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Agricultural economics

March 27, 2013

Introduction:

Agricultural economics is the research of implementing economic management concepts to food farming. The result, preferably, is an agriculture market that better is aware of performance, nourishment and market need. The area of agricultural economics looks at all elements of food production and applies rational thought and planning as a whole. From plants, live stock, land usage and soil content, all factors of farm life are analyzed, such as how its connection to one another can be increased. Many times, this includes learning about the most advanced technology to help plants or livestock, but it also might require knowledge of what has and has not worked in the past.

An image displaying the  Agricultural EconomicsAgricultural economics is a relatively new area, considering the countless years that people have been farming. Interest started to mount in the early 20th century, when many economic thinkers around the globe started concentrating attention to agriculture. Observing that the act of planting, growing and distributing crops and livestock was inefficiently performed, instructors believed that farms around the world could see greater yields and profits with a change of thought.

The area of research of agricultural economics can be separated into seven elements, namely:

Production economy: This contains the relationship between the information, production and profit as well as labour usage.

Financial management: This contains factors such as the management process itself, agricultural farming and the concepts of financing.

Agricultural marketing: This contains all factors of marketing such as the price system and market types.

Farming policy: This includes the interactions between farming and other areas, the business plan, growth policy, price and income policy and the government functions.

Agricultural development: This is about the role which agriculture performs in the growth of the economy system as well as the role of the government and private effort.

Operational research: This is the application of financial simulator and optimization techniques on agricultural problems.

Agricultural environmental economics: The economic evaluation of the connections between agricultural growth procedures and the natural environment.

Agricultural economics has helped further the science behind farming, too. Developments in food preservation and shipping techniques have allowed many fresh fruits, vegetables and meats to reach grocery shops. Currently, many economists see the implementation of microcomputers in farming as another step toward optimizing farmland economics.

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