Agricultural diversification ppt

agriculture and rural development ppt and concept of rural development ppt
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Published Date:26-07-2017
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Rural Economy and Agriculture Saurabh Singhal 12 October 2015 Introduction • The importance of the rural sector • Historical trends & current status of agricultural sector • Different agricultural systems around the world • How to promote agricultural development? – Understand farmer behavior & institutions – Different technologies – Economic incentive & government policies • Role of women • The non-farm rural economy & integrated development Rural population Rapid urbanization but ….. population of the developing world is still more rural than urban - some 3.1 billion people, or 55 per cent of the total population, live in rural areas. Rural poverty • Rapid reduction in poverty in the last 20 years – East Asia – China • Over 1.4 bn still live in extreme poverty (less than US1.25 a day) • At least 70% of the world’s very poor people are rural – South Asia – Sub-Saharan Africa Rural poverty Food Insecurity • According to FAO, the numbers of undernourished people have been on the increase since the mid-1990s. • In 2009 the number of hungry people reached a billion for the first time in history. • South Asia and sub-Saharan Africa are the regions where hunger is most concentrated. Food Insecurity Role of Agriculture • The heavy emphasis in the past on rapid industrialization now appears to have been excessive in many cases • 2007-08 food price surge: renewed interest in agriculture as a key driver of development and poverty reduction. • In the process of development, the agricultural sector and rural economy must play an indispensable role in any overall strategy of economic progress. Historical trends As countries develop, the shares of GDP and labor in agriculture tend to decline, but with many idiosyncracies Cereal Yields (1960-2005) • Agricultural production is rising but unevenly • Although agriculture employs the majority of the developing country labor force, it accounts for a much lower share of total output Low productivity • Ag. Productivity varies dramatically between countries • Relatively low levels of labor productivity • Also regional differences within countries Different agricultural systems Agrarian Systems & Land Inequality Latin America- Inequality • ``Latifundios’’ – very large scale landholding, capable of employing over 12 people. Owned by a small number of landlords – Typically fertile land, but inefficient – High transaction cost of monitoring – landlords/owners are sometimes less focused on the business of farming - land fallow • ``Minifundios’’ – very small landholding, insufficient for even a single family • Mid-size, family farms – typically employ 4-12 people • Overall the agricultural sector seems to be doing well - Chile (diversification), and Brazil (biofuels) • However - extreme rural inequalities Asia- Fragmented Land • Too many people on too little land • Low productivity – Colonization – the ``absentee landlord’’ (e.g. India, Pakistan) – Commerialization – moneylender – Population growth- more fragmentation Asia- Increase in fragmentation Africa – Subsistence farming • Predominant mode of production in Africa • Small plots of land • Output produced for family consumption • Usually staple foods – rice, wheat etc. • Use family labor, simple tools, technology • Overall low productivity Africa – Subsistence farming • Reasons: – Small plots, traditional tools – Extensive cultivation – soil exhaustion – shifting cultivation – High dependence on rain-fed agriculture – Labor scarcity when needed most • Transformation would require adoption of modern technologies, farming techniques, inputs , etc. Transition from subsistence farming • Direct leap to modern commercial farming not possible – Exclusive reliance on cash crops not adviceable • Diversified/ Mixed farming – intermediate step • Crop rotation – plant new/cash crops in slack season • Better seeds, fetilizers, irrigation • Skill building – commercial, marketing • Diversification of family income – non-farm rural enterprises • Commercial/specialized farming – large scale, industrial enterprises

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