Agriculture is the art and science of cultivating the soil, growing crops and raising livestock. It includes the preparation of plant and animal products for people to use and their distribution to markets. Agriculture provides most of the world’s food and fabrics. It is known as the ‘backbone’ of our economy meaning that it provides the basic ingredients to mankind and now raw material for industrialization. Lessons drawn from the economic history of many advanced countries tell us that agricultural prosperity contributed considerably in fostering economic advancement.
Farmland can serve as a cornerstone of a balanced investment portfolio. Commodity prices, including the cost of food, tend to rise with inflation. This strong correlation allows agricultural investing to protect against inflation, especially compared to high-volatility assets.
What are the benefits associated with agriculture
It’s the main source of raw materials
Many raw materials, whether it’s cotton, sugar, coffee, tea or palm oil, come from agriculture. These materials are essential to major industries in ways many people aren’t even aware of, such as the manufacturing of pharmaceuticals, diesel fuel, plastic, and more. In fact, raw materials are so important in production that the economic health of a country strongly depends on how many raw materials it possesses.
It’s the source of our food supply
The most important aspect of agriculture is that it’s the source of the world’s food supply. No matter where or what you are eating, the ingredients in your meals came from somewhere. All roads lead to agriculture. In countries dealing with food insecurity and severe malnourishment, it’s because their agriculture sectors are suffering. When agriculture thrives, fewer people go hungry.
It’s important to international trade
Raw materials from agriculture make up a huge portion of what’s traded internationally. Countries with plenty of those supplies export them and trade for materials they don’t have. If a country’s agriculture suffers for some reason, prices can go up and it disrupts the flow of trade. For example, Kenya is a major exporter of coffee and tea to western countries.
It is a source of employment
The agricultural industry is still one of the biggest sources of employment and in many areas, it’s actually booming. Whether it’s working as a farmer, harvester, technician for farm equipment, scientist, and so on, there are plenty of jobs available in this field. In developing countries, agricultural jobs help reduce high rates of unemployment. When it comes to reducing poverty, evidence shows that focusing on agriculture is significantly more effective than investing in other areas.
It plays a big role in a nation’s revenue
Speaking of trade, developing countries still get most of their national income from agricultural exports. While developed countries don’t depend on agriculture as much as they used to, their economies would definitely take a hit if all exports suddenly stopped.
It can help better the environment
Agriculture can harm and heal. When farmers prioritize biodiversity on their land, it benefits the earth. Having more biodiversity results in healthier soil, less erosion, better water conservation, and healthier pollinators. This is all good news for the environment as a whole, making agriculture an important part of the cycle of life.
It’s crucial to a country’s development
Economic development is tied to a country’s agriculture sector. When trade, national revenue, and employment are combined in a positive way, a country enjoys reduced poverty and boosted economic growth. Because strong agriculture results in benefits fairly quickly, focusing on it is one of the best ways to speed up development and improve a country’s standing in the world.
It drives innovation in technology
Because healthy agriculture is so essential to a country’s well-being, it’s been the setting of some of the most exciting innovations in technology. Through artificial intelligence, blockchain software, gene manipulation, and more, scientists and farmers have been figuring out ways to increase crop productivity, use less water, and reduce negative impacts on the environment. For scientists and tech companies, agribusiness is one of the most fascinating and productive fields to work in.
Advice to farmers on agriculture on investing in agriculture
Agriculture reflects our future. When it comes to pollution and climate change, the environment and agriculture suffer the quickest and with the most clear consequences. If effective changes aren’t made, climate change’s impact on agriculture will decimate a country’s economy and eventually wipe out the food supply. To get a better idea about where humanity is going to end up, look at agriculture. Embracing agriculture has far better results economically and it guarantees a better future for our descendants.