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Nature, scope and significance of Agricultural Production Economics

Agricultural production economics is concerned with the productivity and efficient use of farm resources like land, labor, capital and management. It deals with factor-product, factor-factor and product-product relationships. The scope of agricultural production economics includes the economics of agricultural production, problems in the agricultural sector and remedies, agricultural credit, marketing, demand and supply of farm goods, agricultural policies and programs, and taxes on farm productivity. Agricultural production economics is significant as it applies economic theories to address agricultural issues and provides insights into the relationships between crop and animal production systems.

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INDIRA GANDHI KRISHI VISHWAVIDYALAYA RAIPUR (C.G) COLLEGE OF AGRICULTURE, RAIPUR SESSION: 2019-20 ASSIGNMENT ON Nature, scope and significance of agricultural production economics. Course Name- Agricultural Production Economics Course No. - AGECON- 504 Credit - 2(1+1) SUBMITTED TO:- Dr. PayalJaiswal (Department of Agricultural Economics) SUBMITTED BY:- RavishankarSahu M.Sc. previous year (Department of Agricultural Extension)
2 INDEX Sr. No. Particular Page No. 1. Definitions of Economics, Production, Production economics, Agricultural production economics. 03 2. Nature of agricultural production economics 04 3. Scopeof agricultural production economics 05 4. Significance of agricultural production economics 06 5. Reference 07
3 Nature, scope and significance of Agricultural production economics.  Economics  The branch of knowledge concerned with the production, consumption, and transfer of wealth.  Economics is the study of how society uses its limited resources. Economics is a social science that deals with the production, distribution, and consumption of goods and services.  Production  Production is a process of combining various material inputs and immaterial inputs in order to make something for consumption. It is the act of creating an output, a good or service which has value and contributes to the utility of individuals.  Production economics  Economic production is an activity carried out under the control and responsibility of an institutional unit that uses inputs of labor capital, and goods and services to produce outputs of goods or services.  Agricultural production economics  “An applied field of science wherein principles of economic choice are applied to the use of resources of land, labor, capital and management in the farming industry”  Agricultural production economics is concerned with the productivity of farm inputs. ... The subject matter of agricultural
4 production economics involves the study of factor-product, factor-factor and product-product relationships, the size of the farm, returns to scale, credit and risk and uncertainty.  Agricultural production economics is concerned with the productivity of farm inputs. As such it deals with resource allocation, resource combinations, resource use efficiency, resource management and resource administration.  Nature of agricultural production economics  Agriculture is no more confined to production at farm level only.  The storage, processing, and distribution of agricultural products involve an array of agribusiness industries.  Thus, Production economics is used at two levels; At farm level & At regional or national level.  The production problems on individual farms are important one. • And application of economic logics to those problems.  “By-words” – resource allocation and marginal productivity.  Don’t be confused with Consumption Economics ?- Utility maximization vs Profit maximization i.e, allocation of income vs allocation of resources.  Much wider than Farm management.
5  Scope of agricultural production economics The scopeofagriculture economics is extended to the following: (1) Economics of agriculture production- In agriculture economics we study about the agricultural produce. In this respect we study the following:  What are the properties of farms  Whether their sizes are economic or non-economic  Whether the farmers are risk-takers or risk-evaders. Agriculture economics study the economics of land protection. We observe why the lands are pray to water-logging and salinity and that how they can be protected. (2) Problems of agri. sector and remedial measures- In agriculture economics, we will study in detail the problems in the various areas of agriculture sector like why the per acre production of the crop is low thy the share of forest in declining why fisheries is contributing low to GDP; what are the problems of livestock etc. (3) Agricultural credit- In case of developing countries the peasants are mostly poor. They are in need of finance both for consumption and production, therefore, in agriculture economics we study agri. Loans their nature, their use, their need, their sources and their proper utilization etc. (4) Agricultural marketing- In agriculture economics, we study the kinds of markets, the prevailing methods of sale in agriculture markers, the functions of agri. Markets, products and transportation of agri. Products. Moreover we also study the role of cooperatives and govt. to deal with the problems of agri. Markets. (5) Demand, supply and prices of agriculture goods- In agriculture economics. We analyze the demand for supply of and prices of agri. Goods. In other words, all the economics concepts of economic theory like demand. Supply price controls, support prices and subsidies are well applicable in case of agriculture economics. (6) Agricultural policies and programs- There exists a greater uncertainty in agri. Sector as there are big fluctuations in the output and prices of agri. Products. This badly affects the poor peasants and small farmers. In such state of
6 affairs govt. devise policies regarding farms. As the govt. set minimum procurement prices for agri. (7) Tax on farm productivity. (8) Agriculture and world trade. (9) Rural & agricultural development.  Significance of agricultural production economics  The field of agricultural economics finds to seek relevance between cause and effect using the most advanced methods viz, production functions and programming models.  It uses theoretical concepts of economics to provide answers to the problems of agriculture and agribusiness.  Initially earnest efforts were made by the economists to use the economic theory to agricultural problems.  Agriculture is the integral part of the world food system, having the foundation likes between crops and animal production system.  Agriculture is the integral part of the world food system, having the foundation links between crops and animal productions system.  Agricultural economists here have to play a major role in understanding the intricacies involved in the foundation systems.  Knowledge regarding problems in production, finance, marketing and government policies and their impact on production and distribution is very essential to find out suitable solutions for the farm problems.
7  Reference  https://www.google.com/search?q=economics+definition&oq=economics+&aqs=chrome.1.6 9i57j0l4j69i60l3.8807j0j7&sourceid=chrome&ie=UTF-8  https://www.google.com/search?sxsrf=ALeKk03eL-RPzHXaS0WpaAskj- IlXJ1ixw%3A1588232160304&ei=4H-qXs XEtvd9QPU77fYDA&q=agricultural+production+economics+definition&oq=agricultural+prod uction+economics&gs_lcp=CgZwc3ktYWIQARgAMgQIABBHMgQIABBHMgQIABBHMgQIABBH MgQIABBHMgQIABBHMgQIABBHMgQIABBHUABYAGDFqxRoAHACeACAAQCIAQCSAQCYAQC qAQdnd3Mtd2l6&sclient=psy-ab  https://www.slideshare.net/ManojSharma968/agriculture-production-economics  https://www.slideserve.com/wylie/agriculture-economics-and-policy  https://www.slideshare.net/KarlLouisseObispo/agricultural-economics-and-marketing