The Need for Government Support for Farmers

By Param Vastani

Farmers are the backbone of society. Farming as an economic activity ensures food security and sustainability of rural areas. Farming has become particularly advanced in the past century with modern technology, irrigation systems and biologically optimizing seeds. However, all has not been well on the political and social aspect. Just in the past few years, protests broke out multiple times in western Europe (France, Germany, the Netherlands, etc.) and India, where farming is the largest employer.

Why did these protests break out?

The specifics are unique. Protests, in general, broke out because the governments loosened the protection of farmers or increased regulations on them.

Agriculture forms the bulk of the primary sector of an economy. Indian Agriculture comprises 17% of her GDP and a whopping 60% employment. Agriculture is a source of food, provides raw materials to industries (for example, cotton), plays a crucial role in exports (for many countries), and as mentioned, generates employment. If a country becomes self-sufficient in agriculture, its population is well fed (given corruption is limited).

Farmers have been facing several challenges, though. Climate change has caused water scarcity in many places. Governments have attempted to regulate environmental changes, and these have hurt farmers further (like the European Protests in 2024). Many farmers in developing countries face lack of resources and technology; they have to borrow capital from lenders at very high interest rates. The markets are also volatile with heavy competition.

The Government has power to solve many of these issues. Minimum Support Price should be introduced by governments, ensuring that farmers sell their produce. The government has the resources to build irrigation facilities like dams. Cooperative Societies also help by providing loans at reasonable interest rates. Government Banks introduce policies for farmers to borrow at low rates too. This prevents farmers from falling into debt traps. Transport, storage and communications are another set of auxiliaries that farmers should be given. Collectivization of land is a viable solution in places with fragmented holdings.

But the governments of many places have taken steps that hurt farmers. In Europe, the protests (2024) broke out because of the Governments cutting down subsidies on diesel fuel, proposing regulations for preventing climate change, and importing Non-EU produce. It's obvious how farmers are hurt by this, as they face higher costs, more restrictions and more competition. In 2020, protests broke out in India because the government passed laws, which, in short, aimed to liberalise agriculture such that farmers could directly deal with private buyers; farmers feared that this would eliminate the safety of Minimum Support Prices and leave them vulnerable to exploitation and increase volatility. These Acts were repealed in 2021.

These were serious protests which lasted for very long. Collectively, these strikes caused several billions of dollars in losses.

This raises some serious questions. Is it fair to regulate farmers when studies revealed that around 70% of global emissions was caused by 100 companies? It is not that there should be no regulation. Excessive use of pesticides and fertilisers destroys fertility and overuse of groundwater causes water scarcity. Delhi sees an influx of air pollution every year due to burning of crop stubble by farmers in nearby states. The government has the power and the resources to take measures and it must do so, but not at the cost of endangering farmers.

The measures that the governments can take have been illustrated on smaller scales. In the Indian state of West Bengal, for example, land distribution was a success. The periods of Green Revolution and White Revolution in India in the 20th century increased crop yields by 44% and milk production by 50%, with the help of new technology and reorganization. However, excessive use of chemicals and groundwater caused the beforementioned issues of water scarcity and degradation of fertility.

I’ve used India as an example throughout the article because of the profound importance of agriculture in the country and my familiarity with it. The Green Revolution had huge positive and negative effects on Indian agriculture, and it certainly revolutionized it.

Therefore, we have seen how great of an impact governments can bring when they support farmers, and the adverse effects that happen when they take steps restricting or excessively regulating them. Regulation is essential for preserving land and resources in the long run, but it should be carefully thought out before implementing them. Farmers are the base that built our civilization and brought about prosperity.

Bibliography:

1. https://online.maryville.edu/blog/why-is-agriculture-important/

2. https://www.britannica.com/event/green-revolution

3. https://www.pib.gov.in/PressReleasePage.aspx?PRID=1909213

4. https://testbook.com/articles/contribution-of-agriculture-in-gdp

5. https://www.sciencedirect.com/science/article/abs/pii/B9780128110508000054

6. https://www.reuters.com/markets/commodities/indian-farmers-protests-against-agricultural-laws-2021-11-19/

7. https://www.vox.com/future-perfect/24146466/europe-farmer-protests-eu-climate-environmental-policy-subsidies-livestock

8. NCERT “Economics” and “Understanding Economic Development” textbooks