Unit 5 Chapter 13

Chapter 13: Patterns and Practices of Agricultural Production

13.1 Agricultural Production Regions

Economic Forces and Agriculture

• Key Influences on Agriculture:

  • Cost of materials, land, and labor: Prices of inputs have a direct impact on agricultural profitability.

  • Availability of capital: Access to financial resources determines farmers' ability to invest in modern equipment and practices.

  • Impacts of government policies: Agricultural subsidies, taxes, and regulations can shape farming practices and market viability.

  • Consumer preferences and market demands: Trends in consumer behavior dictate which crops are grown and how they are marketed.

  • Technological advancements: Innovations in farming technology can lead to increased efficiency and yield, thereby enhancing profitability.

Subsistence vs. Commercial Agriculture

• Subsistence Agriculture:

  • Predominant in rural Africa and parts of Asia and Latin America.

  • Limited connection to the global market; low access to credit.

  • Many subsistence farmers live in poverty.

  • Labor is cheaper relative to machinery costs.

  • small plot of land

• Commercial Agriculture:

  • Primarily in core and semi-peripheral countries.

  • Requires existing infrastructure for global market access.

  • Uses modern equipment, advanced technologies, and large land plots.

  • Farmers maximize income by investing in external inputs and require substantial capital.

Dual Agricultural Economy

• Definition:

  • The presence of both subsistence farms and commercial farming within the same country/region.

• Agribusiness:

  • Represents the large-scale system for agricultural product production, processing, and distribution.

  • Commercial farmers play a role in this vast system.

13.2 The Spatial Organization of Agriculture

Family vs. Corporate Control

• Family Farms:

• Comprise 84% of farms globally, but own only 12% of farmland.

• Majority of land is controlled by larger farms, particularly in core countries.

• In the U.S., farm numbers declined since the 1960s but stabilized recently at over 2 million farms; nearly all are small family operations.

Recent Trends Impacting Family Farms

• Population shift from rural to urban areas.

• Younger generations see farming as labor-intensive with low profit margins.

• Rising costs and lack of successors impact continuity of family farms.

• Price fluctuations based on market supply can threaten sustainability.

Vertical Integration

• Concept:

• when a company control multiple stages of the production prosses

• challenging for small farms.

Commodity chain

• agricultural input → producer → processor → distributor → retailer → consumer.

pricing and policies

- when suppy is high, prices are down

- prices can drop so low that the production ccosest of some goods becomes unsustainable, leading to potential losses for producers and affecting the overall market stability.

Tariff - a tax imposed on imported goods, which can raise the prices of foreign products and protect domestic industries from international competition.

13.3 The Von Thünen Model

Rural Land Use Patterns

• Von Thünen Model:

  • Highlights perishability of products and transportation costs influencing agricultural practices.

Contemporary Application

• Many original assumptions of Von Thünen's model no longer apply; industrialization and technology have altered agricultural systems.

• Refrigerated transport allows perishable goods to be produced far from market locations.

13.4 Agriculture as a Global System

Agricultural Interdependence

• No single country produces all its consumed food; global supply chains mirror commodity chains but on an international level.

• Various staple commodities are involved in global trade, including wheat and corn.

Global Supply Chains

• Production may begin in peripheral nations with low-cost labor or core countries, leading to packaging and distribution based on economic centers.

• Dependency on single cash crops can destabilize economies by leaving them vulnerable.

Infrastructure and Political Relationships

• Strong infrastructure necessary for global agricultural connectivity includes communication systems, transport networks, and utilities.

• Global supply chains historically influenced by European colonialism; modern political instability can disrupt these networks.

Patterns of World Trade

• Growing agricultural trade shifts annually, with core countries leading exports and imports.

• Emerging economies are becoming more significant players in the agricultural sector.

• Consumers are increasingly interested in plant-based foods and fair trade products.