Cash Crops Quiz

Definition of Cash Crop

• A cash crop is a plant cultivated for sale and profit rather than for personal consumption.
• Common examples include cotton, coffee, tobacco, and sugarcane.

Historical Yield Comparison

• In earlier agricultural practices, cash crops often constituted a small percentage of total farm production.
• Farmers relied on a variety of crops, with cash crops enabling income generation.

Role of International Trade Markets

• International trade markets influence cash crop prices via supply and demand dynamics.
• Factors such as global production levels, trade policies, and currency fluctuations can affect pricing.

Characteristics of Cash Crops in Least Developed Countries

• Cash crops in these countries are often grown for export to generate foreign currency.
• They typically involve monoculture, focusing on one or two high-value crops.

Differentiation from Staple Crops

• Cash crops differ from staple crops, which are essential for local subsistence.
• Staple crops include rice, wheat, and maize, providing the primary food source for communities.

Role of Cash Crops in Least Developed Countries

• Cash crops can be critical for economic development and poverty alleviation.
• They can generate income that may be reinvested into local communities and infrastructure.

Price Setting Mechanisms

• Prices for major cash crops are influenced by global market trends, weather conditions, and agricultural policies.
• Export tariffs, subsidies, and international agreements can impact market pricing.

Evolution of Cash Crops Over Time

• Cash crops have shifted from traditional farming to more commercialized agriculture.
• Technological advancements and globalization have changed production techniques and market access.