How are modernization and commercialization of agriculture similar and different

The modernization and commercialization of agriculture are similar since both are involve the transformation of agricultural sector for the benefit of the country Explanation: The process of modernization of agriculture involves the changing of the the agricultural sector through dynamic, technologically advanced, and competitive measures.


Is commercialization of Agriculture a new phenomenon?

However, commercialization in agriculture is not a new phenomenon and it is not a surprise to the farming community. Since the nineteen fifties, farmers in most of the countries have moved towards commercial agriculture. Their major objective was surplus production aiming market prospects.

When does agricultural modernization begin in the model economy?

We assume that the model economy is initially a traditional one with no modern technology used in agriculture; then, in the 1820–1829 period, it begins agricultural modernization, or the transition to modern growth. The technology parameters, subsistence consumption, initial TFP levels, and population growth profiles are calibrated.

Can commercialisation of Agriculture bring about a change in small peasant farming?

Commercialisation of agriculture could not bring about a change in the production organisation which can be described as small peasant farming. This production organisation remained as the foundation of the cultivation of commercial crops despite commercial revolution.

What is the relationship between agricultural modernization and TFP?

Once agricultural modernization begins, pt settles to a constant level at which farmers are indifferent about the adoption of either technology. Industrial TFP growth tends to lower the relative price, but this induces the more widespread use of modern technology, which helps to keep the relative price at a stable level.

How are modernization and commercialization of agriculture are different?

To modernize the agriculture, modern agricultural tools and technology should be accessible to the farmers. For this purpose government and concern authority should have proper planning. Commercialization of agriculture is another measures to modernize agriculture.

What is the modernization of agriculture?

Modernisation of agriculture is a process of transforming agriculture from traditional labour-based agriculture to technology-based agriculture [25]. It is one of the fundamental issues in agricultural policies, particularly in countries, where agriculture is less developed.

Why is it necessary to modernize and commercialize agriculture in Nepal?

Hence, agricultural sector is key in issues of economic growth, poverty alleviation, better living standard of the Nepalese people and overall Human Development. In this context, Commercialization of agriculture has been proposed as a feasible option for economic growth and poverty alleviation.

What should be done to modernize commercialized agriculture?

Diversifying agricultural commodities, re-introducing pest-resilient traditional crops and native livestock, increasing market value of traditional crops, complying with safety regulations while promoting commercialization and intensification, and employing trained agro vets are some ways to achieve the goal.

What is commercialization agriculture?

Commercialization of agriculture means the production of crops for sale in the market rather than for self-consumption. It began during British rule. This brought a change in home consumption to cultivation for the market.

What is the importance of modernization in agriculture?

Agricultural modernization prepares conditions for industrialization by boosting labor productivity, increasing agricultural surplus to accumulate capital, and increasing foreign exchange via exports.

What are the effort made for the modernization and commercialization of agriculture in Nepal?

The Project for Agriculture Commercialization and Trade (PACT) has been serving farmers and entrepreneurs in Nepal to build viable agribusinesses by helping them find new market opportunities, determine market demands and build strategic linkages to increase productivity and quality.

What are the importance of commercialization of agriculture?

By exploiting comparative advantages, agricultural commercialization enhances trade and efficiency, leading to economic growth and welfare improvement at the national level.

What means commercialization?

Commercialization is the process of bringing new products or services to market. The broader act of commercialization entails production, distribution, marketing, sales, customer support, and other key functions critical to achieving the commercial success of the new product or service.


This paper develops a two-sector model that illuminates the role played by agricultural modernization in the transition from stagnation to growth.

1. Introduction

Sustained growth in living standards is a recent phenomenon. Estimates of per capita GDP around the world indicate dramatic differences in growth in the past two centuries relative to earlier historical periods.

2. The two-sector model

Consider an economy in discrete time. There is a fixed amount of land, , and Nt identical individuals in period t. Each individual owns amount of land and one unit of time, which is supplied inelastically to work in the labor market. 8 Let wt be the wage rate and rt be the rental rate of land. Then, an individual’s income is .

3. Traditional economy

We define a traditional economy as one in which farmers use only traditional technology. Proposition 1 suggests that if the initial land-to-population ratio is sufficiently high and/or the initial relative TFP is sufficiently low, then the economy starts out as a traditional one.

4. Transition to modern growth

We have shown that, without the use of modern agricultural technology, an economy remains trapped in Malthusian stagnation. However, will the farmers in such an economy eventually find it profitable to adopt the new technology?

5. Quantitative analysis of the English economy, 1700–1909

In this section, we examine whether our calibrated model can quantitatively account for the growth experience of England from 1700 to 1909.

6. Concluding remarks

History has witnessed persistent technological advances. 16 Long before the Industrial Revolution, the Greeks and Romans discovered cement masonry, developed sophisticated hydraulic systems, and made great strides in advancing civil engineering and architecture.

What is commercialization of agriculture?

By commercialisation of agriculture we mean production of agricultural crops for sale in the market, rather than for family consumption. For marketization of agricultural products thus ‘surplus’ of production over consumption is required. But agriculture at that time was merely of the subsistence type.

What are the three types of commercialization in India?

There were three major types of agricultural commercialisation in India. The first form of commercialisation was associated with plantation agriculture, especially tea plantation of the northern districts of Bengal. The second type of commercialisation came to be known as ‘subsistence commercialisation’ or the ‘jute phase’.

What was the production decision of the Civil War?

Production decision was entirely of peasants and profits (if any) from the marketed items were reaped by peasants. Under the impact of commercial revolution that began with the beginning of the Civil War (1861-1865) in North America, farmers’ products were brought into the sphere of both internal and international trade.

What event sparked off the process of commercialisation in agriculture?

Thirdly, another event that sparked off the process of commercialisation in agriculture was the American Civil War (1861-65). As the U.S.A. plunged into the Civil War, it transferred the British demand for raw cotton from America to India. Besides, exports of raw cotton, other raw materials like jute, oilseeds, and food-grains experienced a jump in exports. With the conclusion of the Civil War, exports of raw cotton fell off. But this was largely compensated by a great rise in domestic demand.

What was the decision to cultivate commercial crops?

The decision to cultivate commercial crops was usually determined by the requirements of subsistence farming of peasants. Thus, commercial agriculture in India had not been the product of an “allocative efficiency of peasants”. Production decision was entirely of peasants and profits (if any) from the marketed items were reaped by peasants.

Why did farmers have to sell their producers?

Farmers were forced to sell their producers to meet the revenue needs of the alien government as well as urban demand . Peasants had to cough up some surplus at least for the market since money had become indispensable to them. Thus commercialisation of agriculture was not a spontaneous one.

When did the Suez Canal open?

With the opening of the Suez Canal in 1869, transshipment costs of agricultural crops per cubic ton were reduced by roughly 30 p.c. Indian products, as a result, were sold at cheaper rates in Europe. Thus market—mainly for cotton—widened.

What is the extension service in commercialized agriculture?

In the commercialized agriculture the extension service will mainly concentrate on the resourceful big farmers, with favorable environmental conditions and higher socio-economic status. Under the commercialized agriculture the number of farmers is to be reduced and the size of the farm land should be increased.

What are the factors that affect the commercialization of agriculture?

Some of them could be named as rapid growth of economies in the both developing and developed countries, introducing of new technologies, market expansion, market liberalization, urbanization, rapid increase of demand for food, decreasing of farming population,

Is commercialization a new phenomenon?

However, commercialization in agriculture is not a new phenomenon and it is not a surprise to the farming community. Since the nineteen fifties, farmers in most of the countries have moved towards commercial agriculture. Their major objective was surplus production aiming market prospects. Agricultural extension plays a major role in agricultural …

Can farmers move to commercial agriculture?

We think the answer is “no”. By using improved technologies farmers can move towards commercial agriculture without considering the size of land. Under protected agriculture, farmers follow concepts of the commercial agriculture. Commercial livestock farming does not rely on the farm size except diary farming.

Does commercial livestock farming depend on the size of the farm?

Commercial livestock farming does not rely on the farm size except diary farming. However, the role of agricultural extension in the commercialized agricultural system is mainly dependent on the type and way of commercialization in a given society.

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