Agricultural economics applies economic principles to food production, aiming for a more efficient and profitable industry. It examines all aspects of agriculture, including technology and past practices. The field has grown since the early 1900s, and offers diverse career opportunities. Advances in technology continue to shape the industry.
Agricultural economics is the study of applying the principles of economic management to food agriculture. The result, ideally, is an agricultural industry that better understands efficiency, livelihood and market demand. This field examines all elements of food production and applies rational thinking and planning as a whole. From crops, livestock, land use and soil content, all aspects of agricultural life are examined, including how its connection to one another can be strengthened. Many times, this involves learning about the latest technology to help crops or livestock, but it may also require knowledge of what has and hasn’t worked in the past.
Agricultural economics is a relatively new field, considering the countless years people have been farming. Interest began to grow in the early 1900s as many economic thinkers from around the world began to focus on agriculture. Noting that the act of planting, harvesting, and distributing crops and livestock was performed inefficiently, academics believed that farms around the world could see higher yields and profits with a change of thinking. Additionally, many universities and colleges have started agricultural economics programs with the intent of preparing students for a career in this field.
Careers in economic agriculture are as broad as the crops produced around the world. The principles of agricultural economics, agricultural production and management can be applied directly to being a successful farmer, but there are many other options. Seed and chemical companies use agricultural economic thinking in their production and development, grain elevator companies and equipment manufacturers need to understand the economic landscape of each crop to stay relevant, and vendors use agricultural economics to serve better its customers with the requested products.
Since its inception, this field has helped further advance the science behind agriculture. Advances in food preservation and shipping techniques have allowed myriad fruits, vegetables, and meats to reach grocery stores. Currently, many economists see the implementation of microcomputers in agriculture as another step towards simplifying farmland economics.
Agricultural economics is not a term that fits neatly into a single definition. It’s the accumulation of many schools of thought on virtually every aspect of farming, from planting seeds to serving food on a dinner table. It contains many different careers and needs that are constantly evolving as technology and economic thinking grow.
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