Key Agricultural and Economic Concepts Explained

Agricultural Market Systems

Market Agriculture (also called speculative agriculture) is typical of industrial countries where production is regulated by market prices and intended primarily for commercial marketing.

Traditional or Subsistence Agriculture (also known as peasant or family farming) focuses production on feeding the family and working cattle. The remaining surplus, which is generally very small, is offered for sale in local markets.

Land Tenure and Operating Systems

• Sharecropping: An operating system involving payment as a percentage of the harvest, usually based on an oral agreement between the owner and the worker.
• Lease: A land tenure contract between a landowner and a tiller, consisting of the transfer of land in return for a rental payment.
• Reparcelling: The process of reducing the number of parcels per farm to improve efficiency.
• Agricultural Cooperatives: A scheme where each member contributes land, labor, and capital, receiving a percentage of the revenue collected.

Economic and Trade Indicators

• Balance of Payments: A record of financial transactions carried out between residents of a country and the rest of the world over a specific period, usually one year.
• Trade Balance: The difference between the value of imports and exports of all types of products, such as mineral raw materials or energy.

Trade Classifications

• Retail vs. Wholesale: Retail trade is conducted for direct use and consumption. Wholesale trade is performed by establishments engaged in the selection and resale of goods to stores.
• Interior vs. Exterior Trade: Trade involves the movement of goods and services between producers and consumers. Foreign trade occurs between one country and the rest of the world, while interior trade occurs within a single country.

Agricultural Techniques

• Fallow: Arable land left unplanted for one or more seasons to recover.
• Crops Under Plastic: A culture technique involving plastic covers perforated with small holes to retain moisture and prevent evaporation.
• Hydroponics: A method of growing plants in nutrient solutions without using soil substrate.

Industrial Organization

Industrial Center: A contemporary landscape characterized by a simple distribution and organization, often emphasizing one particular type of industry that drives local development.