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.