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STN 2503
MAJOR CROP
INDIVIDUAL ASSIGNMENT
JOURNAL REVIEW
PROVIDED BY :
FATIN NURIZDIAN BINTI MAHAMAD JOHARI
BM18200017
PROVIDED FOR :
SIR NOR HAMDI BIN SUPARDI
BACHELOR OF BUSINESS ADMINISTRATION
BACHELOR OF AGRICULTURE SCIENCE
THIRD SEMESTER SESSION 2 2019/2020
1
TABLE OF CONTENT
BIL CONTENTS PAGE
1 TABLE OF CONTENT 1
2 1.0 INTRODUCTION 2
3 2.0 THE LANDSCAPE OF AGRICULTURE INDUSTRY IN
MALAYSIA
2.1 THE FUTURE OF RURAL YOUTH IN AGRICULTURE
2.2 CLIMATE CHANGE ON YOUNG GENERATION
3
5 3.0 FACTORS THAT INFLUENCING YOUNG GENERATION TO
ENGAGE IN AGRICULTURE SECTOR
3.1 AGE
3.2 EDUCATION
3.3 SIZE OF LAND PER CAPITA
3.4 GENDER
3.5 NUMBER OF HOUSEHOLD MEMBERS
3.6 ECONOMIC STATUS
3.7 YEAR DUMMY
7
6 4.0 THE PERCEPTION OF YOUNG GENERATION 10
7 5.0 OTHERS COUNTRIES APPROACH TO ENCOURAGE
YOUNG GENERATION IN AGRICULTURE SECTOR
5.1 INCENTIVE FROM MALAYSIA IN AGRICULTURE
SECTOR
11
8 6.0 FUTURE OF MALAYSIAN AGRICULTURE 16
9 7.0 SUGGESTION 19
10 8.0 CONCLUSION 20
11 REFERENCES 21
2
1.0 INTRODUCTION
The agricultural sector has been an important one in Malaysia since before the country’s
independence and was the main contributor to the Malaysian economic during the First
National Agriculture Policy. Its emphasized the policy of expansion and focused on
commodity crops such as palm oil and cocoa. Based on statistics, agriculture industry
generates approximately 12% to the national gross domestic product (GDP) and also reduce
unemployment rate in Malaysia.
Besides, the history of agriculture can be traced back to during British administration in
Malaya. The commercial crop such as palm oil, cocoa and rubber were introduced. Since then,
these crops became the main agricultural exports to global markets. Agriculture can be a
medium for overcoming poverty, one reason being that it has the ability to reduce the
unemployment problem in Malaysia.
Moreover, the effectiveness of agriculture in combating poverty and unemployment has
been proven by the success of a number of high – impact agricultural programs initiated by
the Ministry of Agriculture such as Permanent Food Production Parks, High Impact Project –
Aquaculture Industrial Zone and Agropolitan (Faiz, 2010).
Based on statistics, the current 12.5 million or 43.8% of the national population of 28.5
million comprised of youths. Only 15% of the youngsters are involved in the agriculture
sectors. However, in spite of such efforts, agriculture entrepreneurship still fails to attract
interest from the younger generations and a number of causes have been identified.
While Norsida (2008) has highlighted that first, many youths are not properly informed
about the agriculture courses. Second, entrepreneurship is commonly associated with unstable
returns and profits and that perhaps youths see agriculture entrepreneurship as being a high
risk venture and are deterred by the risk of failure. Third, William (2004) highlight that there
is a lack of exposure to and relevant information about the importance of agriculture
entrepreneurship and food sufficiency.
3
2.0 THE LANDSCAPE OF AGRICULTURE INDUSTRY IN MALAYSIA
Picture 2.1The transition of the Agriculture Landscape
Source : Keynote Address : Transforming Rural Agricultural Landscape in the 11th Malaysia
Agriculture was then labeled as the “sunset industry” sideline in favour of industrialization.
However, agriculture remains an important part of the national economy in the new
millennium for the increasingly burgeoning populace with the challenge to provide both food
security and safety and sustainable development and wealth creation. With increasingly on
those type, agriculture then took the backstage roles in the economic development agenda,
unparallel even in the industrialized countries of Europe, Japan and North America.
According to Ben White (2012), reflecting on the possibility or impossibility of
smallholder futures means looking at the next generation or rural people and specifically the
generation problem in agriculture. Traditional agrarian societies are typically sites of
patriarchy in both gender and generational relations, reflected in patters of harsh discipline and
cultural emphasis on respect for the older generation, which are commonly seen in peasant
societies worldwide. Reason why young people express a reluctance to farm may reflect their
aversion, not to farming as such but to the long period of waiting that they face before they
have a chance to engage in independent farming, even when land is available.
4
Therefore, Md. Mahmudul Alam, Md Wahid Murad, Siwar Chamhuri and Rafiqul Islam
Molla (2010) state that the socioeconomic characteristics of farmer and farm are important for
better policy. Due to agricultural profitability, young people are not interested in agriculture.
So the farmers are old age group also less productivity. Majority of the farmers are educated,
but high educated people are also not interested in agriculture because low profitability in
respect to off – farm wage.
Meanwhile, research from Aminah Ahmad and Narimah Ismail (1998) found that tedious
and repetitive manual tasks are often done by women farmers in Malaysia. extension education
program objectives aimed at increasing crop production should be based on the needs of both
men and women farmers consistent with their roles. Therefore, it is necessary that extension
program planners recognize and utilize gender role analysis as an important component of
program planning. Its attention should be given to both the domestic role and the productive
role of women so that they do not become marginalized from important agricultural resources,
including information and technology.
Considering women as potential beneficiaries of agricultural technology development,
there is also a need to recruit more women extension workers. This would increase contact
with women farmers. An improved balance between male and female extension staff,
including administrators, can enhance the information flow between women farmers and
extension staff. Hence, the apparent gender – typing of agricultural tasks suggests the need for
male extension workers and male farmers to be made aware of these differences through
appropriate training. This would ensure that underlying assumptions and attitudes associated
with gender – typing which could work to the disadvantages of farm women would be
overcome.
5
2.1 THE FUTURE OF RURAL YOUTH IN AGRICULTURE
Thinking about youth, Ben White (2012) state that farming and food raises fundamental
questions about the future, both of rural young women and men, and of agriculture itself.
If visions of a future based on smallholder – based agriculture are to be realized, and if
young people are going to have a place in that future, these problems have to be taken
seriously and given much more attention than has been the case in recent policy of the
agriculture in some country.
There is something fundamentally worrying about policy contexts which allow
older men, in communities, local or national governments to engage in or endorse land
transactions which may permanently bar the next generation of young men and women
from farming careers, without giving those to be affected any say – so in this process. In
such conditions young people may have no option but to invent their own ways of doing
politics, as did the predominantly young masses of people who went to the streets and
brought down the government.
There are real and important choices to be made, with important consequences for
the coming generations. Will young men and women still have the option, and the
necessary support to engage in environmentally sound, small – scale, mixed farming,
providing food and other needs for themselves.
6
2.2 CLIMATE CHANGE ON YOUNG GENERATION
Before the 70s, agriculture cultivation was the backbone of the Malaysian economy as
the country is rich with natural resources and unutilized land. Many Malaysian were
working in the agricultural sector to make a living as the country made its maiden step to
grow the economy after gaining independence in 1957. The manufacturing sector
generated RM 1.27 trillion in 2017 involving 2.2 million individuals in the country, while
the agriculture sector made RM 96 billion in revenue with the involvement of 835,974
persons. Between April and June 2019, the agricultural sector contributed 4.2% to the
total economy as revenue from the palm oil sector moderated and contraction in the
fishery segment was recorded. (Shaheera Aznam Shah and Rahimi Yunus, 2019)
Environmental agriculture can improve the quality of rural life, discourage
urbanization and stimulate farming. This goal is associated with employment. By
improving rural employment is a nation’s best interest because it increases national
agricultural capacity, curbs, migration to cities and generally improves quality of life.
However, a great goal cannot be achieved without the adequate support of human
resources, both quantitatively and qualitatively. The current condition of human
resources in the agriculture sector, becoming a threat against the improvement of
agriculture sector performance in the future, is the young generation’s low interest in and
motivation to work in the agricultural sector.
Based on E Widiyanti, N Setyowati and D T Ardianto (2018), the climate change
has raised serious concerns for developing countries to face very big social,
environmental an economic impact. This change could reduce crop yield and areas
vulnerable to drought could become marginal for cultivation. Defenseless areas are
expected to experience agricultural productivity losses, primarily due to the reduce crop
yields. Such condition threat leads the young generation to rethink of deciding on
working in the agricultural sector. Climate change results in uncertainty and high risk in
farming.
7
3.0 FACTORS THAT INFLUENCING YOUNG GENERATION TO ENGAGE IN
AGRICULTURE SECTOR
Sri Hery Susilowati (2014) discussed about the factor that affects the youths on working in
agriculture. The dummy variable performed for each based commodity region. The variable
that significantly affect the probability of youth on being involved in agriculture are age,
education, tenure, gender and economic status. Meanwhile, the number of household members
had significant affect only in dry land – secondary crops area and year dummy had a significant
effect only on dry land – plantations area.
3.1 AGE
Age are significantly affects the chances of the youth to be involved in agriculture and its
definitely in all area. This indicated that the youth involved in agriculture generally were
relatively young than the age limit of 35 years. The younger a person was, the bigger the
opportunity to engage in agriculture. It might be that the young men were actually still in
the learning period. For example, students helping their parents work on farm in his
analysis.
3.2 EDUCATION
Education effect on youth’s opportunity to be involved in agriculture. The bigger the
opportunity to be involved in agriculture. The higher the education, the opportunity to be
involved in agriculture was also bigger. It means that young workforce can engaged in
agriculture had relatively good education. There are young people who were still at school
or college had a second job to help their parents on the farm.
8
3.3 SIZE OF LAND PER CAPITA
From Sri Hery Susilowati (2014) the greater the chance for young workforce to be
engaged in agriculture are based on the smaller the land size per capita is. It means that
most of young workforce will engaged in agriculture do not have arable land, both the
land owned by their parent or profit – sharing or rental basis. It also consistent with the
fact that the farm size of farmers is smaller so that the youth opportunity to get access to
the land is also getting smaller, both with their owned, profit – sharing or rental status.
3.4 GENDER
This factor significantly had a negative effect on the chances of youth to be involved in
agriculture. There only on dry land region of secondary crops that gender showed a
positive effect although insignificant. Besides, the fewer the young male workers are, the
greater the opportunity for women to work on the farm. Those suggests that many young
female workers are involved in agriculture. This is quite common when the girls are no
longer in school and unmarried. They usually help their parents on the farm until they get
married and take care of their own household.
3.5 NUMBER OF HOUSEHOLD MEMBERS
The number of household members are also significant effect on dry land region of
intercrops and dry land plantations. Based on the study, the larger the number of household
members was, the greater the chances of young workforce to work on the farm. The
involvement of the younger members of the household on the farm can be as temporary
or permanent job. The household members who are still students in addition to working
on the farm they also work in other sector. Hence, most of the household member of
respondents generally have double jobs such as in agriculture and in non – agriculture.
9
3.6 ECONOMIC STATUS
Based on Sri Hery Susilowati (2014) amount of income per capita (expenditure per capita)
are reflects the economic status measured. These variable significantly affect the
opportunities of youth on working in agriculture in all regions except in the areas of dry
land crops. The better the economic status was, the greater the chances of youth to work
in agriculture. This is implied that the economic status of the youth who were not involved
in agriculture was not as good as the youth who were involved in agriculture because
agriculture was a source of household income which contribute to the per capita income
of the household greater compared with the youth who were not involved in agriculture.
3.7 YEAR DUMMY
The year dummy factors only had a positive effect on the plantations type of region. It
showed the change in youth involvement in agriculture at two points of time. It means that
for the three years there had been a significant change in youth involvement in agriculture
especially in the area of the plantation and with the difference in the year 2009 to the year
2013, there were more youth involved in agriculture.
10
4.0 THE PERCEPTION OF YOUNG GENERATION
The young generations characteristics and their perceptions about working in the agricultural
sector are described. Based on E Widiyanti et.al (2018), the young generation’s perception of
agricultural work is a form of positive and negative assessment on working in the agricultural
sector. A study showed the term fairly good income received from the agricultural sector is
only able to meet the primary need and secondary need.
Next, most youths have a fairly good perception on the social status of working as a farmer
due to their environment that views of farming as a noble job. farming means to contribute to
providing food resources for the commodity. In addition, the structure of rural communities
still sees farmers with the agricultural land like the ones having a fairly high social status.
Besides, in relation the young perceptions of social status and income for most youths also
have a fairly good perception on the convenience of working in the agricultural sector. The
work convenience intended by the young farmers here is the existence of facilities and
infrastructure supporting the farming activities. The current conditions showed that technology
and mechanization in the agricultural field run very rapidly and highly need the young
generations participation.
E Widiyanti et.al (2018) also analyzed that career development from young generations is
quite good and not good enough. This is because of the up and down of income for the farming
is not balance. Many people think that being a farmer does not provide a warranty of future
life for them. Farmer grow older and are no longer able to devote their energy to cultivate their
land, they will case to produce their source of food and income. Most youths consider that
there is an adequate warranty of future life and half of them are don’t think so in working as
farmers.
11
5.0 OTHERS COUNTRIES APPROACH TO ENCOURAGE YOUNG GENERATION IN
AGRICULTURE SECTOR
Other countries are highly approaching the young generation to involving them in agriculture
sector. Based on Kauffman (2013) in Sri Hery Susilowati (2014) to start a business in the
agricultural sector, young farmers and novice farmers generally will encounter several
challenges, especially those who are categorized as small farmers. The main characteristics of
small farmers are having limited capital, education and experience. With such of constraints,
it would be difficult to gain access to capital from commercial banks because generally they
do not have any collateral so that the credit is deemed to have a high risk in the repayment.
The increasing of the population in some country may cause of increasing the demands for
food. Therefore, the agricultural sector plays a very important role to people meet the food
needs and may help success of a country in providing food for its population in agricultural
production and productivity. Based on Sri Hery Susilowati (2014) the youth interest in
working on the farm must be grown.
The business in agriculture should start with young famers constraints, primarily related to
capital aspect. Hence, aware of this problem, many developed countries as well as developing
countries have come up with various incentive schemes so that young farmers and beginner
farmers can start their business easily, especially on farm agriculture.
Based on Davis et.al (2013) in Sri Hery Susilowati (2014), European Policy approaches to
promote structural adjustment in agriculture are Farmer Early Retirement and New Entrance
Scheme for farmer. First, working capital installation grant. Second, an interest subsidy on a
farm. Hence, a capital installation would be made to new entrance meeting specific eligibility
criteria concerning management control of the business, income viability and a commitment
to remain in farming as the main occupation for a specific period. A suitable designed new
entrance scheme involving an interest subsidy loan and working capital installation grant on a
farm can result in significant improvements in farm performance.
12
Next, Murphy (2012) in Sri Hery Susilowati (2014), Victoria – Australia create Young
Farmer Finance Scheme through Rural Finance to people 40 years or under and provides three
loan facilities with an interest rate concession. Which is first, to purchase stock and equipment.
These loans have a term of up to eight years with a 2% concession off Rural Finance’s
commercial interest rate for the first three years and then commercial rates apply for the rest
of the loan term. Second, these loans have a term of 15 years with a 2% concession off Rural
Finance’s commercial interest rate for the first five years and then commercial rates apply for
the rest of the loan. Third, one to grow. This loan is aimed at young farmers who are looking
to purchase their first block of land as a first step towards owning and operating a commercial
farm. These loans have a term of up to 12 years with a 1% discount off Rural Finance’s
commercial interest rate for five years and then commercial rates apply for the rest of the loan.
Then, France are budgeted to total public expenditure between 2007 and 2013. Young
farmers under 40 years old can have as a lump sum or as a subsidized loan to start an
agricultural operation. When land comes up for sale in some provinces of France it is the local
government and a farmer board that decides who can buy the land and they also set the price.
The government also assists young farmers with a reduction in taxes paid that is stepped up
over five years, which helps cash flow through the start – up period.
In addition, United Kingdom with The National Federation of Young Farmers Clubs in
Coventry introduced to a program that was running in Wales called the Young Entrants
Support Scheme (YESS). The package includes a one – off grant payment for eligible capital
expenditure when a young entrant (under 40) is setting – up as head of holding for the first
time or when the applicant has set – up as head of holding for the first time within the previous
12 months. Access to funded mentoring services from established farmers or professionals. To
qualify applicants are required to submit a Business Development Plan, including details of
the capital investment that the grant will support.
13
While USA have access to funding through a number of channels for young farmers. If a
young or beginning farmer does not qualify for a loan with a commercial bank then they can
apply to Farm Credit or they can apply for a loan from the Farm Service Agency which is a
department within the US Department of Agriculture. There are also organizations like Iowa
Agricultural Development Authority that have lending products and administer tax credits as
a form of assisting young farmers.
In Alberta, Canada, the Agriculture Financial Services Corporation (AFSC) explained their
program that does not take into account the age of the loan applicant but uses a net worth
calculation to determine if the applicant qualifies for an interest rate concession. The
Beginning Farmer Incentive offers an interest rate concession of 1.5% for the first firve years
of a loan and is available with a net worth of $500,000 or less at the time of application. A
couple applying jointly for the loan could receive the Beginning Farmer Incentive on loans up
to $1 million provided both have an individual net worth of %500,000 or less at the time of
application (Murphy, 2012 in Sri Hery Susilowati (2014)).
Meanwhile, Manitoba Agricultural Services Corporation (MASC) has an interett rate
rebate for farmers less than 39 years of age. The Young Farmer Rebate which is an annual
rebate of 2% on the first $150,000 of principal of a loan for each of the first 5 years which is
$3,000 annually and $15,000 total after 5 years. The applicant also has the choice of a 90%
financing option that reduces the deposit required or five years of interest – only paymens to
assist with cash flow. (Murphy, 2012 in Sri Hery Susilowati (2014)).
Lastly, in spite of the current rural – urban migration trends, more and more talented young
people who are good at farming and who earn their first fortunes in the cities are shifting their
focus to agriculture and going back to rural areas. The Ministry of Agriculture has issued new
supporting policies in 2011, such as offers of loans and tax benefits, to facilitate youth to go
back to their hometowns to start agriculture-based businesses. Training programs on practical
farming skills and farm management are also provided (Jieying Bi, 2014 in Sri Hery
Susilowati, 2014)
14
5.1 INCENTIVE FROM MALAYSIA IN AGRICULTURE SECTOR
Despite of global challenges such as climate change, the outlook for the agriculture
sector for te next decade appears a growing population and scarcity of resources. The
agriculture sector or more precisely the agro – food sector. The country will still depend
on other sector contribution such as the services sector and the manufacturing sector.
(Shaheera Aznam Shah and Rahimi Yunus, 2019)
The Ministry of Agriculture (MOA) are offers fiscal incentives for the Approved
Food Production Project. This incentive is given as an incentive or incentive to private
companies to implement food production. It aims to attract participation and enhance
private sector investment in the agro food industry. The incentives provided are in the
form of tax deductions to investors and tax exempt companies implementing the approved
Food Production Project under Income Tax Ac 1967.
The commodities approved in fiscal incentives (tax exemption) for the agribusiness
sector such as crops, livestock, fishing catch, aquaculture or culture. The requirements to
apply for a Young Agropreneur Grant Under the Young Agropreneur Program are below
40 years old Malaysian. The government – provide also assistance to young entrepreneur
(MyAgrosis) such as Grand in Kind Contribution (Young Agropreneur Grant) for the
purpose of helping them to enter the agriculture sector. Second, help promotional
participation is offered to potential young entrepreneurs and provided in the form of rental
of international promotion. Third, MyAgrosis Agropreneur Transformation Coaching
Program was introducing to raise potential its club members at the HEIs to become young
entrepreneurs as easily as the final year of their studies
The main agenda of this programme is to increase the involvement of the young
generation in agriculture and agro – based and to shift their paradigm towards this sector.
The government is focusing in changing the negative perception to bring youths closer
and boost their participation in the agricultural sector, which was the third biggest
contributor to the economy.
15
Besides, the incentives by the Malaysian Investment Development Authority
(MIDA) also provided incentives focusing on the manufacturing sector. However, its
cover only specific sectors instead of the supply chain created an unsupportive business
environment for agropreneurs. In order to shoulder the needs of the industry, MoA is
seeking to expand the current scope of the incentives to cover both the upstream and
downstream subsectors.
In the program in farming industry, Agrobazaaar Rakyat is a business premises
owned by entrepreneurs who carry on their daily essentials retail business, offering
affordable prices and featuring attractive, organized, neat and uniform images nationwide.
Owned by Federal Agricultural Marketing Authority (FAMA) This program is aim of the
Agrobazaar Fold Shop was to collect, buy and sell agricultural produce by the villagers
while selling basic necesstities at a fixed price. It is also one of the mechanisms for
alleviating poverty and providing income opportunities to the local community.
Agrobazaar also offer basic necessities and agricultural products at reasonable
prices and as a mechanism to control inflation while facility the local people to supply. It
is to encourage the eacitivities of the local agricultural products concept in line with the
government campaign. The incentives of this program are loans of various equipment and
product related in shop, repaint the exterior premises and the business space, unified
business signage, entrepreneurship course and supply.
16
6.0 FUTURE OF MALAYSIAN AGRICULTURE
According to Bakar, B.B (2009), Malaysian agriculture like those in many contries is shaped
by several factors as follows ;
i) Status of the natural resource base
ii) Climate change
iii) Extent of land degradation
iv) Advances in science and technology
v) Urbanization
vi) Trade liberalization and commercialization
vii) Strategic alliances and international agreements and conventions
The agricultural production capacity in Malaysia, in effect, will be tapping three principal
sources of growth such as (i) Expanding the arable land area; (ii) Increasing cropping intensity
(mostly through irrigation); and (iii) Boosting yields. This is made possible as Malaysian
agricultural landscapes are yet to approach the ceiling for all the three sources at the local
scale. However, the intrinsic geopolitical unevenly distribution of available land in Sabah,
Sarawak and Peninsular Malaysia coupled with the equally unequal population concentrations
in these regions, and locally-mediated consumer demands for agricultural produce and inputs
reflect the present state of agricultural development in the country.
These factors would influence agricultural development in the country in a holistic manner,
although the effect and intensity of influence of each factor may vary accordingly. Invariably,
agricultural development faces three major global challenges in the new millennium which is
(i) Persistence of poverty and food insecurity; (ii) Globalization and its impact on the eventual
transformation of traditional agricultural systems, and (iii) Continuing and perennial pressure
on the deterioration of the natural resource base.
17
This present state is echoed by Anon (2003) where enough unused potential farmland at
the regional scale, of which only ca. 11% (5.78 million ha) of all land is used in crop
production. Out of this, ca. 36% of the arable land to some degree are suitable for crop
production and ca. 18.92 million ha of arable land remains with crop production potential.
Reflections of the regional- or population-mediated pressure needing the arable land may not
have it.
The agricultural production programme through intensification is intimately linked with
the availability of labour and fertilizer-use efficiency. Labour is a central issue pertaining to
the future of agriculture and its ensuing sustainable development. The general trend in
Malaysia and elsewhere is towards increasing farm labour scarcities due to rapid migration to
urban areas, and increasingly burgeoning populace, demanding better pay and competition for
labour by industrial sectors. Invariably it follows that intensification of agriculture adds to
labour demand and scarcity. This calls for growing demand for labour – saving technologies.
The employment of a biotechnology tool of genetic engineering (GE) - a technique which
allows genes to be transferred from one species to another leading to the production of
genetically modified organisms (GMOs) calls for big investments in manpower training and
acquiring the technology through innovative research by the locals. Further evaluations on
yield, agronomic performances and physical and chemical properties of the grain, includ ing
nutritive constituents are being made.
There are emerging issues associated with GM crops that Malaysia either as an importing
consumer nation or a potential producer need to address or be concerned of. These include (i)
Coexistence: cultivation of conventional, organic agriculture and GM crops; (ii) Labeling:
detection limits and traceability of adventitious presence of GM materials; (iii) Liability and
redress: the needs to consider their legal system and relevant international agreements; and
(iv) Pharming: production of pharmaceutical products in plants, e.g. vaccines in bananas.
18
In effect, the welfare of farming community together with the consumers at large in
Malaysia are affected by the way policy makers and advisors, and funding agencies conduct
themselves and their policies with respect to the adherence of an integrated multi-disciplinary
research approach in biological sciences including genetic engineering alongside conventional
breeding and agronomy, but also the socio-economic context where farming occurs. This is
where the societal goals of agriculture would have the greatest impact on the society.
Regardless of the emerging technologies and issues associated with sustainable agricultural
development in the country hinges very much on future trends and expansion of conservation
technologies comprising (i) Good Agricultural Practices (GAP); (ii) Integrated Production
Systems; (iii) Integrated Pest Management (IPM); (iv) Integrated Plant Nutrient System
(IPNS); (iv) No Till / Conservation Agriculture (NT/CA); (v) Organic Agriculture; and (vi)
Urban and Peri – Urban Agriculture. Two other central factors that may shape the future of
agricultural development in Malaysia include irrigation and water availability. These are
especially crucial to food production and supplies in Malaysia.
This is echoed by Baki (2006) who argued that access to water and food security are
dramatically linked. These international agreements would have consequential effects on the
way agricultural industries are conducted are :
i) Access to, and transfer of plant genetic materials and technologies
ii) Prevention on spread and introduction and control of pests of plants and plant
products
iii) Export and import of hazardous substances
iv) Protection of human or animal life or health from risks arising from additives,
contaminants, toxins or disease-causing organisms in foods, beverages or feedstuffs
v) Precautionary approach to protect Malaysia for their biodiversity resources
vi) Protecting the health of consumers and ensuring fair practices in the food trade
vii) Establishment of Code of Conduct with strict adherence of protocols on the
distribution and use of pesticide
19
7.0 SUGGESTION
The efforts are needed to find some strategic measures that will encourage the youths’ positive
and good consideration also the improvement of youths’ interest in the agricultural sector.
Based on Paisley C (2014) explained some efforts to encourage young people to be interested
in agriculture with sharing the young professional success stories in agriculture, optimizing
the role of social media in spreading positive messages to global audiences as well as
information about opportunities in this sector, working together and accepting new ideas and
strategies form youths to improve the family farm productivity.
The older generation must understand that young people can bring modern practices and
tools to help modernize the agricultural business activities. Jieying B (2014) also emphasizes
on the importance of advocacy networks, the appreciation and competition for youth in
agricultural research and development, the setting up of success stories, the conferences and
other channels that can be used to advocate modern agriculture.
In my suggestion, the young generation should be provided more direction for their
development to increase their potential and role in agricultural development to become a
professional young agricultural entrepreneur.
Second, Malaysia can expand in further the agricultural sector such as accomplished by
empowering the young generation to become young Farmers entrepreneur through
agribusiness optimization efforts. Some of role of youth in agricultural development can be
appreciate and approaching the young generation through media that be efficient and effective
to restore the optimism and interest in the agricultural sector among young generation.
For the former farmers, they should be preparing and adaptation strategy to anticipate the
loss due to changes of era and climate changes. The strategies can be taken among others such
as adjusting planting time, optimizing the absorption well, cultivation innovation or
performing a good financial management. This strategic expected to keep profitable and attract
more young generation’s interest in working in the agricultural sector.
20
8.0 CONCLUSION
The government is positive in increasing the percentage of young people to be participating in
the industry. The ministry will continue various approaches to lure the young to join the
industry. In 10 years, Malaysia will have more successful young agricultural entrepreneurs in
the country. The role of youth as the next generation for the sustainability of the agricultural
sector is very important. Therefore, the agricultural sector has always played a strategic role
in supplying raw materials to meet the food needs which continue to grow along with the
increasing number of population. However, the phenomenon is that the youth are reluctant to
work in agriculture so that the number of young farmers has declined but the number of aging
farmers has increased.
The decrease in the number of young farmers is closely related to the size of agricultural
land which is becoming smaller. Poor agricultural prospects due to its inability to provide a
reliable income also contribute to the present condition. Addressing the structural change in
the employment and learning from the experience of other countries that offer a variety of
incentives to attract youth to work on the farm.
By using current incentives that available for the farmers in general, a special provision
should be given to the young and beginner farmers. These may include higher interest subsidy
on agricultural loan and higher credit limit. In addition to the incentive policies, the strategy
that needs to be done to attract the youth to work in agriculture is to promote a much more
productive and higher agriculture income through the development of agricultural industry,
innovation, investment, infrastructure, and strengthening agricultural institutions from
upstream to downstream
21
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For Extension Planning, article access from website of
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2020)
Bakar, B.B (2009), The Malaysian Agricultural Industry in The New Millennium : Issues and
Challenges. Access from website http://eprints.um.edu.my/10909/ (14 March 2020)
Ben White (2012), Agriculture And The Generation Problem : Rural Youth, Employment And The
Future of Farming, article access from website of
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roblem_Rural_Youth_Employment_and_the_Future_of_Farming (09 March 2020)
Datuk Allaudin b. Hj. Anuar (2015), Keynote Address : Transforming Rural Agricultural
Landscape In The 11th Malaysia Plan – A Focus On The Rice Industry, access from
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2020)
Md. Mahmudul Alam, Md Wahid Murad, Siwar Chamhuri And Rafiqul Islam Molla (2010),
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_in_Malaysia_Study_on_Integrated_Agricultural_Development_Area_in_North-
West_Selangor (10 March 2020)
Ministry of Agriculture and Food Industry (MoA), official portal
https://www.moa.gov.my/insentif-/-geran-/-dana-/-pelaburan ( 05 March 2020 & 20 March 2020)
22
Mohamad Kamal Abdul Kadir (Dr.) (2014), Development Of Young Agropreneur In Malaysia,
access from web http://ap.fftc.agnet.org/ap_db.php?id=326&print=1 , FFTC Agricultural
Policy Platform (05 March 2020)
Shaheera Aznam Shah & Rahimi Yunus (2019), Malaysia Eyes Agricultural Modernization To
Revive The Sector, news access from website
https://themalaysianreserve.com/2019/08/19/malaysia-eyes-agricultural-modernisation-
to-revive-the-sector/ (05 March 2020)
Sri Hery Susilowati (2014), Attracting The Young Generation To Engage In Agriculture, access
from web http://ap.fftc.agnet.org/ap_db.php?id=323, FFTC Agricultural Policy Platform
(05 March 2020)

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Stn2503 Major Crop journal review fatin nurizdian bm18200017

  • 1. STN 2503 MAJOR CROP INDIVIDUAL ASSIGNMENT JOURNAL REVIEW PROVIDED BY : FATIN NURIZDIAN BINTI MAHAMAD JOHARI BM18200017 PROVIDED FOR : SIR NOR HAMDI BIN SUPARDI BACHELOR OF BUSINESS ADMINISTRATION BACHELOR OF AGRICULTURE SCIENCE THIRD SEMESTER SESSION 2 2019/2020
  • 2. 1 TABLE OF CONTENT BIL CONTENTS PAGE 1 TABLE OF CONTENT 1 2 1.0 INTRODUCTION 2 3 2.0 THE LANDSCAPE OF AGRICULTURE INDUSTRY IN MALAYSIA 2.1 THE FUTURE OF RURAL YOUTH IN AGRICULTURE 2.2 CLIMATE CHANGE ON YOUNG GENERATION 3 5 3.0 FACTORS THAT INFLUENCING YOUNG GENERATION TO ENGAGE IN AGRICULTURE SECTOR 3.1 AGE 3.2 EDUCATION 3.3 SIZE OF LAND PER CAPITA 3.4 GENDER 3.5 NUMBER OF HOUSEHOLD MEMBERS 3.6 ECONOMIC STATUS 3.7 YEAR DUMMY 7 6 4.0 THE PERCEPTION OF YOUNG GENERATION 10 7 5.0 OTHERS COUNTRIES APPROACH TO ENCOURAGE YOUNG GENERATION IN AGRICULTURE SECTOR 5.1 INCENTIVE FROM MALAYSIA IN AGRICULTURE SECTOR 11 8 6.0 FUTURE OF MALAYSIAN AGRICULTURE 16 9 7.0 SUGGESTION 19 10 8.0 CONCLUSION 20 11 REFERENCES 21
  • 3. 2 1.0 INTRODUCTION The agricultural sector has been an important one in Malaysia since before the country’s independence and was the main contributor to the Malaysian economic during the First National Agriculture Policy. Its emphasized the policy of expansion and focused on commodity crops such as palm oil and cocoa. Based on statistics, agriculture industry generates approximately 12% to the national gross domestic product (GDP) and also reduce unemployment rate in Malaysia. Besides, the history of agriculture can be traced back to during British administration in Malaya. The commercial crop such as palm oil, cocoa and rubber were introduced. Since then, these crops became the main agricultural exports to global markets. Agriculture can be a medium for overcoming poverty, one reason being that it has the ability to reduce the unemployment problem in Malaysia. Moreover, the effectiveness of agriculture in combating poverty and unemployment has been proven by the success of a number of high – impact agricultural programs initiated by the Ministry of Agriculture such as Permanent Food Production Parks, High Impact Project – Aquaculture Industrial Zone and Agropolitan (Faiz, 2010). Based on statistics, the current 12.5 million or 43.8% of the national population of 28.5 million comprised of youths. Only 15% of the youngsters are involved in the agriculture sectors. However, in spite of such efforts, agriculture entrepreneurship still fails to attract interest from the younger generations and a number of causes have been identified. While Norsida (2008) has highlighted that first, many youths are not properly informed about the agriculture courses. Second, entrepreneurship is commonly associated with unstable returns and profits and that perhaps youths see agriculture entrepreneurship as being a high risk venture and are deterred by the risk of failure. Third, William (2004) highlight that there is a lack of exposure to and relevant information about the importance of agriculture entrepreneurship and food sufficiency.
  • 4. 3 2.0 THE LANDSCAPE OF AGRICULTURE INDUSTRY IN MALAYSIA Picture 2.1The transition of the Agriculture Landscape Source : Keynote Address : Transforming Rural Agricultural Landscape in the 11th Malaysia Agriculture was then labeled as the “sunset industry” sideline in favour of industrialization. However, agriculture remains an important part of the national economy in the new millennium for the increasingly burgeoning populace with the challenge to provide both food security and safety and sustainable development and wealth creation. With increasingly on those type, agriculture then took the backstage roles in the economic development agenda, unparallel even in the industrialized countries of Europe, Japan and North America. According to Ben White (2012), reflecting on the possibility or impossibility of smallholder futures means looking at the next generation or rural people and specifically the generation problem in agriculture. Traditional agrarian societies are typically sites of patriarchy in both gender and generational relations, reflected in patters of harsh discipline and cultural emphasis on respect for the older generation, which are commonly seen in peasant societies worldwide. Reason why young people express a reluctance to farm may reflect their aversion, not to farming as such but to the long period of waiting that they face before they have a chance to engage in independent farming, even when land is available.
  • 5. 4 Therefore, Md. Mahmudul Alam, Md Wahid Murad, Siwar Chamhuri and Rafiqul Islam Molla (2010) state that the socioeconomic characteristics of farmer and farm are important for better policy. Due to agricultural profitability, young people are not interested in agriculture. So the farmers are old age group also less productivity. Majority of the farmers are educated, but high educated people are also not interested in agriculture because low profitability in respect to off – farm wage. Meanwhile, research from Aminah Ahmad and Narimah Ismail (1998) found that tedious and repetitive manual tasks are often done by women farmers in Malaysia. extension education program objectives aimed at increasing crop production should be based on the needs of both men and women farmers consistent with their roles. Therefore, it is necessary that extension program planners recognize and utilize gender role analysis as an important component of program planning. Its attention should be given to both the domestic role and the productive role of women so that they do not become marginalized from important agricultural resources, including information and technology. Considering women as potential beneficiaries of agricultural technology development, there is also a need to recruit more women extension workers. This would increase contact with women farmers. An improved balance between male and female extension staff, including administrators, can enhance the information flow between women farmers and extension staff. Hence, the apparent gender – typing of agricultural tasks suggests the need for male extension workers and male farmers to be made aware of these differences through appropriate training. This would ensure that underlying assumptions and attitudes associated with gender – typing which could work to the disadvantages of farm women would be overcome.
  • 6. 5 2.1 THE FUTURE OF RURAL YOUTH IN AGRICULTURE Thinking about youth, Ben White (2012) state that farming and food raises fundamental questions about the future, both of rural young women and men, and of agriculture itself. If visions of a future based on smallholder – based agriculture are to be realized, and if young people are going to have a place in that future, these problems have to be taken seriously and given much more attention than has been the case in recent policy of the agriculture in some country. There is something fundamentally worrying about policy contexts which allow older men, in communities, local or national governments to engage in or endorse land transactions which may permanently bar the next generation of young men and women from farming careers, without giving those to be affected any say – so in this process. In such conditions young people may have no option but to invent their own ways of doing politics, as did the predominantly young masses of people who went to the streets and brought down the government. There are real and important choices to be made, with important consequences for the coming generations. Will young men and women still have the option, and the necessary support to engage in environmentally sound, small – scale, mixed farming, providing food and other needs for themselves.
  • 7. 6 2.2 CLIMATE CHANGE ON YOUNG GENERATION Before the 70s, agriculture cultivation was the backbone of the Malaysian economy as the country is rich with natural resources and unutilized land. Many Malaysian were working in the agricultural sector to make a living as the country made its maiden step to grow the economy after gaining independence in 1957. The manufacturing sector generated RM 1.27 trillion in 2017 involving 2.2 million individuals in the country, while the agriculture sector made RM 96 billion in revenue with the involvement of 835,974 persons. Between April and June 2019, the agricultural sector contributed 4.2% to the total economy as revenue from the palm oil sector moderated and contraction in the fishery segment was recorded. (Shaheera Aznam Shah and Rahimi Yunus, 2019) Environmental agriculture can improve the quality of rural life, discourage urbanization and stimulate farming. This goal is associated with employment. By improving rural employment is a nation’s best interest because it increases national agricultural capacity, curbs, migration to cities and generally improves quality of life. However, a great goal cannot be achieved without the adequate support of human resources, both quantitatively and qualitatively. The current condition of human resources in the agriculture sector, becoming a threat against the improvement of agriculture sector performance in the future, is the young generation’s low interest in and motivation to work in the agricultural sector. Based on E Widiyanti, N Setyowati and D T Ardianto (2018), the climate change has raised serious concerns for developing countries to face very big social, environmental an economic impact. This change could reduce crop yield and areas vulnerable to drought could become marginal for cultivation. Defenseless areas are expected to experience agricultural productivity losses, primarily due to the reduce crop yields. Such condition threat leads the young generation to rethink of deciding on working in the agricultural sector. Climate change results in uncertainty and high risk in farming.
  • 8. 7 3.0 FACTORS THAT INFLUENCING YOUNG GENERATION TO ENGAGE IN AGRICULTURE SECTOR Sri Hery Susilowati (2014) discussed about the factor that affects the youths on working in agriculture. The dummy variable performed for each based commodity region. The variable that significantly affect the probability of youth on being involved in agriculture are age, education, tenure, gender and economic status. Meanwhile, the number of household members had significant affect only in dry land – secondary crops area and year dummy had a significant effect only on dry land – plantations area. 3.1 AGE Age are significantly affects the chances of the youth to be involved in agriculture and its definitely in all area. This indicated that the youth involved in agriculture generally were relatively young than the age limit of 35 years. The younger a person was, the bigger the opportunity to engage in agriculture. It might be that the young men were actually still in the learning period. For example, students helping their parents work on farm in his analysis. 3.2 EDUCATION Education effect on youth’s opportunity to be involved in agriculture. The bigger the opportunity to be involved in agriculture. The higher the education, the opportunity to be involved in agriculture was also bigger. It means that young workforce can engaged in agriculture had relatively good education. There are young people who were still at school or college had a second job to help their parents on the farm.
  • 9. 8 3.3 SIZE OF LAND PER CAPITA From Sri Hery Susilowati (2014) the greater the chance for young workforce to be engaged in agriculture are based on the smaller the land size per capita is. It means that most of young workforce will engaged in agriculture do not have arable land, both the land owned by their parent or profit – sharing or rental basis. It also consistent with the fact that the farm size of farmers is smaller so that the youth opportunity to get access to the land is also getting smaller, both with their owned, profit – sharing or rental status. 3.4 GENDER This factor significantly had a negative effect on the chances of youth to be involved in agriculture. There only on dry land region of secondary crops that gender showed a positive effect although insignificant. Besides, the fewer the young male workers are, the greater the opportunity for women to work on the farm. Those suggests that many young female workers are involved in agriculture. This is quite common when the girls are no longer in school and unmarried. They usually help their parents on the farm until they get married and take care of their own household. 3.5 NUMBER OF HOUSEHOLD MEMBERS The number of household members are also significant effect on dry land region of intercrops and dry land plantations. Based on the study, the larger the number of household members was, the greater the chances of young workforce to work on the farm. The involvement of the younger members of the household on the farm can be as temporary or permanent job. The household members who are still students in addition to working on the farm they also work in other sector. Hence, most of the household member of respondents generally have double jobs such as in agriculture and in non – agriculture.
  • 10. 9 3.6 ECONOMIC STATUS Based on Sri Hery Susilowati (2014) amount of income per capita (expenditure per capita) are reflects the economic status measured. These variable significantly affect the opportunities of youth on working in agriculture in all regions except in the areas of dry land crops. The better the economic status was, the greater the chances of youth to work in agriculture. This is implied that the economic status of the youth who were not involved in agriculture was not as good as the youth who were involved in agriculture because agriculture was a source of household income which contribute to the per capita income of the household greater compared with the youth who were not involved in agriculture. 3.7 YEAR DUMMY The year dummy factors only had a positive effect on the plantations type of region. It showed the change in youth involvement in agriculture at two points of time. It means that for the three years there had been a significant change in youth involvement in agriculture especially in the area of the plantation and with the difference in the year 2009 to the year 2013, there were more youth involved in agriculture.
  • 11. 10 4.0 THE PERCEPTION OF YOUNG GENERATION The young generations characteristics and their perceptions about working in the agricultural sector are described. Based on E Widiyanti et.al (2018), the young generation’s perception of agricultural work is a form of positive and negative assessment on working in the agricultural sector. A study showed the term fairly good income received from the agricultural sector is only able to meet the primary need and secondary need. Next, most youths have a fairly good perception on the social status of working as a farmer due to their environment that views of farming as a noble job. farming means to contribute to providing food resources for the commodity. In addition, the structure of rural communities still sees farmers with the agricultural land like the ones having a fairly high social status. Besides, in relation the young perceptions of social status and income for most youths also have a fairly good perception on the convenience of working in the agricultural sector. The work convenience intended by the young farmers here is the existence of facilities and infrastructure supporting the farming activities. The current conditions showed that technology and mechanization in the agricultural field run very rapidly and highly need the young generations participation. E Widiyanti et.al (2018) also analyzed that career development from young generations is quite good and not good enough. This is because of the up and down of income for the farming is not balance. Many people think that being a farmer does not provide a warranty of future life for them. Farmer grow older and are no longer able to devote their energy to cultivate their land, they will case to produce their source of food and income. Most youths consider that there is an adequate warranty of future life and half of them are don’t think so in working as farmers.
  • 12. 11 5.0 OTHERS COUNTRIES APPROACH TO ENCOURAGE YOUNG GENERATION IN AGRICULTURE SECTOR Other countries are highly approaching the young generation to involving them in agriculture sector. Based on Kauffman (2013) in Sri Hery Susilowati (2014) to start a business in the agricultural sector, young farmers and novice farmers generally will encounter several challenges, especially those who are categorized as small farmers. The main characteristics of small farmers are having limited capital, education and experience. With such of constraints, it would be difficult to gain access to capital from commercial banks because generally they do not have any collateral so that the credit is deemed to have a high risk in the repayment. The increasing of the population in some country may cause of increasing the demands for food. Therefore, the agricultural sector plays a very important role to people meet the food needs and may help success of a country in providing food for its population in agricultural production and productivity. Based on Sri Hery Susilowati (2014) the youth interest in working on the farm must be grown. The business in agriculture should start with young famers constraints, primarily related to capital aspect. Hence, aware of this problem, many developed countries as well as developing countries have come up with various incentive schemes so that young farmers and beginner farmers can start their business easily, especially on farm agriculture. Based on Davis et.al (2013) in Sri Hery Susilowati (2014), European Policy approaches to promote structural adjustment in agriculture are Farmer Early Retirement and New Entrance Scheme for farmer. First, working capital installation grant. Second, an interest subsidy on a farm. Hence, a capital installation would be made to new entrance meeting specific eligibility criteria concerning management control of the business, income viability and a commitment to remain in farming as the main occupation for a specific period. A suitable designed new entrance scheme involving an interest subsidy loan and working capital installation grant on a farm can result in significant improvements in farm performance.
  • 13. 12 Next, Murphy (2012) in Sri Hery Susilowati (2014), Victoria – Australia create Young Farmer Finance Scheme through Rural Finance to people 40 years or under and provides three loan facilities with an interest rate concession. Which is first, to purchase stock and equipment. These loans have a term of up to eight years with a 2% concession off Rural Finance’s commercial interest rate for the first three years and then commercial rates apply for the rest of the loan term. Second, these loans have a term of 15 years with a 2% concession off Rural Finance’s commercial interest rate for the first five years and then commercial rates apply for the rest of the loan. Third, one to grow. This loan is aimed at young farmers who are looking to purchase their first block of land as a first step towards owning and operating a commercial farm. These loans have a term of up to 12 years with a 1% discount off Rural Finance’s commercial interest rate for five years and then commercial rates apply for the rest of the loan. Then, France are budgeted to total public expenditure between 2007 and 2013. Young farmers under 40 years old can have as a lump sum or as a subsidized loan to start an agricultural operation. When land comes up for sale in some provinces of France it is the local government and a farmer board that decides who can buy the land and they also set the price. The government also assists young farmers with a reduction in taxes paid that is stepped up over five years, which helps cash flow through the start – up period. In addition, United Kingdom with The National Federation of Young Farmers Clubs in Coventry introduced to a program that was running in Wales called the Young Entrants Support Scheme (YESS). The package includes a one – off grant payment for eligible capital expenditure when a young entrant (under 40) is setting – up as head of holding for the first time or when the applicant has set – up as head of holding for the first time within the previous 12 months. Access to funded mentoring services from established farmers or professionals. To qualify applicants are required to submit a Business Development Plan, including details of the capital investment that the grant will support.
  • 14. 13 While USA have access to funding through a number of channels for young farmers. If a young or beginning farmer does not qualify for a loan with a commercial bank then they can apply to Farm Credit or they can apply for a loan from the Farm Service Agency which is a department within the US Department of Agriculture. There are also organizations like Iowa Agricultural Development Authority that have lending products and administer tax credits as a form of assisting young farmers. In Alberta, Canada, the Agriculture Financial Services Corporation (AFSC) explained their program that does not take into account the age of the loan applicant but uses a net worth calculation to determine if the applicant qualifies for an interest rate concession. The Beginning Farmer Incentive offers an interest rate concession of 1.5% for the first firve years of a loan and is available with a net worth of $500,000 or less at the time of application. A couple applying jointly for the loan could receive the Beginning Farmer Incentive on loans up to $1 million provided both have an individual net worth of %500,000 or less at the time of application (Murphy, 2012 in Sri Hery Susilowati (2014)). Meanwhile, Manitoba Agricultural Services Corporation (MASC) has an interett rate rebate for farmers less than 39 years of age. The Young Farmer Rebate which is an annual rebate of 2% on the first $150,000 of principal of a loan for each of the first 5 years which is $3,000 annually and $15,000 total after 5 years. The applicant also has the choice of a 90% financing option that reduces the deposit required or five years of interest – only paymens to assist with cash flow. (Murphy, 2012 in Sri Hery Susilowati (2014)). Lastly, in spite of the current rural – urban migration trends, more and more talented young people who are good at farming and who earn their first fortunes in the cities are shifting their focus to agriculture and going back to rural areas. The Ministry of Agriculture has issued new supporting policies in 2011, such as offers of loans and tax benefits, to facilitate youth to go back to their hometowns to start agriculture-based businesses. Training programs on practical farming skills and farm management are also provided (Jieying Bi, 2014 in Sri Hery Susilowati, 2014)
  • 15. 14 5.1 INCENTIVE FROM MALAYSIA IN AGRICULTURE SECTOR Despite of global challenges such as climate change, the outlook for the agriculture sector for te next decade appears a growing population and scarcity of resources. The agriculture sector or more precisely the agro – food sector. The country will still depend on other sector contribution such as the services sector and the manufacturing sector. (Shaheera Aznam Shah and Rahimi Yunus, 2019) The Ministry of Agriculture (MOA) are offers fiscal incentives for the Approved Food Production Project. This incentive is given as an incentive or incentive to private companies to implement food production. It aims to attract participation and enhance private sector investment in the agro food industry. The incentives provided are in the form of tax deductions to investors and tax exempt companies implementing the approved Food Production Project under Income Tax Ac 1967. The commodities approved in fiscal incentives (tax exemption) for the agribusiness sector such as crops, livestock, fishing catch, aquaculture or culture. The requirements to apply for a Young Agropreneur Grant Under the Young Agropreneur Program are below 40 years old Malaysian. The government – provide also assistance to young entrepreneur (MyAgrosis) such as Grand in Kind Contribution (Young Agropreneur Grant) for the purpose of helping them to enter the agriculture sector. Second, help promotional participation is offered to potential young entrepreneurs and provided in the form of rental of international promotion. Third, MyAgrosis Agropreneur Transformation Coaching Program was introducing to raise potential its club members at the HEIs to become young entrepreneurs as easily as the final year of their studies The main agenda of this programme is to increase the involvement of the young generation in agriculture and agro – based and to shift their paradigm towards this sector. The government is focusing in changing the negative perception to bring youths closer and boost their participation in the agricultural sector, which was the third biggest contributor to the economy.
  • 16. 15 Besides, the incentives by the Malaysian Investment Development Authority (MIDA) also provided incentives focusing on the manufacturing sector. However, its cover only specific sectors instead of the supply chain created an unsupportive business environment for agropreneurs. In order to shoulder the needs of the industry, MoA is seeking to expand the current scope of the incentives to cover both the upstream and downstream subsectors. In the program in farming industry, Agrobazaaar Rakyat is a business premises owned by entrepreneurs who carry on their daily essentials retail business, offering affordable prices and featuring attractive, organized, neat and uniform images nationwide. Owned by Federal Agricultural Marketing Authority (FAMA) This program is aim of the Agrobazaar Fold Shop was to collect, buy and sell agricultural produce by the villagers while selling basic necesstities at a fixed price. It is also one of the mechanisms for alleviating poverty and providing income opportunities to the local community. Agrobazaar also offer basic necessities and agricultural products at reasonable prices and as a mechanism to control inflation while facility the local people to supply. It is to encourage the eacitivities of the local agricultural products concept in line with the government campaign. The incentives of this program are loans of various equipment and product related in shop, repaint the exterior premises and the business space, unified business signage, entrepreneurship course and supply.
  • 17. 16 6.0 FUTURE OF MALAYSIAN AGRICULTURE According to Bakar, B.B (2009), Malaysian agriculture like those in many contries is shaped by several factors as follows ; i) Status of the natural resource base ii) Climate change iii) Extent of land degradation iv) Advances in science and technology v) Urbanization vi) Trade liberalization and commercialization vii) Strategic alliances and international agreements and conventions The agricultural production capacity in Malaysia, in effect, will be tapping three principal sources of growth such as (i) Expanding the arable land area; (ii) Increasing cropping intensity (mostly through irrigation); and (iii) Boosting yields. This is made possible as Malaysian agricultural landscapes are yet to approach the ceiling for all the three sources at the local scale. However, the intrinsic geopolitical unevenly distribution of available land in Sabah, Sarawak and Peninsular Malaysia coupled with the equally unequal population concentrations in these regions, and locally-mediated consumer demands for agricultural produce and inputs reflect the present state of agricultural development in the country. These factors would influence agricultural development in the country in a holistic manner, although the effect and intensity of influence of each factor may vary accordingly. Invariably, agricultural development faces three major global challenges in the new millennium which is (i) Persistence of poverty and food insecurity; (ii) Globalization and its impact on the eventual transformation of traditional agricultural systems, and (iii) Continuing and perennial pressure on the deterioration of the natural resource base.
  • 18. 17 This present state is echoed by Anon (2003) where enough unused potential farmland at the regional scale, of which only ca. 11% (5.78 million ha) of all land is used in crop production. Out of this, ca. 36% of the arable land to some degree are suitable for crop production and ca. 18.92 million ha of arable land remains with crop production potential. Reflections of the regional- or population-mediated pressure needing the arable land may not have it. The agricultural production programme through intensification is intimately linked with the availability of labour and fertilizer-use efficiency. Labour is a central issue pertaining to the future of agriculture and its ensuing sustainable development. The general trend in Malaysia and elsewhere is towards increasing farm labour scarcities due to rapid migration to urban areas, and increasingly burgeoning populace, demanding better pay and competition for labour by industrial sectors. Invariably it follows that intensification of agriculture adds to labour demand and scarcity. This calls for growing demand for labour – saving technologies. The employment of a biotechnology tool of genetic engineering (GE) - a technique which allows genes to be transferred from one species to another leading to the production of genetically modified organisms (GMOs) calls for big investments in manpower training and acquiring the technology through innovative research by the locals. Further evaluations on yield, agronomic performances and physical and chemical properties of the grain, includ ing nutritive constituents are being made. There are emerging issues associated with GM crops that Malaysia either as an importing consumer nation or a potential producer need to address or be concerned of. These include (i) Coexistence: cultivation of conventional, organic agriculture and GM crops; (ii) Labeling: detection limits and traceability of adventitious presence of GM materials; (iii) Liability and redress: the needs to consider their legal system and relevant international agreements; and (iv) Pharming: production of pharmaceutical products in plants, e.g. vaccines in bananas.
  • 19. 18 In effect, the welfare of farming community together with the consumers at large in Malaysia are affected by the way policy makers and advisors, and funding agencies conduct themselves and their policies with respect to the adherence of an integrated multi-disciplinary research approach in biological sciences including genetic engineering alongside conventional breeding and agronomy, but also the socio-economic context where farming occurs. This is where the societal goals of agriculture would have the greatest impact on the society. Regardless of the emerging technologies and issues associated with sustainable agricultural development in the country hinges very much on future trends and expansion of conservation technologies comprising (i) Good Agricultural Practices (GAP); (ii) Integrated Production Systems; (iii) Integrated Pest Management (IPM); (iv) Integrated Plant Nutrient System (IPNS); (iv) No Till / Conservation Agriculture (NT/CA); (v) Organic Agriculture; and (vi) Urban and Peri – Urban Agriculture. Two other central factors that may shape the future of agricultural development in Malaysia include irrigation and water availability. These are especially crucial to food production and supplies in Malaysia. This is echoed by Baki (2006) who argued that access to water and food security are dramatically linked. These international agreements would have consequential effects on the way agricultural industries are conducted are : i) Access to, and transfer of plant genetic materials and technologies ii) Prevention on spread and introduction and control of pests of plants and plant products iii) Export and import of hazardous substances iv) Protection of human or animal life or health from risks arising from additives, contaminants, toxins or disease-causing organisms in foods, beverages or feedstuffs v) Precautionary approach to protect Malaysia for their biodiversity resources vi) Protecting the health of consumers and ensuring fair practices in the food trade vii) Establishment of Code of Conduct with strict adherence of protocols on the distribution and use of pesticide
  • 20. 19 7.0 SUGGESTION The efforts are needed to find some strategic measures that will encourage the youths’ positive and good consideration also the improvement of youths’ interest in the agricultural sector. Based on Paisley C (2014) explained some efforts to encourage young people to be interested in agriculture with sharing the young professional success stories in agriculture, optimizing the role of social media in spreading positive messages to global audiences as well as information about opportunities in this sector, working together and accepting new ideas and strategies form youths to improve the family farm productivity. The older generation must understand that young people can bring modern practices and tools to help modernize the agricultural business activities. Jieying B (2014) also emphasizes on the importance of advocacy networks, the appreciation and competition for youth in agricultural research and development, the setting up of success stories, the conferences and other channels that can be used to advocate modern agriculture. In my suggestion, the young generation should be provided more direction for their development to increase their potential and role in agricultural development to become a professional young agricultural entrepreneur. Second, Malaysia can expand in further the agricultural sector such as accomplished by empowering the young generation to become young Farmers entrepreneur through agribusiness optimization efforts. Some of role of youth in agricultural development can be appreciate and approaching the young generation through media that be efficient and effective to restore the optimism and interest in the agricultural sector among young generation. For the former farmers, they should be preparing and adaptation strategy to anticipate the loss due to changes of era and climate changes. The strategies can be taken among others such as adjusting planting time, optimizing the absorption well, cultivation innovation or performing a good financial management. This strategic expected to keep profitable and attract more young generation’s interest in working in the agricultural sector.
  • 21. 20 8.0 CONCLUSION The government is positive in increasing the percentage of young people to be participating in the industry. The ministry will continue various approaches to lure the young to join the industry. In 10 years, Malaysia will have more successful young agricultural entrepreneurs in the country. The role of youth as the next generation for the sustainability of the agricultural sector is very important. Therefore, the agricultural sector has always played a strategic role in supplying raw materials to meet the food needs which continue to grow along with the increasing number of population. However, the phenomenon is that the youth are reluctant to work in agriculture so that the number of young farmers has declined but the number of aging farmers has increased. The decrease in the number of young farmers is closely related to the size of agricultural land which is becoming smaller. Poor agricultural prospects due to its inability to provide a reliable income also contribute to the present condition. Addressing the structural change in the employment and learning from the experience of other countries that offer a variety of incentives to attract youth to work on the farm. By using current incentives that available for the farmers in general, a special provision should be given to the young and beginner farmers. These may include higher interest subsidy on agricultural loan and higher credit limit. In addition to the incentive policies, the strategy that needs to be done to attract the youth to work in agriculture is to promote a much more productive and higher agriculture income through the development of agricultural industry, innovation, investment, infrastructure, and strengthening agricultural institutions from upstream to downstream
  • 22. 21 REFERENCES Aminah Ahmad and Narimah Ismail (2012), Gender Roles In Malaysian Agriculture : Implication For Extension Planning, article access from website of https://www.researchgate.net/publication/271247460_GENDER_ROLES_IN_MALAYS IAN_AGRICULTURE_IMPLICATIONS_FOR_EXTENSION_PLANNING (10 March 2020) Bakar, B.B (2009), The Malaysian Agricultural Industry in The New Millennium : Issues and Challenges. Access from website http://eprints.um.edu.my/10909/ (14 March 2020) Ben White (2012), Agriculture And The Generation Problem : Rural Youth, Employment And The Future of Farming, article access from website of https://www.researchgate.net/publication/264456612_Agriculture_and_the_Generation_P roblem_Rural_Youth_Employment_and_the_Future_of_Farming (09 March 2020) Datuk Allaudin b. Hj. Anuar (2015), Keynote Address : Transforming Rural Agricultural Landscape In The 11th Malaysia Plan – A Focus On The Rice Industry, access from http://www.iipm.com.my/wp-content/uploads/2016/05/keynote-address.pdf (05 March 2020) Md. Mahmudul Alam, Md Wahid Murad, Siwar Chamhuri And Rafiqul Islam Molla (2010), Socioeconomic Profile Of Farmer In Malaysia : Study On Integrated Agricultural Development Area In North – West Selangor, Access From Website https://www.researchgate.net/publication/227439774_Socioeconomic_Profile_of_Farmer _in_Malaysia_Study_on_Integrated_Agricultural_Development_Area_in_North- West_Selangor (10 March 2020) Ministry of Agriculture and Food Industry (MoA), official portal https://www.moa.gov.my/insentif-/-geran-/-dana-/-pelaburan ( 05 March 2020 & 20 March 2020)
  • 23. 22 Mohamad Kamal Abdul Kadir (Dr.) (2014), Development Of Young Agropreneur In Malaysia, access from web http://ap.fftc.agnet.org/ap_db.php?id=326&print=1 , FFTC Agricultural Policy Platform (05 March 2020) Shaheera Aznam Shah & Rahimi Yunus (2019), Malaysia Eyes Agricultural Modernization To Revive The Sector, news access from website https://themalaysianreserve.com/2019/08/19/malaysia-eyes-agricultural-modernisation- to-revive-the-sector/ (05 March 2020) Sri Hery Susilowati (2014), Attracting The Young Generation To Engage In Agriculture, access from web http://ap.fftc.agnet.org/ap_db.php?id=323, FFTC Agricultural Policy Platform (05 March 2020)