What is economics of agricultural production?
Agricultural production economics involves analysis of production relationships and principles of rational decision making to optimize the use of farm resources on individual farms as well as to rationalize the use of farm inputs from the point of view of the entire economy.
What is agricultural economics in simple words?
Agricultural economics is an applied social science that deals with how producers, consumers, and societies use scarce and natural resources in the production, processing, marketing, and consumption of food and fiber products.
What is agricultural production in your own words?
Agricultural production means the production of any growing grass, crops, or trees attached to the surface of the land or farm animals with commercial value.
What is agricultural production function?
The production function could be described as a combination or series of enterprise analyses wherein each point on the production function represents a different enterprise; that is, a different recipe or combination of fixed inputs and variable input.
What is the role of agricultural economics?
In general, agricultural economics has contributed to the fields of research and training, smallholder and rural development, project planning and management, and the formulation, planning and analysis of macro-policy.
Why do we study agricultural economics?
In general, agricultural economics has contributed to the fields of research and training, smallholder and rural development, project planning and management, and the formulation, planning and analysis of macro‐policy.
What are the types of agricultural production?
The major agricultural products can be broadly grouped into foods, fibers, fuels, and raw materials (such as rubber). Food classes include cereals (grains), vegetables, fruits, oils, meat, milk, eggs, and fungi.
What are the characteristics of agricultural production?
Characteristics of Agricultural GoodsAgricultural goods are quickly perishable.These are bulky in nature.It is difficult to control both quality and quantity of output.Product differentiation is not possible.Nature plays a crucial role in production.Agricultural goods have inelastic demand.
What are the factors of agricultural production?
The main factors of production are natural resources (land, water, soil, rainfall), labour and capital. These are different products produced by farmers, each of which uses inputs to produce outputs.
What is the meaning of production economics?
Production in Economics can be defined as the process of converting the inputs into outputs. Inputs include land, labour and capital, whereas output includes finished goods and services. In other words, Production in Economics is an act of creating value that satisfies the wants of the individuals.
What do you mean by agricultural economics explain its nature and scope?
Agricultural economics is an applied social science that deals with how producers, consumers, and societies use scarce and natural resources in the production, processing, marketing, and consumption of food and fiber products.
What are the goals of production economics?
Goals of Production Economics Assist policy makers in determining the consequences of alternative public policies on output, profits and resource use on farms. 3. Evaluate the uses of theory of firm for improving farm management and understanding the behaviour of the farm as a profit maximizing entity.
What are the products of agriculture?
Fuel. Agricultural products can also be used to produce fuel. Ethanol—produced from corn, sugarcane, or sorghum —is the agricultural fuel product in widest use. Agricultural production byproducts can be used in industrial applications such as textiles or used to reinforce plastics. 2 .
What is not included in Agricultural Production?
Tree and sod farms (if products are sold at retail and not replanted elsewhere by the grower) Agricultural production does not include: Storing or preserving raw materials before the start of the production process. Storing, preserving, handling, or moving finished goods.
What are some examples of agricultural products that NOP can certify?
Examples of agricultural items that the NOP can certify include such things as textiles, flowers, food, seed, plants, and feed. Items intended for other uses are not certified as organic. The basic guideline for what constitutes an agricultural product is as follows:
What are the four groups of crops?
Agricultural crops turned into products fall into one of four groups: foods, fuels, fibers, or raw materials . Roughly 11% of the planet’s land is dedicated to crop production, and close to 26% is being used for animal pastures. 1 .
What are some examples of food products?
Some examples of food products are grains and cereals. Some of the crops are turned into feed and fed to animals, which then produce dairy products like milk or are turned into food for humans or other animals. Honey and farmed fish are also some examples of food products.
Who purchases organic crops?
The crops are purchased by businesses that specialize in processing them for their expected purposes and then sold to manufacturers or distributors. The National Organic Program (NOP)—part of the U.S. Department of Agriculture—certifies only agricultural products that fall into a specific, narrow category for use.
What is raw material?
Raw Materials. Raw materials are the products not refined or processed for use in one of the other categories. Many of the crops grown are used to feed animals that become other agricultural products.
What is the second edition of Agricultural Production Economics?
Agricultural Production Economics (Second Edition, Amazon Createspace 2012) is a revised edition of the textbook Agricultural Production Economics published by Macmillan in 1986 (ISBN 0-02-328060-3). This is a free pdf download of the entire book. As the author, I own the copyright. Amazon markets bound print copies of the book at amazon.com at a nominal price for classroom use. The book can also be ordered through college bookstores using the following ISBN numbers: 1 ISBN-13 978-1469960647 2 ISBN-10 1469960648
How many chapters are there in the current edition of The Production Theory?
All diagrams and figures benefit from improved computer technology since the first edition was written. The current edition also includes two chapters on contemporary production theory that were not part of the first edition.
What is the production function?
The production function portrays an input-output relationship. It describes the rate at which resources are transformed into products. There are numerous input-output relationships in agriculture because the rates at which the inputs are transformed into outputs will vary among soil types, animals, technologies, rainfall amount and so forth.
What is commodity production?
Commodity production on the farm is called farm enterprise. Farm budgets can be developed for each potential enterprise. Enterprise budgets are prepared in terms of a common unit i.e., acre, hectare, for a crop, one head of livestock, etc. This facilitates easy comparison among the enterprises. Enterprise budget is the estimation of expected income, costs and profit for an enterprise.
What is the ultimate objective of farm planning?
The ultimate objective of farm planning is the improvement in the living standards of the
What is farm planning?
Farm planning refers to setting the objectives and actions to be taken in directing or controlling the organization of farm business and it precedes all other managerial functions on the farm to achieve the desired results. It is deciding in advance, the production management problems viz., what to produce, how to produce, when to produce; financial management problems viz., how to borrow, how much to borrow, when to borrow, where to borrow, and marketing management problems viz., where to buy and sell, when to buy and sell, how to buy and sell, etc. Farm planning governs the survival progress and prosperity of farm organization in a competitive and dynamic environment. It is a continuous and unending process. Farm planning is as old as farming itself but mainly it used to be informal planning. With agriculture becoming more complex business, the scientific planning which is systematic, written and based on the best information available and aimed at achieving maximum satisfaction for the farming family from the given resources is needed. Farm planning has to incorporate changing technological developments, physical and economic situations and price structures, etc. Thus, farm planning may be defined as the process of
When resources are limited and there are more than one enterprise where farmer can invest?
When resources are limited and there are more than one enterprise where farmer can invest. When recourses are used in one product some alternative is always forgone. The opportunity cost is the value of next best alternative forgone. The value of one enterprises sacrificed is the cost of producing another enterprise. This principle thus refers to the advantages (returns) which might have been obtained from any factor if it had net been used in producing that commodity, but
What is linear programming?
Linear programming (LP) is a budgeting technique that is more refined and systematic than the conventional budgeting in determining the optimum combination of enterprises or inputs so as to maximize the income or minimize the cost within the limits of available resources. It may be defined as “the analysis of the problems in which a linear function of a number of variables is to be maximized or minimized when those variables are subject to a number of restraints in the form of linear inequalities”. In linear programming models, the objective of the typical farm i.e., maximization of net profit or cost minimization is achieved through optimal plan generated from its solution. The objective function specified, i.e., profit maximization or cost minimization, is linear in form and constraints on resource restrictions are specified in linear form. LP has been used in agriculture since 1950s. As a normative tool, it provides prudent solutions to farm planning problems.
What is agricultural production economics?
Agricultural production economics involves analysis of production relationships and principles of rational decision making to optimize the use of farm resources on individual farms as well as to rationalize the use of farm inputs from the point of view of the entire economy. The primary interest is in applying economic logic to problems that occur in agriculture. Agricultural production economics is concerned with the productivity of farm inputs. As such it deals with resource allocation, resource combinations, resource use efficiency, resource management and resource administration. The subject matter of agricultural production economics involves the study of factor-product, factor-factor and product-product relationships, the size of the farm, returns to scale, credit and risk and uncertainty, etc. Therefore, any problem of farmers that falls under the scope of resource allocation and marginal productivity analysis is the subject matter of agricultural production economics.
When was agricultural economics first introduced?
As a separate discipline, agricultural economics started only in the beginning of 20th century when economic issues pertaining to agriculture aroused interest at several educational centres. The depression of 1890s that wrecked havoc in agriculture at many places forced organized farmers groups to take keen interest in farm management problems. The study and teaching of agricultural economics was started at Harvard University (USA) in 1903 by Professor Thomas Nixon Carver. Agricultural economics may be defined as the application of principles and methods of economics to study the problems of agriculture to get maximum output and profits from the use of resources that are limited for the well being of the society in general and farming industry in particular.
What is farm planning?
Farm planning refers to setting the objectives and actions to be taken in directing or controlling the organization of farm business and it precedes all other managerial functions on the farm to achieve the desired results. It is deciding in advance, the production management problems viz., what to produce, how to produce, when to produce; financial management problems viz., how to borrow, how much to borrow, when to borrow, where to borrow, and marketing management problems viz., where to buy and sell, when to buy and sell, how to buy and sell, etc. Farm planning governs the survival progress and prosperity of farm organization in a competitive and dynamic environment. It is a continuous and unending process. Farm planning is as old as farming itself but mainly it used to be informal planning. With agriculture becoming more complex business, the scientific planning which is systematic, written and based on the best information available and aimed at achieving maximum satisfaction for the farming family from the given resources is needed. Farm planning has to incorporate changing technological developments, physical and economic situations and price structures, etc. Thus, farm planning may be defined as the process of making decisions regarding the organization and operation of a farm business so that it results in a continuous maximization of net returns of a farm business.
What are the factors of capitalistic farming?
In India, this type of farming is seen in sugarcane area where factory owners have their own farms. On these farms, five factors of productions namely, land, labour, capital, management and entrepreneurship are in evidence. The manager is a salaried person and the entrepreneur takes risk and gets profit or may sustain loss.
What is peasant farming?
Peasant farming is concerned with peasant relation to land. The Zamindari Abolition Act of government has given the right of ownership to practically all the peasant-operators in the country. Peasant farming has given them opportunities to organize and operate their farms in their own way and get due reward for their labour and capital. Besides, peasant farming encourages them to maintain and develop the fertility in the occupation of land with social prestige attached to the ownership.
What are the different types of farming?
Though the distinction between the two is not very clear, yet some experts have tried to differentiate these. The ‘system of farming’ is generally used to denote the ownership of land, farm resource management and other managerial decisions. It may be cooperative farming, or tenant farming or the state farming , etc. The ‘types of farming’ refers to the methods of farming and to different practices that are used in carrying out farming operations. Johnson defined it as ‘when farms in a group are quite similar in the kinds and proportions of the crops and the livestock that are produced and in the methods and practices followed in production, the group is described as a ‘type of farming’’. The flow chart given below details out various types and systems of farming.
How does ranching differ from other types of farming?
ranch differs from other type of crop and livestock farming in that the livestock grazes the natural vegetation. Ranches are not utilized for tilling or raising crops. The ranchers have no land of their own and make use of the public grazing land. A ranch occupies most of the time of one or more operator. Ranching is followed in Australia, Tibet and in certain parts of India. An average Australian sheep farm covers an area of about 100 square miles and there are some farms as large as 1,000 square miles.
