development as a whole but also the severity of the problems rural people face in the

development process. Economic growth is invariably accompanied by a declining share of

agriculture in total output, income, and employment. Hence, growing food supply by the

agricultural sector is of great importance for a country's economic development.

The relative importance of agriculture decreases as a nation grows economically. As

revenues grow the proportion of income spent on food is decreasing. For example, if a family's

income were to rise by 90 percent, the amount it would spend on food could rise by 50 percent, if

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formerly its expenditure on food had been 40 percent of its budget, it would only amount to 30

percent of its budget after the increase. As incomes grow, it follows that a smaller fraction of

society's total resources are needed to generate the amount of food required by the population.

Agriculture is the foundation of an economy that provides society with the necessary

foods, and is also the raw material for industrialization. Similarly, agricultural growth is a must

to a country's economic development. Also, agriculture is the fundamental source of food supply

for all countries around the world whether developing or even developed. If agriculture fails to

satisfy the growing demand for food products, the growth rate of the economy is found to be

adversely affected. Moreover, if economic development is to take place, farming must be able to

generate a surplus of food to support the rising non-agricultural workforce. Given that food is

more important to life than services offered by manufacturers, an economy cannot move to such

activities unless food is available for bartering or sale in sufficient quantities to sustain those

engaged in them. Furthermore, if food can be obtained through foreign trade a country usually

does not grow industrially until its farm areas are able to provide food to its towns in return for

their factory produce.

Economic development often demands a rising workforce. Most of the laborers required

in an agricultural country must come from the rural population. Agriculture must therefore not

only provide the towns with a surplus of food but it must also be able to produce the increased

amount of food with relatively smaller workforce. This is possible by replacing animal power

with human power or by phasing in equipment. A country that seeks to develop its economy

would be well advised to give agriculture a significant priority. A large proportion of the farm

labor force would move from agriculture to other activities as economic development continues.

It is difficult to determine the impact of price and income policies. Many factors determine the

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level of income and the economic well-being of farm people in general including not only the

prices they receive for their output but also the rate at which the economy in general is growing,

the ease with which people can move from farm to non-farm jobs. Agriculture gives rural people

large scale job opportunities in underdeveloped and developing countries. Agricultural

development plays a significant part in any strategy of eradicating poverty. Agricultural growth

increases the production and income of small farmers, and increases agricultural workers' jobs

and salaries. With this, poverty reduction and hidden unemployment are rising. Rising

agricultural production also leads to lower food prices and keeps inflation under control which

also contributes to poverty reduction. To sum up, the importance of agriculture cannot be

underestimated in economy.

References:

 Jorgenson, D. W. (2017). The role of agriculture in economic development: Classical

versus neoclassical models of growth. Subsistence Agriculture & Economic

Development, 320-347. Retrieve from: https://doi.org/10.4324/9781315130408-33

 Mackie, A. B. (1964). The role of agriculture in economic growth and

development. Illinois Agricultural Economics, 4(3), 1. Retrieve from:

https://doi.org/10.2307/1349016