Agricultural Economics : Introduction

Agriculture is the production, processing, marketing and use of foods, fibers and byproducts from plant crops and animals. India is one of the leading agricultural countries in the world and our Agricultural sector plays a crucial role in the economic development of the country. Agriculture contributes around 23% of the Gross Domestic product (GDP). About 62% of Indian population depend on agriculture for livelihood, it provides large scale employment and also fulfills the food and nutritional requirements of the nation. 

India also has enormous potential as an exporter of agricultural commodities. The variety of climatic types and natural conditions offer a conducive environment for the cultivation of a large variety of agricultural produce. A country is usually considered to be socially and politically stable, if it possesses a very stable agricultural base.

Agriculture has emerged as a vast and diversified field encompassing so many areas, that there are numerous career opportunities to be considered in this field. The field of agriculture includes farm management, businesses and industries that manufacture agricultural machinery, industries that buy and process the farm products, banking activities for financing and developing farms, research for improving quantity and quality of farm products, so on and so forth.

Study of economic principles, with emphasis on their application, to the solution of farm, agribusiness and agricultural industry problems in relationship to other sectors is known as Agricultural Economics. Agricultural economics deals with the business side of agriculture. The field of agricultural economics looks at all elements of food production and applies rational thought and planning as a whole. From crops, livestock, land usage and soil content, all aspects of farm life are examined, including how its relation to one another can be strengthened.

Those who work in this business field of agriculture is known by the name Agricultural economists. Agricultural economists manage farms and other agricultural industries by applying business concepts and problem-solving techniques. Agricultural economists also predict trends in markets for farm products. They closely observe and explain changes in the market. An agricultural economist; would monitor crops, prices, animal health, equipment, imports and exports, weather cycles, buying patterns, and new methods of production.

A career in agricultural economics is ideal for those who enjoy agricultural business and also have a knack for calculation and economical theory. Agricultural economics combines the technical aspects of agriculture with the business aspects of management, marketing and finance thus providing range of careers in fields like marketing of commodities and management of agribusinesses, farms and ranches.