Zeqkd2 DRAFT Print Interior

See discussions, stats, and author profiles for this publication at: https://www.researchgate.
net/publication/362846922
Learning with Fun, Agricultural Economics and Agri-Business
Book · April 2021
CITATIONS READ
0 1
2 authors, including:
Suryaning Bawono
STIE Jaya Negara Taman Siswa
38 PUBLICATIONS 88 CITATIONS
SEE PROFILE
All content following this page was uploaded by Suryaning Bawono on 22 August 2022.
The user has requested enhancement of the downloaded file.

Benjamin Drean
Suryaning Bawono

Benjamin Drean
Suryaning Bawono
Learning with Fun, Agricultural

Economics and Agri-Business
Benjamin Drean is an entrepreneur, traveller and learner in the field of Agriculture, especially Agri-
Business with the affiliation of Lycée George Sand, EPL du Velay, France. He is the owner of
agriculture e-commerce in France with selling several agricultural products from Asia. Business:
www.pandaasian.fr
Suryaning Bawono is a Business Owner, Chairman, CEO of several national companies in Indonesia
and outside Indonesia, Head of Research Journal Publications at the Tamansiswa School of
Economics, Malang-Indonesia. He has businesses in the fields of nutmeg plantations, agriculture and
trading of agricultural products in Indonesia and outside Indonesia, hotel business and tourism in
Indonesia. Business: PT. Frost Yunior, Cheap - Inn, Kendang Kempul Hostel, Gandrung City Hostel,
etc.
Triple Nine Communication Press

Singapore 2021
© Triple Nine Communication Press

Singapore 2021
74 pages, 8.5 inch x 11 inch
ISBN : 978-1-6671-4477-1
Author : Benjamin Drean (France), Suryaning Bawono (Indonesia)
Editor : Adriana Assyami (German)

Layout : Alex Norish (German)
Cover Design : Alejandro Gonzalo (Spain)
Translator : Lilik Sumarsih (Indonesia), Alejandro Gonzalo (Spain)
Photos and Illustrations :
Benjamin Drean (France), Daria Shevtsova (Russia), Karolina Grabowska (Poland)
Published on 27 April 2021

In Singapore
By
Triple Nine Communication Press
No 7 Temasek Boulevard#12-07
Suntec Tower One
Singapore, 038987
Singapore
Website : tripleninecommunication.com
Email : hello@tripleninecommunication.com
Distributed by Triple Nine Communication and partners.
Note : It is prohibited to quote or reproduce part or all of the contents of this book in any way,
without the written permission of the publisher. This book is distributed to 100 countries on 5
continents (ASIA, EUROPE, AMERICA, AFRICA, AUSTRALIA) with various publishers and partner
distributors. You may find and purchase this book with the triple nine communications partner
publisher in your country. You may also find this book published with a different ISBN from the
official publications in Singapore because partner publishers publish with different versions and with
different ISBNs.
LEARNING WITH FUN, AGRICULTURAL ECONOMICS AND AGRI-BUSINESS
FOREWORD
This book is prepared for beginners and students who want to understand agriculture economics,
including the agricultural business. This book is deliberately structured in a concise and simple
manner so that it can be easily understood by students at school or university.
We as writers try to provide a brief and detailed overview to build an understanding of agriculture
economics with 3 main topics followed by 3 derivative discussions as follows:
1. Understanding Agriculture
What Is Agriculture
Agriculture and Economics
History and Development of Agriculture
2. Understanding Agribusiness
What is Agribusiness
Understanding Business and Company
Understanding Business Feasibility Study
3. Understanding Agriculture Economics

Basic Concepts of Agricultural Economics
Understanding Economic System
Applications of Economics in Agriculture
We write using our point of view as writers who come from different continents, namely Europe and
Asia so that we can present writing from an eastern and western perspective. We try to unify our
viewpoints and understandings about economic agriculture, which sometimes have differences.
Through a long discussion, we put it in this book with the hope of providing insights for readers.
Best Regards
Benjamin Drean and Suryaning Bawono
Benjamin Drean (France) Suryaning Bawono (Indonesia)

Table Of Content
Foreword
Understanding Agriculture ....................................................................................... 1
1.1. What Is Agriculture ...............................................................................................2
1.2. Agriculture and Economics ..............................................................................3
1.3. History and Development of Agriculture ................................................6
References .......................................................................................................................19
Understanding Agribusiness ..................................................................................21

2.1.What is Agribusiness ........................................................................................... 22
2.2. Understanding Business and Company.................................................. 28
2.3. Understanding Business Feasibility Study ............................................ 33
References .......................................................................................................................43
Understanding Agriculture Economics .............................................................44

3.1. Basic Concepts of Agricultural Economics .......................................... 45
3.2. Understanding Economic System .............................................................. 49
3.3.Applications of Economics in Agriculture ............................................. 60
References .......................................................................................................................69
Benjamin Drean (France) Suryaning Bawono (Indonesia)

UNDERSTANDING AGRICULTURE
Understanding Agriculture, Environmental Sustainability and Welfare
Agricultural illustration Photo by Karolina Grabowska from Poland
Abstract : This chapter discusses what agriculture is, the history of agriculture development, and how
agriculture plays a role in protecting the environment and economic well-being. The purpose of this
chapter is to give readers an understanding that agriculture is an inseparable part of human life and
to learn about the friendship between nature and humans, where humans are supposed to protect
nature, both animals, plants and the environment.
Keywords: Agriculture, Environment, The Friendship Between Nature and Humans
Benjamin Drean (France) 1 Suryaning Bawono (Indonesia)

is defined as any intervention by human power

1.1. What Is Agriculture in the development of plants and animals in
One of the main sectors that drive the economy order to obtain better benefits than without the
is agriculture (Norton et al,2014). Agriculture is human intervention (Schut et al,2015).
basically to provide food for the people and also
to be sold abroad for profit. Judging from its In managing or influencing the growth of plants
function, namely to support the food availability and animals, farmers must use company
of the community, farmers should be the richest principles. Consider the various combinations of
and simplest people in the area. Agricultural inputs provided in order to produce outputs
materials have very significant price differences according to the objectives efficiently and
between continents. Where the agricultural effectively. The agriculture business is the entire
prices in Europe and Asia for each commodity operation of various manufacturers that produce
have a very significant price difference. So that input for agricultural business and their
agricultural commodities in Europe such as distribution; The implementation of farm
apples and berries can be exported to Asia and production, and storage, processing, and
Asian agricultural products such as nutmeg and distribution of agricultural products and
saffron can be exported to Europe. This is very products made from agricultural commodities.
good business potential in the long run.
Agriculture is a typical form of production,

Agriculture is a complex system ranging from which is related to the growth process of plants
resources and includes farming, agribusiness, and animals. Agriculture is the main source of
and institutions that produce products from food in a country. If agriculture in a country is
nature for consumers. Agriculture is the activity not able to meet the needs of its citizens, the
of managing living natural resources with the country will import foodstuffs from other
help of technology, capital, labour and countries.
management to produce agricultural
commodities which include food crops, Agriculture is also useful to reduce
horticulture, plantations, and/or livestock in an unemployment. Currently, the youth in the
agroecosystem. Agriculture is an activity to village are reluctant to manage their fields or
utilize biological resources to produce food, gardens and choose to become paid workers.
industrial raw materials, or energy sources, as But basically, if they want to manage their own
well as to manage the environment. Agriculture agriculture, then unemployment will decrease.
is a biological production process related to Agriculture makes it possible to maintain
plant growth and livestock raising. Agriculture environmental quality. There is a food chain that

always keeps the ecology in balance. The things 1.2. Agriculture and Economics
that are useful for agriculture, of course, require
In general, the definition of agriculture is a
good agricultural knowledge and management.
human activity that includes farming, livestock,
Modern agriculture is a process in the sense of
fisheries and forestry. The definition of
agricultural cultivation using sophisticated
agriculture in the narrow sense only includes
equipment to facilitate the production process
agriculture as the cultivation of food plants,
and increase agricultural yields in an effective
whereas if we look further, agricultural activities
and efficient time (Gorjian et al,2021).
can produce plants and livestock for the sake of
fulfilling human life needs. Meanwhile, the
In contrast to modern agriculture which tends to
definition of agriculture which in a broad sense
increase agricultural production, organic
does not only include the cultivation of plants
agriculture is more concerned with the quality
but also cultivates and manages the livestock
of agricultural products and the balance of
sector, such as caring for and cultivating
nature. Organic agriculture is a series in a crop
livestock which is useful for meeting the needs
production system based on bio-recycling of
of many communities, such as chickens, ducks,
nutrients, especially using a strategy of fast
geese. As well as the use of animals that can
nutrient transfer from crop residues, compost to
help the tasks of farmers, this activity is a scope
soil biomass which will then undergo a
in the agricultural sector. Agriculture is a type of
mineralization process and end up becoming
production activity based on the growth process
nutrients in the soil. In other words, in organic
of plants and animals. Agriculture in a narrow
agriculture, nutrient recycling occurs through
sense is called people's agriculture.
one or more stages of the form of organic
compounds before being absorbed by plants.
Meanwhile, agriculture in a broad sense
includes agriculture in the narrow sense,
The goal of organic agriculture is to produce
forestry, animal husbandry, plantations and
quality food that is healthier and free of
fisheries. Broadly speaking, the notion of
chemicals. Another goal is to preserve the
agriculture can be summarized into four
environment. The foundation of organic farming
inseparable components. The four components
is ecology and environmental preservation.
include (1) the production process, (2) farmers
Then another goal is to increase farmers' income
or agricultural entrepreneurs, (3) land on which
because usually organic products have a higher
they work and (4) agricultural businesses.
price. Modern society is now starting to realize
Agricultural development has made a major
the importance of maintaining health by eating
contribution to national development, both
organic food (Alotaibi et al,2021).

direct contributions such as in the formation of employment and income for most of the
GDP, employment, increasing public income, population of developing countries who live in
income through exports and suppressing rural areas.
inflation, as well as indirect contributions
through the creation of conditions conducive to The agricultural sector is a sector that can be
the implementation of development and a relied upon in the recovery of the national
synergistic relationship with the other sector economy, considering that the agricultural
(Olén et al,2021). Agriculture is the main sector has proven to be able to contribute to the
economic sector in countries Developing (Xiao et national economy despite the storms of crisis.
al,2021). The role or contribution of the This is due to the opening up of employment in
agricultural sector in the economic development the agricultural sector and the high contribution
of a country occupies an important position of foreign exchange generated. Agricultural
once. This is partly due to several factors. sector contributions or services to economic
development lies in things.
First, the agricultural sector is a source of supply  Providing a growing surplus of food to an
of food and foodstuffs raw materials required by increasingly large population is increasing.
a country. Second, the large demographic  Increase the demand for industrial products
pressures in developing countries coupled with and thus encouraging the expansion of the
an increase in the income of a portion of the secondary and tertiary sectors.
population caused this need to continue to  Provide additional foreign exchange
increase. Third, the agricultural sector must be earnings for imports of goods capital for
able to provide the factors needed for the development through continuous export of
expansion of other sectors, especially the agricultural products.
industrial sector. These factors usually take the  Increase village income to be mobilized by
form of capital, labour, and raw materials. the government.
 Improve community welfare.
Fourth, the agricultural sector is the base sector
for market relations which have an important The real role of the agricultural sector as a
impact on the development process. This sector foundation for national economic development
can also create forward linkages and backward during times of crisis and during the economic
linkages which, when accompanied by the right recovery, the agricultural sector needs to be
conditions, can contribute greatly to positioned as a mainstay sector and is
development. Fifth, this sector is a source of consistently supported by developing a
income needed for development and a source of resource-based economy. On this basis, it is

hoped that the potential for the rural economy of the members of society who live in the
will become a determinant of the national agricultural sector. This method can be pursued
economy as a whole and thus the changes that by increasing the production of food crops, their
occur in the structure of the rural economy need cash crops and or by increasing the price they
to be examined, especially its impact on the receive for the products they produce, of course
structure of employment and income not every increase in output will benefit most of
opportunities in rural areas. the rural population engaged in agriculture.
The role of the agricultural sector in economic Economic development begins in a social,
development is very important because most political and technological environment that
members of society in poor countries depend on supports the creativity of entrepreneurs. The
this sector for their livelihoods. If planners really existence of an environment that supports
pay attention to the welfare of their people, the creativity will lead to some entrepreneurial
only way is to improve the welfare of most of pioneers who try to apply new ideas in
the members of society who live in the economic life. Perhaps not all of these pioneers
agricultural sector. The role of agriculture as the will be successful in innovating. Those who
backbone of the national economy is proven not succeed in making these innovations will create
only in normal situations but especially during a monopoly position for the originators. This
times of crisis. Economic thinkers have long monopoly position will generate profits above
realized that the agricultural sector has a big role the normal profits received by entrepreneurs
in the economy, especially in the early stages of who do not innovate. This monopolistic
development. An agricultural sector that grows advantage is both a reward for innovators and
and produces large surpluses is a prerequisite an incentive for potential innovators at the same
for starting the process of economic time.
transformation (Ali et al,2020). The non-
agricultural sector is generally too small to play The desire to innovate is driven by the hope of
this role. obtaining this monopolistic advantage.
Innovation has 3 effects, namely:
The role of the agricultural sector in economic  New technology is introduced
development is very important because most  Generate more profit (monopolistic profit) is
members of society in poor countries depend on an important source of funds for capital
this sector for their livelihoods. If planners really accumulation.
pay attention to the welfare of their people, then  Innovation will be followed by the
the only way is to improve the welfare of most emergence of a process of imitation

(imitation), namely the presence of other towards efforts to develop manpower.

entrepreneurs who imitate the new  It is verified that rural development
technology. activities in non-agricultural works will
directly and indirectly support and be
The imitation process mentioned above will supported by the agricultural community.
eventually be followed by investment (capital
accumulation) by the imitators. This imitation
1.3. History and Development of
process has the following effects: Agriculture
 Decreasing monopolistic benefits enjoyed
The history of agriculture is part of the history of
by innovators, and
human culture. Agriculture arises when a
 The spread of new technology in society
society is able to maintain food availability for
means that the technology is no longer a
itself. Agriculture forced a group of people to
monopoly for the originators.
settle down and thus gave rise to civilization.
All of the processes described above increase the
There have been changes in the belief system,
output of society and as a whole constitute a
the development of life-support tools, and also
process of economic development. The most
in the arts due to the adoption of agricultural
important source of economic progress is that
technology. The culture of the society that
economic development.
depends on agricultural aspects is termed as
part of human culture, agriculture has brought a
Agricultural development aims to improve the
major revolution in human life before the
quality of the population, increase the income
industrial revolution. It can even be said that the
and standard of living of farmers, expand
agricultural revolution was the first cultural
employment and business opportunities,
revolution experienced by humans
support development and increase exports. An
(Gorlinski,2012).
energy economic development based on
agricultural and manpower priorities requires at
Based on the evidence of artefact remains,
least 3 basic complementary elements, namely:
prehistoric scholars, today agree that
 Acceleration of output growth through a
agricultural practices first began in the "fertile
series of adjustments technology,
crescent" of Mesopotamia around 8000 BC.
institutional and price intensive specifically
Agricultural activities (cultivating crops and
designed to increase productivity in farmers
livestock) are one of the earliest known activities
 An increase in domestic demand for
of human civilization. According to prehistoric
agricultural output based on an urban
experts, agriculture first developed about 12,000
development strategy that is oriented

years ago in the Middle East. The first evidence that were first cultivated were wheat, barley,
encountered indicates the cultivation of cereals green beans (pea), chickpeas, and flax. Then
and legumes in the area. Agriculture has been agriculture entered the Hilal Fertile Region in
known by people who have reached the culture West Asia, as well as Egypt and India
of young stone (neolithic), bronze and megalith. Agriculture developed independently in various
Agriculture changed forms of belief, from places in the world, namely in China, Africa,
worshipping the gods of hunting to Papua, India, and America.
worshipping gods symbolizing fertility and food
availability. The Mesopotamian Age, which was Each part of the world has different mastery of
the beginning of cultural development, was an agricultural technology, so the timeline of
era that helped define the ancient agricultural agricultural development varies from place to
system. The city's economy which first place. In some parts of Africa and Central Asia,
developed there was based on agricultural there are still semi-nomadic (semi-nomadic)
technology that was oriented towards temples, societies, which have been able to carry out
priests, granaries, and clericals (Rengel & livestock activities or cultivate crops but
Djalovic,2021). continue to move around in order to maintain
food supplies. Meanwhile, in North America
The creation of social surpluses led to economic and Europe large tractors handled by one
institutions based on warfare and slavery. person have been able to feed hundreds of
Administration for surpluses to be kept is an people.
urgent need for an accounting system. The
solution to this problem came 6,000 years ago As part of human culture, agriculture has
with the creation of writings that marked the brought a great revolution in human life before
beginning of culture. Mesopotamian culture the industrial revolution. It can even be said that
survived for millennia under many different the agricultural revolution was the first cultural
governments. Its influence, though difficult to revolution experienced by humans. Plant
define precisely, radiated to Syria and Egypt cultivation techniques then extended to western
and possibly India and China as well. Europe and (North Africa) and to eastern Asia
and "Southeast Asia). Evidence in China shows
History records At that time there were 32 out of the cultivation of barley (millet) and rice since
56 species of cultivated grains from 6000 years BC. Southeast Asian people have
Mesopotamia, on that basis, Mesopotamia been familiar with lowland rice cultivation for at
became one of the centres of cultivated plant least 3000 years BC and Japan and Korea since
diversity (centre of origin). The types of plants 1000 years BC. Meanwhile, the peoples of the

American continent developed cultivated plants born as a counterweight to farming activities in

and animals that were completely different from agricultural activities.
the start.
In ancient literature, there is a story that the
The first livestock to be domesticated were founder of agricultural activities was the
sheep (7000 years BC) and pigs (6000 years BC), Chinese Emperor Shen Nung. At that time he
together with the domestication of cats. Cows, saw that his people enjoyed eating beef and
yaks were developed between 6000 and 3000 chicken from hunting, and gathering fruits,
BC. Poultry started to be cultivated much later. seeds and nuts. However, as time went on, the
Silkworms are known to have been bred in 2000 community grew in number and the
years BC. Freshwater fish farming has only been environment was unable to provide sufficient
known since 2000 years ago in China and Japan. natural products to support life, so he sparked
Marine fish farming has only been known to the idea of making a land processing tool from a
humans in the 20th century. Cultivation of sharpened stick of wood and tied it to a stick. It
vegetables and fruits has been known to was the first model of the plough and with the
mankind for a long time. The people of Ancient plough he ordered his people to cultivate the
Egypt (4000 years BC) and Ancient Greece (3000 land and plant millet. Millet is not only used
years BC) were familiar with the cultivation of directly as community food but can also be used
grapes and olives (Matthews et al,2020). Before for cows and chickens (Shurtleff & Aoyagi,2020).
agricultural technology developed as we
experience it today, agricultural technology was The first recorded fruit growing attempts may
still very simple. It is possible by chance that be attributed to the ancient Babylonians
some of the seeds are wasted while the parent is knowing that date palms would bear more fruit
preparing food, germinating and growing into a when a kind of flour produced by barren tree
productive plant. blossoms was slapped over the fruitful bunches
of tree flowers. At that time it was not clear to
The incident sparked the desire of mothers to date palm farmers that the barren tree was not a
replant some of the grain they collected from the barren tree, but a tree with male flowers.
fields and the emergence of agriculture as one of
the first agricultural activities. Likewise, some The disclosure of the knowledge that date palms
animals caught as a result of hunting may not be are of two kinds, which we now call two houses,
killed for food because family members use most likely occurred because in the beginning,
them as a game. Finally, the livestock that is they destroyed all the fruitless plants. This
raised is bred and the first livestock business is causes the trees that used to bear fruit, their

pistils fall, and they know that the tree which feed 15 million people. By 700 BC, 900 plants
they consider useless because it is barren plays were known.
an important role in the formation of the fruit.
This causes the farmer's instinct to work and try The knowledge of ancient agriculture is no
to make them more “fertile” tree flowers turn greater than in Egypt, where the sand blowing
into fruit by beating flower bunches from from the desert holds data and records from an
“barren” trees into “fertile” tree flower bunches. astonishing age. Along the Nile are large formal
The work carried out by these farmers is at the gardens, filled with exotic ornamental plants
same time changing the status of the date palms and ponds filled with fish and water lilies. In
from bunches that are only used for their crops orchards, dates, grapes, figs, lemons and
to becoming plant bunches which are enhanced pomegranates are cultivated. The vegetable
by utilizing the harvest through maintenance. garden contains cucumbers, artichokes, garlic,
The maintenance of other living things by green onions, onions, lettuce, radishes and
humans is the main characteristic of agricultural various pumpkins. Egyptian culture spanned 35
activities (Rengel & Djalovic,2021). centuries, and then Phoenician sailors passed on
the technological legacy of Mesopotamia and
The Mesopotamian Age, which was the Egypt to the newly emerging Greek archipelago
beginning of cultural development, was an era (Gorlinski,2012).
that helped define ancient agricultural systems.
The city's economy which first developed there The history of agriculture is part of the history of
relied on agricultural technology oriented human culture. Agriculture arises when people
towards temples, priests, barns, and scholars. are able to maintain food availability for
themselves. Agriculture forces groups to settle
The backbone of agriculture consists of crops down thus encouraging civilization. Civilization
that are still important today for the world's is also awakened by changes in belief systems,
food supply: wheat and barley, dates and figs, the development of life-support tools, and also
olives and grapes. The ancient cultures of the arts due to the adoption of agricultural
Mesopotamia - Sumer, Babylon, Assyria, technology.
Chaldea developed increasingly complex and
integrated agriculture. The ruins show the Everywhere in the world, at some point in
remains of irrigated terraces, gardens, and ancient civilizations, people switched from
gardens. Four thousand years ago brick hunting and gathering natural produce to
irrigation channels with paved joints helped agriculture. By farming, food needs can be
keep an area of 10,000 square miles planted to obtained at any time from a place close to where

you live. Thus every day and as long as the occurs with the creation of a complex and
weather allows fresh food ingredients it does interconnected technological suite,
not need to be preserved. Especially at that time, encompassing a harmonious relationship
not many people knew about how to preserve between agricultural crops and livestock,
food other than how to dry and suck food. namely agricultural development.
Based on various archaeological observations, it
is suspected that agricultural efforts in various The history of agricultural development is a
primitive societies were initiated by women relatively recent innovation when compared to
with the aim of facilitating the provision of food human history because the original human-only
for their families. Therefore agriculture can be acted as a food collector for a long time. The first
said to be an effort to create an artificial food production by planting and cultivating
ecosystem that is tasked with providing food for actually occurred only 7,000-10,000 years ago (in
humans. the Neolithic era).
The discovery of fire and the development of In the world, agriculture seems to have
agriculture are two innovations that form the developed independently, at distant times in
basis of culture. Fire is the foundation of our several different places. Gradual agricultural
existence and it is difficult to imagine a human development brought luck and a convincing
being without fire. Human use of fire not only food surplus. Such a state of surplus can exempt
marked the beginning of social life but some skilled people with other skills from the
eventually gave birth to a series of task of producing food.
interconnected technologies. The most
important direct result of fire is the wider use of The development of new skills is only possible
food supplies because some foods are unedible, when increases in agricultural efficiency allow
unpalatable or unhealthy if they are not cooked the use of newly acquired leisure time. Until
first. The sustainable development of each now, this situation is still valid. The final result
society relates to the availability of an adequate of an increase in the standard of living is marked
food source. by things that were once considered a luxury
that has finally become daily necessities.
In primitive societies that relied on food
gathering or hunting, each individual had to be Cultural origins can be traced to the discovery
totally involved with ensuring the availability of that an excess supply of food could be achieved
food sources. Abundance is only temporary and by planting seeds or plant parts. Plants that
is an exception. The solution to this problem grow quickly and produce annuals are probably

the first to be cultivated (Rengel & The introduction of new species to their new
Djalovic,2021). The technology concerning the habitats is an important face in agricultural
cultivation of long-lived crops such as fruit trees development. In recent times the centre of
was time-consuming and required higher production of almost all agricultural crops has
technology, therefore at that time fruits were moved very far from the centre of origin.
only harvested from wild plants.
The high and low of culture lies in the
Practically every plant was developed in discoveries of people who have forgotten
prehistoric times. This plant development is history. It is not known exactly where a
achieved in two different ways: 1) particular plant was cultivated. According to
domestication, namely by bringing several wild archaeological evidence, recorded 7,000 - 8,000
species into cultivation or management, and 2) years ago, historical remains were found on the
selection, namely the different captivity of these highlands which were well-irrigated from the
species. Indus, Tigris, Euphrates and Nile rivers. The
events that preceded it must have taken place
Primitive humans showed extraordinary thousands of years prior to that.
ingenuity in the process of taming wild plants
and preparing their food needs. For example, in Southeast Asia, with its diverse geography
cassava plants that contain deadly toxins resulting in the diversification of vegetation, a
(cyanide acid, HCN), it has long been known mild climate, and the ability to sustain stable
that toxins can be removed by cooking. This is a populations with economies of hunting and
technique that is not easily recognized. fishing, has been thought to be a viable location
as the cradle of primitive agriculture. This area
Selection sometimes results in the creation of a is especially rich in plants that reproduce
new type and for many plants, it is very asexually. It is possible that the planting of the
effective. Most of the plants that exist today are vegetative part precedes planting the seeds.
very different from their wild ancestors, and
many have changed so much that their lineage The origins of primitive agriculture may have
has blurred. Early humans were effective plant been in several places in the world
breeders, even without the slightest knowledge independently and developed through the
of genetics. Agricultural crops have spread and diversion of new plant forms in new
accompanied humans in their wandering and environments. When agriculture moved to more
migration. severe climates, seeding was the dominant
technique, replacing vegetative cultivation.

When agriculture came to the Old World (Asia, systems which are supported by the creation of
Africa and Europe), the movement led to river writings which are the beginning of culture. The
basins, where the two dangers were the same, influence of agricultural development which
namely drought. and flooding must be created this surplus penetrated Syria, Egypt,
overcome. India and China. Commodities cultivated at that
time included wheat, barley, dates, olives and
These gigantic changes were accelerated with grapes.
the innovations needed for irrigation and cereal
cultivation. New technology adds to the need The ancient cultures of Mesopotamia, Sumeria,
for a higher social level, great works are needed Babylon, Assyria, Chaldea, stimulated the
to make rivers useful instead of becoming a development of more complex agriculture with
threat to humans. The success of this technology the use of terraces and irrigation canals. The
can be measured from the human population it ruins show the remains of irrigated terraces,
supports which is always increasing gardens and gardens. Four thousand years ago
(Gorlinski,2012). brick irrigation canals with paved connections
helped to irrigate an area of 10,000 square miles
Agriculture is a manifestation of human still planted to feed its inhabitants.
culture/civilization whose existence today
cannot be separated from the history of the In 700 BC, 900 plants were known. The ancient
development of human culture/civilization Egyptians developed effective drainage and
since ancient times. The development of irrigation systems and developed an ancient
agriculture is closely related to the development tillage tool in the form of an ancient plough
of human civilization. It is better if we are pulled by human power and also developed a
familiar with several agricultural models related sickle as a cutting tool at harvest time. Along the
to human history. Nile are created extensive gardens, filled with
exotic ornamental plants and ponds filled with
The ancient Mesopotamian civilization gave fish and lotus. In orchards, dates, grapes, figs,
birth to a culture that influenced the rapid lemons and pomegranates are cultivated.
advances in ancient agriculture. At that time the
city economy developed based on agricultural The vegetable garden contains cucumbers,
technology which was oriented to the temples as radishes, and various pumpkins. At the same
the centre of power. The surplus that has time, technology for storing and processing food
occurred has created economic institutions and has also developed, including fermentation,
developed administrative and accounting pickling, drying, smoking and salting, progress

that further stimulates the development of the of mica for growing vegetables in winter
cultivation of various food commodities. The (Tauger,2013).
ancient Egyptian culture spread to Greece and
was later absorbed by the Romans. Although the In the Middle Ages, the collapse of the Roman
Greeks added very little practical finesse, their Empire and the invasion of Western countries
analytic attitude and curiosity about nature and pushed cultivation technology to the Near and
matter had a profound influence on future Far East. Gardening was an integral part of
technological advances. monastic life, which could bring in food, wine
and medicine. The emergence of Islamic culture
Two famous writings History of Plants and has strengthened the existence of this
Causes of Plants from Aristotle's pupil agricultural cultivation technology, which then
Theophrastus influenced Botany until the 17th developed more rapidly during the revival era
century. These writings cover morphology, of European nations. Sugarcane originating from
classification, seed and vegetative propagation, East Asia was not commonly used in Europe
plant geography, forestry, horticulture, until it was introduced by the Arabs to Palestine,
pharmacology, pests, smells and tastes plant. Sicily, Spain and the Greek islands.
Greek culture was absorbed by the Romans. The
Roman Empire was built on a solid and strong Soybeans are the newest crop from the list of
foundation of natural resources. The Romans plants introduced from the Far East. One of the
were very interested in the practical aspects of important inventions brought in from the East
agriculture. Agriculture was a very important was efficient horse reins that did not strangle the
part of the Roman economy. The main source of horse when it was pulled.
income for the Roman Empire was land taxes,
which were regulated by law and a well- It was the glory of the East that lured Europeans
developed agrarian plan. looking for a way to the East which eventually
discovered new continents and was followed by
Roman agricultural practices were well new plants. The discovery of the New World
documented. Writing on agriculture is De (American continent) raised great hopes in
Agricultura by Marcus Porceus Cato (234 - 149 Europe.
BC), who wrote on practical aspects of crop and
livestock management. In Roman culture, Food ingredients found in the form of foreign
grafting and budding techniques have and special plants include corn, potato, tomato,
developed, the use of manure, restoring soil sweet potato, pumpkin, peanuts, green beans,
fertility, cold storage for fruits and greenhouses avocado, cashew nuts, pineapple, chocolate,

vanilla, pepper, chilli, quinine, cocoa, rubber population. In the United States, in 1910, each
and tobacco. The changing state of agriculture in farmer was able to produce for himself and
the 17th and 18th centuries in Europe began seven others.
with the collapse of the feudal system which
coincided with the growth of cities and the This ability grew rapidly, namely in 1967 each
emergence of a strong nationalist state. farmer could support 40 other people. The
magnitude of the increase in capacity is due to
The increase in the population of the cities and an increase in labour efficiency due to
the expansion of the trade and financial system technological improvements. This leads to
have also attracted the development of the rural abundant surpluses at relatively low prices. This
economy. New industries have created markets situation is different from the situation in
for industrial crops such as sugarcane, roselle, developing countries where adequate
linen, oil crops and dye crops. production has not been achieved and there are
still many agricultural waste products that have
The improvement of agricultural systems in not been used because technology has not
Europe was followed quickly by the United developed as rapidly as developed countries.
States, especially in the field of mechanization.
The harvester that is now commonly used was The new technology in agriculture, which was
originally invented by Mc Gormick in Virginia originally developed slowly, showed a real
in 1831. Labour shortages and high cereal prices impact since the 1930s. In 1880-1920 the most
during the Civil War have accelerated the impressive increase in production in the United
development and adoption of agricultural States occurred because of increased financing
machinery. This has made the United States of (spending) on land and labour. Then in the
America a centre for the development of following years, the expenditure on these two
agricultural mechanization, which has become aspects decreased very rapidly.
the basis for the development of a modern
agricultural system. The replacement of animal power by engine
power in the 1920s was a major step in the
The rapid development of applied agricultural technological revolution of the 20th century. In
science in developed countries has caused a addition, the use of Mendel's discoveries in
greater difference from developing countries in plant breeding created new high-yielding
the ability to feed their population. This is due varieties (Barbier,2019). In the 1940s,
to the gap between the increase in the efficiency agrochemical discoveries in the form of
of agricultural technology and the increase in herbicides, fungicides and organic insecticides,

had yielded brilliant commercial results in In the first stage or the traditional agricultural
agriculture. This invention has been able to stage, farmers usually cultivate the land only to
increase production per unit area, while the extent that can be managed by the family
increasing efficiency by reducing labour. workforce without requiring paid labour. The
state of the static environment, the use of
Further progress occurred due to improvements technology is very limited, the social
in irrigation systems and the use of fertilizers institutional system is rigid, the market is
economically. Then, since the 1950s, many scattered and the communication network
advances have been made as a result of basic between rural and urban areas is inadequate
research. and tends to hinder the development of
production. The process of agricultural
The agricultural development of a country runs development is generally related to efforts to
in accordance with the stages of community transform from a low-productivity agricultural
development, prevailing market mechanisms, system to a more modern system that has
technological developments and economic relatively high productivity and which may
developments as well as the development of have side effects on the environment due to the
social institutions. use of modern agricultural technology and
inputs.
There are three stages of agricultural
development based on the level of progress and These side effects are not only found in modern
management objectives of the agricultural agriculture but also in traditional agriculture, as
sector. The first stage is traditional agriculture a result of the rapidly increasing population
which is characterized by a low level of growth. Although so far traditional agriculture
productivity in the agricultural sector. has succeeded in managing agricultural
resources without causing irreparable damage
The second stage is the commercialization stage to resources, environmental problems will arise
of agricultural products, but the use of due to population pressure on the relatively
technology and capital is still relatively low. The narrow available land so that its carrying
third stage is the stage of all agricultural capacity is low.
products aimed at serving the needs of the
commercial market, characterized by the use of Traditional agriculture in the tropics is
technology and high capital and high characterized in particular by the pressure to
productivity. continue to expand the area causing
environmental damage. The direct effects of this

area expansion include relatively rapid nutrient effects of pesticide use need to be looked at
leaching and degradation of land quality due to carefully. Its toxicity to fish and birds and its
forest clearing. Damage to the quality of land persistence and range in nature make it
due to permanent cropping on relatively poor dangerous far beyond the targeted area of use of
land, so that it can no longer be used without these pesticides.
efforts to increase soil fertility. There is also soil
erosion due to heavy rains and long dry seasons Meanwhile, the irrigation system construction
or flooding, and loss of forest resources due to project, if it is not in accordance with the
shifting cultivation. Although the damage to drainage facility, is likely to increase the
natural resources can be prevented and repaired salination of the irrigation water. Even the use
if funds are available, some of them are of new improved varieties for rice, maize and
relatively very expensive, so that over time they wheat commodities sometimes cause side
become completely irreparable. effects, either because planting these high-
yielding varieties requires large amounts of
The vulnerability of tropical ecosystems has pesticides or because these new improved
caused rapid destruction of natural resources, varieties replace local species that have
and what is more concerning is that their undergone natural selection that is more suitable
recovery has been slow. However, there is still a to the local environment and those required for
gap in preventing damage to natural resources the crossing process. Continuous tillage
by formulating appropriate planning and facilitated by agricultural mechanization can
anticipatory action. For example, workers in also damage soil structure.
rural areas who are under-employed or
underemployed can be mobilized to make Modern agriculture cannot give up its
terraces in mountainous areas or be involved in dependence on chemical products (fertilizers
reforestation programs or reforestation of and pesticides), new high yielding varieties that
damaged forests. In many areas of Africa, have high productivity and irrigation. Efforts
marginal land can be reclaimed using state-of- must be made so that side effects can be
the-art management techniques (Dabrowski et prevented or minimized with comprehensive
al,2019 ; Abay et al,2021) . agricultural development planning.
Damage to natural resources in modern It may be unrealistic to consider the side effects
agriculture arises mainly from the use of of the transformation of traditional agriculture
pesticides for pest and disease control and into modern, market-oriented or commercial
weeds, and from irrigation activities. The side agriculture if we design a change that is too fast.

As an example, it can be seen that efforts to everyone who knows that what is meant by
introduce commercial crops into traditional agriculture is nothing but "farming". That is
agriculture, which often fail to help farmers what agriculture means in everyday
improve their livelihoods. Reliance on cash conversation. The colloquial meaning is often
crops for smallholders is riskier than subsistence referred to as "agriculture in the narrow sense".
farming, as price fluctuations make things more The meaning of agriculture that is broader than
volatile. the everyday meaning is that agriculture
includes the fields of farming (agriculture in the
Experience shows that farm diversification is an narrow sense), fisheries, livestock, plantations,
effective transitional step. With this step, staple forestry, processing of agricultural products and
crops no longer dominate because newly marketing of agricultural products. Based on
introduced commercial crops such as fruits, this definition, it is common in agricultural
coffee and other crops have begun to be run science to differentiate between agriculture in
together with simple livestock or fisheries the narrow sense, namely farming activities with
businesses. the meaning of agriculture in a broad sense
covering the fields of planting, fishery, livestock,
The diversification efforts have been relatively plantation and forestry.
successful increasing farm productivity which
previously often led to subtle unemployment. Naturally, the question arises of the
This diversification effort is very necessary characteristics or standards "what is used by
considering that the workforce in rural areas is agricultural science to determine whether a
often abundant and diversifying the workforce source of life is included in agriculture?" In fact,
it can be utilized more optimally. At this stage, this very simple question is not easy to answer
the use of agricultural tools and machines begins explicitly, meaning that the answer given still
to be introduced, as well as the use of new contains weaknesses, especially in determining
superior variety seeds, as well as fertilizers, the boundaries. However, as guidelines or
pesticides and irrigation. Thus farmers are able benchmarks for an agricultural activity, we can
to obtain a salable production surplus and use the following conditions:
reduce the risk of crop failure.
1. in the production process organic materials
Agriculture as a source of human life is a job derived from inorganic substances must be
field that comes from agricultural science. It is formed with the help of plants or animals such
only fitting that we first know what is meant by as plants, livestock, fish, silkworms, spiders, and
agriculture. This question is a bit odd for so on;

2. There is a human effort to renew the

production process that is "reproductive" and /
or "conservation / cultivation efforts". Both
conditions must be met. If only one of the two
conditions is fulfilled, then the production effort
cannot be classified as agriculture. For example:
the collection of foodstuffs such as tubers,
leaves, fruit, fish and animals from forests,
grasslands, rivers, swamps, and so on by tribes
who are still living wandering cannot be
considered as an agricultural business, because
"reproductive and cultivation efforts have not
been carried out". This effort is called a
collection effort. On the other hand, catching
fish from the sea, rivers, swamps, lakes, ponds
and ponds accompanied by the preservation of
the life of these animals can be classified into the
meaning of agriculture in a broad sense.
Products produced by plants and animals

cannot always be directly used or eaten by
humans, generally they need to be processed
first. Processing of agricultural products and
moreover that processing is still one link in the
chain of agricultural activities, generally it is still
classified as agriculture. Examples of such
processing activities are sugar making, rice
pounding, home cheese making, and so on.
Even the marketing efforts of agricultural
products carried out by small farmers in villages
or village markets are generally still classified in
the agricultural sector.

Ecology,Volume 134, February 2019, Pages 116-

REFERENCES
119.
Abay,K.A., Chamberlin,J., Berhane,G.(2021).Are
https://doi.org/10.1016/j.apsoil.2018.10.015
land rental markets responding to rising
population pressures and land scarcity in sub-
Gorjian,S., Ebadi,H., Trommsdorff,M.,
Saharan Africa?.Land Use Policy
Sharon,H., Demant,M., Schindele,S.(2021).The
Volume 101, February 2021, 105139.
advent of modern solar-powered electric
https://doi.org/10.1016/j.landusepol.2020.1051
agricultural machinery: A solution for
39
sustainable farm operations. Journal of Cleaner
Production,Volume 292, 10 April 2021,
Ali,Q., Raza,A., Narjis,S., Saeed,S., Khan,M.T.I.
126030.https://doi.org/10.1016/j.jclepro.2021.12
(2020). Potential of renewable energy,
6030
agriculture, and financial sector for the
economic growth: Evidence from politically free,
Gorlinski,G. (2012). The History of Agriculture.
partly free and not free countries. Renewable
New York : Britannica Digital Learning
Energy
Volume 162, December 2020, Pages 934-947.
Matthews,R., Matthews,W, Richardson,A.
https://doi.org/10.1016/j.renene.2020.08.055
(2020).The Early Neolithic of the Eastern Fertile
Crescent: Excavations at Bestansur and
Alotaibi,B.A., Yoder,E., Brennan,M.A.,
Shimshara, Iraqi Kurdistan. Oxford : Oxbow
Kassem,H.S.(2021).Perception of organic farmers
Books
towards organic agriculture and extension
services.Saudi Journal of Biological Sciences
Norton,G.W., Alwang,J, Masters,W.A.(2014).
Available online 17 February
The Economics of Agricultural Development:
2021.https://doi.org/10.1016/j.sjbs.2021.02.037
World Food Systems and Resource Use. London
: Routledge
Barbier,E.B.(2019).Natural Resources and
Economic Development.New York : Cambridge
Olén,N.B., Roger,F., Brady,M.V., Larsson,C.,
University Press
Andersson, G.K.S.., Ekroos,J., Caplat,P., Smith,
H.G., Dänhardt,J., Clough,Y. (2021). Effects of
Dabrowski,J., Venter,G., Truter,W.F.,
farm type on food production, landscape
Scholtz,C.H.(2019).Dung beetles can tunnel into
openness, grassland biodiversity, and
highly compacted soils from reclaimed mined
greenhouse gas emissions in mixed agricultural-
sites in eMalahleni, South Africa.Applied Soil
forestry regions. Agricultural Systems,Volume

189, April 2021,103071.

https://doi.org/10.1016/ j.agsy.2021. 103071
Rengel,Z., Djalovic,I.(2021). The Root Systems in

Sustainable Agricultural Intensification.
Hoboken : John Wiley and Sons
Schut,M., Klerkx,L., Rodenburg,J., Kayeke,J.,

Hinnou,L.C., Raboanarielina,C.M., Adegbola,
P.Y., Ast,A.v., Bastiaans,L.(2015).RAAIS: Rapid
Appraisal of Agricultural Innovation Systems
(Part I). A diagnostic tool for integrated analysis
of complex problems and innovation capacity.
Agricultural Systems, 132 (1), 1-11.
https://doi.org/10.1016/j.agsy.2014.08.009
Shurtleff,W., Aoyagi,A.(2020).History of
Soybean Variety Development, Breeding and
Genetic Engineering. Lafayette : Soyinfo Center
Tauger,M.B.(2013).Agriculture in World
History. London : Routledge
Xiao,L., Liu,J., Ge,J.(2021).Dynamic game in

agriculture and industry cross-sectoral water
pollution governance in developing countries.
Agricultural Water Management Volume 243, 1
January 2021,
106417.https://doi.org/10.1016/j.agwat.2020.10
6417

UNDERSTANDING AGRIBUSINESS
Agriculture, Business, and Economics Relationship
Agribusiness Illustration Photo by Karolina Grabowska from Poland
Abstract : This chapter is more on the discussion of business and technical starting an agricultural
business. The discussion in this chapter includes What is Agribusiness, Understanding Business and
Company, Understanding Business Feasibility Study. The purpose of this chapter is to provide the
reader with an understanding of agricultural business and how to start a project or business in
agriculture.
Keywords: Agriculture, Business, Agriculture Business

2.1.What is Agribusiness Some of us must be some who are still

In everyday life, vegetables and fruit must be on unfamiliar with the term agribusiness
the table for you to consume. The need for management. To understand the true meaning
vegetables and fruit is one of the basic needs of agribusiness management, we must know the
because it includes food that must be available, explanation for each word, namely the words
in order to maintain health. However, are you management and agribusiness. As we all know,
aware that these vegetables and fruits are management means managing. But what about
included in one type of agribusiness business? agribusiness? Well, agribusiness itself has the
Agribusiness is tremendous potential because it meaning of business based on efforts in
is a basic necessity (Annapoorani, 2018). There agriculture or other fields in its derivatives.
are various agribusiness sectors that can be Talking about the agricultural sector, you must
developed, such as medicinal plants, have heard or are even familiar with the term
consumption vegetables, seeds, grafts, bonsai, agribusiness. In short, agribusiness can be
and many others. However, currently, the defined as a business based on agricultural
demand is not proportional to the amount of business, as well as other supporting fields. So,
production, so that some needs still have to be from this brief explanation, it can be concluded
imported. This is because most agribusiness is that agribusiness is a scientific field that should
considered a business that generates little profit be understood by the public.
and is tiring.
Agribusiness as a science refers to a series of

Even though agribusiness is an opportunity for decision-making sciences, namely business
you to take the opportunity to generate science (managerial economics), management,
abundant profits. The need for food is very systems science, communication science and
unlimited so that agribusiness is a business that other supporting sciences that are applied to
has a big opportunity now and in the future. drive agricultural, livestock, fishery and forestry
Agribusiness is a field of business that can bring production businesses so that they can be
you profits so you can have other property accepted by the intended consumers.
investments such as land or buying a house. For Agribusiness is a system of business activities
those of you who like farming, agribusiness is a based on agriculture, livestock, fisheries,
profitable business sector. However, in its forestry and natural resources in general, which
development, qualified knowledge is needed in are well managed to achieve the desired benefits
order to make money. (Diwase,2014). Agribusiness is a broadly

integrated business system based on agricultural preparation of raw materials. Agribusiness is

activities by managing limited economic also responsible for post-harvest activities, and
resources into products that have a sale value. how to process the harvest until it enters the
Agribusiness as an economic sector is marketing phase. Therefore, this field is often
characterized by the existence of business associated with the context of management in
activities with the motive of gaining profits the academic world or commonly known as
based on agriculture, livestock, fisheries and agribusiness majors. Department of agribusiness
forestry or the use of other natural resources is a science of strategies to run the production
while still paying attention to social chain as effectively as possible. Agribusiness can
responsibility and environmental sustainability. be defined as a process of coordinating a
Agribusiness is a series of activities involving number of sub-systems and influencing each
the input subsystem, production subsystem, other. The sub-system can include the provision
processing subsystem (agro-industry), product of agricultural inputs, processing of products,
marketing subsystem and support subsystem. agricultural production, and marketing of
agricultural products (Almeida et al,2020).
Agro-industry is a business related to processing
that involves processing, preserving, storing and The agribusiness system has 4 aspects, namely
packing agricultural products, especially coastal the provision of production facilities and
and marine cultivation products. In general, equipment, agricultural business, processing
what is meant by agribusiness is a business and marketing. In order for the four subsystems
based on agricultural business or other fields. to run better and smoother, other subsystems
The purpose of agribusiness is to support such as development and infrastructure are also
agriculture, from the upstream to the needed. If the coordination of all these aspects
downstream sectors. That is, the main view in can run smoothly, the creation of conducive and
this field refers to the food sector chain or food adequate conditions in rural areas will be
supply chain. Thus, agribusiness can also be needed. The creation of these conditions
interpreted as an economic perspective in an includes component equipment,
effort to provide food. entrepreneurship and partnerships, as well as
other conditions that can support agribusiness
In addition, referring to an economic point of systems in rural areas. Agriculture in a narrow
view, agribusiness is defined as an effort to sense can be interpreted as a business or activity
study strategies to obtain profits based on of cultivating crops, whereas in broad sense
management on aspects of cultivation and agriculture is all human activities that include

agricultural activities, fisheries, animal Agribusiness is a complete system starting from

husbandry and forestry. In relation to the sub-system of providing production facilities
agriculture, the terms farmer and farming are and agricultural equipment; farming sub-
known. Farmers are a term for those who run system; processing sub-system or agro-industry
agricultural businesses, for example, "tobacco and marketing sub-system. In order for this sub-
farmers" or "fish farmers". Farming (farming) is system to work well, it requires the support of
a group of activities carried out in cultivation the institutional facilities and infrastructure sub-
(plants and animals). system as well as the support and guidance sub-
system.
As an economic activity, agriculture can be
viewed as a system known as agribusiness. Agribusiness is an activity related to the
Agribusiness is a business based on agricultural handling of agricultural commodities in a broad
business or other fields that support it, both in sense, which includes one or the whole of the
the upstream and downstream sectors. The production chain, processing inputs and outputs
designation "upstream" and "downstream" of production (agro-industry), marketing
refers to the main view that agribusiness works agricultural inputs and supporting institutions
in the food supply chain. Within the framework for activities. What is meant by relating is
of this system of thinking, the management of business activities that support agricultural
nurseries, the provision of production inputs activities and business activities that are
and production facilities, is commonly termed supported by agricultural activities.
an “upstream” aspect. Meanwhile, post-harvest Agribusiness is a business activity that includes
activities such as distribution, processing and one or the entire chain of production, processing
marketing are included in the “downstream” and marketing that has something to do with
aspect. Meanwhile, cultivation and yield agriculture in a broad sense. Referred to as
collection are part of the aspects of the "anything to do" with agriculture in a broad
production process. sense is a business activity that shows
agricultural activities and business activities
Agribusiness, in other words, is an economic indicated by agricultural activities.
perspective for the business of providing food.
As an academic subject, agribusiness studies The concept of agribusiness is actually a
strategies to gain profits by managing aspects of complete concept, starting from the production
cultivation, supply of raw materials, post- process, processing results, marketing and other
harvest, processing, to the marketing stage. activities related to agricultural activities.

Agribusiness as a system is the whole activity of becomes a system, namely as an organizational

input production, production and processing unit that carries out the functions of production,
products from the results of agriculture. processing and distribution of agricultural
Agribusiness comes from the words agri and products. As a system, agribusiness absorbs
business. Agri comes from English, agricultural input and go through various processes of
(agriculture). Business means commercial production, processing and distribution to
ventures in the world of commerce. produce products for consumers. Each
Agribusiness is a business activity unit that component or subsystem of agribusiness is also
includes one or the entire chain of production, a system, for example in the agricultural
processing and marketing of products related to component, especially the production of new
agriculture in a broad sense. Agribusiness is technology as its output. Likewise in the
defined as agricultural activities shown to obtain downstream agri-industry component. The
business profits, labour, land use plans, land use upstream agri-industry and agriculture each
costs, facilities and other important necessities. have a role as input in the agribusiness system
Thus, agribusiness is a complete concept starting as suppliers of input goods and services. These
from the production process, processing of inputs are incorporated in the primary
products and other activities related to production process where natural components
agricultural activities. are converted into primary products. Based on
the primary product, agro-production
Agribusiness-oriented development strategy experiences spatial movements and the
basically shows the direction that agribusiness movement occurs by agri-commerce services.
development is a very important effort to
achieve several goals, namely: attracting and Agribusiness is an agricultural business in a
encouraging the emergence of new industries in broad sense which includes all activities ranging
the agricultural sector, creating a strong, from the procurement and distribution of
efficient and flexible agricultural structure, production facilities to agricultural production
creating added value, increasing revenue. cultivation activities, product processing
foreign exchange, creating jobs and improving activities and marketing activities. Agribusiness
income sharing. activities as a whole include (1) upstream
agribusiness subsystem (upstream agribusiness),
An agribusiness is a form of commodity system namely economic activities that produce and
that includes components of input, production distribute production facilities; (2) on-farm
and distribution. Agribusiness automatically agribusiness subsystem, namely economic

activities that use inputs to produce primary such as banking, transportation, extension
production; (3) downstream agribusiness services, holding ground, government policies,
subsystem (downstream agribusiness), namely Educational and Research Institutions, and
economic activities that process primary others (Zylbersztajn,2017).
agricultural products into processed products
that are ready for consumption; (4) marketing Agribusiness as a driving force for agricultural
subsystem (agribusiness marketing), activities to development is expected to play an important
market primary agricultural products and role in regional development activities, both in
processed products. the targets of equitable development, economic
growth and national stability. To realize this
The agribusiness system can be grouped into great hope, it is necessary to look at the existing
four systems, namely (1) the upstream potential. Agro-industrial companies that have a
agribusiness subsystem, namely economic competitive advantage will be able to grow
activities that produce and distribute production bigger, on the other hand, agro-industrial
facilities such as livestock breeding, the feed companies that do not have a competitive
industry, the pharmaceutical industry, the advantage cannot live long. For that, agro-
artificial insemination industry, and other industrial development needs to be carried out
activities. trading; (2) on-farm agribusiness with a sustainable concept. There are four
subsystem, namely economic activities that use factors that influence the success of sustainable
inputs to produce primary production (farm agro-industrial development, namely: (1)
products); (3) downstream agribusiness availability of raw materials, (2) changes in
subsystem (downstream off-farm agribusiness), consumer preferences, (3) character of
namely economic activities that process primary competitors, and (4) quality of human resources.
agricultural products into processed products
and trade processed livestock products, this Human resources, in this case, farmers, can be
subsystem includes the livestock slaughtering improved through extension. Agricultural
industry, meat processing/canning industry, extension is a non-formal educational activity
leather preservation industry, and tanning aimed at farming communities to help increase
industry. Leather industry, shoes, milk knowledge and skills with the aim of increasing
processing industry and others as well as the standard of living through farming so that
domestic and export trade; (4) supporting farmers are able to improve a better farming
services subsystem activities that provide business, a better business and a better life.
services in the field of livestock agribusiness,

So, basically, agribusiness management is an in agriculture and other fields that support both
activity in the agricultural industry or agro- the upstream and downstream sectors. This is
industry in which it applies the principles of an economic perspective through cultivation
management science. The principles of processing, provision of raw materials, post-
management science applied to include the harvest, and processing up to the marketing
functions of planning, directing, controlling, stage. Agribusiness is a business opportunity
compiling, and utilizing all available resources that many people have started to take advantage
in order to achieve a goal, namely to produce of. This is because the products produced by
products that are beneficial to their owners. In agribusiness are always needed by the
the business world, agribusiness management community, so they are never lonely. The work
has a very broad meaning and some experts environment is also cooler so you can work
have different views. However, in concept, without the hustle and bustle of the city
agribusiness management is an activity of vehicles. Agribusiness is a business that
procurement, distribution, and marketing of provides benefits to all sectors including
various agricultural and agro-business products procurement, distribution and marketing by
that have a close relationship with one another. agricultural enterprises. There are so many
types of businesses in agribusiness that you can
Management science has an important role in do and make big profits (Roche,2019).
agribusiness as a means of forming a more
structured and well-organized agribusiness Every business does not just suddenly succeed.
plan. With this explanation, we can conclude There are a few tips and tricks that must be done
that planning in agribusiness has a very to make it work. Agribusiness actors embrace
important role, considering that business in academics in developing these businesses to
agriculture is full of uncertainty and is very increase profits and production results.
vulnerable to losses. Agribusiness management Agribusiness is a business that is not easy to
is everything that is closely related to planning start, especially in terms of capital readiness. If
and agro-industry management. For this reason, you own land property, you can use it as start-
every business in the agricultural sector requires up capital. For those of you who are new and
the presence of good management so that it can currently running agribusiness, then want to
be directed to the right goal and obtain make it successful, here are some tips:
maximum benefits.
 Choose the agribusiness aspect according to
Agribusiness is a business based on businesses your abilities and interests. This

agribusiness business is not just food understand the meaning of business properly
production. This business also includes the and correctly. If you are a person who has the
cultivation of resaleable animals and plants. desire to be in the business world, it is better if
For example, you like cultivating non-food you first learn what business really means. This
plants, you can cultivate ornamental plants. is so that at least you have a basic picture first
 To produce quality food without causing before further practising it. Apart from being
health-related threats, you can grow food knowledgeable, learning the basic
organically. The price is indeed more understandings of business from various experts
expensive because it does not involve any will make you more prepared and stable in
chemicals and the maintenance is quite running a business.
complicated.
 Maximize your gadget as a medium of In the context of general discussion, a business
promotion to attract potential customers. cannot be separated from the activities of
producing, buying, selling, or exchanging goods
Agribusiness is a business that requires and services that involve people or companies.
experience and patience. Whatever type of Activities in business generally have the goal of
agribusiness you choose, be sure to always do it generating profits for survival and collecting
seriously. Try visiting successful farmers in sufficient funds for the carrying out of the
person and take some training so you can learn activities of the businessman or businessman
directly from the experts. If you have himself.
successfully run this business, then you can
export commodities to foreign countries. In economics, a business is an organization that
sells goods or services to consumers or other
businesses for a profit. Historically, the word
2.2. Understanding Business and business is from the English language business,
Company from the root word busy which means "busy" in

the context of an individual, community, or
In everyday life, we all often hear the term
society. In that sense, busy doing activities and
business. It is not uncommon for young people
work bring profit. Or business in a broad sense
today who want to become business people or
is all activities by the community of suppliers of
maybe they are already in the business world.
goods and services.
Even though the term business is often heard
everywhere, not a few of us still don't
In a capitalist economy, where most businesses

are owned by private parties, businesses are it produces to users or consumers who need
formed to make a profit and increase the it.
prosperity of their owners. Owners and  Marketing function, which is a business
operators of a business are rewarded according function related to storage and marketing so
to the time, effort, or capital they give. However, that goods that are less useful at one time
not all businesses pursue this kind of profit, for will be marketed at another time when the
example, cooperative businesses that aim to goods are useful to consumers.
improve the welfare of all its members or
government institutions aimed at improving the Business is a human activity that aims to make
welfare of the people (Bai et al,2021). money by producing and selling a product, be it
goods or services. In the context of activities, the
In simple terms, business is the activity of definition of business is an activity carried out
selling goods or services to consumers with the by individuals or organizations that involve
aim of making a profit or profit. Business is production, sale, purchase, or exchange of goods
generally run by a company in the form of a or services, with the aim of obtaining a profit or
certain business entity, such as an individual profit. Whereas in the context of an entity, the
company, partnership or company. definition of business is an organization or other
entity that is engaged in commercial,
The main process in a business is essentially professional, or industrial activities, to make a
changing something that was original of little profit.
value into another form that has a higher value
and can be used to meet the needs of the Business activity is the main way to develop a
community. In more detail, business functions company. Without business activity, it is
include the following four things. impossible for the company to develop. Except
 Production function, which is a business for corruption in the money laundering
function in producing goods or services companies. The word business itself is taken
needed by society. from English, namely business. It means being
 Distribution function, which is a business busy, in this sense, is taking various actions. The
function to distribute goods or services to actions that cover this business are numerous.
the nearest location that consumers can Marketing, branding, distribution and so on can
reach or identify. be classified into business. Because these
 Sales function, which is a business function activities can generate profits for the company.
when a company sells the goods or services So as long as the company carries out various

profitable activities, it can be said as a business. is engaged in mining by extracting mining

The business scope includes a variety of profit goods that are in the bowels of the earth. The
results in companies or individuals. extractive industry is a mining business activity
by taking mining products from the intestines of
Business is an institutional effort to produce or the earth. Examples of this type of extractive
produce a product. This final product is needed business are coal mining, petroleum, natural
by many people. So that the agency will sell it to gas, gold, copper and others.
get a big profit in the market. Business is also
not linked only to the private sector. The 2. Agricultural business
government with its efforts to meet the needs of Agricultural business is engaged in agriculture,
the people is also a business activity. It's just that plantation, forestry, animal husbandry and
the focus of the business is on the welfare of the fisheries.
people in exchange for taxes that will be
collected by all citizens. In simple terms, 3. Manufacturing Business
business is all the activities carried out by a This is the type of business that is often
person or more that are organized in seeking identified with the common sense of business.
profit through the provision of products needed This business is engaged in the manufacturing
by the community (Santini, 2020). industry, for example, the aircraft, ships, textiles,
furniture, paper, and many more industries.
Basically, the main goal of all businesses is to
make a profit by producing and selling goods or 4. Business Services
services needed by society. The main objective A service business is a business activity whose
in running a business is to generate profits for products are not physical goods or products, but
those who run a business in accordance with the service products, such as education, tourism,
economic principles of buying and selling. There health, banking and finance, and so on. Based on
are goods or services offered, there are benefits the function or use or value-added, a business
that can be obtained from selling these goods or can be defined as all business activities to make
services. Based on their activities, businesses can something that is initially less valuable into
be divided into four types with the following something of high value and can meet the needs
explanations: of society after it is processed. In this case, the
function of business is to make something that
1. Extractive Business initially has no value, into value. Furthermore,
An extractive business is a business activity that business functions are divided into 4, namely:

goods are stored in advance. For example, sales

1. Form Utility. of raincoats will be more profitable in the rainy
Business functions in terms of production. The season.
form utility function makes businesses aim to
create goods or services needed by society. A 4. Possessive Utility.
business that has use of form is a business This fourth type of business is engaged in
whose activity is in the form of the process of certain fields that aim to make or fulfil the use or
changing an object into another object that has a ownership of a good / service. Or it can be
different form and is more beneficial to human called a sales function by changing ownership.
life. For example, a textile company produces This type of business function is also called the
fabric for clothing. sales function in a business where a company
sells a product to consumers who need it, both
2. Place Utility. goods and services. For example, shopping
The function of this business is to distribute businesses, hotels and others.
goods or services produced to the location of
consumers who need these goods or services. A Formally, businesses are differentiated as
business with the use of a place is to have a follows:
business activity of moving an item from one 1. Individual company
place to another which has greater benefits. For The form of individual company business is a
example, the furniture business distributes the business whose ownership is held by one
made benches to schools in rural areas. person. This company is managed by one
person, namely the owner of the company who
3. Time Utility. has full control over the continuity of the
Businesses with the use of time have the main company. Company capital usually comes from
activity related to the storage of goods. With the property of the company owner himself and
storage, items that are less useful can be stored the owner is responsible for all the assets of the
to be removed when they become more useful company.
items. Prior to sale, the venture is in a business
with this time function, not directly marketed. 2. Fellowship
There is a prior consideration in terms of time. Partnership Is a form of business in which the
For example, when will these goods or services ownership of the company is held by two or
be more useful and profitable. For example, the more people in accordance with an agreement
marketing time is not right, it is better if the that has been made for mutual benefit.

can be in other forms that are recognized by an

3. Company entity that is involved in business activities, for
Unlike a partnership, a company is a business in example, relationships. By owning a business,
which the ownership of the company is held by you will feel the following benefits.
several people and is supervised by a board of
directors. 1. Receive Awards and Recognition
Owning a business, especially one that
4. Cooperatives continues to grow rapidly and gives an
A cooperative Is a business whose members are important impact and contribution to the
people or cooperative legal entities with the surrounding community, you will get positive
main objective of making the members welfare appreciation and recognition from the
and activities based on the cooperative principle environment. By owning a company, especially
as well as a people's economic movement based a company that continues to grow rapidly and
on the principle of kinship. gives an important influence and contribution to
the surrounding community, You will get
The following are the characteristics or positive appreciation and recognition from the
characteristics of a business in the world of the environment.
economy:
 Can be done by individuals, groups, 2. Be Your Own Boss
organizations, institutions and institutions. Starting and building a business is not easy, it
 Relating to various goods or services requires serious struggle and considerable
needed by humans sacrifice, both in terms of energy, time, material,
 Aims to seek profit. and thought. However, if the business is going
 Business activities that determine an well, you will feel the many benefits of being
appropriate price There is the possibility of your own boss.
experiencing losses in its implementation.
3. Pay Yourself
Running a business provides many benefits for Unlike being an employee whose income
the perpetrators. Business is a job, profession, depends on other people, by owning a business,
trading activity, or other commercial activity you can pay yourself a determined amount.
that involves goods or services in exchange for More than that, you can also pay other people
profit. However, profits in business are not who are employees.
always in the form of money. In business, profits

4. Can Manage Time Freely this activity in advance. The discussion of a

If you become an employee, working hours are business feasibility study is inseparable from
determined by the company or office where you understanding management coupled with
work, this is not the case with entrepreneurship. looking at several related aspects there such as
Doing business allows you to more freely economic, technological, political-legal and
manage your working time flexibly. socio-cultural aspects. Where all these aspects
are interrelated with each other to support the
5. Have a bright future feasibility of a business both from a micro and
Having a bright future is everyone's wish. macro perspective.
Having your own business is one of the efforts
that can be done to make this dream come true. A business feasibility study is an activity carried
Of course, to achieve this, it will take hard work out to determine whether a business is feasible
so that the business can deliver the expected to run or not. This activity includes identifying
results in the future. problems, opportunities, determining objectives,
describing how the business situation is and
assessing the various benefits generated. In
2.3. Understanding Business relation to business, this study can be used to
Feasibility Study help entrepreneurs make the right decision. For

a beginner, this study is very important because
When intending to set up a business, brilliant
it can prevent business people from losing. A
ideas are not enough to make a business
business feasibility study is a controlled process
successful. There are various factors to consider.
for identifying problems, opportunities, setting
Therefore a business feasibility study needs to
goals, describing situations, determining
be carried out. Although it is important to do so,
successful outcomes and assessing the various
many entrepreneurs often ignore this feasibility
costs and benefits associated with several
study. As a result, some of the efforts that have
alternatives to solving problems. A business
been made have sometimes reached dead ends
feasibility study is used to support the decision-
or even go out of business. For some laymen or
making process based on the actual business or
business people, a business feasibility study may
project continuity (Chang et al,2013).
sound foreign. In fact, this study plays an
important role in determining the success of a
In a business, if you want to run it, there needs
business. Therefore, it is better if a novice
to be in-depth research and learning about the
businessman understands the ins and outs of
business. This is called a business or business

feasibility study. This business or business that exist in business activities require the need
feasibility study can make business people know for an assessment of how much the activity or
how to start a business, including knowing the opportunity can provide benefits if cultivated to
types of customers. However, to need to carry prospective entrepreneurs. A feasibility study is
out a business or business feasibility study, it is a material for consideration in making a
advisable to know the true definition, what are decision, whether to accept a business idea or
the benefits and how this business or business project that is planned or reject.
feasibility study can be run.
The definition of feasibility in the assessment as
A business feasibility study is an initial a feasibility study means the possibility of a
consideration that must be carried out before business or project idea that will be
running a business or business and knowing the implemented to provide benefits, both in terms
positioning of the business and controlling of financial benefits and in terms of social
operational activities in order to get maximum benefits. As a business idea or project in the
profit. A business feasibility study is an activity sense of social benefits, it does not always
that studies in-depth about a business or describe feasible in terms of financial benefits
business to be carried out in order to determine and vice versa, this depends on the point of
whether the business is feasible or not. A view of the assessment that is carried out.
business feasibility study is a study of a business
plan that not only analyzes whether a business A business feasibility study is something that is
is feasible or not but also controls operational prepared when someone is going to start a
activities on a regular basis in order to achieve business. A business idea alone is not enough to
maximum goals and profits. Generally, the guarantee whether the business will run as
purpose of a business feasibility study is to expected or not. This is the reason why a
avoid the risk of major failure from unprofitable business feasibility study is needed. What is
activities. Business feasibility studies are made meant by a business feasibility study is an
for various parties, both for internal companies activity that studies in depth a business by
and for external parties. considering various aspects in order to
determine whether a business is feasible to run
This feasibility study has been widely or not.
recognized by the public, especially those
engaged in the business and business world. A business feasibility study is very much
The various opportunities and opportunities needed by many groups, especially for investors

who are initiators, banks as credit providers, value or benefit.

and governments that provide legal and
statutory regulatory facilities, which of course The definition of a business or business
all differ from one another. Investors have an feasibility study is research which concerns
interest in knowing the rate of return on various aspects both from legal and social
investment, the bank has an interest in knowing aspects economy and culture, market and
the level of credit security provided and the marketing aspects, technical aspects and
smooth return of it, the government focuses technology up to its management and financial
more on the benefits of the investment at a aspects, where it is all used for the basis of
macro level for the economy, equitable feasibility study research and the results are
employment opportunities, etc. used to make decisions whether a project or
business can be carried out or postponed and
Given that the conditions in the future are filled even not executed. Projects that are assessed in
with uncertainty, certain considerations are terms of social benefits are generally projects
needed because in the feasibility study there are whose benefits are calculated or assessed in
various aspects that must be studied and terms of the benefits provided by the project on
examined for their feasibility so that the results the overall economic development of the
of the study are used to decide whether the community.
project or business should be feasible or
postponed or even cancelled. . The foregoing Business activities or projects that are assessed
shows that the feasibility study will involve in terms of financial benefits are those that are
many teams of various experts who are in assessed in terms of investment or capital given
accordance with their respective fields or aspects for the implementation of the business or
such as economists, lawyers, psychologists, project. Even though the identification has been
accountants, technology engineers and so on. carried out, it does not rule out the possibility of
And a feasibility study is usually classified into a business or project experiencing obstacles and
two parts based on the orientation expected by a the risk of being missed. Especially if there is no
company, namely based on profit orientation, feasibility identification at all. In addition,
what is meant is a study that focuses on identification can provide future views and
economic profits, and orientation is not on profit minimize obstacles that may arise in the future.
(social), what is meant is a study that Uncertainty in the future is one thing that needs
emphasizing a project that can be carried out to be taken into account in running a business or
and implemented without thinking of economic project that will be carried out. Economic, legal,

social and political fields, as well as cultural and continuation or will stop at a certain point in
environmental changes as well as trends in time. stop at a certain point in time. In starting a
society, are always changing and uncertain. business, every businessman wants his business
With the existence of a business feasibility to be successful and successful. However,
study, at least there are guidelines and without undertaking this study, a businessman
directions for the business or project that will be would be like breaking through an unknown
carried out by prospective entrepreneurs. terrain without any clues. This is of course very
detrimental for business people because it can
Business feasibility study is an activity that result in the business being established to fail.
studies in-depth or a business to be carried out, Conversely, by conducting a business feasibility
in order to determine whether the business study, a businessman can find out in advance
should be carried out or carried out profitably whether the business that is being established in
on a continuous basis. This study basically the future can continue or not, thereby helping
discusses various basic concepts related to the the businessman make decisions.
decision and process of selecting a business
project so that it is able to provide economic and When starting a business, a businessman who
social benefits at all times. In this study, does a feasibility study will have a different
economic and technical considerations are very business journey from a businessman who does
important because they will be used as the basis not carry out a feasibility study. This is because
for implementing business activities. A business there are many benefits that will be obtained by
feasibility study is also research on a business conducting a business feasibility study.
plan that not only analyzes the feasibility of a Generally, the purpose of a business feasibility
business being built but also when it is routinely study is to avoid the risk of major failure from
operationalized in order to achieve maximum unprofitable activities. Business feasibility
profit for an indefinite period of time (Fallgren studies are made for various parties, both for
et al,2021). internal companies and for external parties.
There are at least five objectives why a feasibility
A business feasibility study has a vital role in study needs to be carried out before undertaking
determining the success of a business. However, a project or business, namely:
what is the real purpose of this activity?
Basically, the main purpose of a businessperson 1. Avoid the risk of loss or minimize the risk
conducting a feasibility study is to measure The first objective is to minimize controllable
whether a business has a chance of having a and uncontrollable risks. Future conditions are

unpredictable, so it is necessary to carry out a and accurately. From the results of the analysis,
feasibility study analysis to minimize the risk. later business people can assess and evaluate
When running a business, there are many which programs and policies provide
unpredictable things. Therefore, business people advantages and disadvantages for the company.
need to prepare everything in order to anticipate As a result, business implementation becomes
all things that happen in the future. By easier to implement and all programs will also
conducting a feasibility study analysis, a generate profits. Planning that is prepared can
businessman can minimize the risks that can facilitate its implementation, business processes
occur to the company, be it risks that can be can be carried out in an organized manner so
controlled or those that cannot be controlled. As that employees can have guidelines and stay
a result, if the company loses money, the loss focused on goals so that the business plan can be
received is not large. achieved according to what was planned.
2. Simplify Planning 4. Make Supervision Easy

When conducting a business feasibility analysis, There are many aspects that are analyzed when
business people will get all the information a feasibility study is conducted. Reports on the
related to the business to be started including results of analysis from various aspects can be
the advantages and disadvantages of the used by business people to carry out
business. From the results of this analysis, it is supervision. Apart from internal supervision, a
easier for business people to plan ahead. Not company also receives external supervision.
only that, thanks to the feasibility analysis Through the results of the feasibility study
carried out, business people can plan activities analysis, it will be easier for the authorities to
that can provide benefits to the company. carry out supervision by referring to the analysis
Having predictions for the future, it will make report. By implementing it in accordance with
planning easier. The planning itself includes the the plan that has been prepared, supervision in
amount of capital, implementation time, business processes will be easier. Supervision is
location, method of implementation, the amount carried out so that the business remains on track
of profit and profit as well as how to monitor if and in accordance with what has been planned.
there is a deviation.
5. Make it easy to control
3. Facilitate the implementation of work In running a business, it is undeniable that
Through business feasibility analysis, previously businesspeople sometimes encounter problems
planned programs can be executed more easily and irregularities. So that the problem does not

get bigger, business people must be able to feasibility study for various parties:
control the problem quickly and precisely. This
can be realized if the businessman previously 1. For Company Management
carried out a feasibility study. Information and A business feasibility study can be a source of
reports on the results of the analysis can be used consideration in management decision making.
as a basis for determining which aspects are the For example, as a guide in implementing future
problem. Then, business people can take steps to projects and to find out the funds needed. As a
solve the problem appropriately. If there is a leader, company management also requires a
deviation, it will be easy to fix it and can be business feasibility study to find out what funds
immediately controlled. are needed, how much is allocated from their
own capital, funding plans from investors and
A business feasibility study is one of the creditors.
important things to do when setting up a
company. By carrying out this feasibility study, 2. For Investors
business people can avoid the many bad The business feasibility study report is useful for
possibilities that hit the company. Not only that, assessing whether the business opportunity is
but a feasibility study can also increase a feasible or not, which is then used as
company's chances of maintaining its existence consideration for disbursement of funds. If the
and success. So, business people should no results of a business feasibility study are poor,
longer hesitate to conduct a business feasibility investors will avoid investing in a company.
study so that your business planning is more Before investing in a company that will be run,
mature. investors will study the business feasibility
study report that has been made, because
The benefits of a business feasibility study are investors have a direct interest in the profits to
felt by various parties, especially those with an be obtained and the guarantee of capital to be
interest in the project or business that will be invested.
carried out. Research results that are deemed
appropriate must be accounted for so that no 3. For the Community and Local Government
party is harmed. A business feasibility study is A business feasibility study can be used by the
not only beneficial for business owners, but also community to find out whether a business entity
for other parties who have their respective is environmentally friendly or not, and whether
interests related to the existing business. The the business can benefit the socio-economic life
following are some of the benefits of a business of the local community. Companies that will be

established must pay attention to the policies set From a cultural perspective, the feasibility study
by the government so that they can be will analyze how the company influences the
prioritized for assistance by the government. customs in the surrounding area. Meanwhile,
4. Creditors from an economic perspective, the analysis
Before giving credit, the bank needs to review carried out is how the company impacts the
the business feasibility study and consider the level of per capita income in the area where the
bona fides and availability of the collateral company is established.
owned.
3. Market and Marketing Aspects
When conducting a feasibility study, there are Market and marketing are basic aspects that are
many aspects that must be examined. Basically, examined in a feasibility study. The analysis
these aspects are flexible, so that they can be carried out in this aspect will answer the
added or subtracted according to the company's question of whether the products produced by
needs. However, there are some basic aspects the company have market opportunities. To
that will definitely be examined when the answer this question, there are several things
feasibility study analysis is carried out, that must be considered, namely market
including: potential, number of consumers, people's
purchasing power, segmentation, the
1. Legal or legality aspects competitive situation in the industry, and others.
One aspect that must be examined when a
feasibility study is carried out is the legal or 4. Management Aspects
legality aspect. This concerns all matters relating The feasibility study also includes aspects of
to legality or legal provisions in establishing a management as the basic aspects that must be
company. In the legal aspect, the points analyzed. This aspect is closely related to the
analyzed are location permits, company company's operations, both development and
registration letters, taxpayer-identification development. Of all the aspects analyzed, the
numbers, company establishment deeds from management aspect has a very broad scope. This
notaries, trading business licenses, and others. is because everything related to company
operations falls into the category of management
2. Economic and Cultural Aspects aspects, from resource management to corporate
In the economic and cultural aspects, the finance.
feasibility study analyzes the impact caused by
the company on the surrounding conditions. 5. Financial Aspects

For some businesses, capital is the main thing

that must be owned before building a business. 2. Research Stage
Therefore the financial aspect is what After going through the idea discovery stage,
determines your business to run smoothly or not the next stage is to conduct research or research
in the future. The budgeting process is a must if on potential initiatives by investigating the
you want to carry out careful business planning. existing business feasibility study aspects and
implications including their potential with the
In carrying out a business feasibility study there following scientific methods:
are several stages of the study that should be  collecting data
carried out, the following are some of stages:  processing data
 analyze and interpret the results of data
1. Idea Discovery processing
Idea Discovery and Business Development are  conclude the results
the initial stages that you must go through in  create a result report
conducting a business feasibility study. Where
an initiative arises because it sees hidden 3. Evaluation Phase
requests and business development which is The evaluation stage is comparing something
considered to have its own opportunities. The with one or more standards or criteria that are
idea of business development needs to be quantitative or qualitative in nature. Things that
followed by a research process, given a large are compared in a business evaluation are all
number of business competitors and failed costs that will be incurred by a business
establishments that are not accompanied by proposal as well as the benefits or benefits that
thorough research and preparation. In order to are expected to be obtained. The evaluation
generate project ideas that can produce salable referred to as an evaluation of existing aspects
and profitable products, well-organized research such as technical aspects, legal aspects,
and adequate resource support are required. If management aspects, financial aspects, human
the project idea is more than one, it should be resources aspects, and so on. Then can draw
selected with due regard to: conclusions from a business feasibility study
 project ideas according to his heart through an assessment of the financial aspects
 decision-makers are able to involve and existing financial support through the form
themselves in matters of a technical nature of production factors.
 confidence in the project's ability to generate There are 3 kinds of evaluation:
profits.  evaluate the project effort to be established

 evaluate the project to be built creditors, government and the community. After
 evaluate businesses that have been operated the business plan is selected, it is necessary to
on a regular basis make a work plan for the implementation of the
In the business evaluation that will be compared project development. Starting from determining
are all costs that will be incurred by the business the type of work, the number and qualifications
proposal as well as the benefits or benefits that of planners, the availability of funds and other
will be expected to be obtained. resources and management readiness. For
4. Appropriate Ordering Stage of Proposals example, after a motorbike rental business plan
Determine the feasibility of running the is selected, the implementation to build a
business. If it is deemed not feasible, the stage to motorbike rental business project and its routine
be taken is whether it is necessary to re-conduct operational plan need to be prepared.
research or seek new business development
initiatives. 6. Implementation Stage
At this stage, decisions must be made that might In this stage of implementation, there are two
pose risks and how to mitigate them so that more stages, namely:
risks can be minimized.
a. the stage of conducting the business or
If there is more than one proposed business plan business
that is deemed feasible, it is necessary to select
the business plan that has the highest score At this stage, risks and obstacles will arise, so it
compared to other proposals based on is necessary to improve or revise the initial
predetermined assessment criteria. Suppose an planning. Apart from obstacles, there may also
evaluation of the two project ideas is carried out, be changes in environmental conditions that
it turns out that decision making is only able to were assumed at the outset, so that adjustments
work on one project idea, for example, the idea are needed.
of a motorbike rental project.
b. The evaluation stage of planning is compared
5. Implementation Plan Stage to reality
If it is considered feasible, the stage taken is
planning the implementation by starting the This feasibility study also does not rule out the
schedule and preparation for implementation, possibility that there are alternatives that can be
namely by obtaining a commitment from the evaluated simultaneously and determine which
parties involved in management, investors, initiatives are most feasible to proceed with

consideration of existing resources with the

allocation of capital required and the resulting
returns.
In the realization of project development, project

management is required. After the project is
completed, the next stage is to carry out
business operations on a regular basis. In order
to always work effectively and efficiently in
order to increase company profits, operations
need studies to evaluate the business from the
functions of finance, marketing, production and
operations. The evaluation results can be used as
feedback for the company to review this
business process continuously.

Scientific Publishers.
REFERENCES
Almeida,C.M.V.B., Frugoli,A.D., Agostinho,F.,

Fallgren,M., Dillinger,M., Mahmoodi,T.,
Liu,G.Y., Giannetti,B.F. (2020).Integrating or
Svensson,T.(2021).Cellular V2X for Connected
Des-integrating agribusiness systems: Outcomes
Automated Driving. Hoboken : John Wiley and
of emergy evaluation.Science of The Total
Sons
Environment,Volume 729, 10 August 2020,
138733.https://doi.org/10.1016/j.scitotenv.2020.
Roche,J.(2019).Agribusiness: An International
138733
Perspective.London : Routledge
Santini,C.(2020).The Good Entrepreneur:
Annapoorani,G.S.(2018).Agro Textiles and Its
Mapping the Role of Entrepreneurship in
Applications.New Delhi : Woodhead Publishing
Society. Cham : Springer
India
Zylbersztajn,D.(2017).Agribusiness systems
Bai,W., Kao,P., Wu,J. (2021).Returnee
analysis: origin, evolution and research
entrepreneurs and the performance implications
perspectives.Revista de Administração,Volume
of political and business relationships under
52, Issue 1, January–March 2017, Pages 114-
institutional uncertainty.Journal of Business
117.https://doi.org/10.1016/j.rausp.2016.10.004
Research,Volume 128, May 2021, Pages 245-256.
https://doi.org/10.1016/j.jbusres.2021.02.014
Chang,H.J., Kim,I.S., Kim,D.W.,

Yang,T.(2013).Business potential of sustainable
energy in Korea: Hybrid method of various
feasibility studies from path dependence and
path evolution perspective.Renewable
Energy,Volume 50, February 2013, Pages 464-
475.
https://doi.org/10.1016/j.renene.2012.07.005
Diwase,S.(2014).Indian Agriculture & Agri-

Business Management, 2 Nd Ed. New Delhi :

UNDERSTANDING AGRICULTURE ECONOMICS

Understanding Agriculture Role in Economics
Illustration of Agriculture Economic Photo by Daria Shevtsova from Russia
Abstract : This chapter discusses more economic and agricultural relations. The discussion in this
chapter covers Basic Concepts of Agricultural Economics, Understanding Economic System,
Applications of Economics in Agriculture. The purpose of this chapter is to provide readers with an
understanding of the relationship between agriculture and the economy, including the general
economic system applied in the world and the unique economic system only applied in Indonesia,
known as the Pancasila economic system.
Keywords: Agriculture, Agriculture Economics, Economics System

absence of specifications and specializations.

3.1. Basic Concepts of Agricultural They used to grow various kinds of
Economics commodities. Within one year of the growing

season, farmers can decide to plant food crops or
Agriculture plays an important role in economic
cash crops.
development (Norton et al,2014). Efficient use of
resources in the early stages of the development
The farmers' decision to plant food is mainly
process creates an economic surplus through
based on the family's food needs, whereas if
labour supply and capital formation which can
they decide to plant commercial crops the
then be used to build the industrial sector.
determinants that influence the decision-making
Agriculture or farming is essentially a
include climate, whether there is the capital, the
production process in which natural inputs in
purpose of using the proceeds from the sale of
the form of land and nutrients contained therein,
these crops and price expectations. Commodities
sunlight and climatological factors (temperature,
of the people's trade include tobacco, sugar cane,
humidity, rainfall, topography, etc.) interact
coffee, pepper, rubber, coconut, tea, cloves,
through the process of growing plants and
vanilla, fruits, flowers and vegetables. Apart
livestock to produce primary output. namely
from cultivating the above commodities,
foodstuffs and natural fibres.
people's agriculture also includes side farming,
namely livestock, fisheries and forest product
Agriculture in a narrow sense or people's
search. If a farmer's income is mostly obtained
agriculture is farming managed by farmers and
from the fisheries sector, he is called a
their families. Generally, they manage their own
fisherman. However, subsistence or semi-
land or leased land which is not too large and
commercial characteristics remain attached to
plant various kinds of food crops, secondary
smallholder agriculture, including food crops,
crops and/or horticulture. This farming can be
plantations, animal husbandry, fisheries and
cultivated in rice fields, fields and yards. The
forestry.
produce they harvest is usually used for family
consumption, if their harvest is more than the
Meanwhile, when farming, gardening, livestock,
amount they consume they will sell it to
fisheries and forestry have been carried out
traditional markets. Thus agriculture in a
efficiently on a large scale by applying the
narrow sense can be characterized by a
concept of commodity specialization, the
subsistence or semi-commercial nature. Another
characteristics of agriculture shift towards
characteristic of smallholder agriculture is the
commercialization and are known as

agricultural or farm companies. A commercially be used as a tool to explain why the price of
managed plantation is known as a plantation. In agricultural products rises or falls over a certain
livestock, the term ranch is known for period of time, why the price paid by consumers
professionally managed cattle farms, and so on. is higher than the price received by farmers, and
there are many other questions that can be
From the historical background and asked. explained the answer based on economic
characteristics of agricultural economics above, theory (Barkley & Barkley,2020).
agricultural economics can be defined as a
branch of social science that studies farmer Apart from farmers who can act as producers of
behaviour not only in their professional life but agricultural products as well as consumers of
also includes other economic problems that are agricultural products, the government also has
directly or indirectly related to production and an interest in the results of agricultural
marketing. and consumption of farmers or economic analysis. Production, consumption
farmer groups. and exchange of agricultural products require
government intervention so that domestic needs
Agricultural economics is a part of general for agricultural products can be met.
economics that studies phenomena and
problems related to agriculture, both micro and Government intervention in export activities,
macro. Agriculture is a kind of typical which is intended to obtain foreign exchange
production process based on the process of plant that can be used to finance imports of goods and
and animal growth carried out by farmers on a services that cannot be produced domestically,
farm as a company. The meaning of agricultural can be carried out through a set of export and
economics stems from the ability of the import policies. All of this will work best if it is
agricultural economics discipline itself to solve based on accurate information using agricultural
problems in agriculture by using economic economic analysis. The application of economics
principles. in agriculture requires other branches of science
in order to provide complete explanations and
The theory of supply and demand in agriculture solutions to problems that exist in agriculture.
can be used to answer the question of what The main objective of various economic
kinds of foodstuffs must be produced, and how theoretical approaches to agriculture is to
much must be produced, in order to meet the increase the role of agriculture in the economic
needs of the people of a region or country for development of a country.
foodstuffs. In addition, economic theory can also

Agricultural Economics is a part of general foodstuffs and natural fibres. For this purpose,
economics that studies phenomena and economists usually use a model formulation
problems related to agriculture, both micro and approach based on computerized analysis.
macro. The application of economics in the
agricultural sector in the complexities of the Why is agricultural economics important to
market economy, of course, involves a variety of study? There are two main reasons. First, the
activities at both the micro and macroeconomic human need for agricultural products (goods
levels. At the micro-level, agricultural and services) is not limited in both quantity and
production economists generally contribute by quality. Second, agricultural resources, which
examining input demand and supply response. are commonly referred to as production factors,
Agricultural marketing expert's field of study such as land, capital, labour and management,
focuses on the food and fibre marketing chain which can be used to produce goods and
and pricing at each stage. services to meet unlimited needs, are available
in limited quantities (scarce).
Agricultural economic finance experts study
issues that are closely related to business Every time we are faced with economic choices.
financing and the supply of capital to Each individual must choose the best goods,
agribusiness companies. Meanwhile, services and activities. On the other hand, we
agricultural resource economists play a role in are faced with limited resources that will be
the field of study on the use and preservation of used to obtain the goods, services and activities
natural resources. Other economic experts study we want. The problem is how we use limited
the formulation of government programs on a resources to meet unlimited needs which are
commodity and the impact of determining also known as an economic process. Since
government policies on both consumers and childhood, we are used to making a choice
producers of agricultural products. between two or more activities: whether to go
with your father to a relative's house or to go
At the macro level, the interest of experts is with your mother to the mall. Making such
focused on how agribusiness and the choices is an economic decision because
agricultural sector, in general, affect the choosing one activity means sacrificing other
domestic and world economies. In addition, it is activities.
also studied how special events or the
establishment of certain policies on the financial When growing into adulthood, economic
market can affect fluctuations in the price of decisions become more complex, such as

attending college or working, buying a tractor or individuals and groups, allocates limited
buying livestock, repairing houses or expanding resources among various desires to maximize
the land to be rented. In this case, continuously satisfaction at a certain time. Economics is the
without realizing it, we have applied economics science that is used to analyze the use of limited
as an art, even though we do not study or resources to meet basic needs. As with any
understand economics. Experts in agriculture, scientific discipline, expertise is required in
agribusiness actors, heads of government are using economic principles to solve various
also faced with economic problems at any time. problems. Thus, economics is a science that
Studying the application of economic principles deals with efforts to fulfil physical needs that are
in agriculture does not guarantee successful not directly related to money. Furthermore, it is
economic decision making, but will provide an argued that in general, economics is useful for
understanding of economic processes and guide helping the people of a country to choose better
better economic decision-making. goods and services, more goods and services
and a higher quality (standard) of life.
Because every individual must take economic
action at all times, there will be more Based on the above description and
understanding of economic practice than understanding of economics, agricultural
understanding economic theory. Every time we economics can be defined as applied social
use economic ideas or concepts and terms, such science, in which the principles and analytical
as demand, supply, wealth, price, competition. methods of economics are used to find solutions
Therefore, to know the area of the agricultural to economic problems in agriculture.
economics discipline, it is necessary to first
understand the meaning or definition of In general, there are two types of problems faced
agricultural economics and the economy itself. by experts in agriculture. First, agricultural
The following will explain the definitions of the economists must be able to determine the needs
two fields of science. To define economics we and want of consumers. Second, agricultural
must consider four things, namely: economists must face the problem of production
1. unlimited human desire; and distribution of agricultural products.
2. limited resources;
3. allocation of resources; Traditionally, agricultural economists have been
4. a period of time. more oriented towards these two types of
By combining these four things, economics can problems. Currently, the economy is more
be defined as the study of how society, both consumer-oriented so that agricultural

economists are required to try to better a result, every country has its own way of
understand consumer wants. Because food is managing the economy at all levels of society.
one of the basic human needs, all countries will This method or method is called the economic
always pay attention to the growth, system.
development and stability of food production
and distribution. Therefore an understanding of The way of managing the economy in a country
economic principles to be applied to production, is very important to encourage production. Not
distribution and consumption in agriculture and only that, but this system also encourages the
food commodities is important. creation of a distribution mechanism for goods
or services, so that economic activities can run
3.2. Understanding Economic smoothly. Each country has its own system. The
System differences in each system are usually very

visible in the production factor settings. There is
When a business is about to build a business in a
a system that leaves all factors of production to
country, the first thing an entrepreneur must
business actors. However, there is also a system
understand is the country's economic system. By
in which the state controls the factors of
understanding the overall economic structure of
production and business actors do not have the
a country, business actors can formulate the
power. Meanwhile, other systems still leave
right strategy to reap profits. However, how
production factors to business actors but the
important is the economic system of a country to
state still has control and power. Economic
the decision making of business actors? As is
activity can take place because there is an
well known, each country has its own economic
economic system that regulates all activities. The
policy. So, in order for a business to run
economic system is a method used by a country
smoothly, of course, business actors must make
to solve or face problems in the economic field.
decisions with existing policies. In order for a
Every country has a different system, depending
country to function properly, the economy is a
on the situation and conditions that are
factor that needs to be considered. Each country
happening in the country. A market-oriented
has its own unique characteristics and
economic system is different from an economic
characteristics. In addition, each country also
system whose economic activities are planned
faces problems in the economic field that are
by the government.
different from other countries. For this reason,
how to solve problems and regulate economic
The economy of a country cannot run without a
activity will be closely related to these things. As
clear system. This is because the economic

system can function as a driving force for in the production process,

production. A good economic system can enable 3. knowledge of various production costs;
economic actors to continue to produce goods or 4. produce at the level of output that maximizes
services. Not only that, with the existence of a profits
system that is in accordance with the conditions Behind the demand for various kinds of goods
and characteristics of a country, production and services that consumers want to buy, there
results will not be concentrated in one group. are forces that influence consumer choices in
Because the system has regulated how the order to fulfil their desires. Consumers will try
distribution of production results can be evenly to maximize their satisfaction by choosing a
distributed to all levels of society. The impact of combination of goods and services that is better
this even distribution is to minimize the gaps or preferable than other combinations, subject to
that might occur. One of the important economic revenue constraints or limited budget. In
processes is distribution. With a good general, the economic system can be defined as
distribution mechanism, production results can the whole procedure for coordinating people's
be distributed from producers to consumers. behaviour (producers, consumers, government,
Now, the task of the economic system is to banks and so on) in carrying out economic
create an appropriate distribution mechanism so activities (production, distribution,
that all production results can reach consumers consumption, investment and so on). From this
who need them. activity, an orderly and dynamic unity will be
formed and chaos in the economic field can be
Understanding the economic system of a avoided (Wang et al,2020).
country requires a study of the market price
system, the role of supply and demand in the The market, which is the place of economic
allocation of goods and services, and resources exchange in a free market economic system, can
among various economic activities. In order to be studied to determine how resources and
understand the basic forces that determine the products (goods and services) are allocated in
supply of a commodity available in the market, the economic system in response to changes in
producers must know the physical and prices. Market failures can occur in a free
economic relationships in the production market. It is believed that certain industries
process. The important aspects in the production experience an economic gain or an economic
process include: loss in relation to other industries. In certain
1.type of product, cases, it may not be sufficient to rely on the price
2. the best combination of resources to be used mechanism in the market as a means of

distributing economic resources. In such a of society. This management can be done by the
situation, it is necessary to intervene or government or the private sector. However, its
intervene by the government in the price system management must still be based on certain
by fixing prices, regulating production and/or principles in order to achieve prosperity and
consumption as well as estimating the economic prosperity. The economic system is an
implications for various economic sectors. arrangement of economic elements that are
interconnected and work together to solve
Policies in the agriculture and food sector are fundamental economic problems and achieve
closely related to international economic policies certain goals.
and are very important, especially for domestic
(domestic) consumers and producers as well as The economic system can run well as long as the
foreign consumers and producers around the economic tools exist. Consumers, producers,
world. Analysis of policies in the agriculture and governments, and financial institutions are some
food sector as well as evaluation of aspects examples of economic tools. Basically, the
affecting the domestic and world economy can economic system has several main functions,
be carried out at any time. Finally, the namely:
relationship between natural resource use,  Coordinating individual activities in an
policy and agricultural production can be tested economy
through a study or research. Issues related to the  Provides encouragement to produce goods
conservation of resources used in economic or services
activities, the existence of competition or  Arranging the distribution of production
complementary between resources such as land results to all levels of society so that it runs
and water for food production or for other uses as expected
can be analyzed and resolved.  Creating certain mechanisms so that the
distribution of goods and services runs well
From ancient times until now, there have been
many economic systems that have developed in The economic system is the overall procedures,
various parts of the world. The diversity of the rules and habits generally accepted in society
existing system is because each country faces that regulate and coordinate the behaviour of
different economic problems from other citizens (consumers, producers, government,
countries. In simple terms, we can define the banks and so on) in carrying out economic
economic system as a way of regulating and activities (production, consumption, trade,
managing all economic activities at every level investment, etc.) in such a way as to become an

orderly, dynamic entity and avoid chaos. The tradition and minimal waste. The traditional
economic system not only regulates the economy is synonymous with rural areas with
economic activities of a country, but the agricultural products. Interaction between
economic system also has several other groups can be done through buying and selling
functions, such as the following. or bartering of goods. Each member of the
 To be an encouragement to continue traditional economy has a specific, clear role so
producing that each member has a close relationship.
 Arranging the distribution of production Unfortunately, this system does not use
results to all members of the community centralized facilities, technology and things that
 Organize or coordinate individual activities are symbols of progress. If conventional
in economic terms business people use this economic system, then
 As a basis for determining policies so that they must try to keep their business from being
distribution runs well in a "silent" status or not developing as they
hoped (Orr,2011).
Economic systems in the world are very diverse.
In general, there are four types of economic The essence of this system is tradition and
systems used in the world, namely: kinship. The traditional economic system is
based on hereditary habits carried out by the
Traditional Economic System ancestors. In this system, production is carried
The traditional economic system is a system in out as is and still depends on nature.
the organization of economic life based on
habits, the traditions of the people from In the traditional system, the goal of economic
generation to generation that rely on the activity is not to gain profit but to make ends
production factors as they are. The traditional meet. Therefore, cheating and unfair
economic system as the name implies is found in competition are rarely found in this system. As a
people's lives which still tend to be traditional or result, people or countries that adopt this system
ancient. They still produce their own goods do not experience severe disparities because
using simple methods to make ends meet. There income tends to be evenly distributed. In
are no attempts to obtain. addition, this system also does not find inflation,
which is often a problem for a country.
This system is the most conventional and However, unfortunately, countries that adopt
ancient system. There are two main elements in this system sometimes have an undeveloped
the traditional system, namely respect for mindset because change is considered taboo.

Then, the low competition among business  There is no economic gap between the poor
actors makes the quality of the ingredients tends and the rich because income tends to be
to below. As a result, economic growth in evenly distributed.
countries that apply this system will be slower  There is no inflation, unemployment, and
than in other countries. other problems in other systems.
 The government acts as a supervisor so that
Solving problems in traditional economic there is no monopoly by the government.
systems is carried out in accordance with
customs/traditions. The characteristics of the Disadvantages of the traditional economic
traditional economic system are low technology, system:
low productivity, each member of society does  Human civilization is not
not have the motivation to develop their assets. progressing/walking in place
Society is also difficult to change because there  It is difficult to make ends meet because of
is a tendency for resistance. the simple means of production
 Economic activity is not optimal because
The advantages of the traditional economic there is no medium of exchange
system:  Not all community needs can be fulfilled
 There is no competition because economic properly because they rely on natural
activities are based on prevailing habits. products.
 Minimizing excessive exploitation of natural  Because the means of production used are
resources / human resources still simple, it is difficult for traditional
 Not burdened with targets because communities to meet their needs
economic activities are only based on  There is no standard value in the exchange
meeting daily needs of goods.
 The environment is always maintained  Economic development and growth are
because it is based on the values that apply very slow.
in society  The quality of goods tends to be low and
 Economic activity is running on the basis of difficult to develop because the level of
honesty because the goal is to fulfil the competition in the market is very low.
necessities of life, not for profit.  The people's mindset cannot develop,
 The relationship between individuals in because a change is considered taboo.
society is still very strong and mutually
helpful. Command Economic System

A centralized economic system is a system in by the people. Even so, if the government is able
which the government has the dominant power to make the right policies then there are benefits
in regulating economic activities. The command to be had such as the creation of a healthy
economy system is a system in which the supply of resources belonging to the state
government fully controls economic activities. In (Alexeev & Weber,2013).
this system, the government's influence on
economic activity is very large, while the The impact of this system is the low level of
community has little or even influence on unemployment because the factors of
economic activity. This economic system is run production are fully held by the government. In
by the government as the control holder in addition, with the implementation of this
determining the factors of production. So the system, product price control can also be done
types and quantities of goods produced as well more easily. Then, because the government is in
as the means of production are controlled by the control of the economy, the products produced
state as well as the distribution and types. are in accordance with the needs of the
Economic control over the command economic community. However, precisely because the
system is exercised through restrictions on government holds full power without involving
economic activities carried out by members of the community, innovation on the part of the
the community. This one system is neither better community is lacking or even non-existent.
nor worse than the traditional system. In fact,
there are several things fundamentally wrong The advantages of the command economy
with this system. There are three identical things system:
possessed by this system, namely centralized  Can reduce unemployment because the
control, expected profit and domination. Most of government is in full control of all factors of
these systems will be controlled by the production.
government.  The responsibility of the economy is on the
government so that the government will
The government will have everything involved continue to innovate so that the country's
in the production process from equipment to economy remains stable.
facilities. The domination factor will be clearly  Community needs are guaranteed because
seen as a valuable resource because something the products and services produced will be
that is capable of producing the greatest profit in accordance with what they need.
will be controlled by the government and other  Easy to control price and equity.
“less important” resources that can be managed  Inflation becomes easier to control.

 Domestic market conditions will run with equal ownership and the state acts as
smoothly. manager. The socialist economic system is a
 Supervision by the government has become system in which society has equal ownership of
easier the factors of production. The production factors
 The government can easily control in a socialist economic system are workers,
unemployment entrepreneurs, capital and natural resources
 An opportunity to even out the people's owned by the community but their management
prosperity is fully regulated by the state. The government
plays a full role in regulating distribution and
Disadvantages of a command economy system: production output.
 The rapid mobilization of this system can
cause a lack of community needs because Market Economy System
the product produced is not always based Contrary to the command economy system
on community demand. where the government is in control of the
 Rationing is often a necessity and a solution. economy, the market economy system actually
 inhibits innovation from society. gives people broad freedom to carry out
 People don't have the opportunity to be economic activities. In this system, the
creative. government cannot intervene. Thanks to the
 Society cannot determine jobs and goods freedom given to individuals, there are many
consumed at will product innovations that are produced because
 The government does not necessarily there are no restrictions on creativity and
produce goods according to community initiative. In addition, the broad freedom of
needs business actors also results in intense
competition, so that the products they produce
The command economy system is also often are of higher quality.
called the socialist economic system. However,
the difference between the command economy However, unlimited freedom and the absence of
system and the socialist economic system is that government interference, as well as intense
the command economy system of all production competition, can lead to a trade monopoly. If
factors is owned by the state. this happens, a gap will be created where the
rich will get richer and the poor will get poorer.
Whereas in the socialist economic system all Not only that, countries that adhere to this
production factors are owned by the community system usually experience economic instability.

The market economy system puts forward the called the capitalist economic system because
amount of demand and supply in the market. the role of capital ownership is very influential
This system is also known as the liberal in economic success. Who has large capital, the
economic system because of the freedom for more likely he is to survive in economic activity?
people to carry out economic activities. Not only The distinctive feature of this economic system
that, in a market economic system, capital is the minimal role of the state in regulating the
ownership plays the biggest role in the economy. The market economy system is based
environment, so it is often called the capitalist on the widest possible freedom for all people in
economic system (Rassekh,2016). economic activities without interference from
the government. The foundation of this
The market economy looks more synonymous economic system is its general aim to seek
with the free market. In this system, it is the personal gain without other parties to consider.
organization run by the community that
determines how the economy will run, how the The advantages of the market economy system:
supply is generated, and what demands are
needed. In fact, there is not a single country in  Fair competition, so you can get high-
the world that fully implements this system. The quality goods at prices that tend to be
greatest advantage of this market system is the cheap.
separation of the market and the government.  Communities carry out economic activities
This reduces government dominance and based on their respective abilities and
progress and innovation can develop more potentials.
rapidly. With this system, business people must  Optimal use of resources.
also be able to respond quickly to various risks  Every individual or company has the
from the free market, such as the possibility of freedom and has the right to own property
inflation and quickly understand the causes of and resources for private production or is
inflation. not restricted.
 Can develop creativity and community
The market economic system puts forward initiative.
market mechanisms (the amount of demand and  Action is always based on economic
supply) in responding to fundamental economic principles so that efficiency and
problems. This economic system is also called effectiveness are high.
the liberal economic system because of the  Freedom in producing products or services
freedom for people to do business. It is often causes competition between producers

(companies) to produce quality goods. high because all parties want to find the
 Maximum use of resources maximum profit
 Production is based on market demand so
that it fits the needs of the community and Mixed Economic System
is not excessive. As the name implies, a mixed economic system
 The existence of economic activities is a mixture of a command economy system and
according to the needs and abilities of each a market economy system. This system is a
mixture of a centralized and market economic
The disadvantages of a market economy system: system, where the government and the private
sector have the same role and proportion in
 The existence of freedom can give rise to the developing the country. As a result, the roles of
potential for exploitation of natural the government and the private sector are equal.
resources and human resources on a large The characteristics of a mixed economy system
scale. are that the government has full power over
 Owners of large capital can control the natural resources, there is a division of state-
wheels of the economy. owned and private-owned enterprises, the
 The minimal role of the government makes government formulates strategic policies in
economic activity prone to recessions and economic management, companies are given
crises. freedom, but the government supervises their
 Income distribution is difficult due to the activities.
lack of the government's role.
 Market freedom causes competition to seize In the mixed economic system, the government
the market. This has led to the formation of gives freedom to people to carry out economic
monopolies, business collusion and activities, but the government also has the
conglomeration, thus threatening weak power to intervene. With the implementation of
entrepreneurs. a mixed system, the government can have
 Encouraging the increasingly visible gap power over the economic sector with the aim of
between strong and weak economies. serving the public interest. In addition, this
 The economy is prone to instability. system also makes it easier for the government
 The possibility of the emergence of a to set prices (Mueller,2012). A mixed economic
monopoly by the parties with the greatest system is a system where on the one hand the
capital government gives freedom to the people to try
 The possibility of being dishonest is very to carry out economic activities. However, on

the other hand, the government intervenes in provided that they do not harm the public
the economy with the aim of avoiding the full interest.
control of a group of people on economic
resources. The advantages of a mixed economy system:
Countries that adopt a mixed economic system  The government has the power to regulate
usually have a more stable economy because of the market and crackdown on monopolistic
the balance between the power of the people practices. Example: Preventing excessive
and the government. However, implementing price increases.
this system puts a heavier burden on the  The government has the authority to issue
government than the private sector. In addition, policies related to preventing the
the influence of government power in economic production of goods that have the potential
activity also has no clear boundaries. to pollute the environment.
Meanwhile, for the private sector, the  The creation of income distribution
application of this system makes it unable to  He acknowledges every individual right.
generate the benefits it should. The mixed  Price fixing in the economy will be under
economic system is also known as the dual control.
economy because it combines a market and  The economic sector is directed towards the
command economy system. The results of this interests of the community.
mixed system can be enormous as governments  There is freedom in business.
and markets work together to manage resources.  Guaranteed economic stability.
Even so, this system is also prone to  The government acts as a market regulator
experiencing problems, especially when and acts against monopolistic practices
government power increases. This can lead to  The government as a policymaker related to
excess control or difficulty access and a less the prevention of the production of goods
flexible economy. The mixed economic system that have the risk of polluting the
is characterized by state restrictions on the environment
control of the private sector in strategic fields,  Income distribution
which control the lives of many people. In
addition, the government is also involved in Disadvantages of a mixed economy system:
market mechanisms through various economic
policies and monetary policies. The government  The number of market forces will lead to an
also recognizes individual property rights imbalance in business competition and

inaccurate processing of resources. cooperatives are also used as a spearhead by the

 Potential to slow down the country's Indonesian government in advancing the
economic growth economy. This economic system is only adopted
 There is no clarity and regulation on how by Indonesia, it is only adopted by Indonesia. In
big the government's share of economic the Pancasila economic system, the economic
activity is system is based on the principles of kinship and
 The possibility of slowing down the mutual cooperation from, by and for the people
economic growth of a country is greater under government supervision. The basis is
 There are no clear regulations on the using Pancasila, the preamble of the 1945
proportion of the government in economic Constitution and the 1945 Constitution articles
activity 27, 33 and 34 (Ing et al,2017).
 There is a big potential for the emergence of
the practice of corruption, collusion and The Indonesian economic system is the
nepotism in government Pancasila economic system, which was chosen
 The government burden will be heavier because it contained the meaning of democracy.
than the private sector. Items that are considered very important to the
 The private sector has not maximized the existence of the state and needed by many
profits that should have been obtained. people should not be left to the private sector.
 There is no clarity regarding the limits of The state can make policies, administer,
government influence in economic activity. regulate, manage and supervise this strategic
 Inequality in business competition and production. If this wealth is allowed to fall on
improper management of natural and the wrong side, it will be difficult for society to
human resources. make use of this wealth. Indonesia's economy is
now largely supported by industry and trade,
Pancasila Economic System with the majority focus on the export sector.
Especially in Indonesia, there is one more Maybe that's why now Indonesia is being
economic system, namely the Pancasila pushed to enter industry 4.0 and many
economic system. The Indonesian economic entrepreneurs have sprung up.
system is based on the spirit of the Pancasila
ideology which implies a democratic economy The advantages of the Pancasila economic
with the principles of kinship and mutual system:
cooperation with the concept of, by and for the
people. In the Pancasila economic system,  The community has the opportunity to

develop their potential and creativity and as  The economy tends to run less efficiently
long as it does not hamper the interests of because it prioritizes the democratic process
other communities. which takes time.
 People are free to choose and determine the  The process of making economic decisions
type of work they want is slow because they must be aligned with
 Optimal use of natural resources for the common interests.
benefit of the people  The existence of state domination in the
 The government plays a role in regulating management of the economy has the
economic activities that can support the potential to reduce and 'kill' the creative
sustainability of the entire community power and innovation of society.
 There is freedom in creating and innovating
as long as it does not interfere with the Economic activity is one of the vital wheels that
interests of society. move a country. For this reason, in order to
 The national economy is prioritized for the avoid chaos, it is necessary to have an
prosperity of the people. appropriate economic system in accordance
 The management of the economy runs with the characteristics of the country. With the
collectively or together to achieve mutual implementation of the right system, a country
prosperity. can handle and solve problems related to the
 Individual property rights are recognized economy. This is done so that the country
by the state as long as their use does not achieves prosperity at every level of society.
conflict with the public interest.
Disadvantages of the Pancasila economic

3.3.Applications of Economics in
system: Agriculture
The application of economic principles in
 Potential to grow human exploitation and
agriculture, including the marketing of
other nations
agricultural products, is intended for specific
 The state plays a very important role as well
purposes related to several aspects, including:
as can kill the economic potential outside
the state sector 1. Pricing: describes the factors that influence the
 The potential for concentration of economic price level and shows how price differences can
power in certain groups in the form of occur over time, between places and other
monopoly dimensions.

2. Explanation of the role of the marketing One of the important resources is the available
system: to identify sales points and marketing labour force in the community. Funds invested
channels for agricultural products (crops and in the manufacturing sector are another equally
livestock). important resource. Thus, resources can still be
3. Testing problems and weaknesses in the grouped into broader categories.
organization and marketing methods and
showing ways to fix them. Human resources, for example, are very diverse
4. Changes in the economy of agricultural in their work skills. Communities that have
production and farm management: shows how more educated and trained workforces are
land, labour, capital and risk can be combined in certainly more productive than people who have
various proportions. It also shows how the more uneducated workforces.
farmer selects the product combination that
provides the greatest returns. Therefore education and job skills in the
economy are seen as scarce economic assets or
To be able to achieve the objectives of the resources. Human resources also contain a
application of economics to agriculture requires certain degree of scarcity when viewed from
general approaches or approaches commonly their quantity and quality.
used in economic theory. Economics is defined
as the study of how scarce resources can be used As is well known, the characteristics of human
maximally to meet unlimited human needs and resources are closely related to various attributes
desires. of scarcity such as time, educational background
and skills, accumulated experience, analytical
Economics, therefore, studies the best alternative skills, leadership and entrepreneurial character
use of available resources to meet the various and other mental and moral competencies.
needs of society (Barkley & Barkley,2020). In
almost all societies, countries and even the Many cases show that the comparative
world, humans always face scarcity of resources. advantage of natural resources which is not
The word resource itself generally refers to the balanced by the superiority of human resources
notion of natural resources such as petroleum is not able to achieve optimal economic
and various mines. performance. Capital or capital resources refer
to a number of financial funds that are invested
However, the use of the broader terminology of in industry and man-made resources such as
resources includes not only natural resources. machines and factories that are used in

production activities. models can be represented in various ways,

including verbally, graphically and
The real world is very complex. This complexity mathematically.
often makes it difficult for the scientific process
to see more clearly the fundamental Economics always involves choices. In other
relationships that exist. In an effort to study words, the choice is the heart of economics. In
economic relations, scholars then try to abstract the economy of consumption or consumer
out reality and develop theories. behaviour economics, a person can obtain utility
after selecting the best alternative that provides
Therefore the economic theory is more of a maximum satisfaction for him with the limits of
simplification of the reality of the economic his income.
world which is sometimes unrealistic for those
who are unfamiliar with economics. Economists In a production economy, producers in an effort
often use the terminology of theory and model to maximize profits also face a number of
interchangeably. In simple terms, a model is a complex choices. Producers, as well as
miniature of economic reality. A good model is a consumers, also face resource allocation
model that approaches the truth of reality. To be problems. Farmers, for example, must decide to
able to provide a picture that is closer to reality, allocate a number of land resources, labour,
the model must contain a representation of the several kinds of variable inputs and the
important parts of the detail of the economic equipment they have to cultivate a commodity.
phenomenon being modelled.
In general, economics is divided into two major
The model is very important in its role as a tool groups, namely microeconomics and
to measure or simulate the impact of policies macroeconomics. Microeconomics studies the
without having to actually implement the behaviour of individual decision-making units.
policy. The key question that the model must Macroeconomics focuses more on the analysis of
answer is, "What happens if ...?". the full picture of an economy.
Through modelling, it is hoped that various Economics is also classified into static and
alternative answers can be obtained as well as dynamic economics. Static economics deals with
all the accompanying implications. This of the phenomenal picture of economic events at a
course is very necessary as consideration for certain time. Meanwhile, a dynamic economy is
planning a policy. Economic theories and related to economic processes. Economists

illustrate a static economy as a portrait of faculty of economics. The implication, students

economic events while the dynamic economy is are more focused on technical knowledge about
a documentary film about an economic event. agriculture and animal husbandry as well as
Apart from economic analysis in a static and basic theories in agriculture. Furthermore, the
dynamic perspective, in economics, there is a lecturers teach economics so that students can
static comparative analysis, which is a apply economic theory to agriculture.
comparative picture of an economic event before
and after a change occurs. Static comparative In a narrow sense, economics is considered
analysis is a very useful analytical tool when relevant for the successful conduct of business in
research is aimed at assessing the performance agriculture. Based on this view, students who
impact of certain economic elements (Greenlaw are directed to work as agricultural experts,
et al,2017). managers in the field of agriculture,
agribusiness and agropolitic, need to
Until now, there has not been much study of the understand economics to be applied more
relationship between agricultural economics and broadly in agriculture. In other words, students
economics. There are several relevant reasons, need to understand “theoretical approaches to
among others, that an agricultural economist is agricultural economic problems.
originally an economist with competencies
specializing in agriculture. Thus the main A course is structured and taught based on a
interest developed by agricultural economists is basic framework of knowledge that leads to
to apply an economic approach to solving theory. There are times when students learn
problems that arise in the agricultural sector. pure theory (science) and at other times they
learn the theory that is applied to solve certain
Therefore, agricultural economists must problems (applied science).
understand economics even though basic
knowledge of agricultural science is something In agricultural economics, economic concepts or
that is absolutely known. The agricultural theories must be understood before using them
economy can be defined as the application of to solve problems in agriculture. It should be
economic theory in agriculture or a theoretical noted that applied science has more limited uses
approach to problems in agriculture. than pure science.
Agricultural economics courses are often placed The theory is a general knowledge framework
in the faculty of agriculture rather than in the that seeks to describe certain phenomena. The

theory is built through observation (inductive Physicists usually use the "vacuum" assumption
approach) and logical thinking (deductive in their various research activities. Economists
approach). The theory is an abstraction from the assume that the goal of a business is to
real world (facts). The truth of a theory is how maximize profits.
the theory can describe the facts well and how
the theory is useful in solving problems in the The purpose of using assumptions is to reduce
real world. the number of variables under study so that it is
easier to determine the relationship between the
In trying to describe certain phenomena, there observed variables. Because social scientists
are limitations that may be caused by the rarely or almost never carry out research in
limitations inherent in the theory to be used as laboratories like many exact sciences (e.g.
well as the limitations of the users. Students physics and biology) do, where the observed
'desire to understand human behaviour variables are more measurable and
individually in order to fulfil their needs is conditionable, social scientists make more
limited by the student's own understanding of assumptions than experts exact science.
economics.
In addition to the inductive and deductive
Economists are also often limited by their ability approaches that are widely used in scientific
to measure economic variables accurately. For disciplines in general, agricultural economics
example: how to measure satisfaction? also uses approaches commonly used in
Measuring these variables is not as easy as economics, namely: 1) micro-macro as part
identifying and measuring variables in research main from general economics, 2) consumption-
conducted in the laboratory. production which is the main activity carried
out by the two main actors in the simplest
Observations about human behaviour will economy, and 3) positive-normative as an
produce results that are generally different from approach commonly used in general economics.
actual human behaviour (tend to be biased). To
minimize the bias that occurs and to facilitate Agricultural production economics studies
the application of theory to complex real-life, economic theories related to the production of
assumptions are needed. agricultural commodities. Several focus studies
on the economy of agricultural production
To simplify complex situations and include:
relationships, scientists often make assumptions. 1. Objectives underlying the behaviour of

agricultural production. In general, agricultural 5. There is freedom of mobility of resources or

production economists assume that the goal of production inputs so that there is no possibility
agricultural production is to maximize profits. of certain economic actors engaging in profit-
Thus the measurement of farm costs and oriented manipulation.
revenue is important. However, the facts show 6. If the five assumptions above are added with
that the personal goals of farmers as farm one more assumption regarding perfect access to
managers are specific and unique. Sometimes information, the pure competition model is
the objective of farming is to accumulate land as called a perfect competition market.
capital, expand social influence and so on.
2. Choice of output produced. Farmers must Although the pure and/or perfect competition
determine the choice of commodities that will be model is unable to describe the real conditions
planted in a certain planting season. of an agriculture-based economy, this model is
still maintained considering its effectiveness in
The pure competition model is the basic model building an understanding of economic
used by economists to explain producer performance. In addition, in many cases of
behaviour. The pure competition model agricultural production, the market structure
assumes the following: faced is of course not a monopoly, considering
that there are so many agricultural producers,
1. There are such a large number of producers also not a monopsony, considering that there are
and consumers that both producers and also very many users or consumers of
consumers do not have the power to influence agricultural products. By learning the perfect
market prices. In other words, both consumers competition model, it is hoped that the correct
and producers act as price takers, not price frame of mind can be obtained when applying
makers. casuistic analysis tools and detecting the reality
2. Producers can sell as much as they want at the of deviations.
prevailing market price, on the other hand,
consumers can also buy as much as they need at The essence of agricultural production theory
the prevailing market price level. can be categorized into three models, namely the
3. Products traded in competitive markets are input-output model, the input-input model and
homogeneous. the output-output model. The three models
4. The free entry and exit principle applies in apply the perfectly competitive market
which all free-market players enter and exit the assumption as described above.
market.

The input-output model examines how the

behaviour of agricultural producers to maximize In general, agricultural economists study
production by adjusting the allocation of the organizing businesses in agriculture
appropriate use of variable inputs. In the input- individually in the optimal use of resources.
input relationship model, it will be studied how Consequently, teaching agricultural economics
in an effort to maximize the profits of farming, courses is more emphasized on the
farmers as managers must be smart in choosing microeconomic approach, but according to the
a combination of the use of two production current development of science and technology,
inputs to optimize production choices, either by various economic sectors are closely related so
minimizing costs or maximizing output. that macro problems such as employment
Whereas in the output-output model, will opportunities, inflation and investment have a
provide basic concepts that are commonly major impact on farmers and agribusiness
practised by farmers who produce agricultural actors. Therefore, it is important for students
products to maximize farming income or profits studying agricultural economics to understand
by planting several commodities at once on a not only how to organize a business to obtain
certain area of land. Farming practices that optimum revenue but also how the effects of
adhere to an output-output relationship pattern changes in the economy as a whole on economic
are also intended to increase the efficiency of decisions in business in agriculture.
input allocation and minimize the risk of crop
failure. In economics, there are two very important
aspects related to actors of main economic
The two main parts of economics are activities, namely consumers and producers.
microeconomics and macroeconomics. In these Both have an inseparable relationship and
two fields of science, economists observe and depend on each other. Producers produce goods
study economic activities both individually and and services to meet consumer needs.
in groups. In microeconomics, it is studied the
activities of consumers and producers Consumers depend on producers for goods and
individually as well as the market which is the services to satisfy their needs and wants. These
interaction between consumers and producers. two aspects are important in economics because
Meanwhile, the macroeconomy pays attention to the behaviour of each will determine the
the economic unit as a whole, which faces characteristics of the market through demand by
broader problems such as national income, consumers and supply by producers. For
employment, savings, investment and inflation. agricultural experts who put more emphasis on

the economy of agricultural production (the context of allocating agricultural products from
production side), it will be difficult to explain farmers or ranchers to retailers or consumers,
how farmers or agribusinesses understand will vary both for the same agricultural products
consumer wants or preferences for the as well as for different agricultural products.
agricultural products they will produce
(Goodwin et al,2015). Agricultural inputs such as fertilizers, seeds and
agricultural machinery can be purchased by
According to a positive economic approach, farmers or ranchers through individual
economists make reports about what they found companies or large companies (dealers)
without making any judgments about what the representing supply companies for the
findings are good or bad. In this approach, agricultural sector (farm supply firms). Food
economists only determine alternatives to products sold at the retailer level can reduce the
solving problems without trying to identify two marketing functions that are usually
which alternative is the best. performed by companies.
Thus the positive economic approach avoids any The agricultural and livestock sectors with their
assessment. According to the normative complex organizations ranging from input
economic approach, economists can make suppliers (resources) - farmers/ranchers -
judgments about observed economic facts. The consumers in various forms have an important
agricultural system in the economy of a country role in development. There are many alternative
that is classified as a developed country is very development paths or strategies. The strategy
complex. The system can be formed by a variety used by each country is determined by the
of companies ranging from small to large, with ownership of the resources and the level of
different organizational forms such as privately- development of the countries concerned. Some
owned companies, family-owned companies, countries with enormous oil and mineral
government-owned or private companies, resource holdings can create capital for
farmer cooperatives and consumption development through the export of these
cooperatives. resources.
Marketing channels that are formed in the Several other countries emphasize the export of
context of allocating inputs or agricultural trade crops such as coffee, chocolate and tea.
production facilities from suppliers (resource Meanwhile, other countries have focused on the
owners) to farmers or ranchers, and in the export of industrial products and while others

have focused on increasing the production of also provides a market for non-agricultural
staple foods. The optimal development path goods. Thus it can be said that the initial value
varies from country to country. Mistakes in and low agricultural productivity in most
choosing a development path with ownership of developing countries provide opportunities for
the resources and a certain level of development efforts to increase national income through
can lead to economic stagnation in the long run. agricultural development (George,2020).
Because of this initial value and the low per
Agriculture in most low-income countries is capita income in the agricultural sector, there is
highly unproductive. Initially, during the a real opportunity to improve income
development process, many people worked in distribution and improve the welfare of a large
the agricultural sector, and a percentage of proportion of the population through
national income came from that sector. During agricultural development.
development, population growth and per capita
income increased. As long as income grows,
more a lot of food will be demanded or in other
words, the production and import of
agricultural products are sure to increase.
Because agriculture mobilizes a large number of

resources in most low-income countries, some
funds are needed to finance food imports unless
agricultural output (product) develops rapidly.
The capacity of the agricultural sector to employ
a larger workforce is very limited. As income
continues to increase, the demand for non-
agricultural commodities will also increase.
Therefore, economic development requires an
economic or structural transformation that
involves the development of the non-
agricultural sector.
Apart from contributing to the development of

food, labour and capital, the agricultural sector

: Routledge
REFERENCES
Alexeev,M., Weber,S. (2013).The Oxford

Orr,T.B.(2011).Understanding Economic
Handbook of the Russian Economy. Oxford :
Systems. New York : Rosen Publishing Group
Oxford University Press
Rassekh,F.(2016).Four Central Theories of the

Barkley,A., Barkley,P.W.(2020).Principles of
Market Economy Conception, Evolution and
Agricultural Economics. London : Taylor &
Application. London : Routledge
Francis
Wang,H., Weng,C., Song,Z., Cai,J. (2020).

George,T.(2020).A new look at agricultural
Research on the law of spatial fractional calculus
development and the non-agriculture economy
diffusion equation in the evolution of chaotic
in low-income countries.Global Food Security,
economic system.Chaos, Solitons &
Volume 26, September 2020, 100449.
Fractals,Volume 131, February 2020,
https://doi.org/10.1016/j.gfs.2020.100449
109462.https://doi.org/10.1016/j.chaos.2019.109
462
Goodwin,N., Harris,J.M., Nelson,J.A.(2015).
Principles of Economics in Context. London
:Taylor & Francis
Greenlaw,S.A., Shapiro,D., Taylor,T.(2017).Princ

iples of Economics 2e. Texas : OpenStax
Ing,L.Y., Hanson,G.H., Indrawati,S.M.(2017).The

Indonesian Economy: Trade and Industrial
Policies.London : Taylor & Francis
Mueller,D.C.(2012).The Oxford Handbook of

Capitalism.Oxford : Oxford University Press
Norton,G.W., Alwang,J, Masters,W.A.(2014).

The Economics of Agricultural Development:
World Food Systems and Resource Use. London
View publication stats

Zeqkd2 DRAFT Print Interior

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Zeqkd2 DRAFT Print Interior

Uploaded by

Copyright:

Available Formats

See discussions, stats, and author profiles for this publication at: https://www.researchgate.

Learning with Fun, Agricultural Economics and Agri-Business

Book · April 2021

The user has requested enhancement of the downloaded file.

Learning with Fun, Agricultural Economics and Agri-Business

Learning with Fun, Agricultural

Triple Nine Communication Press

© Triple Nine Communication Press

Author : Benjamin Drean (France), Suryaning Bawono (Indonesia)

Editor : Adriana Assyami (German)

Published on 27 April 2021

Distributed by Triple Nine Communication and partners.

3. Understanding Agriculture Economics

Benjamin Drean (France) Suryaning Bawono (Indonesia)

Understanding Agribusiness ..................................................................................21

Understanding Agriculture Economics .............................................................44

Benjamin Drean (France) Suryaning Bawono (Indonesia)

Agricultural illustration Photo by Karolina Grabowska from Poland

Keywords: Agriculture, Environment, The Friendship Between Nature and Humans

Benjamin Drean (France) 1 Suryaning Bawono (Indonesia)

is defined as any intervention by human power

Agriculture is a typical form of production,

Benjamin Drean (France) 2 Suryaning Bawono (Indonesia)

Benjamin Drean (France) 3 Suryaning Bawono (Indonesia)

Benjamin Drean (France) 4 Suryaning Bawono (Indonesia)

Benjamin Drean (France) 5 Suryaning Bawono (Indonesia)

(imitation), namely the presence of other towards efforts to develop manpower.

Benjamin Drean (France) 6 Suryaning Bawono (Indonesia)

Benjamin Drean (France) 7 Suryaning Bawono (Indonesia)

American continent developed cultivated plants born as a counterweight to farming activities in

Benjamin Drean (France) 8 Suryaning Bawono (Indonesia)

Benjamin Drean (France) 9 Suryaning Bawono (Indonesia)

Benjamin Drean (France) 10 Suryaning Bawono (Indonesia)

Benjamin Drean (France) 11 Suryaning Bawono (Indonesia)

Benjamin Drean (France) 12 Suryaning Bawono (Indonesia)

Benjamin Drean (France) 13 Suryaning Bawono (Indonesia)

Benjamin Drean (France) 14 Suryaning Bawono (Indonesia)

Benjamin Drean (France) 15 Suryaning Bawono (Indonesia)

Benjamin Drean (France) 16 Suryaning Bawono (Indonesia)

Benjamin Drean (France) 17 Suryaning Bawono (Indonesia)

2. There is a human effort to renew the

Products produced by plants and animals

Benjamin Drean (France) 18 Suryaning Bawono (Indonesia)

Ecology,Volume 134, February 2019, Pages 116-

Benjamin Drean (France) 19 Suryaning Bawono (Indonesia)

189, April 2021,103071.

Rengel,Z., Djalovic,I.(2021). The Root Systems in

Schut,M., Klerkx,L., Rodenburg,J., Kayeke,J.,

Xiao,L., Liu,J., Ge,J.(2021).Dynamic game in

Benjamin Drean (France) 20 Suryaning Bawono (Indonesia)

Agribusiness Illustration Photo by Karolina Grabowska from Poland

Keywords: Agriculture, Business, Agriculture Business

Benjamin Drean (France) 21 Suryaning Bawono (Indonesia)

2.1.What is Agribusiness Some of us must be some who are still

Agribusiness as a science refers to a series of

Benjamin Drean (France) 22 Suryaning Bawono (Indonesia)

integrated business system based on agricultural preparation of raw materials. Agribusiness is

Benjamin Drean (France) 23 Suryaning Bawono (Indonesia)

agricultural activities, fisheries, animal Agribusiness is a complete system starting from

Benjamin Drean (France) 24 Suryaning Bawono (Indonesia)

Agribusiness as a system is the whole activity of becomes a system, namely as an organizational

Benjamin Drean (France) 25 Suryaning Bawono (Indonesia)

Benjamin Drean (France) 26 Suryaning Bawono (Indonesia)