Agricultural economics is an applied phase of social science in which attention is given to all aspects of problems related to agriculture.
Economist Hibbard says:
Agricultural economics is a study of the relationship arising from wealth-getting and wealth using man’s activity in agriculture.
Economist Frank Oragem says:
Agricultural economics is a science that applies the techniques and principles of economics to agriculture. The agricultural economist applies the analytical models of economics to agricultural problems.
Definition of agricultural economics:
Agricultural economics may be defined as applied social science, which deals with how mankind chooses to use technical knowledge and scarce productive resources such as land, labor, capital, and organization to produce food and fiber and distribute it for society’s consumption.
Agricultural economics is the study of agricultural production, agricultural marketing, farm management, agricultural finance and accounting, product transportation, farm cooperatives, and agricultural law and policy.
Characteristics of Agricultural Economics
1. Land distribution system: Agricultural development depends on the proper land arrangement. The optimum size of land and fertile and plain lands are facilitated for agricultural production. To ensure modern land cultivation in developing and underdeveloped countries, the agricultural economists suggest removing the unequal and unexpected land distribution system.
2. Supply of consumer goods: Agricultural production is considered the primary phase of consumer goods supply in society. The production activities of consumer goods are discussed in agricultural economics.
3. Supply of industrial inputs: Agriculture supplies raw materials to industry. Production, distribution, and marketing of industrial inputs are discussed in agricultural economics.
4. Labour employment: The economy of the developing countries is based on agriculture. Agricultural sectors have a huge opportunity to absorb illiterate and inefficient laborers. In this case, more labor can be employed by using small capital, which means the labor-capital ratio is very low.
5. Primary stage of economic development: Economic development means a positive change in the quantitative and qualitative living standards. Agriculture is considered as a primary sector to make the economy healthy in its d. Otherwise, the base of the industry cannot be strong.
6. Capital formation: Agriculture is considered a primary foundation of economic development in agricultural economics. So, the foreign currency is earned by exporting agricultural products, which is helpful for capital formation and encourages the investors to the large-scale investment.
7. Risk and uncertainty: Natural calamity and natural degradation affect agricultural production negatively. Lack of sufficient agricultural product information and instantly not possible to coordinate between supply and demand due to the existence a time duration. Risk and uncertainty exist in both production and marketing, and uncertainty is a prominent feature of agricultural economics.
8. Existence of middlemen: The existence of different middlemen and brokers is found in the marketing of agricultural commodities. Farmers are deprived of having a fair price for their commodities.
9. Subsistence farming: Subsistence farming is the main feature in developing countries. In this case, the land is not cultivated commercially. Instead, most of the farms are operated their land for subsistence purposes.
So, we can say that apicultural economics is an important part of the economy of a country. So, if we want to develop our economy, WC must emphasize first the development of agriculture as a priority basis.