Savollar: The role of the agrarian sector in increasing the welfare and consumption of the population

1-oraliq nqzorat
Savollar:

1. 
   The role of the agrarian sector in increasing the welfare and consumption of the population.
   
2. 
   The development of the agro-industrial complex is the main factor in ensuring the country's economic security'.
   
3. 
   The main sectors that provide the population's demand for food products.
   

Javoblar:
1.Improving agricultural productivity is widely considered as the most effective means of addressing poverty and the main pathway out of poverty. However, a key challenge in developing country agriculture is how to increase agricultural productivity to meet food security needs for the growing population while also reducing poverty of smallholder farmers. Investigating the factors that hinder or accelerate agricultural productivity, with a particular focus on the role of different measures of climate variables and soil nutrient data, are priorities in most African national agricultural plans.
Additionally, in this paper we seek to understand whether agricultural productivity, measured
using land productivity, improves household consumption growth using nationally representative LSMS-ISA panel datasets from Nigeria. We address three important policy questions in the process of addressing the research objectives. First, what are the main determinants of household agricultural productivity? Second, how does agricultural productivity impact household welfare growth? Third, does the relative position of poor people (e.g. the bottom 25%) improve or worsen with productivity change? Fourth, how do different categories of smallholder farmers benefit from agricultural productivity?
To address the first objective, we employ the Correlated Random Effects (CRE) model
which involves adding controlling for the household mean of time-varying variables and enables
us to address time invariant unobserved household characteristics and still recover the coefficients on time invariant variables. We found that the agricultural productivity decreases with family size and households’ access to non-farm self-employment. The estimates also show the presence of an inverse relation between land size and land productivity which is consistent with many other findings in the literature (Carletto et al., 2013; Barrett et al., 2010). We find agricultural and nonagricultural asset have positive and significant effect on agricultural productivity which may indicate that wealthier households are more able to finance the purchase of their farm technology inputs.

We find agricultural productivity increases with increased labor allocated to agriculture

production measured in terms of person days, fertilizer use and the application of herbicide, which may indicate that input use and farm technology adoption may have a significant role in increasing agricultural productivity, although we find no evidence of an effect for access to extension (although this is likely due to limited variability in access). Moreover, we find the distance to nearest road distance has a significant negative effect on agricultural productivity which suggests that better infrastructure may help to cut transaction costs increasing the likelihood of adoption of market-provided inputs and thus increase agricultural productivity. In terms of the impact of climate and soil-nutrient variables, we find that farmers located in EAs where the rainfall variability (CoV) is higher have 32% lower agricultural productivity, while higher season rainfall levels increase land productivity. Moreover, severe constraints on soil nutrient availability significantly decrease agricultural productivity, while we find the presence of soils characterized by higher pH levels (than the average in the sample, about 4.49) is productivity enhancing.
To provide rigorous evidence of agricultural productivity impact on household welfare
growth and to account for possible endogeneity of agricultural productivity, we applied IV
regression estimation techniques. We find that a 10 % increase in the level of agricultural
productivity in the previous year tends to increase consumption growth by 2 % on average. We
estimate whether the magnitude of the coefficient of agricultural productivity varies by initial
consumption level by estimating the growth model separately for poor and non-poor households.
We find that a 10 % increase in agricultural productivity increases consumption growth by 2 % on average for consumption non-poor households 0.8 % for poor households. Moreover, we find that agricultural productivity has a positive significant impact on consumption growth for all land quintiles. However, productivity have higher impact for the household in top two quintiles.
We believe that our findings have important policy implications for policy makers and
institutions in sub-Saharan Africa at large and in Nigeria in particular. First of all, given the strong role of farm technology, climate variability, access to infrastructure and assets in improving agriculture productivity, better targeting agricultural practices to respond to weather risk exposure and sensitivity, and then building household and system-level capacity to support different interventions are key factors in improving agricultural productivity. Most importantly, the results in this article provide very strong arguments on what seem to be required in order to achieve sustainable pro-poor poverty reduction are integrated interventions that are effective to improve asset, infrastructure, and use of farm technology and to develop formal insurance markets in order to enhance the capabilities to smooth agricultural income risk and choices of the poor.
2.The transition to market relations became the impetus for the development of the
grain-product subcomplex. The economic crisis of the transition period, affecting all branches
of economy, has a particularly detrimental effect on the product subcomplex. Theoretical
studies of the functioning of the product subcomplex and the analysis of the results achieved
made it possible to reveal the essence of the product subcomplex and its structure related to
the essential features of production and specifics. Ignoring these features led to an aggravation
of contradictions and imbalances in the agro-industrial complex. Therefore, the main task determining the further development of the agro-industrial complex of the region is to establish
direct links between its participants, as well as the effective development of an organizational
and economic mechanism combining state regulation and market development.
The functioning of the agro-industrial complex of the region is due to the peculiarities
inherent in agriculture. The main feature of production is connected with the land as an object
of management, with the seasonality of production, with the dependence of the final results on
climatic factors, etc. All this determines the uneven flow of funds, the dependence of production on borrowed funds and budget subsidies. Over the past four years, about 1.5 billion tenge
of credit resources of commercial banks have been attracted for the seasonal needs of commodity producers. Since 2012 the mechanism has also started working in relation to long-term credit resources for a period of 5-7 years. But it should be noted that these are, of course, insignificant amounts and the volume of state participation should be at least doubled.
The need for state support for the development of agriculture to solve its key problems
and improve the efficiency of functioning is caused by the fact that, due to the traditional features of the industry and its increasing role in society and the economy of the country, it is
impossible to ensure only through the use of market regulators. At the same time, it should be
perceived by society and the state as a certain natural compensation for inevitable losses to
agriculture in conditions of its traditionally weak economic protection from various risks and
threats of an internal and external nature.
The current level of state support for agriculture, although it provides relative success

in its development, does not allow more actively solving the systemic problems of the industry, implementing accelerated import substitution on a rational scale, reducing significant regional differentiation in the standard of living of the rural population, adequately paying for the work of an employee. Such a situation with state support for the industry has developed not only because of the unstable development of the economy, but also because of the macroeconomic policy pursued by the state to solve key problems of agriculture, especially its small forms of management, related to their specifics of the production of certain types of products

(potatoes, vegetables, cattle and sheep meat, milk), the way of rural life.
Conclusions. The specificity and low sensitivity of the sector to the impact of reform
measures implies the implementation of public policy in two stages. At the first stage, in our
opinion, the solution of social and economic issues is a priority. We are talking about the formation of real economic entities that participate in reproduction cycles and are necessary elements of the mechanism of sustainable development of the agro-industrial complex. Another
important direction of the state policy of development and management of the industry is the
solution of employment problems of the population. This problem is relevant for Kazakhstan,
since almost half of the population lives in rural areas. Due to the disparity of prices, it is necessary to organize public procurement a priori, even to the detriment of the state, but providing people with jobs and stable incomes. Thus, social stability is maintained in rural areas and in the country.
For example, Canada, the United States and other developed countries demonstrate
such an attitude towards the agricultural producer. Thus, in the United States, the state clearly
forms for the farmer an action program for each year, including the volume, structure of cultivation, timing, marketing methods and mechanisms for stimulating their work. Thus, the
farmer is fully protected by the state and his activities according to the existing rules of the
game are aimed at increasing the competitiveness of the economy.
Therefore, considering that in modern conditions and in the future, the development of
agriculture not only as a basic branch of the agricultural sector, but also the country's economy as a whole, is a major intersectoral problem, the solution of which largely depends on its
support by the state in its various forms, it is necessary in the annual National report on the
implementation of the State Program to reflect the role and place of the industry in the country's economy by its specific weight in gross value added, net financial result, investments in
fixed assets and the structure of expenditures of the consolidated budget. It is also important
to do this because the state often tries to cut the meager budget funds that it allocates to agriculture, motivating its arguments recently by the fact that it has allegedly already entered the stage of sustainable economic growth, since mechanisms for its self-development have been launched that do not require additional state funding.
3.