Changing composition of private investment in Indian agriculture and its relationship with public investment and input subsidies

Changing composition of private investment in Indian agriculture and its relationship with public investment and input subsidies PDF

Author: Kumar, Anjani

Publisher: Intl Food Policy Res Inst

Published: 2020-01-24

Total Pages: 42

ISBN-13:

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Using the decennial All-India Debt and Investment Survey from 1981-82 to 2012-13, this paper delves into the spatial and temporal trends in private fixed capital expenditure and its composition, among rural households in India. We also assess its relationship with public investment in agriculture. Amidst sizeable ups and downs, the magnitude and rate of growth in private investment in agriculture has gained momentum from 2000s except in Odisha, Himachal Pradesh, Jammu and Kashmir. An increasing preference of farmers to invest in residential land and buildings, and that at the cost of asset formation in farm business, is evident in agriculturally advanced states. Within agriculture, relatively higher investments in land improvement, machinery-implements, tractors, and livestock are identified over the period. Importantly, such investments are positively influenced by public investments in agriculture and irrigation in the high and low income states and also by public spending on input subsidy in the middle and low income states. An increase in public expenditure that is well targeted and is commensurate with farmers’ investment portfolio would reinforce a complementary relation between the two across-the-board. The impact of terms of trade on private investment though positive turns out to be statistically insignificant. Land acts as a constraint, indicating need for policy interventions that augment crop yield and can bring remunerative prices to farmers. A continued effort to improve the outreach of formal financial institutions for credit is warranted for higher private capital formation.

Productive public investment in agriculture for economic recovery with rural well-being: an analysis of prospective scenarios for Mexico

Productive public investment in agriculture for economic recovery with rural well-being: an analysis of prospective scenarios for Mexico PDF

Author: Sánchez, M.V., Cicowiez, M., Ortega, A.

Publisher: Food & Agriculture Org.

Published: 2021-10-13

Total Pages: 92

ISBN-13: 9251350671

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Mexico's gross domestic product (GDP) contracted unprecedentedly as a result of the COVID-19 crisis. While the primary sector has relatively been the most resilient, the agriculture sector lacks sufficiently strong productive dynamism and has high rates of informal work and low wages. Investing more in the sector's productive infrastructure would help accelerate economic recovery while improving people’s well-being. A public investment policy should be developed on the basis of evidence, such as that provided in this study. In 21 prospective scenarios that simulate the allocation of additional public investment in productive infrastructure across subsectors of agriculture, equivalent to 0.25 percent of GDP (around MXN 50 billion) between 2021 and 2023, there is an improvement in total and agrifood GDP, and in the well-being of the Mexican people, as measured by private consumption and rural poverty reduction. However, it is recommended that new investment be focused on certain subsectors and that it be financed through foreign borrowing. According to a ranking of subsectors that receive new investment, the sugar cane subsector ranks first in three of the four variables considered (private consumption, total GDP, agrifood GDP and rural poverty). Cereals, mainly maize, but also others (rice, sorghum, oats, barley and other cereals), and the more export-oriented crops, such as flowers and coffee, also appear at the top of the ranking.

Policy Framework for Investment in Agriculture

Policy Framework for Investment in Agriculture PDF

Author: OECD

Publisher: OECD Publishing

Published: 2014-07-03

Total Pages: 79

ISBN-13: 9264212728

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By proposing questions in ten policy areas, the Policy Framework for Investment in Agriculture supports host countries in evaluating and designing policies to mobilise private investment in agriculture.

Productive public investment in agriculture for economic recovery with rural well-being: an analysis of prospective scenarios for Uganda

Productive public investment in agriculture for economic recovery with rural well-being: an analysis of prospective scenarios for Uganda PDF

Author: Sánchez, M.V., Cicowiez, M., Pereira Fontes, F.

Publisher: Food & Agriculture Org.

Published: 2022-02-21

Total Pages: 70

ISBN-13: 9251358044

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This study highlights how, through a series of scenarios, public investments promoting agricultural productivity in Uganda could drive growth in agrifood production, with favourable impacts on the economy, on well-being and on poverty, especially in rural areas. Using a modelling tool to represent the Ugandan economy, with its multiple sectors and current fiscal constraints, the study ranked the subsectors of Uganda’s agriculture that, through the productivity impact of public investments representing 0.25 percent of GDP (on average, about 373 billion 2017 Uganda shillings) during the years 2023–2025, will generate the greatest socio-economic benefits, maximizing the cost-effectiveness of the public investments. Generally, economic growth and the welfare of households, as measured by their consumption, will be positively impacted, but the impacts will ultimately depend on the sector that receives the investment, which is shown in a ranking. The agricultural sectors targeted for government investment will increase their output (and food prices will thus fall), and this will stimulate growth in non-agricultural sectors, both by increasing final demand for non-agricultural products and by lowering input prices and fostering upstream processing. Lower food prices will have a significant impact since food represents a relatively large proportion of the consumption basket of poorest households. Furthermore, labour income for rural households will increase with productivity growth, and this will reduce rural poverty. The findings of this study provide important information about the priorities of Uganda’s National Development Plan (NDP) III and vision for agriculture, as well as new priorities to be considered for enabling economic recovery with increased well-being post-COVID-19.

Persistence Pays

Persistence Pays PDF

Author: Julian M. Alston

Publisher: Springer

Published: 2009-12-14

Total Pages: 504

ISBN-13: 9781441906571

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gricultural science policy in the United States has profoundly affected the growth and development of agriculture worldwide, not just in the A United States. Over the past 150 years, and especially over the second th half of the 20 Century, public investments in agricultural R&D in the United States grew faster than the value of agricultural production. Public spending on agricultural science grew similarly in other more-developed countries, and c- lectively these efforts, along with private spending, spurred agricultural prod- tivity growth in rich and poor nations alike. The value of this investment is seldom fully appreciated. The resulting p- ductivity improvements have released labor and other resources for alternative uses—in 1900, 29. 2 million Americans (39 percent of the population) were - rectly engaged in farming compared with just 2. 9 million (1. 1 percent) today— while making food and fiber more abundant and cheaper. The benefits are not confined to Americans. U. S. agricultural science has contributed with others to growth in agricultural productivity in many other countries as well as the Un- ed States. The world’s population more than doubled from around 3 billion in 1961 to 6. 54 billion in 2006 (U. S. Census Bureau 2009). Over the same period, production of important grain crops (including maize, wheat and rice) almost trebled, such that global per capita grain production was 18 percent higher in 2006.

Changing Contours of Indian Agriculture

Changing Contours of Indian Agriculture PDF

Author: Seema Bathla

Publisher: Springer

Published: 2017-10-25

Total Pages: 242

ISBN-13: 9811060142

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This book presents an extensive study on India’s agricultural and nonfarm sectors, examining prices, investments and policies, and suggesting various essential technological changes. It offers appropriate financial, institutional, and policy frameworks that can help to sustain agricultural growth and augment farmers’ incomes across geographical locations. Further, it addresses agricultural growth and rural poverty reduction through multiple pathways that also tackle varied geographical locations, making it a highly useful guide to understanding the changing contours in agriculture and rural areas across the country and among rural households with various social and economic backgrounds.

Intellectual Property Rights, Private Investment in Research, and Productivity Growth in Indian Agriculture

Intellectual Property Rights, Private Investment in Research, and Productivity Growth in Indian Agriculture PDF

Author: Deepthi Kolady

Publisher:

Published: 2010

Total Pages: 40

ISBN-13:

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With the growth of private investment in developing-country agriculture, new advances in the biological sciences, and rapid integration of developing countries into the global trading system, intellectual property rights (IPRs) have become an important concern for policymakers, corporate decisionmakers, and many other players in the agricultural sector. But there are still unanswered questions about whether emerging and evolving IPR regimes in developing countries will contribute to increasing agricultural productivity and improving food security. This paper attempts to answer some of these questions by tracing the effects of IPRs on private investment in crop genetic improvement and, in turn, on agricultural productivity. The paper focuses specifically on the case of India, the regional leader in implementing IPRs in agriculture. Findings indicate that maize and pearl millet yields grew significantly during the last two decades due to the combination of (1) public policies that encouraged private investment in India's seed industry during the 1980s, (2) public investment in hybrid breeding programs that generated new materials offering substantial yield gains, and (3) biological IPRs conferred by hybridization that conveniently married the private sector's need for appropriability with the nation's need for productivity growth. Although past lessons are not an indication of future success, this convergence of policy solutions and technology opportunities can be replicated for other crops that are vital to India's food security.