Agriculture+ Economics= Agricultural Economics? Is that so? Let see that. This concept is somewhat difficult to understand, right? Also, it may new to most of people.
Let’s see it in a simple way..
Agricultural economics is a combination of agriculture and economics. Prof. Gray explained; agricultural economics as science of applying economic theories for special conditions in agriculture.In another word applying the economic theories for agriculture. So, you may get a rough idea about agricultural economics.
Let’s see it broadly..
What is you get into your mind when you heard the word agriculture.? In the first place, it is a farmer, right? Truly, most of the developing countries engaging in agriculture.So, there is no doubt for this incident.
You may surely know, farmers are shifting to non-farm locations for a better status quo. In generally; countries develop economically, the significance of agriculture declines respectively. For sure, this is because of Engel’s Law. When the purchasing ability of the customers increases; proportion of food is declining.
Anyhow, don’t you think agriculture is still taking the most important place in the economy.? Truly,this can identically see from the most compelling evidence of problems relate to foods and nutrition.
Is it important agricultural economics?
Exactly yes, agricultural economics helps to find out the relevance in between causes and effects in agriculture. At the same time, this support to solve problems in agriculture and agribusiness using theoretical concepts. Furthermore, this concept helps the users to identify complex foundation systems in agriculture. On the other hand, farmers can get to know what are the plants they should cultivate to get a good harvest.
Topics of agricultural economics..
Besides that, agricultural economics have significant topics, and let’s go through them one by one.
The first topic is Food and consumer economics. In simple, this means economists study the customers’ preference for the goods. It helps get to know how the consumers are taking their decision among the prices and the income.
Second the topic of development in economics. Agriculture is a large part of economic countries. So, this filed; observes how to convert the low income into the quality standard of living. Simply, in here, the economist tries to focus on using agriculture to improve the economy and quality status of life.
The third one is Production economics and farm management. It means to take a look at how the farmers should make a decision. Moreover, this describes the way farmers should take action for a better harvest. And, also we should consider climate changers and other policy changes under this topic.
Finally, the agriculture environment and natural resources, under this field, agricultural economics pay attention to three areas.Value of non-marketable natural resources, Coordination between natural resource activities and environmental results, Allocation incentives for the external effects .
Besides that, agricultural economics indirectly effects to several industries. It is obvious agriculture economics not only use for the farmers but also economists, consumers, distributors so on. Also, researching this field will be needed today.