1. Agriculture Economics

2. Agriculture Economics:
It is that branch of economics which deals with problems of the farmer e.g; what to produce? How to produce? What should be sold? And how it should be sold? (professor Taylor) Or
Agriculture economics is the application of economic law and values (to agriculture).

3. Scope of agriculture economics:
the concepts of demand and supply, price, elasticity of demand, elasticity of supply, price controls, support prices, and subsidies are well applicable in case of agriculture economics.
Statistical tools are, also, applied in agriculture economics

4. Scope of agriculture economics:
Agriculture Credit
Marketing of farm products
Farm policies and programs
International agriculture trade
Economics of agriculture production

5. Economics of agriculture development:
Three stages of agriculture development
Stage 1: Subsistence Farming
Stage 2: Mixed and Diversified farming
Stage 3: Modern commercial farming

6. Subsistence Farming:
Most of the output for family consumption
few staple food
Traditional tools and methods
Land and labor only inputs, capital is minimal
worry about inadequacy of rain
labor fully employed during harvesting and planting seasons while free during most of the year

7. Subsistence Farming:
Technological limitations, rigid social institutions, fragmented markets and reduced communication network between rural and urban centers is barrier to increased production
Resistance to new techniques and innovation

8. Mixed and Diversified Farming:
First step to commercialized farming
Cash crops like vegetables, fruits, tea, coffee, cotton etc are grown apart from staple food
agri. Labor are busy round the year
Introductino of new techniques and technology
Innovation and risk taking attitutdes

9. Modern Commercialized farming:
Prevalent in advance industrial nations
Profit is the motive of the farmers
Farmers acquainted with scientific inventions, harvesters, modern fertilizers, cropping techniques, marketing trends etc
Economies of scale at play
Single crop is produced
Capital-intensive technology is used
MNCs start to take part in agriculture to reap profits

10. Strategies for agriculture and rural development:
Improving small scale agriculture
Institutional and pricing policies
Research and development
Micro finance schemes aimed at agri businesses
Specialized training
Knowledge exchange between advanced and subsistence economies

11. Role of Agriculture sector in economic development:
Availability of food
Increase in demand for industrial products
Foreign exchange earnings
Mobilization of capital
Employment opportunities
Higher standard of living of the rural class