Write short notes on the following in agricultural production. (a) land: (b) capital, (c) labour (d) farm manager.

Answer Details

Short notes on the factors of agricultural production

(a) Land

Land is the natural resource or free gift of nature on which agricultural production takes place. It includes the soil, water bodies, forests and mineral deposits. Land is fixed in supply and immobile, and its quality varies from place to place. Its reward is rent.

(b) Capital

Capital is the man-made wealth used in production. It includes money, farm tools, machinery, buildings, seeds, fertilizers and livestock. Capital is used to acquire other inputs and to expand production; it can be increased and it depreciates with use. Its reward is interest.

(c) Labour

Labour is the human physical and mental effort used in production. It may be skilled or unskilled and supplies the workforce that carries out farm operations such as planting, weeding and harvesting. Its reward is wages or salary.

(d) Farm manager

The farm manager is the person who organises and coordinates the other factors of production. He plans, directs and controls the farm business, takes decisions, keeps records and bears the risks of production to ensure efficient use of resources. His reward is profit.