Agriculture plays a vital role in a country’s economy and overall development. However, both underutilization and overutilization of agriculture GDP can have significant implications for a country’s growth and potential. Underutilization of agriculture GDP implies that the agricultural sector is not effectively contributing to the country’s overall GDP. In such cases, investing in agricultural technologies can be beneficial. Technologies such as precision farming, smart irrigation systems, agricultural robotics, genetic engineering, and remote sensing can enhance productivity, sustainability, and profitability within the agricultural sector. These advancements can help optimize resource utilization, improve crop yields, and streamline supply chains. On the other hand, overutilization of agriculture GDP, which can be characterized as having high dependence on agriculture, may lead to risks and vulnerabilities in the economy. It is crucial for countries in this category to diversify into other industries to reduce reliance on agriculture. Industries such as manufacturing, technology, services, tourism, and renewable energy can offer opportunities for economic growth and resilience. Balancing the utilization of agriculture GDP is essential for a country’s long-term economic growth and sustainability. Governments and policymakers should focus on promoting a diversified economy while investing in innovative agricultural technologies to unlock the full potential of the agricultural sector and drive overall economic development.

Our recommendations are based on specific rules and assumptions that we followed. These rules were established to identify areas with high potential for underutilization or overutilization of their agricultural GDP. The selection process considered various dimensions, and we focused on clusters that included countries representing all three GDP ranking categories in relation to their agricultural utilization.

Clusters 1, 3, and 4 were selected for underutilization potential because the countries in Clusters 0 and 2 only consisted of countries classified as “High GDP Value, Low GDP Share.” This indicated that these countries were at the top tier in terms of their GDP within their respective clusters. Since Clusters 1, 3, and 4 had countries representing all three GDP ranking categories, it was straightforward to recommend countries in the “Medium GDP Value, Low GDP Share” and “Low GDP Value, Low GDP Share” categories. However, for this analysis, we specifically focused on the countries in the “Medium GDP Value, Low GDP Share” category. This approach was chosen because the countries in the “Low GDP Value, Low GDP Share” category had extremely low agriculture GDP values compared to the other GDP ranking categories. The agriculture GDP values ranged from approximately $8 million (Cook Islands in Cluster 1) to around $1.1 billion (Latvia in Cluster 3). Even the lowest agriculture GDP value in the “Medium GDP Value, Low GDP Share” category, surpassed the maximum agriculture GDP value in the “Low GDP Value, Low GDP Share” category (Latvia). This stark discrepancy led us to focus on the countries in the “Medium GDP Value, Low GDP Share” category, as it showcased the notable disparity.

Clusters 0, 1, and 4 were the only clusters that met the established GDP ranking criteria for overutilization potential. Clusters 1 and 4 were chosen because Cluster 0 consisted solely of countries classified as “High GDP Value, High GDP Share.” These countries were heavily reliant on agriculture for their GDP but inversely exhibited top-tier agriculture GDP values. While these countries should consider diversifying into other industries to sustain economic growth, their current investments in the agriculture sector are yielding positive results. Since Clusters 1 and 4 encompassed countries representing all three GDP ranking categories, we applied the same logic from underutilization analysis above. Consequently, we disregarded countries classified as “Low GDP Value, High GDP Share” and focused on those classified as “Medium GDP Value, High GDP Share.” The rationale behind this approach was that “Low GDP Value, High GDP Share” countries had already achieved an optimal level of dependence on agriculture. The objective of the study was to identify countries with the potential for overutilization and underutilization. Hence, we recommended the “Medium GDP Value, High GDP Share” countries due to their potential risk of becoming overly dependent on agriculture without reaping the associated benefits.

Table 1 presents the countries with the potential for underutilization and overutilization in terms of their agriculture GDP. These countries are recommended to consider specific actions such as increasing investments in the agriculture sector (for potential underutilized countries), diversifying into other industries (for potential overutilized countries), or optimizing agriculture practices (for potential overutilized countries). It is noteworthy that Clusters 1 and 4 include countries in both utilization categories, suggesting a rationale behind their overutilization of agriculture GDP, likely associated with efficiency. Efficiency in agriculture refers to the ability to produce more output, such as crops or livestock, using fewer resources. This can be achieved through various means, including technological advancements, improved farming practices, better irrigation systems, and enhanced use of fertilizers and pesticides. While increased efficiency is generally desirable as it can boost productivity and reduce costs, it can also lead to overutilization and potential drawbacks for the agriculture GDP. When agricultural efficiency improves, farmers can produce larger quantities of crops or livestock on the same amount of land. This increased output often leads to a surplus of agricultural products in the market, which can drive down prices. As a result, farmers may feel compelled to produce even more to maintain their income levels or profit margins. This overproduction can create a situation of oversupply, where the market becomes saturated with agricultural goods. Overutilization occurs when farmers continue to intensify their production efforts, even when the market demand cannot absorb the surplus. This can lead to a downward spiral in prices, negatively impacting the agriculture GDP. Lower prices make it difficult for farmers to generate sufficient revenue, which can ultimately result in financial struggles, reduced investment in the sector, and even farm closures. Additionally, overutilization can have environmental implications. To increase output, farmers may resort to unsustainable practices, such as excessive use of fertilizers and pesticides. This can lead to soil degradation, water pollution, and damage to ecosystems. These environmental consequences can further affect agricultural productivity and sustainability in the long run. To avoid overutilization and its potential negative impacts, it is crucial to strike a balance between efficiency and market demand. Agricultural policies and regulations play a vital role in managing production levels, ensuring fair prices, and promoting sustainable practices. It’s important to consider the long-term viability of agricultural systems, considering factors like market dynamics, environmental sustainability, and the well-being of farmers and rural communities.