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Home Agriculture and Economic Development Economics of Small Scale Agriculture

 

Economics of Small Scale Agriculture:

 

We know about the agrarian structures of Asia, Latin America and Africa. This give us an information that in these areas of the world the major share of agriculture consists of subsistence or small scale farming.

 

Features of Small Scale Agrarian System:

 

Now we discuss the salient features of small scale cultivation/agrarian system:

 

(1) Under the small scale farming land is normally limited. As a result, cultivation is made under intensive system where agri. goods are produced by employing more labor with a fixed piece of land. But this leads to the application of diminishing returns along with fall in the fertility of land.

 

(2) In small scale peasantry the peasant is poor financially. Accordingly, he is unable to employ bulk amount of capital on lands. In other words, when scale of agri. production is limited the technological and biological changes in agriculture cannot be brought about This would result in lower agriculture outputs.

 

(3) The small scale cultivation deprives a farmer from internal and external economies. As a result, neither his cost will decrease nor the quality of his product will improve. In this way, not only the consumers will be affected but the farmers will also remain entrapped into poverty.

 

(4) The agri. sector is furnished with uncertainty and risk. There are natural calamities along with fluctuations in prices. The commission agents make unlawful deductions while the money lenders insist upon repayment of old debts. In such circumstances the farmers have to struggle hard for existence. This is very much true in case of poor and small farmers. As they have limited financial resources, particularly when they have pledged land and the prospective crops. In such situation, how the small farmers can go for progressive cultivation.

 

(5) A majority of small scale farmers consists of the tenants. They have to pay rent to the landlords along with their own survival. Accordingly, they have to struggle very hard. They are at the mercy of the landlords who have divided their lands into small parts in order to increase their tenants. These landlords exploit the small farmers.

 

Above all, the public policy hardly benefits the small peasants. Despite these problems of small scale agri. business, it is being observed in Latin America, Asia and Africa that the small farmers use their land efficiently. There is reduced mismanagement of resources as there is fuller utilization of land and labor. There is reduced wastage of agri. produce and the farmers may get due prices of their product. Here, there is neither absentee landlordism nor the lands remain idle. Again, the small farmers make proper arrangements regarding storage of their produce.

 

Relevant Articles:

 

Role of Agriculture Sector in Economic Development of a Developing Country
Structure of Third World Agrarian System
Economics of Agricultural Development/Stages of Agricultural Development
Strategy for Agricultural and Rural Development
Economics of Small Scale Agriculture
Economics of Agriculture Specialization
Role of Agriculture in Economic Growth
Agriculture Surplus as a Source of Capital Formation and Economic Development
Surplus Labor as a Source of Capital Formation and Economic Development
Agriculture Sector and Capital Formation in Developing Countries
Land Reforms or Agrarian Reforms
Land Reforms Measures
Effects of Agrarian Reforms
Agrarian Reforms and Economic Development
Green Revolution (GR)
Nature of Green Revolution (GR)
Causes or Importance of Green Revolution (GR)
Effects of Green Revolution (GR) on Income
Problems/Demerits of Green Revolution (GR)
Relationship Between Farm Size and Farm Output with Respect to Productivity
Productivity of Lands
Relationship Between Green Revolution and Size Productivity
 

Principles and Theories of Micro Economics
Definition and Explanation of Economics
Theory of Consumer Behavior
Indifference Curve Analysis of Consumer's Equilibrium
Theory of Demand
Theory of Supply
Elasticity of Demand
Elasticity of Supply
Equilibrium of Demand and Supply
Economic Resources
Scale of Production
Laws of Returns
Production Function
Cost Analysis
Various Revenue Concepts
Price and output Determination Under Perfect Competition
Price and Output Determination Under Monopoly
Price and Output Determination Under Monopolistic/Imperfect Competition
Theory of Factor Pricing OR Theory of Distribution
Rent
Wages
Interest
Profits
Principles and Theories of Macro Economics
National Income and Its Measurement
Principles of Public Finance
Public Revenue and Taxation
National Debt and Income Determination
Fiscal Policy
Determinants of the Level of National Income and Employment
Determination of National Income
Theories of Employment
Theory of International Trade
Balance of Payments
Commercial Policy
Development and Planning Economics
Introduction to Development Economics
Features of Developing Countries
Economic Development and Economic Growth
Theories of Under Development
Theories of Economic Growth
Agriculture and Economic Development
Monetary Economics and Public Finance

History of Money
 

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