Agricultural Economics and Global Development Concepts

Plantation and Speculative Farming

Why is plantation farming called speculative farming?

Plantation farming is known as speculative farming because these products are subject to exchange fluctuations. For example, the prices of coffee or sugar may go up or down significantly in a certain period.

Economic Indicators and Underdevelopment

Characteristics of an underdeveloped country

• A low life expectancy
• A high infant mortality rate
• A high fertility rate
• A low GDP per capita
• A low urban population

Understanding GDP and GDP per Capita

GDP stands for Gross Domestic Product, which is the total wealth of a country. GDP per capita is the total wealth of the country divided by the number of inhabitants in that country. It is typically calculated in dollars.

Agricultural Systems and Production

Common products from plantation farming

There are many products from plantation farming that are used every day, such as: bananas, tobacco, tea, rubber, cotton, coffee, cocoa, coconuts, dates, soya, and various tropical fruits.

Subsistence vs. Industrial Farming

Subsistence agriculture is a multi-crop agriculture because it is intended for the farmers' own consumption, and people consume more than one product in their daily diet. In contrast, industrial farming is characterized by two main factors:

• It does not require a large workforce.
• It requires huge capital investments.

Surplus and Market Dynamics

A surplus is an excess in production. It occurs when you produce more than you need for personal consumption. Farmers typically sell their excess production in the market.

Development and Global Trends

The Human Development Index (HDI)

HDI stands for the Human Development Index. It does not exclusively take economic criteria into account. The criteria it considers include:

• Average years of schooling
• Life expectancy
• GDP per capita

Agricultural Trends in Advanced States

Production of agricultural foods in advanced states continues to rise even though the rural population is declining. This is due to the widespread use of machinery and scientific advances in agricultural production.

Global Meat Consumption

The consumption of meat is increasing worldwide. This is because the world population is growing and the purchasing capacity of people is also increasing.

Key Definitions in Agriculture

Agricultural Subsidies

An agricultural subsidy is economic help provided by the government to agricultural producers.

Self-Sufficiency and Subsistence Farming

Self-sufficiency means a country is able to produce everything that it needs for its survival. Subsistence farming is a type of farming in which all production is for own consumption, and there is no surplus.

What is a wage labourer?

The term wage labourer designates a worker who works full-time under a fixed salary.