The agriculture sector in T&T has been in relative decline for several decades and the seriousness of this is now becoming a problem in 2016. The decline has been attributed to external factors identified as economic structural transformation, “Dutch disease,” and changes in the global trading environment. Domestic constraints have been identified as weak research, weak extension and marketing systems, inadequate area under irrigation, flooding and praedial larceny.
This has left the island vulnerable and dependant on foreign imports on which billions are spent each year with this having a negative implications on GDP. In order for us to survive without oil and natural gas we need to redevelop the agricultural sector and make it attractive to local citizens and remove the misconception that agricultural is demeaning in status.
There needs to be increased productivity, profitability and competitiveness through, (a) adoption of improved technologies, varieties and new commodities, (b) improving efficiency and effectiveness of marketing and agricultural health and food safety systems, and (c) linkages with agro-industry.
The core strategy is complemented by efforts to reduce constraints of infrastructure, land tenure, credit and production risk. This needs to be supported by proper governmental policy that will assist local farmers in their plight to produce local products.
Both fiscal and monetary measures need to be implanted in order for this process to be successful. Low interest loans from the ADB are critical in boosting this agenda as it would provide farmers with an incentive to produce more.
The lending policy of the ADB needs to be reviewed and this is vital to give local farmers, big or small, a fair chance to compete domestically with readily available foreign goods and services. For example, subsidies should be given not only to the purchasing of new equipment and machinery, but also second-hand items.
This will give smaller farmers a more level playing field and would encourage new ones to enter into the industry. The long term implications is that this would significantly slash the import bill and can eventually lead to more competitive local produce that can compete with the so-called “better” foreign produce of First World nations. Agricultural diversification can then boost GDP and provide long-term employment as opposed to oil and natural gas which can be seasonal or dependent on the state of the global economy.
The investment in agriculture will allow citizens to enjoy a better standard of living and this can come in the form of better irrigation systems than will reduce flooding and better roads and infrastructure that would stimulate investments. In the long run this will lead to economic growth, curb inflation, reduce cost of living and improve the Human Development Index (HDI).
When the needs of the domestic market are met, excess supply can be sold to the international market and this will lead to a favourable balance of trade which will be beneficial to the local economy. However, in order for these plans to be efficient and effective, all stakeholders have to come together and it requires sound management, hard work and a mindset that is geared towards development.
Locals need to become serious by consuming and producing locally-grown crops. If not, the long-term effects can be devastating in times of crisis when food is in short supply and the real panic begins. It would seem that agricultural production is the way forward, for many smaller countries that have readily available fertile land, to compete in a market dominated by large capitalist nations that are superior in technology, infrastructure and financing.
Students at all levels of education should be taught about food security as opposed to basing a school curriculum and our future on non renewable resources such as oil and natural gas.
Trevis Singh