Private Investment In Agriculture Research Articles

The role of private sector investment in agriculture: A catalyst for sustainable development in Asia

AbstractThe agricultural sector is a crucial driver for sustainable development in many countries, as it directly or indirectly contributes to various United Nations Sustainable Development Goals. However, this sector requires increasing financial investment to rejuvenate and modernise production processes. This study investigates the impact of private sector investment on agricultural production across selected Asian countries from 2001Q1 to 2020Q4. The results of the Driscoll‐Kraay regression and the method of moments quantile regression reveal that private agricultural investment positively affects agricultural production. The findings indicate positive contributions from agricultural aid, domestic credit, and rural population, whereas remittances negatively affect agricultural production. The Dumitrescu‐Hurlin panel causality test results establish bidirectional causality between farm production and its determinants (private agricultural investment, agricultural aid, domestic credit, remittances, and the rural population). Based on these findings, we recommend that policymakers and governments incentivise and facilitate private agricultural investment to drive sustainable development. This strategy could boost agricultural productivity and enhance a more resilient agricultural system capable of withstanding environmental challenges while improving farmers' incomes and livelihoods.

Factors Determining Private Agricultural Investment: A Comparative Case Study of Two States of India

The study endeavours to examine the pattern and determinants of agricultural investment in two states of India viz., Haryana and Odisha. The existing literature points out that public investment in agriculture is one among the strongest determinants of private investment and output in agriculture. Accordingly, emphasis has been laid to accelerate the rate of public investment. The present study using primary data in two diverse regions of India is an attempt in that direction. Data from 150 households from both states have been collected using proportionate stratified random sampling method. The study finds that private farm investment as well as output are relatively lower in Odisha, being an agriculturally lagged region. It is further seen that private investment in agriculture has been significantly influenced by canal irrigation, institutional credit, and land size in Odisha. While in Haryana, farmer’s education, land size and institutional credit positively and significantly affected private farm investment. Capital use in agriculture turned out to be positive and significant variables influencing agricultural productivity in both regions. The study thus recommends to ensure public policies on the aspects of irrigation infrastructure, research and extension, improvement rural infrastructure etc. in stimulating private investment and agricultural output. Public investment in agriculture on these components would bridge inter-regional inequalities and ensure inclusiveness as it promotes employment opportunities and sustainable growth in agriculture. In the context of Odisha, being a poorer state, these policies could serve as important tools of poverty alleviation.

Impact of Agriculture Corporate Farm Increase Productivity Widespread Destructive Activity on Earth Democracy in India

Agricultural productivity in India can be improved by investing in agricultural research and development, improving irrigation infrastructure, promoting farm mechanization, and strengthening agricultural extension services. Agriculture is the foundation of the civilization, culture and heritage of India. It most commonly refers to corporations that are large-scale farms, market agricultural technologies in particular pesticides, fertilizers, and GMO's, have significant economic and political influence, or some combination of the three. The large-scale corporate agriculture is more efficient than peasant farming in the country. It leads to better allocative efficiency, induces higher private investment in agriculture, and results in higher output, income and exports. During 2021-22, in the countries total exports agricultural exports contributed of to the tune of US $ 50.2 billion with a 20% increase from US $ 41.3 billion in 2020-21. In FY 2023, it is projected that the Indian agriculture sector will grow at the rate 3.5%. Agriculture in India is a complex mosaic of distinct agro-ecosystems, differentiated by climatic, soil, vegetation and other natural features. About half of the Indians derive their livelihood from agriculture and allied activities. Technology and Research Corporate farming enterprises usually invest in research and development of new agricultural technologies, seeds, and farming practices. Farmers who are part of these systems can benefit from access to cutting-edge technology and knowledge that can improve productivity and efficiency. It is one of the oldest systems of the world characterized by its diversity and heterogeneity, unorganized and stressed on account of natural and anthropogenic vagaries from ‘seed to market’. Agriculture is the backbone of the Indian economy, contributing to around 16.5% of India's GDP and employing over 50% of the workforce. The Indian agriculture market is valued at USD 435.9 billion as of 2022 and is expected to reach USD 580.82 billion by 2028, growing at a CAGR of around 4.9% between 2023 and 2028. Historically, stressed natural resources due to unfavourable weather, monsoon and natural calamities resulted in crop failures leading to food shortage that made serious impacts on the civilization. Post-Independence, the Indian agriculture transformed from a food-scarce to food-exporting country primarily due to science led innovations that caused multi-fold increase in the agricultural production from 135 million tons in 1950/51 to over 1300 million tons in 2021/22 in spite of increasing abiotic and biotic stresses and depleting along with deteriorating natural resources. Agriculture is one amongst the few sectors that made progressive growth after independence and marched well with the need of the country. Success in agriculture since Independence has been the backbone of India’s success.

P2P Crowdfunding: An Alternative Source of Credit for Enhancing the Financial Inclusion of Small Holder Farmers

Background: Indian agriculture is considered as a major source of livelihood generation for more than 58 percent of rural households. Credit is a pivotal element both in agricultural production and marketing system. Presently, most of the marginal and small farmers solely depend on localized lending models viz., village money-lenders who lend money to farmers for short term. The ministry of agriculture estimates that to double farmers’ income, private investment in agriculture must increase to two-fold. P2P crowdfunding is gaining grip at a very fast pace and gradually becoming an attractive investment option for investors.
 Methods: This paper attempts to explore different aspects of P2P crowdfunding and its scope as an alternate source of credit for the small and marginal farmers. Based on secondary data analysis (2014-2022) from a number of research papers, RBI notifications, blogs and newspaper articles.
 Results: It is evident that the global peer to peer (P2P) lending market size was valued at $67.93 billion in 2019, and is projected to reach $558.91 billion by 2027, growing at a CAGR of 29.7% from 2020 to 2027. This type of funding option has tremendous potential to magnify agriculture capital markets by allowing agricultural firms to build value more efficiently and involve more people directly in food production. The paper distinguishes the advantages of P2P lending over traditional credit system and private lending that are predominant in agriculture. However, P2P lending has its own limitations that is also discussed. Additionally, companies as well as investors need to analyse crowdfunding options carefully as per its economic feasibility and structure so that it will lead to mutually beneficial investment relationships.

Políticas de investimentos agrícolas em Angola: projetos em concorrência e as tendências do século XXI

For approximately four decades, the Angolan gov-ernment has favored investment policies based on national corporations, policies which are changing in recent years due to the appeal for foreign direct investment. In this context, this article intends to reflect on agricultural investment policies in Angola, aiming above all to understand the growth trend of agribusiness and the various competing projects for agricultural development. This reflection implies considerations about these projects and the agricul-tural policies implemented over the past 40 years and the effects of the recent government developments to promote private investment in agriculture in the post-civil war period.

Determinants of Private Investment in the Agricultural Sector of Mozambique (2003-2017)

Shortly after independence, Mozambique's economy was characterized predominantly by a public investment over private investment until roughly 1986. In this period, the public sector was seen as the main economic agent, centralizing most of the available resources. Bearing in mind that investment is one of the main components of aggregate demand and source of long-term economic growth, its fluctuations affect significantly the overall functioning of an economy and agriculture in particular. It's in this perspective the study comes in to unfold and understand the major determinants of the private investment in agriculture, as well as the constraints that represent the main challenges to invest in this sector due to the scarcity of capital. The study carried out an analysis of a theoretical approaches from exploratory, bibliographic combined with quantitative method based on the macroeconomic models (the neoclassical model, the flexible accelerator model, and the options model) to address the question of the study. And to achieve our objectives, the sample referred to the period of 2003-2017 and the choice of that period is associated, among several factors the consistency and availability of data on the variables included in the model such as the real GDP; GDP of the agrarian sector; public investment (government spending on infrastructure, electricity, water, between others); real interest rate; inflation rate (a variable capturing the effects of uncertainty from macroeconomic instability on the level of investments) and arable land. The results showed that the agrarian sector is influenced by the wealth produced from engineering sector (infrastructure). Keywords: Determinants, Investment, Private Investment, Agricultural Sector, Economy

An empirical analysis of sector-wise private investment for a small open economy

ABSTRACT The present study empirically analyses the sector-wise private investment behaviour in Pakistan using the autoregressive distributed lag model from 1964 to 2015. The results indicate that credit availability and infrastructural development considerably affect private investment in agriculture, industry, and services. However, the user cost of capital does not have any influence on investment. The response of investment demand to credit availability is inelastic (i.e. 0.259) for agriculture but relatively higher for the industrial sector with a magnitude of 0.554. However, its value is slightly higher than the unit elastic value (1.059) in services. Fertiliser use positively impacts investment in agriculture, which is negatively affected by access to water. The values of the corresponding coefficients are 0.726 and −2.731, respectively. Remittances and foreign direct investment positively contribute to private investment in services. Openness significantly demotes private investment in services, and its magnitude is relatively high (−5.127). The findings signify and implicate the role of water availability, government support, and financial development in the agricultural sector. However, a stable political environment and cost of investment are very important for investment activities in the industry. Nevertheless, the role of openness in investment in services is vital.

A STUDY ON AGRICULTURE AND FOODGRAIN MANAGEMENT IN INDIA

Indian agriculture despite the COVID-19 outbreak displayed the country's resiliency and perform well. The agricultural and allied sector employs about 54.6 percent of the country's total workforce and accounts for nearly 17.8 percent of GDP in 2019-20. The new financing policies, market reforms, and food processing policies as part of the Atma Nirbhar Bharat gave new life into the sector. However, Indian agriculture has faced various challenges, mitigation of which requires a holistic policy approach. The crop productivity is much lower than in other advanced and emerging market economies due to fragmented landholdings, lower form mechanisation and lower public and private investment in agriculture. This article articulates the issues in agriculture and food grains management in India.

A Dynamic Study of Breakeven Output, Yield and Land-equivalent for Major Crops of Madhya Pradesh

Madhya Pradesh, one of the largest states in the country, has been lagging in private investment in agriculture since the 2000s. To investigate the reasons for this decline, breakeven analysis coupled with trend analysis was carried out using plot-level secondary data from DES, India, for the period 2000-01 to 2016-17 for sorghum, cotton, maize, chickpea/gram, black gram, red gram, lentil, rapeseed and mustard, soybean, paddy and wheat crops. The results revealed that the cotton, soybean and black gram were unsuitable for farmers with inadequate means while lentil was the most stable crop. Rice-wheat and Cotton-gram cropping pattern was found to be risky. Red gram, gram, sorghum, paddy, mustard, soybean and black gram had a horizontal trend of break-even output. Wheat was the only crop with a negative trend of breakeven output. Important policy suggestions include the adoption of custom hiring of machinery and rigorous yield improvement programmes for paddy, sorghum and maize.

Agricultural Expenditures and Food Security: Evidence from Sub Saharan African Countries

This paper sets out to investigate the effects of agricultural expenditures on two dimensions of food security in Sub Saharan Africa from 2000-2016. The Feasible Generalized Least Square (FGLS) econometric technique was applied on data from World Development Indicator, Regional Strategic Alliance and Knowledge Support System (ReSAKSS), the World Governing Indicator, the African Development Indicators, the Food and Agricultural Organisation (FAO) data bases. Our results depicted that public agricultural expenditure has negative and significant effects on food availability and utilization while domestic private agricultural expenditure and human capital foster both dimensions of food security. Foreign aid for agriculture has no effects on food availability but promotes food utilization while economic infrastructure promotes food availability but the effects on food utilization are positive and not significant. On the basis of the results, we recommend that SSA African government should increase the size of public agricultural expenditure, increase the level of economic infrastructures so as to crowd in private agricultural investment, lobby for more foreign aid for agriculture, improve the quality of institutions and design different policies to target different dimensions of food security.

Impact of Economic Slowdown on Indian Agriculture

The present study assessed the impact of economic slowdown on Indian agriculture. Five factors viz., resource flow in Indian agriculture, input use in Indian agriculture, agricultural exports and imports, inflation in food and non-food products and agrarian distress which affected agriculture were examined. Secondary data on these factors were collected from various sources for period from 2014-15 to 2018-19. The results showed that input use in agriculture and institutional credit advances to agriculture sector have favorable effect while private investment in agriculture, net trade, consumer food price index and farmers’ suicide were adversely affected by the economic slowdown. Therefore it was suggested that government should take comprehensive measures rather than a piecemeal one, to increase income and investment to revive demand.

From “Meat Culture” to “Cultured Meat”: Critically Evaluating the Contested Ontologies and Transformative Potential of Biofabricated Animal Material on Culture and Law

This article calls into question how different the parallel ontologies of meat are in terms of the realities they enact. It argues that while biofabricated animal material is expected to transform the production and consumption of meat, the material’s ontologies reinforce existing interrelationships between the dominant meat culture and the law. Additionally, the expectations surrounding biofabricated animal material vests the material with transformative power, even though it does not challenge the structural factors, namely law and culture, which underlie the exploitation and commodification of animals. I begin by delineating the co-constituting relationship between law, the realities of meat production and consumption, and meat culture. I then unpack the interface between different ontologies of meat and consider why the contest has taken place in legal terrains. From here, I consider the key expectations that have assigned transformative power to biofabricated animal material. I suggest that these expectations work to reinforce existing meat culture, and the configurations of power that benefit from it, as supported via legal instruments.

DETERMINANTS OF PRIVATE AGRICULTURAL INVESTMENT IN IRAQ FOR THE PERIOD (1990-2014)

The agricultural sector is one of the important economic sectors which contribute to provide the food and raw materials that use into many industrial goods and create jobs. Moreover, it helps to reduce the imports of agricultural products and activate of growing the other manufacturing sectors. Even though, the agricultural is very important sector, but still weak and unworthy because the agriculture produce line is not flexible to aggregate demand; however, it needs to expansion in agricultural investment. Since the agricultural sector has characters which are quite different than other sectors which are effective on investor's decisions rely on the economic policy. The study aim to determine the impact of the GDP, interest rate, inflation, exchange rate and conception government expenditure on agricultural privet investment. The study used time series data from (1990-2014) with Autoregressive Distributed Lag (ARDL) as a model .The result showed the long run relationship between privet investment and its determents. The adjustment coefficient is negative and significant at 1%, and gross domestic product is positive impact on investment, while the impact of the other variables are negative in agricultural investment. The study recommends increasing the investment expenditure on scientific agricultural researches, especially, on the assets productivity of animals, seeds and plants; however, it has to consider the impact of some elements of fiscal and monetary policy which is needed to stimulate private agricultural investment.

Status of the Piggery Sector in India-An Economic Analysis

The study has analysed the production and export performance of the piggery sub sector as well as the factors influencing pig meat exports from India. The composition of pig population has been found to be largely dominated by indigenous pigs however, over the years, the share of crossbred pigs showed a rising trend across different regions. The eastern region possessed the largest pig population while the western region registered meager numbers. The total pig population in India recorded negative growth rates for all the six censuses studied. The crossbred pig population registered higher but declining growth rates across the regions in the various censuses. The output of pig meat recorded negative growth during the pre-liberalization period while productivity growth was dismal and depicted a declining trend in the different states. The share of pig meat in total meat exports was found to be very minute (less than 1percent) in both value and quantity terms while the annual growth of pig meat exports in quantity terms was nonsignificant. Pig meat exports were also found to be highly unstable during the study period. The factors that influenced pig meat exports were institutional credit, government expenditure on animal husbandry, private investment in agriculture and Gross domestic product of the importing countries. The study has recommended continued replacement of indigenous pig with improved breeds to boost export surplus, expansion of credit to pig farmers to improve feeds and heath care and emphasis on finding regional markets for pig meat.

Ten striking facts about agricultural input use in Sub-Saharan Africa

Conventional wisdom holds that Sub-Saharan African farmers use few modern inputs despite the fact that most poverty-reducing agricultural growth in the region is expected to come largely from expanded use of inputs that embody improved technologies, particularly improved seed, fertilizers and other agro-chemicals, machinery, and irrigation. Yet following several years of high food prices, concerted policy efforts to intensify fertilizer and hybrid seed use, and increased public and private investment in agriculture, how low is modern input use in Africa really? This article revisits Africa’s agricultural input landscape, exploiting the unique, recently collected, nationally representative, agriculturally intensive, and cross-country comparable Living Standard Measurement Study-Integrated Surveys on Agriculture (LSMS-ISA) covering six countries in the region (Ethiopia, Malawi, Niger, Nigeria, Tanzania, and Uganda). Using data from over 22,000 households and 62,000 agricultural plots, we offer ten potentially surprising facts about modern input use in Africa today.

Measuring the Impact of the Agricultural Investment on Agricultural Income Growth in Egypt

The purpose of this research is mainly to identify the most important economic variables affecting the private agricultural investment further,ameasure of the impact of the private agricultural investment on agricultural income investment is growth made.More Specifically, the objectives of the study are: (1) To identify the current status of the total agricultural investment on agricultural and investment in Egypt, (2)To measure the impact of economic variables on private agricultural investment in Egypt, (3) To measure the impact of the agricultural investment on agricultural income growth, (4) To identify the most important problems and obstacles facing the private agricultural investment in Egypt. Some of the study results are as follows: (1)Both of the total and private agricultural investmentsare found to be declining by annual rates of 9.4% and 13.74%, respectively, during the study period 2000-2013. This result is found to be statistically significant at the 1% level. (2) The average shares of the private agricultural investment and the public one are set at 61.32% and 37.29%, respectively, of the total agricultural investments during the study period. (3) The most prominent economic factors affecting private agricultural investments are agricultural loans, agricultural domestic product, and average agricultural wages. These three variables explain about 91% of the variations in private agricultural investments during the study period. And (4) the study emphasized the significance of the positive impact of the private agricultural investments on promoting the growth rate of the agricultural sector. Accordingly, the study recommends the following: (1) the Government of Egypt must show some flexibility when dealing with investment issues (obtaining licenses and having coordinationamongst governmental entities concerned with agricultural investment). (2) Information and data must be availed to investors to enable them to make decent and correct investment decisions. (3) Facilitating the process of loan acquisition, both short and long-term loans. In addition, simplification of collaterals is a must to increase investment incentives. (4) More emphasis should be directed to improving the infrastructure, particularly those in the newly-developed regions for the sake of promoting agricultural investments. And (5) working on availing and designing agricultural investment maps to display to investors the available investment priorities, locations of proper investments, and regions most suitable for agricultural investments.

Factors responsible for Defaulters of Dairy Credit: A Discriminant Approach

Credit is the most critical factor in stimulating private capital formation in agriculture. It is reported that 66.33 per cent of the private investment in agriculture was facilitated through institutional finance. Studies suggest that the incidence of overdues in the agricultural credit system had been increasing over the years there by steadily eroding the commercial viability of the system in the past though the things have altered marginally during the nineties. The study based on primary data was carried out in Karnataka, India using Multistage Random Sampling. Discriminant function analysis was used for identifying factors responsible for discriminating defaulters from non-defaulters of dairy loans. The study revealed that important discriminating factors were per capita food expenditure, percentage of earning adults in the family, per capita income from dairy, percentage expenditure to total income and capital investment in dairying. While the first four factors were positively related to the higher repayment, the later was negatively related with the repayment. Further the model was used to predict whether a borrower is likely to be a non-defaulter or defaulter. The model correctly predicted 69 per cent of defaulters and wrongly predicted 31 per cent of defaulters. Similarly model was able to predict 72 per cent of non-defaulters correctly as non-defaulters and 28 per cent wrongly as defaulters. Overall model was successful in classifying 70 per cent of the borrowers correctly. Thus model was found to be valid to predict whether an unknown borrower is likely to be defaulter, more precisely.

AN ECONOMIC STUDY OF SOME DETERMINANTS OF AGRICULTURAL INVESTMENT IN EGYPT

Agriculture Investments play important role in agriculture sector, It contributes about 15.4 of total GDP for the period (1995 / 1996 - 2013 / 2014). The research problem was the decrease in the contribution of the agricultural investment in the total investment and this has lead to a decrease in the contribution of the agriculture sector in the Egyptian Gross demostic products (GDP). The results showed that agricultural sector contributes with about 5.6% of the total investments between different economic sectors. The study showed that there was an efficiency in the agricultural private investment and in total agricultural investment while there was unefficiency in the agricultural public investment. The study showed that the most important determinants of agricultural investment in Egypt were agricultural gross domestic product, GDP, the agricultural income, reclaimed area, interest rate of agricultural loans and agricultural labor. The agricultural investment value is inversely proportional to both of the interest rates of agricultural loans and the volume of agricultural labor, where by decreasing both of the interest rates of agricultural loans and size of agricultural labor by about 1% leads to an increase in agricultural investments with about 0.17, 1.88 billion pounds respectively, the reason of decline in the agricultural employment size was to expand in using the technology in the agricultural sector. From the estimated model indicators that increasing both of the agricultural gross domestic product and GDP and agricultural income with about 1% leads to increase agricultural investments with about 0.413 , 40, 30 million pounds, respectively, and by increasing the reclaimed area with about 1% the investment increased with about 3.2 million pounds. The study showed that ARIMA model was the most suitable model for forecasting public, private and total agricultural investment. The forecasted figures for public investment were about 3.4, 3.01, 3.04 billion pounds for the years 2014/2015, 2015/2016, 2016/2017, respectively while forecasting for the private agricultural investment were about 6.14, 3.99, 2.65 billion pounds, respectively for the same years. While forecasting for total agricultural investment will be about 10.04, 7.64, and 5.79 billion pounds during the forecasted years. Finally the study recommended some important and topical recommendations for raising the agricultural investment such as: 1. Unify the agencies responsible for data source of investments to design a correct and clear investment map. 2. Stimulate agricultural investment projects by reducing the taxes through designing good tax and investment policies. 3. To Integrate the young graduates and small farmers in great cooperation for land reclamation and other agricultural projects by the help and stimulation of Agricultural Development And Credit Bank.

The Challenge of Governing Africa’s New Agricultural Investment Landscapes: An Analysis of Policy Arrangements and Sustainability Outcomes in Ethiopia and Nigeria

Abstract: In the context of globalization, market liberalization, and deregulation, many African governments are embracing the potential of private agricultural investment to address structural issues within their agricultural economies. Sustainably integrating these investments into target landscapes, however, poses a number of governance challenges since it requires careful reconciliation of competing needs, priorities, and land uses. This paper examines the effectiveness of existing policy arrangements in managing these conflicts within two environmentally significant investment landscapes, the ObanKorup Forest -Block, Nigeria, and Lower BaroAkobo River Basin, Ethiopia. Findings reveal that -investments tend to conflict with socially and environmentally valuable l and uses, largely as a result of institutional failings. The paper identifies a number of underlying institutional challenges that need to be addressed in order to achieve sustainable development objectives within Africa’s many emerging investment landscapes. Findings have relevance for the development of sustainable landscape governance systems and the alignment of global governance innovations with landscape -level policy arrangements.

Public and Private Capital Formation and Agricultural Growth in India: State Level Analysis of Inter-linkages during Pre- and Post-reform Periods

The public and private capital formation in Indian agriculture has expanded manifold during the postreform period. Yet, agricultural growth continues to hover around three per cent, raising concerns about the future of agriculture. This study has found that public and private investments in agriculture are unevenly spread across the states and so is the farm income. The states that have invested heavily into irrigation and infrastructure, and have pushed market-driven agro-industrial policies have accomplished higher rates of growth in the private investment and also in farm income. High capital intensity in agriculture has been observed to be inversely related to rural poverty. Nevertheless, barring Gujarat and Odisha, none of the states has shown improvement in the efficiency of investment. The study has also shown that private investment in agriculture is propelled by the public spending on agriculture and infrastructure, institutional credit and demand for agricultural raw material for agro-processing industry, whereas public investment is largely governed by the size of government spending and need to sustain agricultural growth. The findings support that the public expenditure on agriculture and food processing industry augments private investment and income, especially in the agriculturally-dominant and poor states. It has also highlighted the need to establish better alliances between farmers and food processing industry for a faster growth in the agricultural sector.