In agriculture specialization, farmers produce one crop instead of so many crops. In
other words, the farmers, adopt specialized farming. By doing so they avail all
those benefits which are accrued to the big businesses. Hence the goods are
produced on a large scale. As in case of US, Australia, New Zealand and other
big countries, the landlords employ heavy machinery, fertilizers and
high-yielding variety seeds along with their big farms. As a result, the goods
are produced on a large scale. This leads to reduce their costs. The welfare of
domestic and foreign consumers increases as goods become available to them at
lower prices. Here, agriculture becomes a business as well as industry where we
calculate the costs, revenues and production function. Again, govt. also imposes
taxes on income and agri. lands. Thus agriculture sector also contributes to
national exchequer. In the specialized nature of agri. the production of agri.
labor declines while that of capital and machines increase. Govts. and banks
provide loans and other facilities to the farmers. Such all leads to boost agri. outputs. This is the reason that US, Australia
and Canada are exporting wheat and maize to the whole world.
No doubt the specialized type of agri. has led to boost the agri. outputs.
But this has also led to increase the incomes of the big farm holders as they
have attained monopoly as they are charging high prices for their agri.
products. In such a state of affairs, there exist possibilities that the big
farmers could out-compete the small farmers. As a result, the small farmers may
have become their tenants or servants. Accordingly, the flow of income or
resources may move in favor of feudals and landlords. Moreover, when agri.
becomes specialized, the agri. goods would be exported The multinational
corporations may enter