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Economics of Agriculture Specialization:


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 into agriculture. They may earn extra-ordinary profits by exploiting the international consumers. In this way, the benefits of large scale production may bi; over-weighed.


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
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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