Agriculture in stock exchange contributes to Nigeria’s economy’s Gross Domestic Product (GDP). Agriculture currently provides over 30% of job opportunities. The total agricultural land area in Nigeria is 70.8 million hectares. The largest agricultural subsector in Nigeria is crop production, which makes Nigeria the largest producer of Yam and Cassava globally.
What is the meaning of stock in agriculture?
Stock in agriculture can refer to several things, which include the following;
Livestock: Domesticated animals raised for food, labor, and products like milk and cheese. Examples of livestock include cattle, sheep, goats, pigs, chickens, and ducks.
Seedstock: Seeds that are used to grow crops. Seedstock is typically of higher quality than regular seeds, often used by farmers to ensure a good crop yield.
Plant stock: Plants that propagate new plants. Plant stock can be cuttings, roots, or even entire plants. Growers typically use it to ensure that new plants are the same quality as the parent plant.
Stockpile: This is the term for a large quantity of a particular product stored for future use. Farmers often use stockpiles to ensure they have a supply of feed, fertilizer, or other agricultural products in case of a shortage.
Types of stock exchange in agriculture
People involved in stock exchange
- Buyers.
- Sellers.
- Buyers and sellers.
- Farmers agents.
- Stockbrokers.
| Stockbrokers | They buy or sell stocks as representatives for the general public. |
| Buyers | In simple terms, buyers are random individuals from the public wiling to buy stock. |
| Sellers | Sellers are individuals in possession of stock and willing to sell to interested buyers from the general public. |
| Buyers and Sellers | This group buys stock through stockbrokers and sells at higher prices when demand increases. |
| Farmers agents | They buy the stocks from farmers when the price is low, supply is higher, and resell when prices go up and demand is higher. |
List 10 importance of stock exchange in agriculture
- Encourages investment in agriculture.
- Provides a market for agricultural commodities.
- Facilitates the flow of information.
- Attracts foreign investment.
- Provides liquidity.
- Promotes competition.
- Generates revenue for the government.
- Creates jobs.
- Promotes economic development.
- Increases transparency.
Roles of farmers in stock exchange market
The role of farmers in the stock exchange is primarily selling produce to farmer agents who also sell to the general public. The farmer is responsible for production, making the farmer the first point of the stock exchange market. All other stock exchange players’ prices depend on the price given by the farmer at the farm gate.
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