Introduction to Agriculture Economics|| It's characteristics, importance in Agriculture

 Agriculture Economics

Agricultural economics is an applied field of economics concerned with the application of economic theory in optimizing the production and distribution of food and fiber products.

Agricultural economics began as a branch of economics that specifically dealt with land usage. It focused on maximizing the crop yield while maintaining a good soil ecosystem.

Agricultural economics influences food policy, agricultural policy, and environmental policy.

History :-

Henry Charles Taylor was the greatest contributor in this period, with the establishment of the Department of Agricultural Economics at the University of Wisconsin in 1909.

Since the 1970s, agricultural economics has primarily focused on seven main topics, according to Ford Runge: agricultural environment and resources; risk and uncertainty; food and consumer economics; prices and incomes; market structures; trade and development; and technical change and human capital.

Careers :-

Graduates from agricultural and applied economics departments find jobs in many sectors of the economy: agricultural management, agribusiness, commodities markets, education, financial sector, government, natural resource and environmental management, real estate, and public relations. Careers in agricultural economics require at least a bachelor's degree, and research careers in the field require graduate-level training ,see Masters in Agricultural Economics.

Importance in Agriculture:-

Agricultural economics plays a role in the economics of development, for a continuous level of farm surplus is one of the wellsprings of technological and commercial growth. In general, one can say that when a large fraction of a country's population depends on agriculture for its livelihood, average incomes are low.

Characteristics of Agricultural Economics:-

1. Land distribution system: Agricultural development depends on the proper land arrangement. The optimum size of land and fertile and plain lands are facilitated for agricultural production.

2. Supply of consumer goods: Agricultural production is considered the primary phase of consumer goods supply in society.

3. Supply of industrial inputs: Agriculture supplies raw materials to industry. Production, distribution, and marketing of industrial inputs are discussed in agricultural economics.

4. Labour employment: Agricultural sectors have a huge opportunity to absorb illiterate and inefficient laborers. In this case, more labor can be employed by using small capital, which means the labor-capital ratio is very low.

5. Primary stage of economic development: Economic development means a positive change in the quantitative and qualitative living standards.

6. Capital formation: Agriculture is considered a primary foundation of economic development in agricultural economics. 

7. Risk and uncertainty: Natural calamity and natural degradation affect agricultural production negatively. Risk and uncertainty exist in both production and marketing, and uncertainty is a prominent feature of agricultural economics.

8. Existence of middlemen: The existence of different middlemen and brokers is found in the marketing of agricultural commodities. Farmers are deprived of having a fair price for their commodities.

9. Subsistence farming: Subsistence farming is the main feature in developing countries. In this case, the land is not cultivated commercially.