It’s the main source of raw materials
Many raw materials, whether it’s cotton, sugar, wood, 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 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. Currently, the EU is the first trader of agricultural products in the world, both for imports and exports.
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 provides 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’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.