Fostering farmers’ investment in agriculture
- Author: Food and Agriculture Organization of the United Nations
- Main Title: The State of Food and Agriculture 2012 , pp 39-55
- Publication Date: December 2012
- DOI: https://doi.org/10.18356/868e7d6f-en
- Language: English
Most investment in agriculture is made on the half a billion farms located around the world. On-farm agricultural investment decisions are based on the potential profitability and risks compared with other investment opportunities and the individual constraints they face. In any country, the relative returns, risks and constraints associated with agricultural investment are affected by the overall investment climate, policies specific to agriculture and the provision of public goods that are essential for agriculture. Governments of countries that are dependent on agriculture for a large share of employment and GDP have a responsibility to provide an investment climate that is conducive to investment in the sector. Ensuring that agriculture is not penalized relative to other sectors is a basic element of this. Along with the need to foster investment in agriculture, governments have a responsibility to ensure that such investment is environmentally sustainable.
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