1945

Basic factors affecting the growth of productivity in agriculture

The most striking difference between the agricultures of developed and less developed countries, or for that matter between their economies as a whole, lies in their relative productivity. A farmer in North America or Europe, by more advanced methods of farming and the extensive use of machinery, fertilizers, and other inputs from outside agriculture, will produce many times more food and other agricultural products than a farmer in a less developed country. It follows that farm incomes are correspondingly higher in the more developed economies. It follows also that a small and gradually diminishing percentage of the population can provide for the needs of the community for food and agricultural raw materials even while continuing to meet the demand for exports, thus releasing an increasing proportion to work in industrial production or in the provision of services. This shift in the occupational structure is basic to economic development.

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