Table of Contents
Over the past 50 years, the agriculture sector has taken new turns towards improvement and advancement.
Technological advancement has expanded the scale of production, speed, and even the productivity of farming equipment. This means cultivation has become more efficient.
Thanks to seed irrigation and improved fertilizers, farmers have been able to increase yields to cope with the growing demand for food.
Agriculture is an important part of socio-economic development for countries all over the world.
Most countries depend on agriculture to generate income. Commercial agriculture provides raw materials to several industries in an economy, the output is exported, and thus income is generated.
The demand for food is growing but the supply side is not able to match this increasing demand. This is because of the constraints it faces in both land and farming inputs.
Plus, climate changes and veganism are pressuring the industry further, pushing for more sustainable and ethical farm practices.
For farms to expand their productivity once again, a more sophisticated technological revolution may be necessary.
What is Commercial Agriculture?
First things first: what is commercial farming? Unlike subsistence farming where livestock is reared or crops are cultivated for personal use, commercial agriculture involves raising crops and livestock for business.
Since the motive behind commercial farming is to earn profits, it is also sometimes known as agribusiness. This type of farming is practiced on a large-scale o vast agricultural land.
Agribusiness involves substantial investment to purchase machinery, equipment, and other inputs that make production on such a large-scale feasible.
The latest technology is used to maximize the productivity and efficiency of the farm. High-yield varieties are also used to generate higher yields.
Plus, commercial farms require a constant and reliable supply of water for irrigation since crops are cultivated on an extensive scale.
In short, to set up an agribusiness one requires a substantial amount of funds to purchase the latest farm equipment, and resource planning to ensure productivity is maximized.
Features of Commercial Farming
At a commercial farm, the output is generated for export, raw materials for industries, and food.
For instance, Gulf nations import agricultural products from other countries because their climatic conditions do not permit agricultural practices.
Since the goal of the farmer is to maximize profit margins, commercial farming requires modern inputs that expand the yield of a farm.
In other words, achieving economies of scale is essential for agribusiness.
Here are some of the features of a commercial farm:
Large Scale Production
Like we mentioned earlier, commercial agriculture provides raw materials to industries, and some of the output is exported to other countries. This means production needs to take place at a large scale so that the production can cater to the growing demand.
To produce at a ‘commercial’ level, and agribusiness is usually based on a vast area of land that can cater to the large-scale production of crops.
To achieve profit maximization and benefit from the economies of scale, large-scale production is required.
Capital-intensive Production
From a vast expanse of land for production to the most efficient and modern machinery, all the inputs required by an agribusiness require a huge amount of capital investment.
Plus, large-scale production also requires more labor. This means, to egt the farm up and running, funding is vital.
Using HYV (High yielding varieties)
Pest infestations may hinder crop growth and result in reduced output. To prevent profit margins from shrinking farmers use inputs such as high-yielding varieties, fertilizers, and pesticides, and weed killers.
Although high-yielding varieties maximize the output produced, they also have adverse effects on the environment.
Modern Farm Equipment and Labor
Large-scale production is not viable without skilled labor and expertise that plans how production is to take place, and what inputs are required.
Unskilled labor is also vital for production. Machinery such as diggers, harvesters, tractors, plows, and even planters are needed to meet the targets set on time.
Production Takes Place All Year Round
Subsistence farms rely on rain, the right weather, and climatic conditions for production to take place. On the other hand, commercial farming takes place all year round.
This is because agribusinesses have access to modern technologies that provide them with suitable conditions needed to cultivate crops. For example, artificial irrigation methods and rainfall allow them to operate all year.
Types of Commercial Agriculture
Commercial farming is not limited to cultivating crops to produce food and raw materials for industries. There are several kinds of commercial agriculture, for example:
1. Dairy farming:
Farmers rear milk-bearing animals to produce milk and other milk-based products that are supplied to industries and factories. The output might also be sold to consumers.
The animals are reared either on a farm or even a commercially run dairy plant. Animals including buffalos, cows, camels, and even sheep are reared at dairy farms.
2. Grain farming:
Grain farming is practiced in tropical regions. For instance, grain farming is practiced at a large scale in India where the climate is most favorable for agriculture.
At highly mechanized farms, grains such as rice, wheat, maize, and millet are produced. Grain farming requires heavy machinery such as threshers and harvesters.
Most grains are cultivated in the Southern parts of India. Millet, however, is grown in Rajasthan where the arid climate and low water supply are favorable conditions for its production.
3. Plantation farming:
One of the most common types of commercial agriculture is plantation farming.
This was most popular during the colonial periods when slave labor was forced to work on cotton, rice, sugarcane, and tobacco farms.
Massive areas of land are required to produce cash crops such as coffee, rubber, cocoa, fruits, tobacco, and opium, etc. on a commercial level.
India is a major producer of tea which is grown in Kerala, West Bengal, and the southern parts of the country.
Plantation farming requires manual labor instead of heavy machinery, especially during the harvesting season.
4. Fruit farming:
From exotic fruits such as dragon fruit, durians, and passion fruit, to the more common ones such as bananas, apples, and oranges, fruits are highly demanded by consumers from all over the world.
Pesticides and high-yielding varieties are essential inputs for the large-scale production of fruit.
5. Livestock ranching:
Rearing animals and livestock for their meat products are known as livestock ranching.
Commonly, cattle and sheep are reared for their meat but at some farms, pigs and chickens are also reared in large numbers.
These farms supply pork, chicken, and beef to urban markets, restaurants, and consumers.
6. Mixed farming:
Often, livestock rearing, and crop cultivation are practiced on one farm. This practice is known as mixed farming.
A common example of mixed farming is when beekeeping is combined with fruit or horticulture farming.
Farmers may also rear sheep and cattle, using their waste as fertilizers to produce cereal crops which are a source of food to cattle.
7. Horticulture:
Ornamental plants and flowers are produced on a large scale at commercial farms. This practice is known as horticulture.
These exotic plants are high in demand all over the world. Flowers are used for decorative purposes on special occasions.
Flowers are most vulnerable to pests. This explains why pesticides are the most important input for horticulture.
Commercial Farming vs Subsistence Farming
Subsistence agriculture is practiced at a relatively smaller scale mostly to produce food for one’s own consumption.
Although the world relies on commercial agriculture to fulfil the demand for food, another type of farming that people rely on is subsistence farming.
It is practiced on a small area of land to produce enough food for the survival of the family. The surplus is usually sold to the market to generate income.
Subsistence agriculture contrasts widely from commercial farming especially in terms of the farming methods used.
Subsistence farms are labor intensive since all farming processes, from sowing to harvesting, are done by humans. Hand tools are used to aid these processes, and most of the time the family works on their own.
Farmers do not use chemical fertilizers or pesticides on their crops because they are typically unaffordable. Instead, natural resources such as manure as fertilizers. To combat pests, the farmers usually rely on natural predators.
Mixed farming is a common practice for subsistence farmers, allowing them to make the most of their limited farming land.
For instance, a subsistence farm may also rear animals with crop cultivation so that animal manure can be used as fertilizers and the by-products are used as animal feed.
Conclusion:
Agriculture is practiced all over the world and produces the major supply of food. Several countries depend on agriculture to generate most of their income. Even industries depend on this sector for raw materials.
Commercial farming involves producing crops, and rearing livestock for sale. Agribusinesses aim to maximize profits by maximizing their productivity.
Such farms demand expensive and efficient inputs that produce larger quantities of outputs.
