What is a farm? Types and types of economy

Economic activity is the basis in the food, raw materials and technical support of any country. It applies to almost all branches of production and represents the totality of the means used by a person with the help of which he makes a particular product. But the answer to the question of what a farm is is not so straightforward, it involves taking into account many aspects. Since this concept can be applied to a wide range of areas, in each case its features and nuances of using the term will be revealed.

what is the economy

General concept

In the simplest sense, an economy means a set of tools and devices by which the owner provides his needs. Now you can complicate the answer to the question about what a farm is. The definition in a wider scope implies by this term an entire branch of the economy that meets the needs of consumers at various levels. That is, in this case it is considered not just an organization or enterprise that can produce a certain type of goods, but a segment in industrial or industrial activity.

An economy can be considered both as a separate stage of production, and as its component. For example, the organization of a garden planting is an element of activity that may be included in the framework of measures aimed at maintaining a private farmstead. But this is a narrower view of what the economy is (even from the point of view of a private individual). A more complete picture can be built if we include in the concept the totality of all types of activities that a particular farmer is engaged in.

what is subsistence farming

Agriculture

In this case, we are talking about the economy as part of the agro-industrial complex. It should be noted that this is a fairly segmented area, which includes different directions. For a deep understanding of what agriculture is, it is important to identify several industries, including livestock, crop production, melon growing, etc. Each region receives a certain type of agricultural product as the final result.

It is important to note several fundamental differences in this area. The fact is that agriculture has the greatest impact on the natural environment. To explain the reasons for this feature, it is worth determining what the economy is on land. Such an activity involves cultivating the soil, applying fertilizers to it, changing the landscape and other actions that affect the structure of the natural massif.

what is commodity economy

Manufacturing economy

In one form or another, any activity is productive. However, there is the direct manufacture of specific products. To a greater extent this applies to industry. At the same time, the question of what a producing economy is should be considered with some nuances depending on the particular industry. For example, agriculture also has the features of an appropriating activity that is not directly related to production. As a transitional link from agricultural activity to machine manufacturing, it is worth considering the agrarian-craft principle of production.

what is a manufacturing economy

What is subsistence farming?

If in pure form industry is characterized by the signs of the production process, then agricultural enterprises and private farmers are based on the principles of subsistence farming. The main feature of such an activity is self-sufficiency. That is, when answering the question of what is subsistence farming, one should be guided by the concept of satisfying the owner’s own needs. At the same time, exchange and sale are excluded, since the economy focuses on small volumes of production. From here we can derive two more signs of subsistence farming. Firstly, it is mainly the agrarian nature of the production of goods. Secondly, the use of a minimum amount of technical instruments in the course of maintaining the economy is noted. True, in its pure form, farms of this type are extremely rare - in any case, complete isolation is observed infrequently.

what is family farming

What is family farming?

This example shows that the economy is not always directly connected with the production process. It is about the maintenance of an apartment or house, in which each family member performs his specific tasks. The totality of work and activities aimed at maintaining order and life support in the framework of housing, and is the answer to the question of what is a family economy. This can be everyday washing dishes, repairing household appliances, and performing repairs - these and many other operations can be attributed to household chores. By the way, this is where the concept of “housewife” comes from. It applies to women, most of whose time is devoted to homework.

Commodity economy

To some extent, this is the opposite of subsistence farming. In this case, the owner of the production not only satisfies his own needs with his products, but also supplies other consumers. To illustrate what commodity farming is, an example should be given in the form of a chicken farmer. Managing a large compound, he can afford to supply most of the eggs and meat to the market. Moreover, in some cases, manufacturers completely sell all products to buyers.

what is agriculture

It is important to note that commodity relations arose against the background of the process of division of labor. The inability to provide their needs with a complete list of products has led to the need for interaction with other manufacturers. But this happened during the periods of the formation of market relations, and what is commodity economy today? Significant differences in the current organization of such farms include clear segmentation with emphasis on narrow specializations, as well as close interaction between the consumer and the supplier.

The economy of the country

On a national scale, we can talk about a combination of not only production capacities, but also natural resources that allow us to conduct economic activities. At the same time, the production process and other factors of resource use that contribute to improving the quality of life of people are considered. But most often the question of what is a producing economy within the country is considered precisely the activity of enterprises with agricultural complexes. The gross domestic product also largely depends on how efficiently one or another branch of industry or agricultural production is developed. Another indicator of the development of the economy is labor productivity. However, against the background of the active introduction of new technological tools, such development assessment criteria are becoming less and less relevant.

what is a farm definition

Conclusion

As already mentioned, any human activity can be considered as economic. This may be the organization of life, and care for pets, and food production. Also, with a deep analysis of the question of what a farm is, specialists often involve economic aspects. In industry and large agricultural enterprises, profitability is one of the key indicators of the success of a particular form of activity. However, the use of economic assessments is far from appropriate in all areas. For example, for an ordinary farmer who focuses on growing exotic garden plants for his needs, these criteria are difficult to apply.


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