• Topic Area 5: Development Economics Sub-Topic Area 5.2: Development Process and Strategies Unit 9: Agricultural Development

     Unit 9: Agricultural Development

    Key unit competence:  Learners will be able to analyze the contribution of development strategies on the economy.

    My goals

    By the end of this unit, I will be able to:

    ⦿ Explain the meaning, advantages and disadvantages of agriculture development.

    ⦿ Examine the benefits and criticisms of the transformation and modernization approaches.

    ⦿ Analyze the benefits and criticisms of small scale and large scale agriculture.

    ⦿ Examine the benefits and criticisms of agriculture specialization and diversification.

    ⦿ Compare the benefits and criticisms of intensive and extensive techniques. 

    ⦿ Explain the benefits, disadvantages and limitations of agriculture mechanization.

    ⦿ Explain the benefits, disadvantages and limitations of commercial agriculture.

    ⦿ Analyze the roles and problems of agriculture cooperatives and research and extension services.

    ⦿ Describe forms of land ownership and reforms in Rwanda.

    9.1 Development Process and Strategies


    Activity 1

    Case study 1

    Rwanda has experienced a number of socio-economic challenges since the colonial time. This has necessitated a multi-disciplinary approach where changes to drive the country’s development agenda are realized. Development modes have helped to drive the country to where it is now. Development is not a one-day activity as the saying that “Rome was not built in one day”, Rwanda also has had to move through different processes and stages to its current position. Thus, for a country to be called a developed nation, the standards of living of the people and the goods produced have to be better than the former, and the environment has to be protected to preserve some resources for future use. Choosing the best possible options to achieve its objectives is a fundamental task. Rwanda has had to choose among different strategies to achieve its goals. Having a better strategy necessitates putting into consideration factors for it to be effective and guiding the country’s development. The level of development in Rwanda is a clear indication of how appropriate the country’s strategy is and hence more is expected as far as its vision is concerned.

    From the case study above, answer the following questions:

                           (i) Explain the meaning of the following terms;

                                      (a) Development process

                                      (b) Development strategy.

                          (ii) Examine the goals that compelled Rwanda to choose the strategy it is using.

    Facts

    9.1.1 Meaning

    Development process is a system of defined steps and tasks such as strategy and organization that are used to convert ideas into commercially viable goods and services.

    Development strategy is a set of guidelines which a country should follow in formulating and implementing long term policies meant for development. The major development strategies for LDCs include agricultural development, industrial development, education etc.

    9.1.2 Goals of development strategies

    Most of the countries set up objectives to eradicate problems that they face so as to have a better welfare in the country. Below are some of the objectives for developing countries:

    • Achieving fair income distribution.

    • Reducing poverty among the people.

    • Attaining favorable balance of payment position.

    • Reducing unemployment rates.

    • Reducing the rates of dependence.

    • Controlling population growth rates.

    • Improving health services.

    9.2 Agriculture Development Strategy


    Activity 2

    1. Using photos, A, B, C and D in Figure1, discuss the following questions:

                (i) Which activities are taking place in the photos?

                (ii) Analyze the difference between the activities carried out in the last two photos C and D.

                (iii) Explain the meaning of agricultural development.

                (iv) Explain the advantages and disadvantages of agricultural development.

      

      

    Facts

    9.2.1 Meaning

    Agriculture is the growing of crops and rearing of animals. There are both food crops and cash crops involved together with a variety of animals. Agriculture is basically the backbone of developing countries contributing wholesomely to their economies and thus its development is paramount.

    Agriculture development therefore is the process of promoting proper conditions for farming so that the quantity and quality improve drastically. It can also be looked at in the perspective of providing assistance to crop producers with various agricultural resources for better output attainment. The major objective is to get good standard output that will enable the country gain more output while at the same time protecting the environment.

    Characteristics of agriculture in LDCs

      • Agriculture is mainly done on a small scale where most of what is grown is for home consumption.

      • Mainly, the large-scale agriculture farms are owned by foreign companies that repatriate profits and this leads to capital outflow.

      • The small-scale farms use basically labor-intensive techniques of production leading to low output.

      • The output produced is basically of low quality compared to that of the developed countries hence leading to low income from exports.  

      • Normally specialization is carried out by only the large-scale farms.

      • Small scale farmers normally use simple tools and family labor when carrying out their activities.

      • Food crops are the major crops grown by most agriculturalists since they are for home consumption.

      • Large areas are covered by the large-scale farms leading to less land for settlement.

    9.2.2 Arguments in favor of agriculture development

    Below are the arguments in favor of agriculture development:

      • It provides enough food necessary to feed the population and this reduces diseases related to food scarcity like malnutrition.

      • It provides employment to people which enables them earn income and improve their standards of living.

      • It provides raw materials to industries which increases the rate of industrialization and employment.

      • It leads to increased output for export which in turn earns the country foreign exchange used for development.

      • It is a source of medicine for the population especially the herbs used in traditional treatment which can also be turned into the modern commonly used medicines.

      • It provides backward linkages to the industrial sector where it acts as market for the industrial output such as the hoes, pangas etc.

      • It reduces rural urban migration because people are employed in the agriculture sector which is normally carried out in rural areas.

      • It facilitates development of infrastructure like roads because of the need to transport commodities from rural areas to the market.

      • Agriculture development leads to fair distribution of income because it provides employment.

    9.2.3 Disadvantages of agriculture development

    Agriculture development has numerous disadvantages as discussed below:

      • Agriculture prices keep on fluctuating consistently due to the differences between planned output and actual output these coupled  with poor climate conditions affect the supply and production.

      • Agriculture development may involve expansion of the firms among others and this may affect the growing population in terms of settlements leading to fragmentation.

      • Products are perishable and difficult to store. This is a big problem that affects developing countries and worse still they are bulk and may not be transported easily to other parts of the country.

      • Some crops have a long gestation period and thus the farmer may take long to gain from them even if the prices increase at present, the farmer may not increase supply thus losing out.

      • Agriculture mostly depends on nature. Farmers may fail to increase supply in case of a fall in rainfall. The inconsistencies in climate worsen the problem of  price fluctuation.  

      • Most developing countries produce the same goods thus products flood the world market causing prices to fall.

      • Development of synthetic fibers deemed the demand for agricultural products low due to presence of their substitutes. Hence they cannot bring in a lot of revenue.

      • The high rates of conservatism among the African farmers has led to the desire to have quantity rather than quality leading to low revenue.

    Limitations of agriculture development in Rwanda

    Below are the challenges of agriculture development in Rwanda:

      • Weak extension and research services: There is generally lack of extension services in the country to transmit research findings about better production methods and ways of living to farmers in order to improve agricultural productivity. This has led to poor use of fertilizers and agricultural chemicals that have polluted water; and agricultural activities and general mismanagement of the wetlands which have further degraded and destroyed them.

      • Land shortages: High population density has fueled a shortage of arable land, led to decreasing farm size, shortage of arable land and the adoption of intensive agricultural practices on land with no fallow and declining soil fertility. As a result of land shortages, even the most fragile areas are not spared. For instance, the ecologically sensitive areas of Ruhengeri, Gisenyi have the highest population densities. This has increased pressure on the ecosystems resulting in the current degraded state (loss of biodiversity; over-cultivation; soil erosion; declining productivity) and more poverty.

      • Overgrazing and bush fires: These have been the greatest culprit for reduction of biodiversity as they result in the extermination of the most grazed species as well as pyrophlitic (fire-resistant)    species    with low bromalytic (nutritive) such as Erogrostics, Sporobolus and Digitalia.

      • Poor and rugged land terrain: Agriculture practiced on the slopes of hills and mountains, coupled with deforestation has caused extensive land degradation and soil erosion. About 40 per cent of Rwanda’s land is    classified by the FAO as having  a very high erosion risk with about 37 per cent requiring soil retention measures before cultivation. Only 23.4 per cent of the country’s lands are not prone to erosion (ROR 2008). This has rendered agricultural productivity inefficient thus hampering agriculture development.

      • Risks and uncertainties: Increased vulnerability to climatic shocks like drought or heavy rains. Unpredictable risks are common in this sector, for example, a drought that hit the country in 2016, mainly the Eastern Province. Almost the entire country felt the effects of the longest drought in the last 60 years. But, the Eastern Province was hit the most. More than 47,300 households in Eastern Province bore the blunt of such drought which also caused crops to wither, resulting in crop failure and threatening food security. The situation necessitated government intervention in terms of food distribution to the affected families that had no harvest for two seasons since September 2015.

      • Lack of information on agriculture investment prospects: One of the main challenges to increased private investments in Rwanda is the lack of quick and accessible information on land available for commercial use by potential interested private investors.

    Ways of improving agriculture productivity in Rwanda:

    Agriculture is recognized in the EDPRS as one of the priority sectors that will both stimulate economic expansion and make the greatest contribution to poverty reduction and food security. However, as demonstrated in the problems above, a number of factors are threatening these efforts. The government has put in place a number of strategies to address these threats as discussed bellow:

      • Improvement in the breeds of animals and crops: The One Cow per Family (Gira Inka) programme has been effective in promoting improved cow breeds among Rwandans not only to improve nutrition and income through milk production and sales, but also to provide organic manure to improve crop production. This system has been extended to other animals such as goats, which are expected to significantly reduce overgrazing and related environmental degradation problems.  

      • Subsidization to farmers: The government of Rwanda has taken a policy decision to subsidize fertilizers and improve its distribution through the use of private sector. For example, in 2016, around 32,000 tonnes of mineral fertilizers were used, according to RAB, and the government targets to have about 50,000 tonnes of mineral fertilizers applied in the 2017 agriculture season A and B, with estimated Rwf9 billion in subsidies for both seeds and crops in the same period. This will help increase the use of mineral and organic fertilizers, pesticides and selected seeds as well, help to reduce soil nutrient loss. However, since the misuse of agro-chemical products have harmful consequences on human and ecosystem health, the policy has to be accompanied with training on the control and management of the negative impact of agro-chemicals.

      • Soil erosion and nutrient loss control: The government of Rwanda is aggressively pursuing measures for soil erosion control. These measures include terracing, increasing soil cover and integrated management approaches such as agro-forestry and zero-grazing. There have been increases in the area under radical terracing. However, small scale farmers lack the capacity to respond to the control of soil erosion because the anti-erosion measures are expensive.

      • There is potential for arable land expansion through the use of irrigation: The EDPRS aims to increase the area of hillside agricultural land under irrigation from a baseline of 130 ha in 2006 to 1,101 ha in the year 2012. This has implications for environmental management and thus creates urgent need to develop technical expertise within the agriculture and environment sectors to ensure that Strategic Environmental Assessments (SEA) and Environmental Impact Assessments (EIA) are    incorporated    into the crop intensification programmer to guarantee that adequate soil and water management measures are undertaken.

      • Strengthening extension services and extension-research linkages tailored to solving the farmers’ problems. The on-going review of agricultural organizations with the objective of decentralization, offers the opportunity to improve management, effectiveness and to bring extension and research to the farm level. The Agricultural Sector Wide Approach (SWAP) encourages a more integrated approach to the sectoral programmers.

      • Improving population control and farming methods: The current population control methods continue to have inadequate impact and population pressure on land continues. There is also little concerted effort to create off farm employment. The current EDPRS flagships focus on improving policy on privatisation and job creation which is likely to enhance off-farm options with overall benefits for environmental management.

      • Construction of valley dams: To mitigate the drought impact and ensure preparedness and resilience against climate change effects, the ministry of agriculture, encouraged construction of valley dams, whereby six have already been built in Nyagatare district, six in Kayonza district and one in Gatsibo district. Each dam has capacity of 40,000 cubic metres (m3) of water for cattle.

      • The cultivation of drought resistant forage for livestock’s consumption, and irrigation: An estimated 19,000 hectares of land are expected to be irrigated from 2016 through 2018, which include 15,000 hectares for marshland and 4,000 for hillside, according to Rwanda Agriculture Board (RAB). About 45,000 hectares are already under irrigation in the country.

       • Seeking foreign aid to support agriculture: For example, on November 4, 2016, the International Fund for Agricultural Development (IFAD) and the government of Rwanda signed an agreement for Rwanda Dairy Development project, a new initiative that is expected to improve the livelihoods of over 100,000 smallholder farmers and generate opportunities for other actors in the country’s dairy sector. The new project aims at having improved milk quantity and quality, farmers’ processing capacity through promotion of climate smart technologies and practices, and support the development of dairy cooperatives to benefit from market driven production, processing and trading of improved dairy products.

       • Lease of Kigali Urban Fisheries Center: The government leased management and operationalisation of Urban Fisheries Products Promotion Center, located in the Kigali Special Economic Zone by AQUAHORT Export Ltd/AEL, a move that is intended to ensure proper handling of fish produce, market    access    and, most importantly, address the issue of lack of enough nutritious fish feeds, which has    been    a    major concern for the sector. This will help fish farmers benefit from on-credit feed from the factory set up by the company through an agreement requiring farmers to supply it with fish.

       • Setting up of an institution that helps in agricultural practices: The government of Rwanda merged the three institutions namely; the Rwanda Agricultural Research Institute (ISAR), Rural Agricultural Development Authority (RADA), and Rwanda Animal Resources Development Authority (RARDA) into one body i.e. Rwanda Agriculture Board (RAB). This institution helps in ensuring that farmers properly use arable land available in the country to get optimal produce, empowers farmers in terms of good farming practices and provides them with quality improved seeds; and also ensures effective implementation of research and extension services such that new agricultural    inputs    reach    farmers    and    benefit    them    accordingly.

        • Extending friendship to other agricultural based countries: For example, on October 20, 2016, Rwanda and the Kingdom of Morocco signed bilateral agreements in the advancement of agriculture sector which will see sealed cooperation of the two countries’ agriculture ministries in areas including exchange of expertise in water management, agriculture finance and crop insurance,    horticulture,    animal health and production, soil mapping and testing, irrigation as well as fertilizer manufacturing and blending. Basing on their bilateral agreement, Office Chérifien des Phosphates    (OCP)  – a Moroccan state-owned phosphate mining company which is the world’s leading producer of phosphate rock and phosphoric acid as well as one of the leading global fertilizer players — to set up a fertilizer blending factory in Rwanda. This will give farmers access to better agricultural input products that are tailor-made for the local soil, hence improving agricultural productivity.

       • Putting up a monitoring and assessment committee to evaluate performance of agriculture and livestock sector:  Members of the Senatorial Standing Committee on Economic Development and Finance are meant to engage in outreach tours that are intended to monitor and assess the performance of the agriculture sector in the country. The assessment is based on the benchmarks outlined in government’s current seven year programmer, running from 2010 through 2017, aiming at stimulating the country’s development in various aspects, including governance, justice, economy and social well-being. The committee in their tours, have to evaluate the progress of the programmer and make recommendations necessary. e.g. In 2016 the committee emphasized that there should be research on crop diseases such as in cassava, banana, fruit and beans and ensure that there is enough and affordable improved seeds so as to meet agricultural targets.

       •  Launching of Agriculture Land Information System (ALIS): On October 11, 2016, the Government    of Rwanda launched the first phase of Agriculture Land Information System (ALIS) to help fast-track the government’s goal of transforming agriculture from subsistence to an economic engine. This will help investors from anywhere in the world to have easy access to land information, including size, general soil type, suitability to a given crop, current land use, electricity, proximity to roads and water sources, and agro-climatic conditions.

       • Revision of the agriculture policy by MINAGRI: The agriculture policy that was developed in 2004 was revised in 2016 with intention to optimize produce from agriculture and livestock sector, at the same time ensuring proper utilization of natural resources and sustainability for future generations. It also aimed at ensuring that farmers get affordable seeds and access to markets for good prices and income, development of crop and livestock varieties resistant to climate change related issues, and agriculture and livestock insurance as well as the use of ICT in agriculture.

       • Value-addition to agricultural produce: This is through setting up agroprocessing units, and enabling proper post-harvest handling to avoid losses. This helps to intensify and commercialize agriculture, increase agricultural growth and export sector as well; this will contribute toward the country’s middle-income status goal with per capita GDP of $1240 by 2020.

    9.3 Approaches to Agriculture Development

    An approach is a method or plan chosen to bring about a desired future, such as achievement of a goal or solution to a problem. Agriculture development involves making agriculture desirable and    profitable    to    all  stake holders in the country, promoting proper conditions for farming so that the quantity and quality improve drastically for better standards. The development of agriculture has been done by the different agricultural cooperatives such as KEHMU (Koperative Ejoheza Muhinzi w’Umuceri), KOIMUNYA (Koperative Imbazabigwi Muhinzi w’Umuceri Nyakabuye), Copro-Mabya in the north dealing with passion fruits, COTHENYA dealing with tea in Nyaruguru. These have played a very big part in developing the nature of agriculture in which the deal in conjunction with the government.

    The development of agriculture involves two approaches i.e. the modernization and transformation approaches.

    9.3.1 Transformation approach

     Activity 3

    1. Study    the    photos A, B, C and D in  figure 2 of this unit  and answer the following questions:

             (i) Analyze the differences between the two sets of photos A, B and C, D.

             (ii) Explain the meaning of agriculture transformation.

            (iii) Analyze the benefits and problems of transforming agriculture.

    Facts

    Meaning Transformation approach involves a complete and total change in the existing agricultural sector practices and systems. It includes changing from traditional low yielding systems to high yielding systems. The objectives of this approach are the introduction of technical, social and legal systems, which allow for the exercise of modern agricultural techniques based on high productivity. The approach may involve the following:

      • Adopting large scale mechanized agriculture especially the use of modern equipment and putting in place large storage facilities.

     • Commercialized agriculture where most of what is produced is for market consumption and little is left for home consumption.

     • Change of culture and beliefs from conservatism to modernity, eg. from rearing local  breeds of cattle to exotic Frisian breeds.

     • Movement of people from one area to another to create land for large scale agriculture.

     • Development of social infrastructure like roads and communication net work to ease movement of goods and people.

     • Comprehensive land reforms like changing the system of land ownership.

    Benefits of transformation approach

    The benefits of the transformation approach are discussed below:

      • Encourages mechanization: The approach involves large scale agriculture that requires large land required to increases output.

      • Industrialization: Due to the increase in the output, they may develop agro-based industries to improve the quality that increases the revenue.

      • Culture of the farmers is changed and this can enable to begin considering quality instead of the large quantity.

      • Employment: This comes as a result of the large fields that are developed due to mechanization.

      • Production costs are reduced when the  firms  expand  and enjoy the economies of scale and this helps to have increase in savings.

      •  The large farms can be able to provide extension services to the local people. These could be study tours and practical lessons to the people.

    Disadvantages of the transformation approach

    Despite the benefits the transformation approach has the following disadvantages:

       • It may result into technological unemployment due to the high use of machines.

       • It may lead to erosion of domestic cultural values due to the complete change in the agricultural set up.

      • It may lead to Rural Urban Migration due to use of machines and thus rendering people in villages unemployed.

      • Large-scale production may lead to displacement of people thus affecting their living standards.

      • Since the approach requires complete change in the system, it might lead to resistance from farmers thus leading political instability and social insecurity.

      • It may lead to dualism where some sectors are more developed than the other or some part of agriculture which is transformed advances at the expense of the part that is not transformed.

      • Due to large scale production and use of machines, it may lead to over exploitation and quick exhaustion of resources.

      • Specialization is associated with massive production thus leading to surpluses and wastage due to a small market in LDCs.

    Criticisms of the approach

    Below are the criticisms of the transformation approach:

       • Unemployment may come up because with development and need to produce more, farms may resort to capital intensive techniques of production.

       • There is need for resources to train the people about the new systems and worse still purchasing the required equipment seems costly.

       • Some cultures are too conservative and unwilling to change; take an example of the Masai in Kenya and the karamajong of northern Uganda.

       • Inadequate entrepreneurship skills to carry out the innovations and inventions still lacks in the developing countries.

       • The relief of the land is a problem that may not encourage mechanization. In the areas of Musanze, the hills are many and steep so the approach may not take off.

    9.3.2 Modernization approach

    Activity 4

    Basing on the photos A, B and C in figure 3 below, discuss the following:

        (i) Analyze are the differences between the two photos A and B.

        (ii) Explain the meaning of agriculture modernization.

        (iii) Using    photograph C, analyze    the benefits and challenges of agriculture modernization.

    Facts

    Meaning Modernization/improvement approach is the method of encouraging agriculture development that aims at improving the existing frame work to increase the quality and quantity of output. It has to operate within a given set of social relationship (beliefs, customs), existing production techniques and market opportunities. The improvement approach necessitates the improvement of the existing production techniques without changing the basic organisation of farming. It relies on agricultural extension and the provision of certain necessary inputs to farmers. The improvement approach involves the following:

      • Persuading and encouraging farmers to improve on their methods of farming.

      • Provision and use of simple and time saving equipment like the ox-plough.

      • Extension of long term and medium term credit to farmers.

      • Provision of agriculture extension services to rural farmers eg educating farmers through mass media and demonstration farms.

      • Soil improvement.

      • Undertaking land tenure adjustment programmers to improve on the system of land ownership.

    Benefits of agriculture modernization

    The benefits of agriculture modernization are discussed below:

      • Provision of enough food necessary to feed the population hence creating a food basket and reducing food related diseases.

      • Provision of employment to which enables the population to earn income and improve their standards of living.

      • Provision of raw materials to industries which increases the rate of industrialization and employment basically agro-based industries.

      • It leads to increased output for export which in turn earns the country foreign exchange hence reducing B.O.P  problems.

      • It is a source of medicine to people of the country especially through the herbs for traditional treatment and for making modern medicines .

      • It provides backward linkages to the industrial sector where it acts as market for the industrial output such as the hoes, pangas etc.

      •It reduces rural urban migration because people are employed in the agriculture sector which is normally carried out in rural areas.

      • It facilitates development of infrastructure like roads because of the need to transport commodities from rural areas to the market.

      • It leads to fair distribution of income because of employment.

    Challenges of the modernization approach

    Modernization approach of agriculture has faced numerous limitations as discussed below:

       • Poor weather conditions: Sometimes the rains fail to come and other times there    are    floods.    This affects farmers because there are differences between planned output and actual output.

       • Poor land tenure systems: Some of the land is owned by absentee land lords and hence it is inactive. The idle land has not helped in the implementation of the system.

       • Narrow markets: The market is low due to poverty among the people and the low quality that cannot yield much revenues.

       • Poor infrastructure: This limits the movement of goods from gardens to markets and also from areas of low prices to areas of high prices.

       • Lack of skilled manpower: Most of the people have low skills and worse still they take long to adjust to the new techniques.

       • Conservatism of farmers: Some farmers are very conservative and unwilling to adjust and this has affected the system.

       • Inadequate capital: This is still very low and the low producers cannot access the improved equipment necessary to improve quality and quantity.

    9.3.3 Small scale subsistence production

     Activity 5

    Case study 1

    Mukamuganga is a farmer staying in Gicumbi district. She and her family of three; have a small garden around their home where they grow maize, cassava, beans, sweet potatoes and keep two goats for survival. They use hoes and pangas on their small farms. It has helped them have food for the home though the quality is very poor. In the same village, there is Mukeshimana an organised well known farmer who grows sweet potatoes on a large piece of land. She employs many workers and some times uses machines. After the harvest, profits she makes huge but people always complain that she uses their land for her own benefits.

    Basing on the above case study, answer the following questions,

             (i) Mukamuganga is a ………….. type of farmer.

             (ii) Describe the characteristics of the type of farming that Mukamuganga carries out.

             (iii) Explain the advantages and disadvantages of the type of farming Mukamuganga carries out.

    Facts

    Meaning Small scale production is a situation where all the activities that are done in agriculture, industry, mining etc. are done on a small area. Normally it is subsistence in nature and most of what is grown is for home consumption and the incidental surplus is sold to meet the basic needs. In developing countries, Rwanda inclusive, most of the production is subsistence in nature and is basically done around homesteads in small gardens, small buildings, creating small scale industries, small mining sites among others. The output expected from these activities are normally small and intentions are basically for home use and the incidental surplus sold.  Small scale subsistence production has the following characteristics:

    • Low output is produced since most is for home consumption.

    • Low quality is produced because simple tools are used and no modernization is carried out.

    •  Production is for minimum survival to protect the family from famine.

    • Family labor is used since most of the times the activities are located near homes.

    • Simple tools such as hoes, pangas, chop sticks, knives are used since it is done on small scale.

    • There is no specialization carried out since a variety of crops are grown.

    Merits of small scale production

    Small scale production has a variety of advantage as shown below:

    • Little marketing is needed since most of the food is for home consumption and only the incidental surplus is sold.

    • Easy management: This is because output is small and it employs few workers during the production process.

    • Little or no wastage: This is because production is done on small scale and bases on the size of the family.

    • Variety is grown and kept: This helps people to have a balanced diet which saves them from problems of malnutrition.

    • There is no major problem of labor since family members  are used.

    • May not require large plots of land and buildings to be carried out.

    • Little losses incurred if there are fire outbreaks: The crops grow on a small piece of land and thus few losses are encountered in case of fire    outbreaks.

    • Requires little capital which can be afforded by most of the people for buying simple tools and inputs.

    Criticisms of small scale production

    Below are some of the criticisms of small production:

    • Firms don’t enjoy economies of scale. This is because they produce on a small scale and their output is low.

    • Little incomes are earned by farmers because they are basically on low scale and for home consumption.  

    • It retards development of the agriculture sector since simple tools are used and scientific methods are not embedded so much.

    • Low quality is produced since simple tools are used and poor farming methods are used.

    • Vast lands may be underutilized since farmers prefer to concentrate of small pieces of land.

    • Mechanization is not possible since agriculture is carried out on small fragmented plots.

    • Innovations and inventions may not be carried out and this will further limit specialization leading to constant poor quality output.

    • Little or no government revenue at all because of low output and only the incidental surplus is the one that is taken to the market.

    9.3.4 Large scale commercial production

    Activity 6

    Basing on the case study 1 of this unit, answer the following questions:

        (i)  Mukeshimana  is a ……………………….. type of farmer.

        (ii) Describe the characteristics of the type of farming that Mukeshimana carries out.

        (iii) Explain the advantages and disadvantages of the type of farming Mukeshimana carries out.

    Facts

    Meaning  Large scale commercial production is the type of production that is carried out on a large scale. It normally involves large scale plantation farms that mainly deal in cash crops with high rates of specialization. The major aim is production for sale either for internal processing industries or for the foreign markets. In Rwanda, these farms are common in areas of Byumba for tea growing, Musanze for Irish potato, Gisenyi, Shagasha in Nyamasheke, Kitabi among others. Related to the above, the industries under this type of production are so big that their products are also produced for export. Typical examples are Inyange industries, Sulfo industries, Braliewa among others. There are large mechanized plants purposely to produce goods for the market both internal and external. Large scale commercial production has the following characteristics:

    • Normally done on large scale land covering wide areas.

    • High output yields are got from the vast lands used.

    • High rates of mechanization especially if the areas are flat.

    • High rates of specialization normally concentrating on a particular commodity.

    • High quality output is produced because of specialization and use of machines.

    • Production is for both domestic and foreign markets.

    • Modern methods of farming are carried out like irrigation, use of fertilizers and machines among others..

    • Normally labor carrying out large scale farming is trained with skills to cope up with the activity.

    Advantages of large scale commercial production Large scale commercial production is so important to the economy as discussed below:

    • Encourages use of machines: Mechanization is possible since it covers large pieces of land unlike small scale farming. This increases labor productivity and efficiency.

    • High volumes of output: This comes from the wide pieces of land on which agriculture is used, use   of    specialists, use of correct and sufficient pesticides and fertilizers, and irrigation of farms in case of drought.

    • Widens tax base: Tax base is widened from the produce and still the processing industries set up to increase the quality and also the workers in the farms. This increases tax revenue to the government.

    • Leads to formation of industries. Agro-based industries come up so as to increase the quality of the products both for home and foreign markets.

    • It leads to infrastructural development: Infrastructures like roads to link up the  gardens and the markets, banks, electricity, which benefit  both workers and the neighboring community. This leads to efficiency and time saving.

    • Employment creation: Many people are employed by the farms either directly and indirectly. This is because it employs hired labor like managers, accountants, transporters and marketers of products and farmers themselves.

    • Improved skills: Specialization is carried out and this helps the farmers to become perfect and improve skills hence high quality and quantity output.

    • Field study and research. The large farms act as study purposes and fields for different    agriculturalists as well as students.

    • Easy to market large-scale output: Easy marketing can be carried out either domestically or    internationally since the firms are big and therefore they can enjoy economies of scale.This increases the inflow of foreign exchange.

    Demerits of large scale commercial production

    Despite the advantages, large scale commercial production has elements as discussed below:

    • Land exhaustion: Large scale production leads to land exhaustion and loss of soil fertility. This comes as a result of land being used constantly and not allowed to fallow long enough to regain its fertility, since the main aim is profit maximization.

    • Technological unemployment: This comes up because of the need to increase output, it requires a lot of machines since agriculture is carried out on a large scale.

    • Surplus at the market: Due to large scale production, the output increases and this may not be all consumed due to low incomes of the people hence creating wastage.

    • High capital is needed: Large scale production requires large capital for set up. This capital may not readily be available in developing countries.

    • Requires skilled man power which is inadequate and worse still the experts seem to be very expensive.

    • Displacement of people: Since it is done on a large scale, it requires large junks of land and because of scarcity, it may require displacement of some people.

    • Reduction in the food needed by the local people: Most of the large scale farms produce output for export and the local population may not be left with goods. This may affect their standard of living.

    • Leads to income inequality: This comes about when some farmers take on large scale commercial agriculture while others take on small-scale subsistence agriculture.

    9.3.5 Agriculture specialization

    Activity 7

    Referring to the case study 1 of this unit, answer the following questions:

         (i) Mukeshimana’s growing of only sweet potatoes is known as ………….

         (ii) Explain the advantages that Mukeshimana gains by growing only sweet potatoes.

         (iii) Examine disadvantages that she faces when carrying out the activity.

    Facts

    Meaning of agriculture specialization

    Agriculture Specialization refers to the production of what one can do better. This results into abundant or surplus commodities which can be exchanged for other commodities. In agriculture, specialization may involve concentrating on the growing of a particular crop and or keeping of a particular kind of animal. Specialization is normally done by large scale farms and on a large scale with the aim of commercial purposes. In Rwanda, areas along Gatuna road are prominent for rice and tea growing, Ngoma is prominent for banana growing, Musanze for Irish potatoes, among others.

    Advantages of agriculture specialization

    Agriculture specialization has the following advantages:

    • Time saving: Use of machines, specialized labor etc. makes it easy and quicker to produce within a short time since it takes little time to learn the job and there is no time wasted in moving from one job to another.

    • Workers gain experience and skills: They become efficient as a result of repeating the same tasks.

    • Enables mechanization in agriculture: It encourages and makes possible the use of machines at various stages of production because of production in bulk.This leads to invention and innovations which lead to increased output.

    • Proper exploitation and utilization of natural resources: Regional specialization and international division of labor enable regions or countries to exploit their natural resources and get what they cannot produce from other regions or countries.

    • Economies of scale are enjoyed: It involves production in bulk and therefore enable firms to reap    economies of large scale production.

    • It improves the quality and quantity: Output produced by farmers is much and of better quality. This is because farmers gain experience that they use to produce better products.

    • Mass production: Leads to mass production which at a national level increases the volume of exports and therefore improves a country’s BOP position.

    • Easy management: It is easier to manage production of one type of product than many because workers develop specialized skills due to concentration in the production of a single product.

    • Easy marketing: It is easy to market a single crop or animal than several products to several buyers, in several locations and several prices.

    • High quality production: The quality of output increases as farmers acquire better skills in a production of a given commodity. This leads to better prices and hence better income for the farmer.

    Disadvantages of agriculture specialization

    Despite the advantages, agriculture specialization also has disadvantages as discussed below:

    • Leads to bulk production and surpluses: It involves production in bulk, which may be limited by    insufficient markets in LDCs thus leading to wastage.

    • Leads to seasonal unemployment: Division of labor can lead to seasonal unemployment since agriculture activities will be concentrated in few seasons. Since they are specialists cannot easily change to other jobs.

    • Over dependence: International division of labor leads to over dependence on other countries    and also discourages    diversification. In case of a decline in demand or fall in prices, the country would suffer.

    • Repetition of the same work leads to boredom and monotony which dulls intelligence.

    • Itencourages the use of machines, which are specific and hence may not serve more than one purpose. It is also not easy to substitute men (labor)    for machines. In case machines break down, firms may stop operating until other machines are secured.

    • It leads to loss of craftsmanship: Workers cease to be craftsmen because of reliance on machines.

    • It may lead to regional imbalances: Specialization follows regional patterns based on climate, soils and altitude. Some regions specialize in high value crops and animals while others due to climatic and environmental reasons can only specialize in low products which creates income inequality.

    • Exposure to risks: It exposes farmers to immense risks, e.g. in case of disease or climatic problems the farmer is completely denied of income for a long time since there are no alternatives to resort to.

    9.3.6 Agriculture diversification

     Activity 8

    Referring to the case study 1 of this unit, answer the following questions:

          (i)  Mukamuganga’s growing of cassava, sweet potatoes, maize and keeping goats is known as …………….

          (ii) Explain the advantages that Mukamuganga gains by growing all those crops.

          (iii) Examine the limitations she faces when carrying out the activity.

    Facts

    Meaning of agriculture diversification Agriculture Diversification refers to the growing of a variety of crops and rearing a variety of animals. It may be through inter-cropping or growing the crops differently, while the animals may also be mixed i.e cows, goats and sheep or kept in separate herds of similar animals. Instead of specialization, a farmer may decide to grow on a variety of crops and keep a variety of animals to avoid uncertainties. Normally a farmer who carries out diversification may get high returns    due to the differences in tastes and preferences of people. Still, it leads to action of creativity where the farmer develops multiple skills needed in catering for different commodities.

    Arguments in favor of agriculture diversification

    Below are the arguments in favor of agriculture diversification:

     • It reduces the risks of uncertainty that face agriculture sector especially when depending on one crop such as weather and pests.

    • It widens the export base of the country since a variety is produced for export.

    • It generates more employment opportunities because people are able to engage in a variety of activities.

    • It increases and stabilizes farmers income because of selling a variety of crops and this reduces fluctuation in their incomes compared to when carrying out specialization.

    • Tax base of the government is widened because of a variety of  activities on which taxes can be levied assuming that they are on a large scale.

    • It increases on the variety of raw materials because more crops imply more raw materials which reduces the need for importing raw materials.

    • It leads to economic growth because of the increase in the quantity of the goods produced and this reduces dependence on other countries for food.

    • Rural urban migration is reduced because activities are carried out in rural areas and so the people in the village are able to get income for survival.

    • It reduces economic dependence and creates self-sustenance since a country is able to have a variety needed in the economy and this reduces the B.O.P problem.

    Limitations of agriculture diversification Diversification of agriculture is limited by many factors as discussed below:

      • Inadequate market: Most commodities from LDCs lack market because they are of poor quality, diversification will therefore increase output without market.

      • Inadequate land: This is because the activities require large pieces of land which may not be available in LDCs.

      • Conservativeness of the farmers who cannot change to grow a variety leading to agriculture remaining backward.

      • Natural factors like floods, pests and diseases affect agriculture activities thereby limiting    diversification.

      • Underdeveloped infrastructure limits easy movement of the people and goods from one place to another.

      • Inadequate capital leads to failure to buy the required inputs needed for growing crops.

      • Credit facilities are rarely extended to farmers who would wish to diversify their activities.

      • Poor and underdeveloped storage facilities limit the farmers because they would lack where to put the increased out put.

      • Inadequate skills by the farmers limit them to participate in different activities.

    9.3.7 Intensive agriculture

     Activity 9

    Basing on the photos A, B and C in figure 4 below, discuss the following questions:

     1. Describe the activities that are being carried out in the figures A, B and C below.

     2. The activities are on a;

             (a) small scale              (b) large scale  

    3. ………        is    the    type of farming carried out in the figures below.

    4. Examine the advantages and disadvantages of the type of farming in the pictures below.

    Facts

    Meaning of intensive farming  Intensive agriculture is cultivation that involves using large amounts of labor and capital relative to the land area.  Large amounts of labor and capital are necessary for the application of fertilizer, insecticides, fungicides, and herbicides to growing crops, and capital is particularly important to the acquisition and maintenance of high-efficiency machinery for planting,    cultivating, and harvesting, as well as irrigation equipment where required.

    Optimal use of these materials and machines produces significantly greater crop yields per unit of land than extensive agriculture, which uses little capital or labor. As a result, a farm using intensive agriculture will require less land than an extensive agriculture farm to produce a similar profit.   

    Advantages of intensive farming

    Discussed below are the advantages of intensive farming:

      • High-yield farming: One of the major advantages of intensive farming techniques is that the crop yield is high.

      • Protection of livestock: Intensive farming helps the farmer to easily supervise and monitor the land and protect his livestock from being hurt or hounded by dangerous wild animals.

      • Lower food prices: With the introduction of intensive farming, farm produce, such as vegetables, fruits, and poultry products have become less expensive. It also aids in solving the worldwide hunger problems to a great extent. This means that common people can now afford a balanced and nutritious diet.

      • Economical infrastructure: Many agree that organic food can be afforded only by the elite strata of the society. Apart from that, large farming spaces are required to cultivate organic crops using natural manure. However, with the introduction of intensive farming, the space, equipment, and other requirements for farming are less and more economical.

     • Regulated farming: The EPA (Environment Protection Agency) has set certain rules and regulations on how livestock, pesticides, and animal manure are to be maintained. The farmers, who follow these set rules help to provide an affordable, safe, and healthy produce to all alike.

     • Sustaining food supply with the demand: Another advantage is that large productivity of food is possible with less amount of land. This leads to economies of scale and directly contributes towards meeting the ever-growing demand for food supplies.

    Disadvantages to intensive farming

    Despite the advantages, intensive farming has disadvantages as discussed below:

      • Poor living conditions for livestock: Intensive farming involves the use of various kinds of chemical fertilizers, pesticides, and insecticides. Apart from this, it is also associated with farms that keep livestock above their holding capacity, which in turn leads to pollution, various diseases, and infections brought about by overcrowding and poor hygiene.

      • Heavy deforestation: Reports and studies reveal that intensive farming affects and alters the environment in multiple ways. Forests are destroyed to create large open fields, and this could lead    to soil erosion. It affects the natural habitat of wild animals. Use of chemical fertilizers contaminates soil and water bodies, such as lakes and rivers.

      • Excessive use of fertilizers and pesticides: Pesticides sprayed on crops not only destroy pests    and    contaminate the crops, but also kill beneficial insects. Heavy use of pesticides and chemical fertilizers also affects workers (who spray the pesticides) and the people residing nearby. Eventually, these chemicals are passed on to the human beings, who consume the agricultural produce.

      • Damage on crops and human life: Fruits and vegetables purchased from farms that promote intensive farming are covered with invisible pesticides. These cannot be washed off easily. Exceeding the use of pesticides affects the health of human beings severely, leading to skin allergies, physical deformities, and congenital diseases.

      • Use of chemical hormones in food: There are many hybrid varieties of livestock, plants, and poultry available today. The livestock and poultry are injected with hormones and other chemicals to increase the yield.

      • Higher risk of cancer: Statistics show a direct relation between the consumption of food procured from intensive farming sites and an increase in the number of cancer patients and children born with defects. Researchers opine that consumption of inorganic poisonous vegetables, fruits, poultry, and meat could probably be one  of the reasons causing such damage in the human body.

    9.3.8 Extensive agriculture

     Activity 10

    Basing on the photos  A and B in figure 5 below, discuss the questions that follow.

      1. Describe the activities being carried out in the figures below

      2. The activities are on a;

           (a) small scale       (b) large scale

      3. ……………    is the type of farming carried out in the figures below:

      4. Examine the advantages and disadvantages of the type of farming shown below.

     

    Facts

    Meaning of extensive agriculture

    Extensive agriculture is a system of crop cultivation using small amounts of labor and capital in relation to area of land being farmed.  The crop yield in extensive agriculture depends primarily on the natural fertility of the soil, terrain, climate, and the availability of water.

    Extensive agriculture is distinguished from intensive agriculture in that the latter, employing large amounts of labor and capital, enables one to apply fertilizers, insecticides, fungicides, and herbicides and to plant, cultivate, and often harvest mechanically. Because extensive agriculture produces a lower yield per unit of land, its use commercially requires large quantities of land in order to be profitable.    This    demand for land means that extensive agriculture must be carried on where land values are low in relation to labor and capital, which in turn means that extensive agriculture is practiced where population densities are low and thus usually at some distance from primary markets.

    Advantages of extensive agriculture

    Below are the advantages of extensive agriculture:

      • Less labor per unit area is required to farm large areas, especially since expensive alterations to land (like terracing) are completely absent.

      •     Mechanization can be used more effectively over large and flat areas.       

      • Greater efficiency of labor means generally lower product prices.  

      • Animal welfare is generally improved because animals are not kept in stifling conditions.

      • Lower requirements of inputs such as fertilizers.

      • Local environment and soil are not damaged by overuse of chemicals.

    Disadvantages of extensive agriculture

    Despite the advantages, extensive agriculture has disadvantages as discussed below:

      • Yields tend to be much lower with intensive farming in the short term.

      • Requires watering plants regularly and this may be quiet costly leading to high costs of production.

      • Since it requires large lands, it may need high mechanization which is costly for the poor farmers.

      • Wild fires can destroy the large acres of plants and this causes large amounts of losses.

      • Land exhaustion: This comes as a result of land being used constantly since the main aim is profit maximization and it creates infertility and low production in the long run.

      • Technological unemployment comes up because of the need to increase output. Still the agriculture is done on a large scale which requires a lot of machines that are also high in terms of costs.

      • Surplus at the market: Due to large scale production, the output increases and this may not be all consumed due to low incomes of the people hence creating wastage.

      • High capital is needed: Extensive production requires large capital for set up. This capital may not readily be available in developing countries.

      • Requires skilled man power which is inadequate and worse still the experts seem to be very expensive.

      • Displacement of people: Since it is done on a large scale, it requires large chunks of land and because of scarcity, it may require displacement of the people.

    9.3.9 Agriculture mechanization

    Activity 11

    1. Basing on the photos A, B and C in figure 6 of this unit, discuss    the following questions

         (i) What type of machines are showed in the photos A and B?

         (ii) ……………. is the method of agriculture that involves use of machines.

         (iii) What are the advantages and disadvantages of using the above mentioned machines?

         (iv) Explain why using such machines is not common in your home areas.

    Facts

    Meaning of agriculture mechanization Agriculture Mechanization is part of agriculture modernization that involves the use of capital intensive techniques such as tractors, harvesters, irrigation pumps, ploughs and milking machines, among others, in the production process. Normally the ratio of labor to machine is too low meaning that the number of workers are few and the work is basically done by machines but under human control. This becomes viable if done on large scale because the cost of production would not be high compared to the output. It is normally done to increase quality and quantity and also for time saving.

    Arguments in favor of agriculture mechanization

    Some of the advantages of mechanization of agriculture can be discussed below:

      • Mechanization is time saving especially during times of planting, ploughing among others. The machines do the work very quickly which saves time.

      • Mechanization encourages large scale production because machines use large pieces of land and this increases output that would be exported to earn the country foreign exchange.

      • Good quality output is produced because of constant use of machines which can be tuned and adjusted to produce good quality.

      • It reduces the cost of production because the expenditure to buy machines is not recurring but happens once compared to labor that has recurring expenditures.

      • It encourages specialization depending on the machines which the farmers have and this leads to increased in quality and quantity and saves time.

      • Easy management because the use of machines doesn’t need supervision which is not the case with labor.

      • Machines can act as collateral security when acquiring loans from financial institutions.

      • Irrigation can be done. This reduces dependence on nature and output increase, even during dry periods.

    Disadvantages of agriculture mechanization

    Discussed below are disadvantages of agriculture mechanization:

      • Capital intensive techniques cause unemployment in the villages since mainly machines are used on the extensive land.

      • Rural urban migration may occur because mechanization requires large pieces of land and therefore the local people may lack land for settlement .

      • Requires large sums of capital to use because the machines such as tractors, sprinklers and harvesters have to be imported.

      • Machines destroy the ecology of the soil since they may not be appropriate for the soil.

      • Requires large pieces of land and this is a problem in Rwanda where land has rugged terrain with steep slopes.

      • Specialization as a result of mechanization may affect the country in case world market prices fall.

      • Over production: This is because of the work easily done by machines during the process and this leads to surplus and resource wastage.

      • Over exploitation of resources due to the desire for the high profits and excess production by the machines.

    Limitations of agriculture mechanization

    There are many limitations of agriculture mechanization some of which are discussed below:

      • It requires high skills to operate the machines which lack in the developing countries due to inadequate training.

      • It requires large amounts of capital to implement which capital is lacking on the side of the farmers.

      • Requires large pieces of land which is scarce in LDCs where the land is divided into small pieces called fragments.

      • Relief of the area may not be suitable for the machines. The rugged terrains of Rwanda like in the areas of Northern Province have steep slopes which make mechanization difficult..

      • Attitude towards mechanization is very poor because of high levels of illiteracy, cultural beliefs and poverty.

      • Requires a good and efficient agricultural planning which is not possible in terms of costs and management in LDCs.

      • The approach may be inapplicable where human judgment is necessary during the production process.

      • Underdeveloped infrastructure and technology limits the use of machines since they require a well-developed road network.

      • Small market for the output discourages the farmers from using machines so as to increase output since it may lead to surplus and a fall in prices.

      • Poor land tenure system where land is divided into fragments and owned by absentee landlords.

      • Machines sometimes destroy the ecology of the soil since they may not be appropriate to the structure.

    9.3.10 Commercialization of agriculture

     Activity 12

    Basing on the photos A, B and C in figure 7 of this unit, discuss the following questions:

      1. Describe the activities that are being carried out in the figures A, B and C.

      2. The activities above are mainly for? (a) Home consumption (b)    Market (c) None of the above.

      3. What are the benefits and demerits of carrying out the activities in the photos?

      4. Explain why using such activities are not common in your home areas.

    Facts

    Meaning of commercialization of agriculture

    Commercialization of agriculture is the type of production that is intended for sale with an aim of getting profits. It normally involves large scale production with high technology. The quality tends to be better than that of subsistence production. In Rwanda, the major food crops grown for sale include Irish potatoes, banana, and rice among others while the cash crops include tea and coffee. Among the animals are cows for beef and milk, goats and sheep among others. Commercial production involves the following characteristics:

    • Production is for the market either domestic or international.

    • Use of improved seeds and breeds of animals for better quality.

    • Use of modern tools like tractors, harvesters, and sprinklers among others.

    • Skilled workers are employed compared to family labor used in subsistence production .

    • High levels of productivity due to the need to serve a wide market and to accumulate high profits.

    • Land improvements through the use of fertilizers all in the need for high productivity .

    • High quality is produced since the major aim is profit maximization.

    Benefits of commercial agriculture

    Below are the benefits of commercial agriculture:

      • Development of the skills of workers because  of specialization and constant doing of the same work.

      • It increases the gross domestic product of the country because of the need for high profits    and    revenues.

      • It increases the incomes of the workers and the farmers at large. This is because production is for sale. This increases the standard of living of the workers.

      • Good quality products improve the standards of living of the people and their way of life.

      • It increases the exports of the country hence the increase in the foreign exchange earnings.

      • It increases the supply of food since there is production on large scale for domestic and foreign markets.

      • Increased supply of raw materials in the country: Commercial agriculture supplies more raw materials to industries especially agro based industries thus promote industrialization.

      • Capital accumulation  may increase because of increased output for sale that will bring in revenues.

      • Sometimes it is done on a large scale so it utilizes the idle land that may be unproductive.

      • Employment creation:The desire for too much profits make the owners of the farms to increase the number of workers hence creating employment.

    Disadvantages of commercial agriculture

    Some of the disadvantages of commercial agriculture are discussed below

      • Reduction in the food needed by the local people since production is mainly for sale and not home consumption.

      • Capital intensive techniques cause unemployment in the villages since machines are mainly used on extensive lands.

      • Requires large sums of capital to use because the machines such as tractors, sprinklers, harvesters, all have to be imported.

      • Requires large pieces of flat land and this is a problem in Rwanda where land has rugged terrain with steep slopes. 

      • Specialization as a result of mechanization may affect the country in case world market prices fall.

      • Over production: This is because of the work easily done by machines during the process and this leads to surplus and resource wastage.

      • Over exploitation of resources due to the desire for the high profits and excess production by the machines.

    Limitations of commercial agriculture

    Commercial agriculture is limited by the following factors:

      • Poor weather conditions: Sometimes the rains fail to come and other times there are floods. All these are a problem to the farmers since there are differences between planned output and actual output.

      • Poor land tenure systems. Some of the land is owned by absentee land lords and hence it is inactive.

      • Narrow markets: The market is low due to poverty among the people and the low quality that cannot yield much revenues.

      • Poor infrastructure: This limits the movement of goods from gardens to market and also from areas of low prices to areas of high prices.

      • Lack of skilled manpower: Most of the people have low skills and worse still they take long to adjust to the new techniques.

      • Conservatism of farmers: Some farmers are very conservative and are not able to change to good quality output hence end up getting low revenue.

      • Inadequate capital: This is still very low and the low producers cannot access the improved equipment's necessary to improve the quality and quantity.

      • Competition from other countries that produce the same at the world market. This leads to surplus    and constant price fluctuation which affects the foreign exchange and incomes of the farmers.

    .3.11 Agriculture co-operatives

    Activity 13

    Basing on the photos A, B and C in figure 8 of this unit and knowledge from your local area, discuss the following questions:

    1. The type of business organization shown in the photos A, B and C is known as…...

    2. Give examples of the above organizations in your home areas.

    3. What are the rules governing such organizations in your home area?

    4. How are those organizations talked about in (2) above important in your community?

     

    Facts

    Meaning Cooperatives are business organizations owned by their own users who select a governing committee with an aim of achieving common objectives. There are many types such as; marketing cooperatives, producer cooperatives, transport cooperatives, consumer cooperatives, credit and savings cooperatives, trade and craft societies e.g. hand craft, building and construction societies but our main concern are the agriculture cooperatives that may involve both the producer and marketing cooperatives.

    Agricultural cooperatives are business organisations formulated and owned by farmers who come together to achieve common objectives. Typical examples of these cooperatives include KEHMU (koperative ejoheza muhinzi w’ umuceri), KOIMUNYA (Koperative Imbazabigwi Muhinzi w’ Umuceri Nyakabuye), copro-mabya in the north dealing with passion fruits, COTHENYA dealing with tea in Nyaruguru etc.

    Principles of cooperatives

    Every organization has its own principles on which it is based and below are those of cooperatives:

      • They have open membership: This means that everyone is free to join provided he or she can pay the membership fee.

      • They are financed by members themselves through the membership fees they pay.

      • Leaders are elected democratically by the members of the cooperative through a one man one vote process.

      • They are supposed to be impartial meaning that they are not based on politics, religion among others.

      • Cooperative education is supposed to be provided to members, workers and the general public by the cooperative.

      • Members should have access to records of the cooperative so as to follow its progress.

    Roles of cooperatives to development

    Cooperatives have many roles they play towards the development of the country and among a few are the following:

      • They participate in the production of goods and services, say in agriculture, industry, transport among others.

      • Cooperatives help farmers to market their products eg. coffee, maize, tea etc.

      • They participate actively in the transportation, collection and storage of products.

      • They provide farmers with cheap inputs like fertilizers, hoes etc.

      • They provide education to members and to the public on how to use the fertilizers, new tools and new methods of production.

      • They increase cooperation among the people and this brings unity in the society.

      • They help members to get credit facilities through mobilizing funds from financial institutions.

      • Co-operatives provide members with cheap consumer goods, i.e. they buy in bulk and sale in smaller quantities at lower prices to members than non members.

    Problems facing cooperatives in LDCs

    Despite the roles seen above, these cooperatives are still faced with many obstacles as seen below:

      • Shortage of skilled personnel to work as top management staff.

      • Politics tend to interfere in the activities of the cooperatives especially when choosing leaders.

      • Shortage of capital and credit facilities to expand their businesses.

      • Many members especially in the rural areas are illiterate and tend to be conservative and not easy to educate.

      • Dishonesty of some members who sometimes sale commodities to private buyers instead of selling through their cooperatives.

      • Most members are poor and they delay to pay subscription (cooperative fees).

      • Marketing cooperatives experience shortage of facilities for transportation, storage, and packaging among others.

      • Lack of commitment among the leaders who do their own activities instead of carrying out cooperative services.

      • Some members tend to use cooperative assets for their own benefit and end up spoiling them in activities which are not for cooperatives.

    This increases management costs.

    9.3.12 Agriculture research and extension services

    Activity 14

    Use the library or internet to research about the following:

              (i) What is agriculture research?

              (ii) Examine the advantages and limitations of agricultural research in your country.

              (iii) What are agriculture extension services?

              (iv) Examine the advantages and limitations of these agricultural extension services?

    Facts

    Meaning of agriculture research

    With reference to agriculture, research means scientific investigation or study with a view of improving production techniques in order to increase the existing quantity and quality of agricultural output.

    Agriculture research can be carried out in the following areas:

        (i) Scientific discoveries in new crop and animal varieties.

        (ii) Research in new techniques of production.

        (iii) Studies in soil science.

        (iv) Market research i.e. obtaining information about market for firm products.

        (v) Research on climatic conditions seasons with respect to crop requirements.

    Importance of Agriculture research

    Agriculture research is important in the following ways:

         • It leads to introduction of high yielding crop and animal varieties which leads to increase in the quantity and quality of farm products.

         • It reduces the cost of production and saves time, eg. research in agriculture modernization.

         • It leads to improvement in land use through better farm management techniques.

         • Research into soil science leads to soil conservation which controls soil exhaustion.

         • Research on climatic conditions helps farmers in early planting and early harvesting.

         • Through market research, a farmer is assured of market for her produce at fair prices.

         • Research into disease and pest control methods reduces risks and uncertainties in agriculture.

         • Research facilitates specialization and division of labor through introduction of mechanization.

         • Farmers benefit from extension services/ education from researchers through dissemination of    research findings.

    Limitations of agriculture research in LDCs

    Research in agriculture is limited by the following:

      • Limited capital: LDCs have insufficient funds to finance research experts and facilities which results into borrowing.

      • There is limited skilled personnel to carry out research and disseminate research findings hence necessitating foreign experts who are expensive.

      • Political instability and insecurity in most parts of LDCs limits research.

      • Limited research findings tend to enable agriculture development.

      • Poor infrastructure like storage facilities, water, power etc.

      • Poor transport and communication facilities limit movement of people and researchers.

      • Conservatism and illiteracy among agriculturalists that do that want to implement what has been improved.

      • Low income among farmers who cannot afford better breeds and farm implements lead to continuous production of low quality output.

      • Failure to translate research results into projects makes the project a waste of time and money.

    Agricultural extension services

    Agriculture research findings can reach farmers through extension services. Agricultural extension    service  is the application of scientific research and knowledge to agricultural practices through farmer education. Generally, agricultural extension can be defined as the “delivery of information and inputs to farmers.” It can be carried out through seminars,short study courses, visits to farmers by agriculture experts, tours by farmers to demonstration farms, use of mass media, etc.

    Objectives of agriculture extension services

      • To provide knowledge and help for better management of farms and increase incomes.

      • To encourage the farmers to grow their own food, eat well and live well.

      • To promote better social, natural recreational intellectual and spiritual file among the people.  

      • To raise the standard of living of the rural people by helping them in right use of their resources.

      • To help in planning and implementing the family and village plans for increasing production in various occupations.

    Merits of agriculture extension services

    Agriculture extension services have the following merits:

      • Extension uses democratic methods in educating the farmers. This helps farmers to improve their methods of farming. 

      • Extension helps in adoption of innovations to farmers such that they are able to shift from the traditional methods to the modern methods.

      • Extension helps in studying and solving the rural problems that may be affecting the rural farmers during the production process.

      • Extension increases farm yields and improves the standard of living of farmers through the increased incomes got.

      • Extension contributes to national development programmers such as agricultural development and modernization.

      • Research helps in increasing efficiency in agricultural production. The output per farmer increases and it is done in the shortest time possible.

      • Research helps in increasing efficiency in marketing, distribution and utilization of agricultural inputs and outputs.

      • Conservation, development and use of natural resources are carried out since it is part of the education that is passed on to the people.

    Limitations of agriculture extension services

    Agriculture extension services are limited by the following:

       • Inadequate capital to carry out the research that is needed by the people.

       • Ignorance of the people who do not always attend extension services. Some people are ignorant about the services so they rarely attend. This leads to lack of knowledge about the new services.

       • Inadequate skilled man power to carry out the trainings and research is a major problem affecting the low developing countries.

       • Poor land tenure system that may sometimes not allow the people to practice what they have studied.

       • Illiteracy among the people who sometimes don’t know how to read and write hinders them to acquire knowledge.

       • Inadequate materials to use during the training due to inadequate capital by the organizers.

    9.3.13 Land ownership

     Activity 15

    Use the library or internet to carry out research and attempt the following questions:

         (i) What is land tenure system?

         (ii) Suggest the forms through which land is owned in Rwanda

         (iii) What land reforms have been undertaken in Rwanda to ensure that land is properly managed?

    Facts

    Meaning of land ownership

    Land ownership or land tenure system is a system by which a person, community or state has legal authority to land. It can as well be referred to as land tenure system. A landholder/landowner is a holder of the estate in land with considerable rights of ownership or, simply put, an owner of land.

    In African countries, land is owned through either individual ownership, customary or state ownership among others.

    Table 1: Land cover in Rwanda


                     Table 1 above shows how land cover in Rwanda is distributed

                      under agriculture, wetlands, forest, water body and national parks.

    Forms of land ownership

    The laws that govern land ownership may be written by the state of customary and they vary from one country to another. Below are some of the forms of land ownership in developing countries:

    1. Customary or communal land ownership

    Under this system, land is commonly owned by the people in the society. Every individual is free to use the land and it’s the reason why the people are not allowed to have demarcations on the land and neither are they allowed to build permanent structures. Under this system, land is owned by clans, families or tribes. This type of land ownership is common in the pastoral areas of Karamoja in Uganda and the Masai of Kenya and Tanzania. Since they wonder with the cattle, they rarely build permanent structures.

    2. Individual ownership (freehold land ownership) Under this system, individuals are free to own land privately. This could be through buying it from people or through inheritance. The individual is solely the owner of the land after acquiring the land title and he has the right over his or her land to either give it away or pass it over to the next party in the family.

    3. Leasehold land ownership

    Under this system, land is owned by rich landlords who then can rent it through lease to persons who may be interested and sometimes companies. The tenant i.e. person who takes over the land, pays large sums of money and the period of rent depends on the agreement between the two parties. The tenant is thus able to carry out any activity provided it does not violate the terms and conditions agreed by the two parties

    4. Feudal system This one can be found in Buganda in central Uganda and Swaziland where land was allocated to the king by the colonialists. The king would then distribute the so called “9000 miles of land” to his chiefs basing on their location and the importance of work they would be doing for the king.  In Swaziland as well, the king received the land from the colonialists and it has been passed over from one generation to another.

    Land reforms in Rwanda The Vision 2020 and the medium term strategy (the EDPRS) have focused on land administration and land use management as key areas for the land reform process that will support sustainable development. These efforts have come up against significant challenges    such as population pressure in both urban and rural areas which have led to land degradation. Presently, there are efforts to develop a national land use master plan which will subsequently be translated into local plans to guide zoning for activities including agriculture, urbanization, resettlement, public infrastructures, and biodiversity conservation.

    The realization of these efforts are likely to provide appropriate interventions for land degradation which will lead to enhanced agricultural productivity. Additionally, the appropriate location of activities informed by land suitability assessments will ensure that resettlement patterns, public infrastructure and the overall urbanization process provides the right kind of interventions for urban environmental issues in particular and proper national planning targeted at promoting environmental management in support of sustainable development.

    In order to achieve economic growth and development and the presence of absentee landlords, land has been left idle and unproductive. This has led to reforms which may contribute to the gross domestic income. The common land reforms in Rwanda.

    1. Land redistribution: This involves change of land tenure system whereby land is redistributed to different people who develop it. The land owned by absentee landlords has been given to other people for development.

    2. Land consolidation: This involves removing the fragments in the land so as to make it available in large quantity for extensive agriculture. In Rwanda land has been consolidated for basically large scale agriculture

    3. Land taxation: This involves taxing idle land so that the owners can make it productive by utilizing it appropriately.

    4. Land reclamation: It involves reclaiming the land that may have been washed away by running water into river beds. This is done to create more land for agriculture. It is common in areas along Nyabarongo river especially towards Bugesera district at a place called Mugendo. Most of the land has been reclaimed to create space mostly for sugar cane growing and other types of food crops.

    5. Land registration: This involves claiming ownership of the land by registering it at the land    registration offices and acquiring land titles . This is done at all district headquarters in offices in    charge of the lands.

    6. Removal of communal land so as to have individual ownership of the land for better development.

    7. Resettlement schemes: This involves shifting people from some areas that may be catastrophic and vulnerable to natural disasters.

    8. Land development laws: This is especially during construction of buildings where the land developer is required to acquire a construction license from the district. In Rwanda, construction of permanent    structure requires the developers to first get a construction license.

    Glossary


    Unit summary

    • Development process and strategies

                • Meaning of agriculture development

                • Goals of agriculture development

    • Agricultural development strategy

                • Meaning of agriculture development

                • Merits and demerits of agriculture development

    • Approaches to agricultural development

                • Transformation and modernization

                • Small scale and large scale production

                • Agriculture specialization and diversification   

                • Extensive and intensive techniques

                • Mechanization of agriculture

                 

                        

            

      



    Topic Area 5: Development Economics Sub-Topic Area 5.1: Economic Growth and Development Unit 8: Economic Growth, Development and UnderdevelopmentUnit 10: Industrial Development