The importance of Agriculture to Ghana's economy

THE IMPORTANCE OF AGRICULTURE TO THE GHANA’S ECONOMY

Explanation

Agriculture is broadly defined to include the production of food crops, livestock, fish and poultry. Agriculture therefore produces food for human consumption and to feed industry.

IMPORTANCE OF AGRICULTURE

As a source of food supply

Food is one of the main items that keep people alive. Food is produced from agricultural activity and therefore it serves as source of food supply to the people of Ghana. In Ghana, farmers produce staples like maize, cassava, millet, plantain etc. Without the production of food the nation could go hungry.

As a source of raw material

All the agricultural processing factories need raw materials to feed their plants. They need oil palm, cocoa beans and other agricultural produce to manufacture their goods. If the factories do not get the needed raw material supply, they would fold up in no time.

Reduces the rural-urban drift

The attraction of the big cities has created the situation where many young men are living the rural areas where more of them are engaged in farming to the big cities for almost non-existent while colour jobs. However, those who remain behind and are determined to make it through farming helps to reduce the number that would otherwise have migrated to the urban areas.

As a source of employment

In Ghana, there are about 600,000 workers in the Civil and Public Service. There are others in private employment and in self employment. A large chunk of the people are involved in agriculture or related areas. Agriculture is therefore a source of employment to the bulk of the people.

As a foreign exchange earner

Ghana earns a lot from the export of her agricultural products. Ghana exports cocoa, coffee, and recently more non-traditional agricultural products like pineapple, oranges, pepper and maize. Ghana also exports. The money earned from such exports goes into the national coffers of the nation.

Revenue from taxes on agricultural products

The government of Ghana also earns income from the taxes that are imposed on agricultural export commodities. In a year where the price Ghana’s major export commodity like cocoa does well on the export market, the windfall goes directly into the coffers of the country.

SAMPLE QUESTIONS

1. Highlight six ways in which agriculture is important to your nation.

2. Show six ways in which agriculture is important to Ghana. 

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