Public support for individual agro-enterprises can be important to introduce innovation in the agriculture sector and to help establish new enterprise sectors. Agro-enterprises can contribute to the over-all output, profitability, productivity and sustainability of the agricultural sector.
Enterprises involved with seed supply, fertilizer and agrochemicals distribution, packing and packaging materials, equipment and machinery, processing and product assembly, and other functions provide a basis for a competitive agricultural sector and are important for rural employment and innovation.
This can justify support to individual enterprises, but such public support must be carefully targeted to public goods issues, must be transparent, and must avoid unsustainable or unwarranted subsidies.
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