It is unambiguous evidence that the quality and quantity of investment in agriculture is the key ho

Dr. Kobus Laubscher is an independent agricultural economist and strategist. He will in future regularly discuss in this category production and other agricultural economic issues. Laubscher come Outjo and now lives in Bloemfontein. m&i
The World Food Organization (FAO) in December 2012 a comprehensive report on the importance of proper investment in agriculture published. This report, The state of Food and Agriculture, January 2012 following the Rio G20 summit in June 2012 where the role of agriculture and the importance of famine m&i relief among others were discussed.
It is unambiguous evidence that the quality and quantity of investment in agriculture is the key holding m&i in respect m&i of compliance with the requirements for poverty and hunger alleviation and the basic expectations of economic growth.
There simply has not been? A substitute for the entrepreneurial spirit of the primary producer whose choice is about how and when to produce. He or she takes so? A decision and then the whole value chain in motion. First there is the pull effect where input is required at the end of the production process with salable or consumable products it creates economic activity beyond the farm gate.
The report also shows very clearly m&i the importance of proper investment on both sides of the investment spectrum? m&i both small and large producers. Small-scale producers are struggling usually to get the necessary capital for productive utilization amid the normal risks associated with farming. In this context, supporting institutions such as cooperatives m&i and agri-businesses an important role in helping these farmers to avoid poverty pitfalls as having too little working capital and to try to produce the wrong asset mix. The report also argues clearly that large commercial units also support should be given because of their ability m&i to carry out constant productivity increase due to the cost of new technologies, employment and technology transfer. Such units require proper corporate governance again in order to protect the rights of local communities and the degradation of limited natural resources. In this regard, referring to extensive commercial units as currently established in many African countries to produce food, activities in which many southern African farmers from? An investment point of view is also involved or touched.
Given the scale of investment that makes farmers themselves, the report states categorically that no policy decisions can be taken without the proper settlement of producers' contributions. This truth has been our direction in the negotiations, for example organized agriculture and other representative organizations and structures.
It remains? Express condition that the state of this reality and financing set accordingly. The reprioritisation of agriculture development m&i driver and wealth creator in the latest development initiatives of the government is in line with this. Political and other public debates should therefore build on this, namely how the state the ability of the agricultural sector to on their own anyway to create and alleviate hunger prosperity must accelerate.
The emphasis should be on proper implementation of policies that can be compared with the best in the world. Political leaders should seize it to make the difference m&i needed now Namibia. Even South Africa is subject to the same challenges.
In summary, the following. The investment climate should be conducive? in many cases, investments m&i necessarily done in very uncertain circumstances and the outcome of such investments m&i depends on how favorable the circumstances in which it is done.
The state this? Play a major role? make it easier for all farmers to farm, the simplest request. The state can help and investment promotion in the agricultural expect the highest return on their effort. However, m&i it stressed the FAO report throughout the complementary role of the state to fulfill? not to be as the preferred investor or want to be.
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