How can agriculture help the economy

For this process to be successful, the agricultural sector must be modernized. Agricultural modernization prepares conditions for industrialization by boosting labor productivity, increasing agricultural surplus to accumulate capital, and increasing foreign exchange via exports. Modernization also helps achieve humanitarian goals by raising incomes and productivity of poor farmers, lowering food prices, and improving nutrition.

Indeed, modernizing agriculture can improve human capital by better nourishing the population and avoiding far-reaching debilitative outcomes of malnutrition such as child stunting. Overall, a well-nourished child develops better and becomes more productive and receives higher wages later in life than a child who grew up malnourished: A nutrition intervention in Guatemala led to a 46 percent increase in wages for these children as adults above those who did not receive the intervention.

As agriculture becomes more productive, excess labor moves from rural farm jobs to urban manufacturing jobs. While the result of this stage is a decreased share of agriculture to GDP and the labor force, the process of agricultural modernization is critical for economic transformation and achieving food security and improved nutrition. There are two key areas to make agricultural transformation a reality. First, it is critical to make modern technologies available.

An improving economy and expiration of the larger SNAP benefits caused growth of food and nutrition assistance program outlays to slow by fiscal and decrease in fiscal Outlays on Federal crop insurance also decreased in fiscal as extreme weather events subsided and crop prices declined. Commodity program outlays declined in fiscal with the passing of the new Farm Act in Food and nutrition assistance accounted for more than 73 percent of USDA outlays in fiscal Skip to navigation Skip to main content.

What is agriculture's share of the overall U. Agriculture and its related industries provide You should still be able to navigate through these materials but selftest questions will not work. As agricultural productivity increases, the non-farm sector develops and countries are less dependent on agriculture for their economy although this may not occur in all areas of the country, where the non-farm sector is not as well developed.

Agricultural growth contributes to wider growth and poverty reduction, to what degree is dependent on the changes in productivity and the size of farms.

Increases in land and labour productivity can be central to pro-poor growth. The World Bank Group provides knowledge, advice, and financial resources in low- and middle-income countries to transform food systems to reduce poverty and achieve green, resilient, and inclusive development.

Improving livelihoods and creating more and better jobs , including for women and youth;. Improving food security for all, including access to safe and nutritious food;. Making agriculture and food more sustainable and more climate-smart: more productive and resilient in the face of climate change, while reducing greenhouse gas emissions;.

Boosting agribusiness by building inclusive and efficient food value chains. IFC financing goes to agribusiness, food companies, and banks. IFC also helps clients improve productivity, climate-smart practices, and food safety. Increasingly, the Bank supports country efforts to transform their food systems by taking a holistic look at public policies and spending for agriculture and food.

In Armenia since , the Bank has supported , people in livestock farming and pasture management improvement. More than 90, people are expected to benefit from this program over the next five years. In Bhutan, a Bank-supported project supports the government's efforts to reduce rural poverty and high levels of malnutrition through climate-smart agriculture.

Irrigation technology and greenhouses introduced through the project have helped farmers to increase their access to local and export markets. More than 6, people have increased the quality and quantity of produce like rice, maize, potato, vegetables, quinoa, citrus, apples, and potatoes, as well as high-value spices such as cardamom and ginger. In Bolivia, since Bank funding began in , community investments have helped fight extreme rural poverty for over , direct beneficiaries, leading to increased productive investments for more than , people, expanded or improved irrigation for nearly 74, people, and improved road access for nearly 30, people.

In Burkina Faso, from , the Bank supported the Programme National de Gestion des Terroirs which decentralized rural development and built local capacity to deliver basic services. The program also invested in water and soil conservation, agroforestry, and energy-saving stoves and other environmental technologies, helping to protect more than , hectares.

In China, since , a Bank-supported project has helped expand climate-smart agriculture. In Colombia, since , the adoption of environmentally friendly Silvopastoral Production Systems for over 4, cattle ranches has converted , hectares of degraded pastures into more productive landscapes and captured 1,, tons of CO2. To aid the cashew industry, the Bank also supported a research program that helped disseminate genotypes of high-performing trees and establish 18 nurseries.

In the Democratic Republic of Congo , between and , , people benefited from better access to agricultural services and rural infrastructure. Their cassava yields rose to 19 tons per hectare from 7. In Djibouti , the Bank supported the construction of water mobilization units, which improved water access for 9, households.