AGRICULTURE AND AGRIC PRODUCE - ECONOMIC ACTIVITY & ECONOMIC RESOURCES
Agriculture is an economic activity; agric. produce are economic resources

Senathon Ipia
Definition of Agriculture
Agriculture is the cultivation of crops and rearing of animals.
Agriculture includes:
1. Crop production or crop farming:
Crop farming is the cultivation of food crops and cash crops.
Crop farming is the cultivation of food crops and cash crops.
- Food crop is a crop grown for food, such as cassava, rice yam, beans, potatoes, etc.
- Cash crop is a crop grown for sale, such as cocoa, cotton, rubber, oil palm, etc.
Another name for crop farming is agronomy.
2. Livestock Production or Livestock farming:
Livestock farming is rearing domestic animals such as chicken, goats, cattle, cows, sheep, etc.
3. Aquaculture:
3. Aquaculture:
Aquaculture is farming aquatic organisms. Fish farming is an aspect of aquaculture.
Fish farming is otherwise known as fishery.
4. Horticulture:
Horticulture is the cultivation of fruits, vegetables, flowers, or ornamental plants.
4. Horticulture:
Horticulture is the cultivation of fruits, vegetables, flowers, or ornamental plants.
5. Forestry and Wildlife Management:
This is the planting of trees and preservation of plants and animals and other forest resources.
Note: 1. A forest area may be set aside as reserved area for the performance of forestry & wildlife management activities. A reserved area for wild animals is known as game reserve. And a reserved area for plants is known as forest reserve.
2. Agricultural goods from the farm are known as farm produce; as they get to the market, they are known as commodities (or agric commodities). If used in manufacturing, agricultural commodities are referred to agro-based raw materials, or simply, raw materials.
Importance of Agriculture
- Provision of food for consumption.
- Provision of raw materials for industries.
- Provision of employment for those engaged in agricultural activities and agro-businesses.
- Sources of income to those engaged in agricultural activities and agro-businesses.
- Source of foreign exchange earnings when agricultural produce are exported.
- Provision of revenue for the government as farmers and agro-based industries pay their taxes.
- Revenue from agriculture could be used to provide infrastructures.
Systems of Agriculture
The following are the systems of agriculture:
1. Subsistence Farming:
A system of farming in which crops are grown or livestock are reared for the farmer’s family consumption and not for sale.
-The characteristics or features of subsistence farming are:
i. use of simple (or crude) farm implement.
ii. the labour employed is one individual or few individuals.
- Provision of employment for those engaged in agricultural activities and agro-businesses.
- Sources of income to those engaged in agricultural activities and agro-businesses.
- Source of foreign exchange earnings when agricultural produce are exported.
- Provision of revenue for the government as farmers and agro-based industries pay their taxes.
- Revenue from agriculture could be used to provide infrastructures.
Systems of Agriculture
The following are the systems of agriculture:
1. Subsistence Farming:
A system of farming in which crops are grown or livestock are reared for the farmer’s family consumption and not for sale.
-The characteristics or features of subsistence farming are:
i. use of simple (or crude) farm implement.
ii. the labour employed is one individual or few individuals.
iii. little capital.
iv. small area of land is used.
Hint: When talking about subsistence farming, we are NOT considering whether the farm is small or large, but that the harvest from the farm is strictly for family consumption.
2. Peasant Farming
This refers to a small-scale farming on a small piece of land.
Hint: When talking about peasant farming, the emphasis is on smallness – small scale farming.
And if the farm produce from a peasant farm is for family consumption only and none for sale, then such a peasant farming is also subsistence farming
- The characteristics or features of peasant farming are:
i. use of simple (or crude) farm implement.
ii. labour intensive. The labour employed is one individual or few individuals.
iv. small area of land is used.
Hint: When talking about subsistence farming, we are NOT considering whether the farm is small or large, but that the harvest from the farm is strictly for family consumption.
2. Peasant Farming
This refers to a small-scale farming on a small piece of land.
Hint: When talking about peasant farming, the emphasis is on smallness – small scale farming.
And if the farm produce from a peasant farm is for family consumption only and none for sale, then such a peasant farming is also subsistence farming
- The characteristics or features of peasant farming are:
i. use of simple (or crude) farm implement.
ii. labour intensive. The labour employed is one individual or few individuals.
iii. little capital.
iv. small area of land is used.
3. Commercial Farming
This refers to large-scale farming on a large piece of land and it involves the use of machinery and equipment.
- The characteristics or features of modern commercial farming are:
i. use of equipment and machinery.
ii. capital intensive method of farming.
iii. large capital is employed.
iv. large area of land is used.
Hint: When talking about commercial farming, the emphasis is on largeness – large scale farming.
4. Plantation Farming
Plantation faming is growing a single crop on large area of land, especially cash crops.
Examples include Cashew plantation, Rubber plantation, Oil Palm plantation, Cocoa Plantation, Coconut Plantation, etc.
Crops planted on plantation could however be cash crops, food crops, or tree crops. Tree crops include mango, cocoa, pawpaw, banana, orange, etc. Tree crops are also known as economic trees; while cash crops are also known as economic crops.
-The characteristics or features of plantation farming are:
i. farming a single crop.
ii. may be capital intensive or labour intensive.
iii. large area of land is used.
5. Mechanized Farming
This refers to the use of machines and equipment like tractors, harvesters, etc in farming.
Hint: The term “mechanized” is related to the word “machine”.
The characteristics or features of mechanized farming are:
i. use of machinery and equipment.
ii. capital intensive method of farming.
6. Co-operative Farming
This is farming by a group of farmers that organize themselves into an association and pool their resources together.
(Simply put, if people co-operate to have a farm or farms, then that is co-operative farming).
The purpose of co-operative farming is to collectively purchase farm input, farm machinery and equipment; collectively obtain loans or grants, etc, and build capacity for large scale farming.
iv. small area of land is used.
3. Commercial Farming
This refers to large-scale farming on a large piece of land and it involves the use of machinery and equipment.
- The characteristics or features of modern commercial farming are:
i. use of equipment and machinery.
ii. capital intensive method of farming.
iii. large capital is employed.
iv. large area of land is used.
Hint: When talking about commercial farming, the emphasis is on largeness – large scale farming.
4. Plantation Farming
Plantation faming is growing a single crop on large area of land, especially cash crops.
Examples include Cashew plantation, Rubber plantation, Oil Palm plantation, Cocoa Plantation, Coconut Plantation, etc.
Crops planted on plantation could however be cash crops, food crops, or tree crops. Tree crops include mango, cocoa, pawpaw, banana, orange, etc. Tree crops are also known as economic trees; while cash crops are also known as economic crops.
-The characteristics or features of plantation farming are:
i. farming a single crop.
ii. may be capital intensive or labour intensive.
iii. large area of land is used.
5. Mechanized Farming
This refers to the use of machines and equipment like tractors, harvesters, etc in farming.
Hint: The term “mechanized” is related to the word “machine”.
The characteristics or features of mechanized farming are:
i. use of machinery and equipment.
ii. capital intensive method of farming.
6. Co-operative Farming
This is farming by a group of farmers that organize themselves into an association and pool their resources together.
(Simply put, if people co-operate to have a farm or farms, then that is co-operative farming).
The purpose of co-operative farming is to collectively purchase farm input, farm machinery and equipment; collectively obtain loans or grants, etc, and build capacity for large scale farming.
(It is said that 2 heads are better than 1).
-The characteristics or features of co-operative farming are:
i. collective ownership of farm.
ii. may be capital intensive or labour intensive.
iii. large scale farming – commercial farming.
iv. large area of land is used.
v. large capital can be sourced.
Ways of Improving Agriculture
- Granting credit facilities to farmers to expand their farms: This means lending money as loans, overdraft, or even selling farm inputs on credit to farmer, to help farmers cultivate more.
- Provision of adequate infrastructures, such as roads, equipment, machinery, in farming areas, to help transport farm input and output, thereby minimizing post-harvest losses of produce.
- Adopting a land tenure system that allows farmers to have access to land for farming.
Note: “Land tenure systems” refers to how land is owned and controlled in a society, whether by community, or individual, or inheritance, or lease, etc. Certain ways of owning and controlling land – land tenure system – can make land availability for agriculture a priority.
-The characteristics or features of co-operative farming are:
i. collective ownership of farm.
ii. may be capital intensive or labour intensive.
iii. large scale farming – commercial farming.
iv. large area of land is used.
v. large capital can be sourced.
Ways of Improving Agriculture
- Granting credit facilities to farmers to expand their farms: This means lending money as loans, overdraft, or even selling farm inputs on credit to farmer, to help farmers cultivate more.
- Provision of adequate infrastructures, such as roads, equipment, machinery, in farming areas, to help transport farm input and output, thereby minimizing post-harvest losses of produce.
- Adopting a land tenure system that allows farmers to have access to land for farming.
Note: “Land tenure systems” refers to how land is owned and controlled in a society, whether by community, or individual, or inheritance, or lease, etc. Certain ways of owning and controlling land – land tenure system – can make land availability for agriculture a priority.
- Mechanized farming through the use of machinery, equipment, improved tools and implements
- Ensuring all-year-round farming through provision of irrigation scheme: Irrigation scheme is the use of technology to water crops in the dry season when there is no rainfall.
- Use of improved and high-yielding seedlings.
- Government provision of subsidies on farm inputs to make them affordable to farmers.
Note: Subsidy (plural: subsidies) is when govt pays part of the cost of goods or services.
- Ensuring all-year-round farming through provision of irrigation scheme: Irrigation scheme is the use of technology to water crops in the dry season when there is no rainfall.
- Use of improved and high-yielding seedlings.
- Government provision of subsidies on farm inputs to make them affordable to farmers.
Note: Subsidy (plural: subsidies) is when govt pays part of the cost of goods or services.
- Provision of agricultural extension services to educate farmers on modern farming techniques and methods that improve yield.
- Minimizing insect and pest infestation of crop and produce, to reduce losses after harvest.
- Provision of storage facilities such as silos to store farm produce.
- Organizing agric exhibitions and trade fairs to showcase agric produce and also showcase improved techniques and methods in agriculture.
- Improve marketing of agro products.
- Cultivation of improved varieties of crop seedlings for better yield.
- Minimizing insect and pest infestation of crop and produce, to reduce losses after harvest.
- Provision of storage facilities such as silos to store farm produce.
- Organizing agric exhibitions and trade fairs to showcase agric produce and also showcase improved techniques and methods in agriculture.
- Improve marketing of agro products.
- Cultivation of improved varieties of crop seedlings for better yield.
THANK YOU
For more, send e-mail to: senaipia@gmail.com, or call: +2347052802574
Senathon Ipia is a Chartered Accountant with the Institute of Chartered Accountants of Nigeria (ICAN).
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