The importance of farming
Farming affects the economy as it enables relief from a shortage of capital. For instance, the development of the farming and agricultural sector greatly minimizes the burden experienced by several countries. Most of the countries experiencing a shortage of foreign capital get leverage from farming. This is because farming and agricultural sectors require less capital to start and develop this minimize the growth difficulty associated with foreign capital. The other aspect of farming on the economy is the provision of surplus. The progress realized in the farming sector ensure there are surplus exports of agricultural products. Countries undergoing initial stages of development are influenced by an increased exports earning. Therefore, farming provides more desirable export earnings. An increase in export earning is desirable for a growing economy since it exerts a more significant strain on the foreign exchange needed for the importation of fundamental capital goods. Substantial advancements of farming ensures favorable demand for a commodity. A marketable surplus is also brought about by farming activities (Ward, Benjamin Logan, et al. 42). All other market sectors rely on food production, which is achieved through a country’s marketable surplus. The farming sector contributes to increased production, and this ultimately results in an expanded marketable surplus.
Nevertheless, farming is significant for international trade. Farming products such as tea, tobacco, coffee, spices and sugar, among others form essential components of exports for many countries that depend on farming. Enhanced farming leads to reduced imports, while export increases. This is very critical in the reduction of the unfavorable balance of payments. The country can therefore save the foreign exchange. The saved amounts can also be used to import essential inputs needed to process the raw materials and other infrastructures.