Explain the economic problems that result over dependence on agriculture. Suggest solutions to the problems

Problems faced

• The agriculture sector yield low tax revenue since production is largely subsistence.
• Agricultural output especially in LDCs is of lower quality this give them low competitive advantages
• It leads to seasonal unemployment. In LDCs agricultural activities are seasonal mainly during rainy season and farmers are almost unemployed during dry seasons
• Prices of agricultural output are never stable making it difficult to predict income and consumers expenditure
• It required a big land which may not be available due to high population growth
• It has to low marginal productivity. the level output per unit labour usually measured as output per man-hour  is very low
• Inadequate storage facilities
• It leads to limited level of industrialization. It tends to encourage concentration of agro-based industries instead of capital based industries that lead to fast industrialization
• Its output is severely affected by season such as drought and floods.
• It leads to economic dependence especially when a country continues importing most of the manufactured goods.
• Low outputs
• May lead to environment degradation
• Minimum prices may lead to over supply
• Tariffs on agriculture have led to lower income for food exporters in the developing world and have been a big stumbling block to trade.
• Land fragmentation

Solutions to the above problems

• Flexibility; farmers should be flexible to change from one agricultural system to another in response to market conditions
• Industrialization through export promotion and import substitution
• Improvement of infrastructure to ease marketing of agricultural output
• Irrigation to limit effects of climatic changes
• Individual farms subjected to certain risk should insure against it.
• Diversification to increase income
• Price stabilization. Government should stabilize prices through buffer stock and stabilization funds
• Education and training to encourage and stimulate modern farming techniques
• Research to produce high yield resistant crops and animals
• Credit to enable expansion in agricultural  production
• Barter trade can increase on market opportunities.