Get a clear agricultural economics definition covering its relationship to food and consumer, farm management and environment, and natural resources.
Definition of Agricultural Economics
This branch of economics is also referred to as agronomics or agribusiness. It is important for the economic development of any country. It is subdivided into various sectors as follows:
Environment and Natural Resources
This sector deals with three main areas. These are estimation the value of non-market profits from environmental amenities and natural resources, controlling environment through designing of incentives and the inter-relationship between environmental consequences and economic activities.
Agricultural Economics – Food and Consumer
This field deals with the study of how quality factor and information of a product can affect consumer behavior. It also emphasizes the effects of both income and prices of various commodities. They have also understood how consumer respond to change in income and prices of food. They also now know what decision one can make on the food to buy or prepare for the family.
Production and Farm Management
This enables the economist to understand what the farmers in developed countries base their arguments on when making decision. They also learn the basics that enable them to produce sufficient food for the growing population by working on natural factors like climatic changes and scarcity in water supply.