Agriculture as a Source of Resources and Environmental Services for the Rest of Society

Agriculture is a major user of natural resources, in particular 85 percent of tapped fresh water and a third of the land area. Water is increasingly scarce and polluted, and the rapidly rising urban population demands access to water for consumers and industry. Making more efficient use of water in agriculture so some water can freed for other uses is another reason to invest in agriculture.

At the moment, through agricultural practices, livestock, and deforestation induced by expansion of the agricultural frontier, agriculture contributes some 30 percent of the green house gas (GHG) emissions that contributes to global climate change. Given the low value added per unit of GHG in agriculture compared to industry and services, it is good economics to compensate farmers not to emit these gases.

Agriculture can also contribute to watershed management for better water supply to reserviors, conservation of biodiversity in smallholder farming, and landscape improvement that offers recreation and attraction for tourism.

Reference

Byerlee, D., (2007), Agriculture for Development: the World Bank's 2008 World Development Report