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 relationship arising from the wealth getting and wealth using activity of man in agriculture.
According to Frank Oragem:
Agricultural economics is a science, which applies the techniques and principles of economics to the field of agriculture. The agricultural economist applies the analytical models of economics to agricultural problems.
We can define agricultural economics in such way that:
Agricultural economics may be defied as an applied social science, which deals with how mankind chooses to use technical knowledge and scarce productive resources such as land, labour, capital and organization, to produce food and fibre and to distribute it for consumption to the various members of the: society.
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.
Special 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 the agricultural production. To ensure the modern cultivation of land in the developing and under developed countries, the agricultural economists suggest for removing the unequal and unexpected land distribution system.
2. Supply of consumer’s goods: Agricultural production is considered as the primary phase of consumer’s goods supply in-the society. The production activities of consumer’s 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 basically based on agriculture. Agricultural sectors have huge opportunity to absorb the illiterate and inefficient labours. In this case, the more labour can be employed by using small capital, that means labour-capital ratio is very low.
5. Primary stage of economic development: Economic development means a positive change in quantitative and qualitative of standard of living being. Agriculture is considered as a primary sector to make the economy healthy in its own d. Otherwise, the base of industry cannot be strong.
6. Capital formation: Agriculture is considered is 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 the agricultural production negatively. Lack of sufficient information of agricultural products and instantly not possible to coordinate between supply and demand due to the existence a time duration. Risk and uncertainty are existed in both production and marketing is and uncertainty is the prominent feature of agricultural economic.
8. Existence of middlemen: Existence of different middlemen and broker is found in the marketing of agricultural commodities. Farmers are deprived to have fair price for their commodities.
9. Subsistence farming: The subsistence farming is the main feature in the developing countries. In this case, the land is not cultivated commercially. Most of the farms are operated their land for subsistence purpose.
So, we can say that apicultural economics is an important part in the economy of a country. So, if we want to develop our economy, WC must give emphasis first on the development of agriculture as priority basis.