Document Type : Research Paper
Authors
1 Department of Agricultural Extension and education, Faculty of Agriculture, Razi University, Kermanshah, Iran.
2 Department of Agricultural Extension and Education, Faculty of Agriculture, Razi Univercity, kermanshah, Iran,
3 Department of Agriculture Extension and Education, Faculty of Agriculture, Razi University, Kermanshah, Iran
Abstract
Keywords
Main Subjects
Extended Abstract
Objective
The country's development plans have not seen the agricultural sector grow at the rate that it has in recent years, and in spite of all the advancements, the sector continues to face a capital shortage. As a result, the movement of capital from the agricultural sector to other economic sectors is one of the structural issues facing the Iranian economy. If this pattern persists and there are no beneficial investments made in the agricultural sector, the sector's productivity will, decline and agricultural producers' ability to compete will naturally decline. Unfortunately, this low productivity and lack of competitiveness has made it difficult for the agricultural sector to absorb capital and has essentially created a vicious cycle of low competitiveness and lack of investment, which is getting worse right now. In addition, the migration process has grown out of control because of poverty and a lack of focus on investments and agricultural development. This puts the nation's food security and agricultural output at risk, but it also causes social problems, marginalization, and insecurity in urban areas. Therefore, virtually all experts believe that the lack of adequate capital in the agricultural sector is one of its biggest problems. The severity of this issue makes it impossible to accomplish the objectives of the vision document in the agricultural sector if it is not resolved. As a result, it is crucial to determine the variables influencing the growth of agricultural investment.
Methodos
In terms of paradigm, the research approach was quantitative, and in terms of analysis, it was descriptive and practical. The questionnaire served as the research instrument. There were 34386 farmers in the statistical population. The 264 individuals were selected through a random stratified sampling technique with proper attribution to the study using the Bartlett's sampling table. Spss22 software used to analyze data using descriptive and financial accounting techniques. The factor analysis method applied in the analytical statistics section, and the frequency, percentage, mean, and standard deviation were used in the descriptive statistics section.
Results
Consequently, Method of of Factor Analysis The study's findings determined the variables influencing investment growth in Agriculture sector are in different dimensions. Eight factors extracted that accounted for 71.707% of the factors' total variance and had eigenvalues greater than one. Farmers' economic circumstances, institutional development in agriculture (appropriate and effective laws and regulations), price stability, investment security, availability of credit, education and information, infrastructure, and quantity and quality of production factors are some of the factors influencing the growth of farmers' investments in the agricultural sector.
Discussion
According to the study's findings, the enhancement of infrastructure expected to boost agricultural productivity and generate incentives for capital attraction. Farmers will be more aware of farm management and investment if the software component given the proper attention, which includes training, raising awareness, and providing information on agriculture and investment. Encouraging people to become more financially literate allows them to be more productive and allows them to make wiser investment choices. By creating a framework that encourages investment and offering an appropriate setting for productive activities, institutions can help farmers engage in profitable ventures. Investors will be confused and the market for the sale of manufactured goods will be unstable due to the erratic laws and regulations in many sectors, particularly with regard to the export of agricultural products.
The agriculture sector is less appealing to investors due to its low productivity and unpredictable risks, which include weather shocks, natural disasters, animal and insect invasions, and the spread of diseases. As a result, it necessitates the application of contemporary, knowledge-based agriculture in addition to several support instruments. To update and modernize the agricultural infrastructure, it is recommended that the agricultural sector's investment development funds be reinforced. Additionally, the agricultural sector and rural systems will experience economic prosperity because of the operating banks' involvement in bolstering the agricultural infrastructure. In certain situations, it is necessary to completely reform the prior institutions through work, inventive management, and a shift in mindset in order to take advantage of the institutions' facilitation advantage. It is advised that new institutions be created in the alternative. It goes without saying that creating specialized unions, businesses, and organizations for the production of inputs is crucial to meeting the pre-production needs of the agricultural sector, handling production-related problems, and providing post-production support (such as bolstering processing industries and storage units) to increase the added value of manufactured goods. The farmers are extremely driven and investment is greatly increased in this way.
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