Economic Characteristics of Agriculture

Economic Characteristics of Agriculture

• Agricultural products are seasonal.
• Crops are produced only during specific periods.
• Summer and winter crops exist.
• Not all crops can be grown year-round.
• Consumer and industrial goods are produced continuously.

Seasonality of Agricultural Production

• Agricultural production depends on climate conditions, including temperature, winds, and humidity.

• Biological conditions also influence production seasonality.

• Agricultural operations occur during specific seasons, from cultivation to harvest.

• Agriculture is a biological industry, relying on biological elements like soil and insects.

• Agriculture relies heavily on physical conditions such as weather and temperature.

Internal Effects of Seasonality

• Distribution of farm work varies depending on the plant or crop and its production method.

• Peak months for agricultural labor are May, June, July, September, and October.

• Seasonal unemployment is a result of the seasonal nature of farm work.

• Farmer incomes are not consistent throughout the year.

• Incomes are primarily earned during harvest seasons.

• Crops like wheat, cotton, and rice have incomes only once a year.

• Animal products like dairy, eggs, poultry and fish have more consistent incomes.

External Effects of Seasonality

• Agricultural industries are seasonal, relying on raw materials.

• Industries like cotton ginning and cane sugar production are impacted by seasonality.

• Seasonality causes problems in the agricultural sector.

• Seasonal unemployment is a consequence of seasonal agricultural industries.

• Temporal distribution of agricultural production is uneven over time.

• Production concentrated in specific months necessitates storage.

• The need for storage means two key elements affect the time distribution of production- prices (seasonal agricultural basis for storage) and return on investment.

• Price increases after storage occur.