Chapter 13.1 – Introduction to the Agriculture Economics
Chapter 13.1 – Introduction to the Agriculture Economics
The Agricultural Market Landscape
The agricultural market landscape is the economic system that produces, distributes, and consumes agricultural products and services.
Learning Objectives
Outline the evolution of the agriculture market over time
Key Takeaways
Key Points
- The history of agriculture is complex, spanning back thousands of years across a wide variety of different geographic regions, climates, cultures, and technological approaches.
- The roots of agriculture are derived over 10,000 years ago, with tribes executing forest gardening alongside the domestication of animals in the Fertile Crescent region.
- As population expanded dramatically over time (see, so did the efficiency of agriculture economics. This began with agricultural improvements such as the hoe and is represented today with genetic engineering, robotics, irrigation, etc.
- This rapid expansion coupled with the essential role of food in our society has generated a field of economics solely dedicated to observing and predicting trends within the agriculture market landscape.
- Interesting trends in the agricultural market pertain to the decrease in cost for the actual farming aspects and an increase in costs for the distribution and sales system (particularly in the U.S.). This is largely a result of technological progress.
Key Terms
- Agricultural Economics: The study of the production, distribution, and consumption of goods and services related to food.
Agriculture, in many ways, has been the fundamental economic industry throughout history. The production and exchange of food laid the groundwork for all bartering, making it likely to be the oldest market in history. The production of food in modern times in developed nations is oddly taken for granted, as surpluses tend to define the market in pursuit of providing options. Developing nations view agriculture quite differently, where famines and low yield years can dramatically affect the overall food supply in a given region. Due to the critical importance of food production, the agricultural market landscape is one of the most studied and evolved economic segments.
The History of Agriculture
The history of agriculture is complex, spanning back thousands of years across a wide variety of different geographic regions, climates, cultures, and technological approaches. Over 10,000 years ago, tribes began executing forest gardening. This evolved in the Fertile Crescent region into the domestication of animals (i.e. cattle, sheep, goats, pigs), growing of wheat and barley in Jordan Valley and the growth of cereal in Syria (all still about 10,000 years ago).
As population expanded dramatically over time (see ), so did the efficiency of agriculture economics. This began with agricultural improvements such as the hoe and the plow (2500 B.C.), irrigation via canals, and biological pest control as early as the bronze and iron ages. This evolved further in the middle ages w