Commercial Agriculture

Commercial Agriculture
Subsistence Agriculture Commercial Agriculture

• Agricultural production regions are defined by

the extent to which they practice subsistence
or commercial agriculture
 Commercial Agriculture
Subsistence Agriculture Commercial Agriculture

• Been there, done • MDCs

that! • Food for global use
• Industrialized/Mechanized
• Types
– Intensive
– Extensive
– Sound familiar?
 Commercial Agriculture
• Intensive Commercial
– Types of commercial agriculture with HIGH inputs
of labor
• Dairy, fruit, vegetables, flowers
– Two types…

Commercial Flower Farm Netherlands

 Commercial Agriculture
• Intensive Commercial
– Types of commercial agriculture with HIGH inputs
of labor
• Dairy, fruit, vegetables, flowers
– Two types…
• Capital Intensive – large amounts of capital (machinery,
tools, facilities) to produce large yields for profit
• Labor Intensive – requires human labor
 Commercial Agriculture
• Extensive Commercial
– Commercial agriculture with LOW inputs of labor
• Grain farming, grazing, etc.
 Commercial Agriculture
• Intensive and Extensive farming practices are
determined in part by land costs (von Thunen
and Bid-Rent Theory – more on this later)
 Commercial Agriculture
Agribusiness – system of food
production involving EVERYTHING
– Commodity chains link farms,
processing plants, packagers,
distributors, retailers, etc.
 Commercial Agriculture
• Industrialized and Globalized Agriculture
– Integrates agricultural production on a global scale
 Commercial Agriculture
• Industrialized and Globalized Agriculture
– Integrates agricultural production on a global scale
– Improvements to communication and transportation
allows for lower shipping costs and expanded markets
 Commercial Agriculture
• Industrialized and Globalized Agriculture
– Integrates agricultural production on a global scale
– Improvements to communication and transportation
allows for lower shipping costs and expanded markets
– Trade unions/agreements allow for easy exchange of goods
(NAFTA, EU, etc.)
 Commercial Agriculture
• Industrialized and Globalized Agriculture
– Integrates agricultural production on a global scale
– Improvements to communication and transportation
allows for lower shipping costs and expanded markets
– Trade unions/agreements allow for easy exchange of goods
(NAFTA, EU, etc.)
– Altered the geography of North America and W. Europe,
causing millions to migrate to urban areas
• Good and Bad: replaced people with machines, created huge new
markets in cities
 Commercial Agriculture
• Industrialized and Globalized Agriculture
– Integrates agricultural production on a global scale
– Improvements to communication and transportation
allows for lower shipping costs and expanded markets
– Trade unions/agreements allow for easy exchange of goods
(NAFTA, EU, etc.)
– Altered the geography of North America and W. Europe,
causing millions to migrate to urban areas
• Good and Bad: replaced people with machines, created huge new
markets in cities
– Global food distribution networks are affected by political
relationships, infrastructure, and world trade
 Commercial Agriculture
• Positive Effects for LDCs
– Diffusion of new farming technology (Could also be a negative -
globalization)
– Growth and Development of the local economy
– Possible ties to global economy
 Commercial Agriculture
• Negative Effects for the Periphery Farmer (LDCs)
– Pushed out of the marketplace by large corporate farms
– Loss of subsistence agricultural communities
– Loss of land to multinational corporations
• Nestle, Kraft Foods, ConAgra, PepsiCo
– Water shortages (Need for intense irrigation)
 10 Companies that control almost every large food and
beverage brand in the world

https://www.businessinsider.com/10-companies-control-the-food-industry-2016-9
 Commercial Agriculture
• Negative Effects for Small Farmers (LDCs AND MDCs)
– Mass production forces small farmers to integrate into
agribusiness system to survive – become subcontractors or
close production
• Forced to foreclose on land due to revenue not keeping up with
operating costs
• Profits earned channeled directly back to corporations, not them
 Commercial Agriculture
Tropical Plantations
– Grow crops such as sugarcane and
coffee
• Most commonly found in South America,
Africa, Asia, the Caribbean
– Typically have some form of
foreign control (Investments,
Management, or Marketing)
– Most products are exported rather
than consumed locally
• Some countries become highly
dependent on 1+ export commodity
 Commercial Agriculture
• Non-Food Agribusiness
– Crops raised for industrial use, textiles, animal
feed
– Since the 1970s, alternative energy crops have
become important as oil prices increase
• Corn is used to create ethanol
• Vegetable oils and soybeans can make biodiesel