Answer to Question #54978 in Finance for hakku

Question

what are the importance of agriculture finance and describe 5 of them?

Answer 1

There are many reasons to finance an agriculture sector, because more than third of the world workers are employed there.
First of all, one of the most important factor is a food security. When people have an access to sufficient food, they are satisfied and healthy. Due to this fact, we can evaluate a level of agriculture development. In this case, country depends on their resources, climate or people.
Secondly, there is a question of food quality. Different countries have different quality measures and standards. Moreover, they often can not meet ours. There are many problems with freshness and transportation, which cause additional costs.
Thirdly, the agriculture sector may give a portion of national income. This production can generate lots of businesses, which will pay taxes and produce many different products.
Fourthly, country and residents may feel self-sufficiency. A strong domestic production may prevent from the deficiency. Moreover, the world population is growing , so it is important to have enough domestic food and there is no dependence on other countries.
Fifth, agriculture policy leads to protect an environment, because nowadays this is an important question. There are many innovations in alternative sources, which are using green wastes and sewage sludges. Therefore, agriculture has a good record on environment care.