As a separate discipline, agricultural economics started only in the beginning of 20th century when economic issues pertaining to agriculture aroused interest at several educational centers. The depression of 1890s that wreaked havoc in agriculture at many places forced organized farmers groups to take keen interest in farm management problems. The study and teaching of agricultural economics was started at Harvard University (USA) in 1903 by Professor Thomas Nixon Carver. Agricultural economics may be defined as the application of principles and methods of economics to study the problems of agriculture to get maximum output and profits from the use of resources that are limited for the wellbeing of the society in general and farming industry in particular.

Agriculture sector has undergone a sea change over time from being subsistence in nature in early stages to the present day online high-tech agribusiness. It is no more confined to production at the farm level. The storage, processing and distribution of agricultural products involve an array of agribusiness industries. Initially, agricultural economics studied the cost and returns for farm enterprises and emphasized the study of management problems on farms. But now it encompasses a host of activities related to farm management, agricultural marketing, agricultural finance and accounting, agricultural trade and laws, contract farming, etc.

Both microeconomics and macroeconomics have applications in agriculture. The production problems on individual farms are important. But agriculture is not independent of other sectors of the economy. The logic of economics is at the core of agricultural economics but it is not the whole of agricultural economics. To effectively apply economic principles to agriculture, the economist must understand the biological nature of agricultural production. Thus, agricultural economics involves the unique blend of abstract logic of economics with the practical management problems of modern day agriculture.

Regards,
Angelina Matthew
Journal Coordinator

Global Journal of Agricultural Economics and Econometrics                   
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