Introduction to Agribusiness

This set of flashcards covers key vocabulary terms and concepts related to agribusiness, focusing on the themes of specialization and diversification.

Specialization

The business practice of concentrating production in one or a small number of commodities.

Advantages of Specialization

Includes focused products, favorable input prices, social support for certain commodities, management concentration, efficient equipment use, availability of specialized labor, economies of scale, and resource concentration.

Disadvantages of Specialization

Risks include a bad year for a specific commodity affecting the entire operation and possible inability to recover from multiple bad years.

Corn Belt

Region where farmers primarily grow corn, soybeans, beef cattle, and hogs, exploiting favorable climate, soil, and market conditions.

Diversification

The business practice of producing a variety of commodities to use resources more efficiently and reduce risk.

Advantages of Diversification

Includes efficient use of labor, extended harvest periods, and improved income stability due to balanced price and yield fluctuations.

Disadvantages of Diversification

Challenges include favoring specialization due to biological conditions, needing diverse equipment, management skills, and increased marketing efforts.

Northern California Rice Production

Specialization in rice due to available water, clay-rich soils, and nearby markets.

Nursery Products in California

Specialization in nursery products due to mild climate and a large population providing a ready market.

Diversity in California

The ability of growers to diversify across more than 250 different commodities, improving resilience to agricultural recessions.