Agricultural Economics

Agricultural Economics is a branch of economics that applies economic principles to agriculture for improving productivity, income, and resource use efficiency.

Meaning

It studies how land, labor, capital, and management are used in agriculture to maximize profit and welfare.

Definitions

Henry Charles Taylor:
Agricultural economics applies economic theory to agricultural production and marketing.
Jesse W. Tapp:
It deals with the allocation of scarce resources in farming.

Scope of Agricultural Economics

Production Economics – Input-output relationship, cost, returns
Farm Management – Planning & decision making
Agricultural Finance – Credit, banking, capital
Agricultural Marketing – Pricing, demand, supply
Agricultural Policy – Government schemes & support
Agricultural Development – Rural development & growth

Importance

Increases farm income
Efficient use of resources
Reduces production cost
Helps in price stabilization
Supports rural development

Loading...