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Universität Bremen

Fachbereich Sozialwissenschaften

Institut für Politikwissenschaft

Winter semester 2020/21

AGRICULTURAL POLICY AS A SOCIAL POLICY

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Contents
1. Introduction..............................................................................................................................3

2. Theme and problem..................................................................................................................5

2.1. Theme................................................................................................................................5

2.2. Problem.............................................................................................................................6

3. Question....................................................................................................................................7

4. Theory....................................................................................................................................10

5. Material and method...............................................................................................................14

7. Conclusion..............................................................................................................................16

References......................................................................................................................................18
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1. Introduction
Agriculture comprises a set of activities that use land and other natural resources to cultivate
grain, fiber, and meat substitutes for direct human consumption (self-consumption) or export,
either as food or raw material for manufacturing. Agricultural activities such as forestry, fishing,
and hunting are commonly included in the agricultural field (Dorward, 2009). Agriculture is
radically different from manufacturing in terms of efficiency (what we also call industrial
production). The inevitable reliance on the natural world for development distinguishes it.

Agriculture production is primarily the outcome of biological processes, the evolution of

which is mostly beyond human influence. Crop processing, for instance, requires time, and
there's not anything men can do about it because certain crops' vegetative cycles are dictated by
the natural process of daylight and temperature.

To begin with, agricultural production is inherently riskier than production in any other field
of the economy. Farmers have little to no ability to alter input decisions if they find that output
performance is less than anticipated or priced at a lower level than expected (Brendler, 2017).
Only if farm goods can be processed do they have any stability, such as stopping selling during
quiet demand times. Also, in such situations, there is often an expense associated with storing.

Second, as in agricultural production, the schedule of phases in the vegetative or animal

growing period does not allow worker specialization. In other terms, employees, particularly on
family farms, must move from one activity to another during the year, and they are unable to
benefit from the rise in labor productivity that is typical in industrial manufacturing activities,
where workers can excel in a single action (Alston, 2010). Furthermore, there can be times
during the year where the family's labor demand exceeds the family's supply, which can have a
detrimental impact on agricultural labor productivity, mainly when job opportunities outside the
farm are small or nonexistent.

Social engineering is a general approach used by policymakers to achieve public policy

objectives. These objectives are often followed with no consultation from the stakeholders on
whose behalf they are implemented or with studies questioning whether there is still consensus
for such an agenda (RADCLIFFE, 2019).
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Despite the overall value of agricultural trading, the question, whether agronomic policy can
be utilized as a vehicle for social policy certainly is not one to be taken lightly. Despite this, there
is a scarcity of studies about whether states must limit vocation to achieve national, fiscal, or
social policy objectives. However, these policies upset foreign trading.

Trade barriers can come in a variety of shapes and sizes. Tariffs and quotas, among other
things, are utilized to shield national diligences from foreign antagonism. Safeguard policies can
also be utilized to safeguard internal markets from international competitions for a limited time
(RADCLIFFE, 2019). Pricelists or allocations can be determined to limit importations of a
specific product where imports of that product have escalated, besides the increased import rate
has instigated or impends to source damage to the national trade.

The WTO Framework Agreement, which representatives agreed to in July 2004, includes
guidance on obligations that resolve topics such as direct and indirect export incentives, federal
assistance, and right of entry to markets, amongst other things (Onyango, 2006). Direct
productions or export subventions may also be utilized to limit trades. Subsidies to direct output
lower direct manufacture expenditures and boost national output at the disbursement of
importations.

Embargoes, for example, restrict exporters outside the embargoed nation the right to market
their goods in the embargoed country, obstructing exchange flows. Whereas the interventions
mentioned above can, in some situations, increase farm revenue in the states following such
dogmas may result in suboptimal long-term elucidations for the global and domestic frugality
(Onyango, 2006). Such solutions have economic consequences for safe markets and effective
capital allocation in countries where the policies are applied.

2. Theme and problem

2.1. Theme
Agriculture accounts for the majority of social resources. That is why, for different
reasons, I am interested in the discussion. According to a World Bank study, agriculture policy in
industrialized and developing economies is a tangle of contradictions. Governments all over the
world are increasing agricultural productivity.
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Agricultural policies employ preset priorities, strategies, and pathways established by a

person or government to achieve a particular result for the good of the individual(s), community,
and the nation's economy as a whole. Agricultural policies incorporate primary, secondary, and
tertiary processes into agricultural production (Brooks, 2010). A predictable supply level,
economic stability, commodity efficiency, assortment, land use, and employment are all
examples of outcomes.

Whereas, agriculture has a significant effect on the environment, accounting for 20–25%
of overall annual emanations in 2010. Furthermore, agriculture is exceedingly susceptible to the
adverse effects of climate change, including decreased water availability, geophysical processes
such as ocean level increase and shifting weather, and socio-economic factors that threaten
farmers, many of whom live on a minimum wage (EPA, 2019).

However, a wide variety of measures must be adopted to mitigate the probability of

adversative environment change possessions on farming and greenhouse gas pollution from the
agriculture sector to make global climate change mitigation and adaptation sustainable.

2.2. Problem
Policy and initiatives are developed by the political, societal, and economic circumstances
under which they are implemented. By recognizing policy levers, barriers, and windows of
opportunity, understanding context will help with policy adoption, uptake, and effect (Raphael
Lencucha, 2020). We collected data on environmental, political, economic, and social factors
cited as referring to a policy or program transition.

Whereas food safety and crop productivity have been identified as significant factors leading
to interference in several studies. To fix this problem, states in Sub-Saharan Africa, for instance,
implemented input provision services. Nigeria, for example, discovered that domestic rice
consumption significantly outstripped local production, forcing the state to focus on expensive
imports (Galluzzo, 2016). This stimulated the administration to support farmers with input
provision initiatives such as high-yield saplings, fertilizer, and herbicides to boost rice
production.
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Developing robust markets for a wider variety of goods would undoubtedly be needed if
policymakers are to move toward supporting agricultural commodities from the perspective of
health and environmental sustainability (Galluzzo, 2016).

Furthermore, farmers are attracted to crops like tobacco and sugar for various reasons,
including proximity to customers, contractual agreements that provide access to supplies and
financing, and other chain management facilitators. For example, tobacco producers in South
India cultivate the crop due to its environmental friendliness and a scarcity of viable substitutes,
according to Natarajan.

According to reports, farmers in Malawi and Kenya continue to cultivate tobacco despite low
income due to a potential shortage of alternatives. This research presents valuable guidance for
alternative studies. Primary structures, for instance, may show the different results that can be
investigated, such as output volumes, revenue, and land distribution.

In addition, such programs, such as input subsidies, extension services, and market subsidies,
have shown to be beneficial in a variety of circumstances and crops. It is necessary to investigate
how each policy affects development and farmer decisions and how mixed policy interventions
affect outcomes.

However, many studies have mentioned a global trend toward market liberalisation and away
from trade-distorting policies (Dawkins, 1999). For instance, in the United States, disentangled
payments (annual subsidies that are no longer correlated to crop production) were implemented
in 1996 to reduce government intervention in farming decisions and encourage farmers to engage
in more market-oriented actions. Is it scientifically relevant? The majority of data on the effect of
social security on agriculture comes from impact assessments of cash grants and public works
programs. Still, there are some studies from school feeding programs and fee exemptions.

3. Question
The country's agricultural policy is developed by the government to enhance agricultural
output and productivity and raise farmers' income and living standards within a specific time
frame. This policy is designed to promote the agricultural sector's overall and comprehensive
development (Demeke, 2008). To recognize controversies in the literature, the critical goals of
the agricultural policy are to address significant issues in the agricultural sector, such as
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inadequate and ineffective usage of natural resources, the domination of low-value cultivation,
weak cost-benefit ratios of sectorial operations, and slow development of compliant agricultural
and other mutual support organizations.

One of the main goals of India's agricultural policy is to upsurge the production of
purchased contributions like HYV seeds, pesticides, compost, irrigation schemes, and so on
(Dr.V.Praveen Rao, 2011). Another practical goal of the country's agricultural policy is to
maximize/hectare value-added rather than physical production by increasing agrarian efficiency
in particular and small and marginal efficiency in particular.

Whereas the agricultural policy aims to shield the interests of marginalized farmers by
eliminating intermediaries through land reforms. Providing marginal farmers with more access to
formal credit.

Modernizing the Agricultural Sector: Another critical objective of the state's agricultural
approach is to modernize the agronomic sector. In this, policy support requires implementing
new technologies in agricultural operations and developing agricultural inputs such as HYV
crops, fertilizers, and other agricultural inputs (Malhi, 2021).

Checking Environmental Pollution: Another aim of India's agricultural strategy is to

prevent environmental degradation of the country's natural resources.

Agricultural Exploration and pieces of training: Another essential goal of Indian

agricultural policy is to encourage agronomic training and research amenities and disseminate
the results of such examination to farmers by instituting close relations amid research institutes
and farmers (Dr.V.Praveen Rao, 2011). Eliminating Bureaucratic Barriers: Another aim of the
program is to eliminate bureaucratic barriers for farmers' cooperative societies and self-help
institutions, allowing them to operate independently.

Document on National Agricultural Policy, 2000: On July 28, 2000, the NDA
government released a National Agriculture Policy that aimed for annual growth of over 4% by
productive use of capital and technology, as well as augmented private investment, with a focus
on price protection for farmers (Raabe, 2008). Theory may be able to address the issue of how
globalization has profoundly changed agricultural development.
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Agricultural production led by export has dramatically expanded access to agricultural

resources in sterile conditions. These powers have boosted the productivity of export-oriented
crops in countries all over the world. As a result, exporting countries have become increasingly
reliant on agriculture-directed foreign speculation, while importing states have become
increasingly reliant on food supplies (Imad Ali, 2020). While proportional advantage hypotheses
reflect the advantages of a multinational supply chain, there is a slew of other issues.
Monocropping has a detrimental effect, including increased enricher and pesticide use in
countries reliant on external investment, reliance on well-being and ecologically unhealthy yields
such as tobacco, and increased exposure to environmental and economic shocks.

Factors must be considered in agricultural development, regulation, and public health

research and attempt to put together this enigma into an inclusive view of how these aspects
interact. This analysis looks at domestic policies and amenities as one section of the puzzle,
attempting to place them in the context of the extensive transnational radical economy. This
study focuses on the national level as a principal phase in anticipated increased exposure to
farming and UN/healthy crops. They contribute to ailment encumbrance and health more
broadly, acknowledging that administration policy is reasonably uninterrupted and perceptible
impacts affecting agricultural progress.

This evidence will lay the groundwork for systematically evaluating and encouraging
policy dialogue about how to figure the availability of improved agricultural resources.
According to conventional economic theory, social security is a collective transition that
involves income redistribution from the wealthy to the needy (Brendler, 2017).

Important notions, as a result, social security has long been thought to harm productivity
by decreasing capital accumulation (via income redistribution), growing fiscal deficits, causing
deadweight loss and economic distortions from related taxes, and causing dependence and job
and creativity disincentives.

However, recent scientific research undermines this academic orthodoxy, showing that
social security interventions do not generate job disincentives or dependence. Furthermore, the
aims of social security, such as mitigating vulnerability and managing risks, are no longer seen
as impeding productivity but rather as adding to it by rising human capital accumulation and
promoting aggregate savings and risk-taking.
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Whereas, several theoretical models, both small and large, will aid in predicting how
social security influences agricultural consequences and how agriculture affects threats and
vulnerabilities (OECD, 2001). Although several of these frameworks are based on the
conventional premise that social security instruments provide disincentives, they are also helpful
since they may be used to hypothesize effect pathways.

4. Theory
A multi-level analysis is needed to formulate findings in the form of hypotheses to depict the
correlation among government policy and agricultural supply. Policy approaches to agricultural
development are shaped by ideas of industrial growth, monetary goals, prescriptions and
requirements of foreign institutions (World Bank and IMF) and governments, local ecological
deliberations, and domestic and subnational organizations' legacies effects.

Agriculture policies are used by governments in developed countries to achieve different

goals, the most important of which is primarily to combat hunger and food insecurity. Conferring
to the World Bank, nearly 1.3 billion individuals–one in every six people on the planet – survive
on less than USD 1.25/day.

According to the FAO, almost a billion people are malnourished (Brooks, 2010). The first
Millennium Development Goal, targeting hunger abolition and scarcity, has made irregular
improvements, with several countries – especially in Africa and South Asia–forecast to fall short
of splitting the percentage of individuals living on less than a USD/day between 1990 and 2015.

Expensive food rates are thought to have pushed millions of people into scarcity and
weakened food security in recent years. Efforts to alleviate poverty and hunger must protect and
strengthen wages in short to medium term while still laying the groundwork for long-term
reforms.

As a result, successful strategies must balance having an impact given current systems and
still promoting the transition to structures that can generate radically higher incomes (Brooks,
2010). The OECD's policy recommendations to its member countries show that these two
timelines necessitate different policy responses regarding income support.

Deficit revenues between agronomists, or any other segment of civilization, can be tackled in
the short to medium term by social policies. Agricultural programs, in particular, and business
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intercessions, in fact, are ineffective in converting profits to farmers (OECD, 2001). Long-term
agricultural revenues can be bolstered through steps to boost sustainability, which can be
accomplished by strengthening the encouraging atmosphere, particularly by an agrarian strategy
that prioritizes public imports and the adjustment of market shortcomings.

In the context of emerging economies, possible explanations for why this differentiation
might not always be relevant have been developed. First and foremost, viable social security
programs do not exist, necessitating the search for short-term solutions, such as agricultural
policies, while they are being developed. As foreign food prices rose sharply in 2007-08, some
governments contributed by limiting price rises at the national level (Demeke, 2008).

Input subsidies have also been proposed as a strategy to have an immediate effect on
productivity and earnings while also creating a path to sophisticated wages by allowing farmers
to escape poverty deceptions (Dorward, 2009). Financial strategies that mitigate the
consequences of market fiascoes (for instance, in the credit market) are perceived as a viable
substitute to policies that address market errors at their origins.

How sustainable agriculture policies are at increasing productivity in short to medium tenure
is a crucial source of information required to persuade this debate. The finding that they execute
inadequately in OECD countries is supported by consequences from the OECD's Policy
Evaluation Model, a fractional equilibrium model in which production and variable markets are
related, and the impact of policies on farmers' wages are determined by (a) how the policy
influences factor returns, and (b) farmers' possession of those variables (Dorward, 2009).

In advanced OECD countries, a significant portion of the gains of business interference

assistance goes to non-farming owners and distributors of bought inputs (OECD, 2001). When
farm sizes are allocated, the improvements maintained at the farm level appear to be distributed
in the larger farms (and wealthier farmers).

Negotiators approved the WTO Framework Agreement in July 2004, as mentioned above,
was strengthened at the December 2005 Ministerial Meetings in Hong Kong, including guidance
on the obligations used in a Doha Development Agenda agreement (Onyango, 2006). These
obligations include a range of aspects, including directly and indirectly export incentives,
domestic assistance, and access to markets. The current study is significant and essential in these
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contemporary affairs. It contributes to the controversy about whether countries must limit trade
to meet national, fiscal, and social policy agendas if such policies affect foreign trade.

According to farm operators, export accessibility, or the lack or reduction of trade-restricting

conditions, is a critical dynamic in foreign trade. In fact, farm operatives in all sales groups
believe that trade must not be limited for socio-economic policy reasons (Morrison, 2011).
Specifying the value of agricultural trade, this result is not unexpected, as trade restrictions
would reduce trade capacity and farm income as local values fell.

Given the dynamics of foreign trade, one might contend that higher educational execution
would help farm operators better appreciate the policy ramifications of trade restrictions. The
risk of trade resistance and the reduction of foreign trade are just a few of the consequences
(Morrison, 2011). The findings show that farm operators at all educational levels are reluctant to
support trade restrictions to achieve domestic, fiscal, or social policy agendas if such policies
affect global trade.

Evidently, the observation that a farm operator who does not earn a living from farming or
agriculture can be oblivious to or prefer trade restrictions due to the lack of immediate economic
effects on his or her farm enterprise may be justified. The motive of a farm operator who earns
51 percent to 75 percent of his or her income from farming, on the other hand, is less evident
(FAO, 2011).

However, the independent variables were chosen based on their proposed relationship with
the dependent variable. The research results and inferences are drawn from the current empirical
perspective from the context for collecting independent variables in this analysis, which organize
the working hypotheses. Nevertheless, in utmost situations, estimating the possibilities of the
coefficients is challenging due to a lack of experiments that use social evidence and analyze their
association to trade limitations (Demeke, 2008). The factors would be listed further down. This
study hypothesizes that education improves the farmer operator's capacity to obtain, process, and
apply knowledge.

As a result, having a high level of education aids farm operators in comprehending the
ramifications and effects of a policy that limits trade to achieve national socio-economic policy
objectives, specifically when that policy involves global trade. Such a limitation would reduce
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international trade volume while also exposing the countries that implemented it to potential
retaliation. As a result, it is hypothesized that the education variable's coefficient would be
negative.

5. Material and method

The most appropriate method is determined by the question, theory, and material
situation. Gender and policy architecture has an effect on the impact of social security on risk-
coping behavior. In Malawi, children in female-headed families gained from the social cash
transfer program by reducing non-household wage labor (9%) and a rise in household chores
activity (15%), while children in male-headed households only saw a decrease in school
absenteeism. However, these gender-specific results reflect family pressures, as female-headed
households struggle to balance employment at home with income-generating practices (Javad
Yoosefi Lebni, 2020).

The specific analysis to address questions: The data suggests that a wide variety of
technological and nontechnical agricultural measures raise household income, primarily by
increasing production and resulting sales revenues. Microcredit, infrastructure, and input
technology initiatives, all of which improve demand and food sustainability, are the most
common sources of evidence.

Moreover, due to a lack of statistical capacity, research on input technology for home
gardens has little effect on child nutritional status, while microcredit schemes primarily enhance
child nutritional status, especially female recipients (Alston, 2010). Microcredit, land reform,
expansion, and infrastructure contributed to expanded ownership of sustainable resources,
including the limited impact assessments.

Agricultural policies seem to encourage rural farmers to take risks and invest in high-risk,
high-return investments, according to a limited source of evidence (JONASSON, 2012).  Cash
grants, land redistribution, and agricultural insurance are examples of policies that increase
assurance.

Human capital aggregation: The effects of agricultural policies on education are

ambiguous, and the statistical evidence is limited. According to studies, increases in school
attendance have been observed due to rural development programs, but not due to microcredit
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schemes, according to studies (Shiferaw, 2011). The evidence on health effects is also limited,
although it does suggest that specific strategies, such as integrated pest control, can help rural
farmers improve their health.

Household labor allocations: Data analysis suggests that agriculture, microcredit, and
rural development policies increase household labor allocation, whereas emerging agricultural
innovations have gender-specific effects on labor demand. There isn't a lot of data on how it
affects child labor distribution.

Local economy impact: Research shows that microcredit and irrigation have some
spillover effects on demand growth and price fluctuations (lower input rates and higher output
rates) and improvements in local labor markets due to assorted policies, according to United
Nations. There are indicators of increased informal private transfers and increased interest in
social networks. Cash grants and input subsidies provide substantial wager multipliers.

6. Expected response

Agriculture development is widely recognized as a source of economic growth and a

critical component of poverty reduction and food sustainability. However, in various developed
countries, the agriculture sector has seen comparatively slow growth in the last 25 years. Many
rural and urban people, especially in developing countries, are concerned about food security in
the mid-2000s due to increasingly increasing food prices.

About the fact that food prices have primarily decreased since mid-2008 as a result of the
global recession, this experience has reignited interest in a topic that many felt was long dead
(UN, 2012). What should the "shape" of the answer be? The aim of the strategy was to boost
agricultural growth to over 4% per year by 2005. A mixture of systemic, administrative,
agronomic, environmental, fiscal, and tax reforms would be used to achieve this development.
Agriculture's comparatively low growth throughout the 1990s precipitated the policy
formulation.

"Capital inadequacy, scarcity of infrastructural funding, and demand-side restrictions

such as limits on the movement, transportation, and selling of agricultural commodities, among
other things, have persisted to influence the agricultural sector's economic activity," according to
the Policy Document.
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As a result, during the 1990s, development slowed significantly." Because the

agricultural sector provides food and nutrition security to India's vast population, as well as a
large number of raw materials for extending the industrial base and creating surplus for exports,
a quick and egalitarian rewards program for farmers, as well as a faster rate of growth for the
sector, should be significant elements of agricultural policy.

7. Conclusion
Finally, our investigation revealed that social protection and agriculture can complement
each other's goals. This backs up the idea that there are potential synergies that can be exploited
to help rural livelihoods become more resilient and sustainable. The sector's significance on
economic growth is reflected in its effectiveness and the leading factors like GDP and work
opportunities.

Due to the scarcity of high-potential farmland, it is expected that agricultural output will
have to be increased by the intensification of production and increased use of better inputs.
Diversification, particularly from low to high agrarian production, corporatization of smallholder
agriculture, and increased value addition through strengthened interconnections with other
sectors are all critical factors.

However, the critical goals of agricultural policy, — particularly for smallholders, are to
increase production and income growth. Increased food security and equity and a focus on
agriculture to stabilize agricultural productivity, monetization, and entrenchment of
development, especially among small-scale farmers and practical and participative policy
development and sustainable development, are also critical goals of agricultural policy. As a
result, the major policy concerns are growing agricultural productivity and income, particularly
among small-scale farmers.

Whereas, more extensive agriculture interventions and agriculture-related facilities

requiring long-term funding (considering that freight and distribution costs are currently too
high, particularly for landlocked countries), a greater inclusion of women and youth in the field,
and technological developments are all needed for the sustainability and commodification of
agriculture (both in mechanizing agricultural processes and leveraging mobile phones and e-
payment facilities to enhance access and reduce transaction costs). Addressing structural risks
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through policies and other liability control measures and lowering labor costs in working with
producers is a significant problem.

Moreover, agricultural financing and insurance are fundamentally crucial for ending
extreme poverty and increasing mutual wealth. An approximate 500 million smallholder farming
households – totaling 2.5 billion people – depend on agricultural production for their livelihoods
to differing degrees worldwide.

Farmers and agricultural SMEs would benefit from increased income and access to better
technology due to commercialization. It would boost sustainability by promoting climate-smart
agriculture, risk volatility, and financial instruments, easing non-commercial farmers' exit from
agriculture, and encouraging the convergence of farms, properties, and productivity (structural
financing transformation).

The conclusions of this observation point to a broader problem of trade policy activity
and policymakers' behavior. Policymakers, in general, often interfere in economies to defend
their decisions by citing the interests of the people they represent. While some sectors of the
economy may call for defense, the findings in agriculture seem to indicate that farmers favor
open trade to market interference. This conclusion also implies that all other aspects being
similar, politicians might have less to anticipate from voters than they expect.
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