Economics: The study of how a place acquires, manipulates, distributes, and uses scarce resources and services.
Raw Materials: Natural resources in their basic and relatively unusable form
We can take raw materials and turn them into something we can use through the Economic Sectors.
Economic Sectors: Divisions of the economy responsible for getting raw materials, changing them, putting them to use, and providing services.
Economic Sectors:
Primary Sector: The sector that involves the extraction and harvesting of raw materials such as agriculture, fishing, forestry, and mining. This sector is fundamental as it provides the raw materials needed for the other sectors of the economy.
Example: A potato is grown, harvested, and then delivered into the Secondary Sector.
Secondary Sector: The sector that focuses on manufacturing and processing raw materials into finished goods, such as construction, food processing, and textile production. This sector transforms the outputs of the Primary Sector into usable products that can be sold to consumers or other businesses.
Example: A potato, sent from the primary sector, is turned into potato chips, fries, or vodka.
Tertiary Sector: informally called the “Service Sector” This sector uses and distributes manufactured goods for the benefit of customers
Examples: The potato is sold to customers in the form of French fries in different ways.
The next two sectors are subsectors for the tertiary sector:
Quaternary Sector: The sector that has economic activities that deal with research and development, improving a product, and information
Example: A potato is researched and used to develop potatoes that are cost-efficient, healthier, bigger, and better.
Quinary Sector: Economic activities concerned with decision-making and legislature.
Example: A CEO that looks over a potato company, like Heinz.
Types of Countries that can be categorized:
Less Developed Country (Periphery) Countries: Countries that have low Standards of living and inferior infrastructure. Corporations avoid building factories here, as these countries don’t have developed economies.
NIC/Newly Industrialized Country: Countries that have inconsistent infrastructure, but standards of living are generally improving. Corporations want to build factories here because these countries seek to improve their economies. These people are in need of work and aren’t less developed where the materials and area wouldn’t sustain the factory.
- Examples: BRICs (Brazil, India, and China) or BRINCs (Brazil, India, China, and South Africa)
More Developed Country/MDC: Countries that have a higher GDP per capita, highly efficient infrastructure, and high standards of living. These are where the corporations that run factories in NICs are.
Why do people consume different foods?
Developed Countries: | Developing Countries: |
They have more food and more varieties. | They have less food and less varieties |
Overcame the physical environment | Dependent on the physical environment |
Health risks due to Obesity (too many calories) | Health risks due to Famine (too less calories) |
Primary source of protein: Meat | Primary source of Protein: Grain |
Food Prices vary because of:
- No major production increases
- Bad Weather
- Crops as Biofuel than food
- High Demand
Cereal Grain: Grass that yields seed
Grain: Seed
Intro to Agriculture:
What is agriculture?
- Agriculture is the deliberate tending of crops and livestock to produce food for sustenance and/or profit
Types of Agriculture in LDCs:
- Intensive: Agriculture performed with a lot of input (labor and/or capital) yielding much production on less land
- Extensive: Agriculture performed with fewer inputs (labor/capital) yielding less production on much land
Intensive Agriculture | Extensive Agriculture |
Intensive Subsistence (Wet Rice Dominant & Wet Rice Non-dominant) | Shifting Cultivation |
Mediterranean | Pastoral Nomadism |
Commercial Gardening (Market/Fruit/Truck Agriculture) | Livestock Ranching |
Feedlots | Grain |
Subsistence
Intensive Subsistence
Two Types:Â Wet Rice Dominant Farming & non Wet Rice Dominant (Grain and Root Crops)
Found in large population clusters of Asia. East and South Asia
Yields large amounts of output per acre and is very labor-intensive
Double Cropping – Obtaining two harvests per year from one field.
Shifting Cultivation (a.k.a. - “slash-and-burn agriculture”, or swidden)
Involves farming large plots of land until nutrients are depleted and then shifting to a new plot and repeating the process
Found in low Latitude Rainforests
Pastoral Nomadism (a.k.a -”Seminomadism”)
The practice of herding animals from pasture to pasture for grazing
Nomads do not normally eat animals
Animals are a source of: income, labor, milk, status, shelter, and clothing
Transhumance - Seasonal migrations where the flock/herd grazes on hilltops in the summer and then down into the valley in the winter
Commercial
Agribusinesses – Large corporations who own and control each step of the food production industry.
Plantation Farming
Commercial farming specializing in “cash crops” (tobacco, cotton, coffee, cocoa)
Often owned by Agribusiness but situated in LDCs where labor is cheap and where certain crops thrive
Plantations often act as self-sufficient communities
Mixed Crop –
These Farms raise both crops and livestock.Â
The largest share of profits arises from animal products
Use of Crop Rotation – The seasonal rotation of crops from one field to another to replenish nutrients in the soil.
Dairy Farming
Expensive operations require a lot of time, energy, and labor.
Located just outside of urban areas
Milkshed - The milk-producing region that surrounds cities.Â
Grain Farming
Grain – seed from various grasses (corn, barley, wheat, oats rice, etc)
U.S. Greatest Export = corn, wheat, and soybeans.
U.S. Wheat growing belts - winter (Central Plains) – spring (Northwest) – Palouse (Washington)Â
Livestock Ranching
The commercial grazing of animals over an area
Often practiced in arid or semi-arid flat land regions: i.e. Pampas (prairie) of Argentina and the US Central Plains
Horticulture - The growing of fruit, vegetables, plants, and flowers.Â
Found primarily in Mediterranean, Commercial gardening and fruit farming
Mediterranean
Highly dependent on specific topography and climate to produce specific items (olives, grapes, nuts)
Typically located on hilly coasts with mild winters & summers (300-400 Latitude)Â
Commercial Gardening & Fruit Farming (a.k.a.: Truck farming, or Specialty farming)
Horticulture farming that relies on scientific and mechanized technology to maximize yield on small plots of landÂ
Highly dependent on diverse Topography and Climates to produce many varieties of items.
Primarily located along the east coast of the USA where land is at a premium (expensive)
Von Thünen’s Model of Agricultural Land Use
Von Thünen’s Model - A hypothetical model demonstrating the way that agricultural land use changed as a person moved further from the city/market
Von ThĂĽnen observation - The distance from the city or market determines the types of crops and animals a farmer would likely raise.
Two Primary Costs a Farmer is concerned with:
Cost of land per acre/hectare
Cost of moving products
Four Farming Rings of Von ThĂĽnen’s Agricultural Land Use ModelÂ
First ring -Â Market-oriented gardening and Dairy
Highly perishable but profitable CropsÂ
Land Costs -
Transportation - $Â
Second ring - ForestryÂ
Profitable but Bulky because of the high demand for wood
Land Cost - $
Transportation -
Third ring - Rotated crops and for small pasture (Mixed Crop Livestock)
Less Perishable crops (grains & legumes)
Land Cost -
Transportation - $
Fourth ring - Animal grazing
High Profitability of animals needs lots of cheap land, which offsets the cost of Transportation
Land Costs - $
Transportation -
Beyond the Fourth - Too expensive to farm
Von Thünen’s Assumptions
Flat Terrain/No variations in physical landscape
Isolated state with only a single market
No barriers to transportation
Uniform Soil & Climate
Transportation is equally accessible in all directions
Limitations of the Model
Does not account for varied cultural Preferences
Does not account for various government Policies
Does not account for advances in technology
Better transportation infrastructure (Roads, Rail, Airplane, Airports)
Better preservation technology (GMOs, Refrigerated vehicles, faster vehicles, etc.)
The Model's Relevance Today
In Developed Countries
Land and transportation are still important monetary considerations.
Highly relevant for local and organic farming
Generally still relevant for dairy & horticulture though at further distances
Not relevant for forestry
In Developing Countries
More applicable than MDCs for commercial farmsÂ
because less access to advanced infrastructure and technology = higher rates of transportation.
Not at all applicable to subsistence farmsÂ
these reflect physical geography and culture because they are not attempting to turn a profit
In General
It is applicable for understanding broad patterns of rural land use. Farmers in areas away from major markets are less likely to grow perishable items.
 When looking at smaller-scale maps Von Thunen’s patterns generally hold up. (ie. Market Gardening is closer to the large populations)
Why Do Farmers Face Sustainability Challenges?
9.4.1 Explain the Contribution of Expanding Exports to World Food Supply
Global Food Trade - Increasing
Production Trends
Exports Increase Economic Viability
Imports Increase Food Supply
Drug Trade  - Developed Countries generate money through the production and refinement of Drug Crops.
Exports Increase Economic Viability for developing countries
Coca Leaf/Cocaine- Grown/Refined in Latin America Sold in Anglo-America
Poppy Plant/Heroin - Grown/Refined in Asia Purchased in Europe
9.4.2 Explain Reasons for Loss of Land
Loss of Land - Â
Urbanization - as cities grow they expand into Rural Farmland
Urban Sprawl
Desertification -Â
Overgrazing drought Prone Land - Sahel
Deforestating land to expand Commercial farmland
9.4.3 Describe How Farmers and Scientists have achieved productivity increases.
Increased Production on Commercial Farms
2nd Ag Revolution
Improved Crop Rotation
Better Animal Breeding
Mechanized Labor
3rd Ag Revolution
Miracle Seeds
High Yield Fertilizers
Pesticides/Herbicides
Hormones & Antibiotic increase animal production
Increased Intensity on Subsistence Farms
As Population Grows
Developing More intensive Forms (Boserup)
Using Less Land More efficiently
Double CroppingÂ
Terraced Farms
The Green Revolution - A period where high yield GMO seeds and more efficient farming methods were introduced to the developing world (see praise vs criticisms at end of notes)
9.4.4 Discuss the Debate over GMO Plant Seeds
GMO (Genetically Modified Organism)
GMO - Living plants & animals containing novel combinations of genetic material
Pesticide & Herbicide Resistant “Roundup Ready”
Positive
Higher Yields
Expensive to purchase
Increased nutrition
More Resistant to pests & Weeds
Some believe they are better tasting
Negative
Contain traces of pesticides & herbicides
Reduced effectiveness of antibiotics
Exportation Problems - Labels
Increased Dependency on Supply Countries
Contemporary Agricultural Trends
Family Farms were the normÂ
until mid 1900s
Industrial Agriculture/AgribusinessÂ
beginning in mid 1900s
Bigger Farmers
Less Farmers
More Production/yield
Sustainable
Sustainable/Organic AgricultureÂ
dramatic increase since early 2000s
Locally sourced food
rapid increase in popularity 2010s
locavore
Green Revolution Praise -Â
Nitrogen-based fertilizers increase farm productivity
Agriculture outpaces population
Scientists continue to invent new food sources
Higher productivity reduces dependency on imports in places such as China and India
New irrigation methods have increased crop yields
Agribusiness has increased the productivity of cash crops
Green Revolution Criticisms -
Poor countries struggle to afford the technology required
Many fishing areas are overfished
In Sub-Saharan Africa, population is still growing faster than food
Irrigation has led to serious groundwater depletion
Increased use of fertilizers often leads to groundwater pollution
Agribusiness means that land is devoted to raising one crop (monocropping)Â
Rural Settlements Patterns
Concentration
Dispersed Settlement: Individual dwellings that lie far apart from one another (separated by agricultural fields)
Clustered/Nucleated Settlement: Individual dwellings located close together (surrounded by agricultural fields
Hamlet: extremely small population w/ few buildings
Village: slightly larger cluster & typically centered around a larger building
Rurl Building Materials
Land Ownership and Survey Systems
Primogeniture - The way governments parcel land for future purchase. Surveying the land creates a unique imprint on the cultural Landscape.Â
Rectangular Survey System:
Results of the Land Ordinance Act of 1785, which opened the West of the US to land purchases.Â
Created a dispersed rectilinear pattern of 6 miles by 6 miles plots of land.Â
Metes and Bounds System
Natural Features are used to mark irregular parcels of land
English system (evident on the US East Coast)
Long-Lot Survey System
 Divides land into narrow parcels that extend from rivers, roads or canals. These parcels gave farmers direct access to transportation infrastructure and allowed direct contact with city services.Â
 French system (evident where there’s heavy French influence such as Louisiana & old Southern plantation plots, etc.)