Agriculture is the art and business of cultivating soil, producing crops, and raising livestock. According to a World Bank report in 2005, stated that about two-thirds of the world's population is mainly concentrated in rural areas, which are predominantly agriculture-oriented. Therefore, concerning poverty eradication and raising the welfare standards of the population; more focus should be put on agricultural activities.
In Kenya, agriculture is an important fundamental in economic development; it contributes 35% of the gross domestic product (GDP) and constitutes 40% of the export earnings.
It is a sector that establishes the industrialization framework by; supplying raw materials for industries, for example, timber for the paper manufacturing industry, and skin and hides for the leather-making industry.
It generates foreign currency through the export process of agricultural products. It creates a source of employment for the population through farming, business, and research activities therefore raising the standard of living of individuals.
The purchasing power of the population has improved through income generation, hence creating a market for industrial products.
Agriculture in itself is also a market for industrial goods such as machinery, equipment, and fertilizers used in the farming process. It promotes and creates various off-farm activities such as transportation, and research programs that look for better and improved methods applied in farming and livestock activities, for example, Kenya Agricultural Institute (KARI).
Agriculture ensures a constant food supply and food security for the population, this ensures that the workforce is fed with energy to supply labor to industries and other economic sectors.
It also saves the country funds that would have rather been used in the importing of food from other countries this in turn has a positive effect on the country’s balance of payments and there is surplus money to invest in other areas of the economy such as social overheads; roads, hospitals.
Above all, it contributes towards rural-urban balancing; through the creation of employment in the rural areas it discourages rural-to-urban migration and this helps in the better distribution of incomes and balanced use of social amenities. Through all these multiplier effects agriculture is perceived as an engine of economic growth and development.
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