Agriculture OER

The study seeks to establish the relationship between foreign direct investment to Ghana’s agriculture sector and economic growth with secondary data mainly sourced from the World Development Indicator. The techniques employed to analyse the data include descriptive statistic, unit root test, Granger causality test and error correction model (ECM). The study accepted a neutrality hypothesis between foreign direct investment to the Ghanaian agricultural sector and its covariates; trade openness, capital and government expenditure. The study also revealed positive and
significant relationship between economic growth and foreign direct invest flow to the agricultural sector and volume of trade respectively. However, government expenditure exhibit negative but significant relationship with economic growth. The study contributes to economic development literature from an important but neglected research context with regards to agricultural development via foreign direct investment to support job creation and overall economic development with particular reference to Ghana. Thus, the study recommends that policy should focus on flexible trade policies to attract more foreign direct investment (FDI) inflows to Ghana’s agricultural sector to accelerate growth across board.

Globally, there are social, economic and environmental challenges related to sustainable development; these challenges include climate change, the need to feed a rapidly increasing population, high rates of poverty and environmental degradation. These challenges have forced us to rethink the way in which development takes place, resulting in the emergence of the concept of a ‘green economy’. A green economy results in improved human well-being and social equity, while significantly reducing risks to the environment. It is based on principles which integrate social, economic and environmental considerations. South Africa has adopted the principle of green economic growth, and agriculture is one of the sectors that will drive this growth. Agriculture could address some of the sustainable development problems, but there are challenges related to resource availability, environmental impacts of agriculture and climate change. For agriculture to support a green economy it has to be productive, contribute to economic growth and not undermine the environment, social and cultural systems. The information base and policies required to support a green economy in general, and/or an agriculture supported green economy have not yet been developed, as the green economy is an emerging concept in South Africa as well as globally. The generation of such information requires analysis and synthesis of green economy principles and agricultural imperatives into generic principles and practices for facilitating agriculture’s contribution to the green economy. In this paper, we conduct this analysis and synthesis and highlight the defining aspects of an agricultural green economy.

This paper examines the political economic and governance challenges faced by African governments in operationalizing Climate-Smart Agriculture (CSA) as part of their pursuit of the United Nations Sustainable Development Goals (SDGs). There is a need to enrich our understanding of the diverse contexts and ways in which governments will have to navigate and address the inevitable choices and conflicts, synergies and trade-offs that will characterize efforts to simultaneously implement these global goals. Here we seek to develop an account of why and how countries are managing the interrelationship between SDGs, particularly those associated with food security and climate action. We develop explanations for the diversity in approaches and provide an initial assessment of what the consequences are for policy and practice. The analysis is informed by the contrasting experiences of four Eastern African countries, Kenya, Tanzania, Ethiopia, and Rwanda, as they seek to build more “climate resilient” food and agricultural systems that are compatible with achieving the SDGs.

The traditional concept of security has broadened over the past decades. Food security in South Africa is an imperative for human and non-human survival. In the contemporary political economy, there is a real nexus between globalisation, exploitation, the state, scarcity of resources, the market, peoples’ need to feel secure, notions of state responsibility and food production. Political economy and human security in theoretical debates and face-to-face politics are intrinsically linked. The notion of a ‘secure community’ changed. Food security and the right to quality living became a social imperative. Understanding current agricultural economics requires the ability to link security and access to food for all. In this case study, wheat production in South Africa is addressed against the interface of the global and the local including South Africa’s transition to a democratic and constitutional state with a Bill of Rights. The current security approach represents a more comprehensive understanding of what security is meant to be and include, amongst others, housing security, medical security, service delivery and food security, as set out in the Millennium Development Goals and the subsequent Sustainable Development Goals. The issue of food security is addressed here with particular reference to wheat production, related current government policies and the market economy. The authors chose to limit their socio-economic focus to a specific sector of the agricultural market, namely wheat, rather than discuss food security in South Africa in general. Wheat was chosen as a unit of analysis because as a crop, wheat used in bread is one of the staples for the majority of South Africans and given the current negative economic developments, wheat as a staple is likely to remain integral, if not increasing its status of dependability/

The purpose of this article is to investigate the effectiveness of the model used by the South African government to finance emerging black farmers for agricultural development and empowerment. It is widely acknowledged that the South African government spends a vast amount of money attempting to help black community members become commercial farmers. In this article, I argue that those who currently qualify for the funding are mostly farmers with little experience, expertise or interest in agricultural farming. The huge investment spent on such farmers ends up being lost in failed agricultural projects, and the government has not succeeded in finding better alternatives to empower emerging black farmers. Such activities benefit neither the government nor the black farmers intended to be assisted in various areas of the country. The black South African farmers remain agriculturally underdeveloped, while the government on the other hand loses a huge amount of money financing unsuccessful agricultural projects, which potentially threatens future food security. This article is conceptual in nature and uses literature to argue that the financing of emerging black farmers can only succeed if emerging black farmers are financed on basis of experience or ability and interest in farming and that such funding does not exclude potential public and private sector motivated employees who want to access such funding to pursue agricultural farming.

South Africa will require the establishment of a formal inclusive policy on sustainable agricultural practices. This will not only assist the country in avoiding further exploitation of the natural environment, but will also position agricultural extension in promoting the five pillars of sustainable agriculture. A comprehensive review using conceptual reflection presented in this paper confirms that most of the sustainable aspects are covered in both the white paper in sustainable agriculture and policy on agriculture in sustainable development. The existing documents, legislation, and policies available should be integrated into a working document that promotes sustainable agricultural practices. Thus, this paper provides a philosophical comparison between South Africa’s policy on agriculture in sustainable development and its white paper on agriculture. The review found that these two key South African agricultural policies are closely related in terms of the five pillars of sustainable agriculture. This paper further argues that the two policies reviewed could be used in the formulation of national policy on sustainable agriculture. In conclusion, this paper also suggests possible legislation addressing sustainable agriculture that should be integrated to develop a national policy on sustainable agriculture.

In addition to expanding agricultural land area and intensifying crop yields, increasing the global trade of agricultural products is one mechanism that humanity has adopted to meet the nutritional demands of a growing population. However, climate change will affect the distribution of agricultural production and, therefore, food supply and global markets. Here we quantify the structural changes in the global agricultural trade network under the two contrasting greenhouse gas emissions scenarios by coupling seven Global Gridded Crop Models and five Earth System Models to a global dynamic economic model. Our results suggest that global trade patterns of agricultural commodities may be significantly different from today’s reality with or without carbon mitigation. More specifically, the agricultural trade network becomes more centralised under the high CO2 emissions scenario, with a few regions dominating the markets. Under the carbon mitigation scenario, the trade network is more distributed and more regions are involved as either importers or exporters. Theoretically, the more distributed the structure of a network, the less vulnerable the system is to climatic or institutional shocks. Mitigating CO2 emissions has the co-benefit of creating a more stable agricultural trade system that may be better able to reduce food insecurity.

Agriculture is growing in Subsaharan Africa (SSA), but the growth is precarious. In most countries, it has yet to reach the sustained 6% annual rate estimated by NEPAD as necessary to meet the Millennium Development Goal of cutting poverty in half by 2015. Growth needs to be accelerated, secured and used more effectively to promote broadly shared development. This requires two elements. The first is a reversal in the massive underinvestment and significant mis-investment that has taken place in the past in African agriculture, which has led to a huge cost in forgone development for Africans. There is an opportunity now for increased productive investment and improved efficiency of investment in African agriculture, which can significantly increase productivity and output, especially among certain groups of smallholders. The second element is to capture part of this productivity growth to help finance a set of investments, programs and policies that in the short to medium term will secure the assets and access to services of those smallholders facing severe resource and productivity constraints, while over the longer term provide them or their children with a path out of low-productivity farming.

This module is an introductory course that introduces students to a wide range of economic concepts. The module focuses on how economic systems operate to allocate resources, distribute income, and organize production through the decisions of individual economic agents such as households, firms and consumers. The module focuses on the operation of a market economy where markets determine society's production and consumption decisions by transmitting information about the plans of buyers and sellers.

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Purchases of agricultural land for diverse reasons, such as recreation or aesthetic appeal (collectively referred to as lifestyle purposes), has implications for agricultural land valuations, commercial agriculture and the acquisition of land for redistribution purposes. This paper reports on the extent of purchases of agricultural land for diverse reasons within an intensive and extensive agricultural farming area in the Western Cape, gathered through a survey of land buyers between January 2005 and October 2007. Descriptive statistics provide demographical information of buyers, their reasons for purchasing farms and the importance of specific characteristics of agricultural properties considered in such purchases. Analyses of variance convey more information regarding the different characteristics of agricultural properties
considered by agricultural and lifestyle buyers. Survey results indicated that farm purchases for alternative purposes were substantial: more than half of all transactions in both the intensive and extensive area were for lifestyle reasons. Lifestyle buyers mostly rely on income from outside the agricultural sector for their livelihoods and financing of purchased properties, therefore they could focus on characteristics of farms unrelated to commercial agricultural production in their decision to buy agricultural properties. Characteristics such as the recreational opportunities provided by the property and its aesthetic beauty, including natural scenery, beautiful viewsand locations within a valley and set against a mountain, appealed to these buyers.

This study uses an economy-wide, dynamic computable general equilibrium (DCGE) model to analyze the ability of growth in various agricultural subsectors to accelerate overall economic growth and reduce poverty in Nigeria over the next years (2009-17). In addition, econometric methods are used to assess growth requirements in agricultural public spending and the relationship between public services and farmers? use of modern technology. The DCGE model results show that if certain agricultural subsectors can reach the growth targets set by the Nigerian government, the country will see 9.5 percent annual growth in agriculture and 8.0 percent growth of GDP over the next years. The national poverty rate will fall to 30.8 percent by 2017, more than halving the 1996 poverty rate of 65.6 percent and thereby accomplishing the first Millennium Development Goal (MDG1). This report emphasizes that in designing an agricultural strategy and prioritizing growth, it is important to consider the following four factors at the subsectoral level: (i) the size of a given subsector in the economy; (ii) the growth-multiplier effects occurring through linkages of the subsector with the rest of the economy; (iii) the subsector-led poverty reduction-growth elasticity; and (iv) the market opportunities and price effects for individual agricultural products.

In analyzing the public investments that would be required to support a 9.5 percent annual growth in agriculture, this study first estimates the growth elasticity of public investments using historical spending and agricultural total factor productivity (TFP) growth data. The results show that a 1 percent increase in agricultural spending is associated with a 0.24 percent annual increase in agricultural TFP. With such low elasticity, agricultural investments must grow at 23.8 percent annually to support a 9.5 percent increase in agriculture. However, if the spending efficiency can be improved by 70 percent, the required agricultural investment growth becomes 13.6 percent per year. The study also finds that investments outside agriculture benefit growth in the agricultural sector. Thus, assessments of required growth in agricultural spending should include the indirect effects of nonagricultural investments and emphasize the importance of improving the efficiency of agricultural investments. To further show that efficiency in agricultural spending is critically important to agricultural growth, this study utilizes household-level data to empirically show that access to agricultural services has a significantly positive effect on the use of modern agricultural inputs.

This brief describes the results of a modeling exercise to forecast the economywide impacts of expanding irrigation and increasing agricultural productivity in Sub-Saharan Africa modeled under a relatively moderate SRES (Special Report on Emission Scenario) B2 climate change scenario, which was developed by the Intergovernmental Panel on Climate Change. The results were generated using a combination of economic models capable of assessing the security implications of a variety of development pathways under climate change for the period 2000?50.

A farmer-managed, agroenvironmental transformation has occurred over the past three decades in the West African Sahel, enabling both land rehabilitation and agricultural intensification to support a dense and growing population. This paper traces the technical and institutional innovations, their impacts, and lessons learned from two successful examples. The first is the story of the improvement and replication of indigenous soil and water conservation practices across the Central Plateau of Burkina Faso. Rehabilitation of at least 200,000 hectares of degraded land enabled farmers to grow cereals on land that had been barren and intensify production through developing agroforestry systems. Additionally, rehabilitation appears to have recharged local wells. The second example is a farmer-managed process of natural regeneration, using improved, local agroforestry practices over an estimated 5 million hectares in southern Niger. This large-scale effort reduced wind erosion and increased the production and marketing of crops, fodder, firewood, fruit, and other products. In both cases, income opportunities were created, reducing incentives for migration. Women benefited from the improved supply of water, fuelwood, and other tree products. Human, social, and political capital was strengthened in a process of farmer-driven change. Fluid coalitions of actors expanded the scale of the transformation. These stories have important lessons for those who seek to create effective agricultural development partnerships and meet the challenges of climate change and food security.

This study assesses public investment required for agricultural growth and poverty reduction in Nigeria. Using time series data for public spending and agricultural total factor productivity (TFP) growth, the econometrically estimated results show that one percent of growth in agricultural spending generates 0.24 percent of growth in agricultural TFP. To support 9.5 percent in agricultural annual growth in 2009-17, a growth rate from the economy-wide analysis on options of growth for poverty reduction (Diao et al. 2009), required agricultural investment would have to grow at 23.8 percent annually in the same period. However, if the spending efficiency were improved based on an estimated elasticity for Sub-Saharan Africa as whole, then required agricultural investment would grow at 13.6 percent per year instead. The study also shows that investment outside agriculture benefits the agricultural sector. By taking into account such indirect effect of public investment, required growth in agricultural spending is much lower.

About 75 percent of the world's poor people live in rural areas, and most of them are involved in farming. Agricultural development in these areas is often constrained by issues of access to appropriate technologies; immense ?institutional weaknesses?; and deep problems with the organization and management of research, education, and extension systems. Many countries and agricultural systems thus remain mired in underdevelopment and face major barriers to the use of knowledge and innovation for development. Despite this, however, there are examples of organizational, technological, institutional, and policy innovations that are transforming agriculture and leading to growth and development. Important lessons can be learned and
scaled up from the successes that are occurring, as well as from examining cases that did not work.

The objective of this research was to identify the institutions and their relative influence associated with surveillance and control of HPAI in Ghana, the flow of information for disease reporting among institutions, and the institutional responses to disease occurrence. The questions were: Who is involved? How do they communicate about suspected outbreaks? How do they respond to confirmed outbreaks? How influential are they in terms of impacting on information flow and response? What are the remaining bottlenecks?

Recent increases in cereals prices raise questions about agricultural priorities in Ghana. This report presents an application of the Policy Analysis Matrix (PAM) to the problem of identifying opportunities to enhance agriculture?s contribution to economic growth and poverty alleviation in the country. The PAM is a budget-based method that was applied to study the social and private profitability of six maize production systems and six rice production systems. The results indicate that all twelve of the systems contribute to national economic growth and private income generation among farmers, at least under the high cereals prices that prevailed in 2007. Maize systems show a higher rate of return (lower cost/benefit ratio) than rice systems. If prices returned to lower levels experienced in 2005, however, rice systems would be privately and socially unprofitable. Return to the still lower prices of 2002 would leave both the maize and rice systems unprofitable.

The PAM was also used to assess the impact of alternative interventions for increasing profitability in the face of lower output prices. The results suggest that higher adoption of input technologies could make maize profitable under a very wide range of prices. However, fertilizer prices are not likely to be the constraining factor input adoption as the price of fertilizer has little impact on farm profitability given current levels of fertilizer use. Rather, further research is needed to determine how to promote improved maize production technology. For rice systems there appears to be room to enhance profitability through post-farm interventions to reduce processing losses and to improve the quality of locally grown rice. Rice systems would be profitable under very low output prices if Ghana achieved the processing conversion rates and milled rice quality found in other countries.

Ethiopia's agricultural sector, which is dominated by smallscale, mixed-crop, and livestock farming, is the mainstay of the country?s economy. It constitutes more than half of the country's gross domestic product, generates more than 85 percent of foreign exchange earnings, and employs about 80 percent of the population. Unfortunately, Ethiopia's dependence on agriculture makes the country particularly vulnerable to the adverse impacts of climate change on crop and livestock production. Thus, a deeper understanding of the complex interdependence between changing climatic conditions and Ethiopia's agricultural sector together with adaptation options is crucial.

Malawi has experienced modest economic growth over the last decade and a half. However, agricultural growth has been particularly erratic, and while the incidence of poverty has declined, it still remains high. The Malawian government, within the framework of the Agricultural Development Plan (ADP), is in the process of implementing the Comprehensive Africa Agriculture Development Programme (CAADP), which provides an integrated framework of development priorities aimed at restoring agricultural growth, rural development and food security. This paper analyzes agricultural growth and investment options that can support the development of a comprehensive agricultural development strategy consistent with the principles and objectives of the CAADP, which include achieving six percent agricultural growth and allocating at least ten percent of budgetary resources to the sector.

Economic modeling results indicate that it is possible for Malawi to reach the CAADP target of six percent agricultural growth. However, achievement of these goals will require additional growth in most crops and agricultural sub-sectors, meaning that Malawi cannot rely solely on growth in maize or tobacco to reach this growth target. Broader-based agricultural growth, including growth in pulses and horticultural crops, will be important if this target is to be achieved. So, too, is meeting the Maputo declaration of spending at least ten percent of the government?s total budget on agriculture. In fact, even under a more optimistic and efficient spending scenario, the Government of Malawi must increase its spending on agriculture in real value terms by about 20 percent per year between 2006 and 2015, and account for at least 24 percent of its total expenditure by 2015 if the CAADP goals are to be met.

Although agriculture has strong linkages to the rest of the economy, with agricultural growth typically resulting in substantial overall growth in the economy and rising incomes in rural and urban areas, simply achieving the CAADP target of six percent will not be sufficient to halve poverty by 2015, i.e. achieving the first Millennium Development Goal (MDG1). To achieve this more ambitious target, agriculture and non-agriculture would need an average annual growth rate above seven percent. This growth requirement is substantial, as is the associated resource requirements, indicating that the MDG target may be beyond reach. However, achieving the CAADP target should remain a priority, as this goal has more reasonable growth and expenditure requirements, and will substantially reduce the number of people living below the poverty line by 2015 and significantly improve the well-being of both rural and urban households.

Zambia has experienced strong economic performance since 1999. However, agriculture has not performed as well as the rest of the economy, and although the incidence of poverty has declined, it still remains high. The Zambian government, within the framework of the Fifth National Development Plan (FNDP), is in the process of implementing the Comprehensive Africa Agriculture Development Programme (CAADP), which provides an integrated framework of development priorities aimed at restoring agricultural growth, rural development and food security. This paper analyzes the agricultural growth and investment options that can support the development of a comprehensive rural development component under Zambia?s FNDP, in alignment with the principles and objectives of the CAADP, which include the achievement of six percent agricultural growth and allocation of at least ten percent of budgetary resources to the sector.

Computable general equilibrium (CGE) model results indicate that it is possible for Zambia to reach the CAADP target of six percent agricultural growth, but this will require additional growth in all crops and sub-sectors. Zambia cannot rely on only maize or higher-value export crops to achieve this growth target; broader-based agricultural growth, including increases in fisheries and livestock, will be important. So, too, is meeting the Maputo declaration of spending at least ten percent of the government?s total budget on agriculture. In order to meet the CAADP target, the Government of Zambia must increase its spending on agriculture in real value terms by about 17?27 percent per year between 2006 and 2015, and spend about 8?18 percent of its total expenditure on the sector by 2015.

Although agriculture has strong linkages to the rest of the economy and its growth will result in substantial overall growth in the economy and the household incomes of rural and urban populations, achieving the CAADP target of six percent agricultural growth will not be sufficient to meet the first Millennium Development Goal (MDG1) of halving poverty by 2015. To achieve this more ambitious target, both agricultural and non-agricultural sectors would need an average annual growth rate of around ten percent per year. These growth requirements are substantial, as are the associated resource requirements. Thus, while the MDG1 target appears to be beyond reach for Zambia, achieving the CAADP target should remain a priority, as its more reasonable growth and expenditure scenarios will still substantially reduce the number of poor people living below the poverty line by 2015, and significantly improve the well-being of both rural and urban households.