Types of Farming
On the basis of similarity in crop production and livestock rearing types of farming are.
- Diversified or General farm;
A farm on which no single product or source of income equals as much as 50% of the total receipt is called a diversified or general farm. On such a farm, the farmer depends on several sources of income.
Sources of Income
Better use of resources.
- Better use of land through adoption of crop rotations, steady employment of farm and family labour.
- Business risk is reduced due to crop failure or unfavorable market prices.
- Regular and quicker returns are obtained from various enterprises.
Disadvantages of Diversified Farming
- Marketable produce is insufficient unless the producers arrange for the sale of their produce on co-operative basis.
- Because of varied jobs in diversified farming, a farmer can effectively supervise only limited number of workers.
- Better equipping of the farm is not possible because it is not economical to have expensive implements and machinery for each enterprise.
(2) Specialized farming
- A specialized farm is one on which 50% or more receipts are derived from one enterprise.
- Income is sale plus produce used at home.
Conditions for Specialization
- (i) Where there are special market outlets,
- (ii) Where economic conditions are fairly uniform for a long period,
- (iii) Where an enterprise is not much affected by abnormal weather conditions, e.g., poultry farm.
Advantages of Specialized Farming
- Better use of land
- Better Marketing – Specialization allows better assembling grading, processing, storing, transporting and financing of the produce.
- Better management – The fewer enterprises on the farm are liable to be less neglected and sources of wastage can easily be detected.
- Less equipment and labour are needed.
- Costly and efficient machinery can be kept – A wheat harvester and combine can be maintained in a highly specialized wheat farm.
Disadvantages of Specialized Farming
- There is greater risk
- Productive resources-Land, labour and capital are not fully utilized.
- Fertility of soil cannot properly be maintained for lack of suitable rotations.
- By-products may not be fully utilized for lack of sufficient livestock on the farm.
- Farm returns in each are not generally received more than once a year.
(3) Mixed Farming
Mixed farming is a type of farming under which crop production is combined with livestock raising.
In India mixed farming offers the following advantages:
- Milch cattle provide draught animals for crop production and rural transport.
- Mixed farming helps in the maintenance of soil fertility.
- It permits proper use of the farm by-products.
- It provides greater chances for intensive cultivation.
- It offers higher returns on farm business.
(4) Ranching
A ranch differs from other type of crop and livestock farming in that the livestock grazes
the natural vegetation. Ranches are not utilized for tilling or raising crops. Ranching is followed in Australia, Tibet and in certain parts of India. An average Australian sheep farm covers an area of about 100 square miles and there are some farms as large as 1,000 square miles.
(5) Dry Farming
Farmers in dry and precarious tracts, which receive 50 cm or less of annual rainfall,
struggle for livelihood. The major farm management problem in these tracts, where crops
entirely depends upon rainfall, is the conservation of soil moisture.
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Systems of Farming
1, Co-operative farming:
Co-operative farming means a system under which all agricultural operations or part of them are carried on jointly by the farmers on a voluntary basis.
A part of a profit would be distributed in proportion to the land contributed by each farmer and the rest of the profit would be contributed in proportion to the wages earned by each farmer.
Co-operative farming is divided into two classes:
I) ICo-operative joint farming; The ownership is retained by the individuals, but the land is cultivated jointly.
II) Co-operative collective farming;
- In collective farming, the members of collectives surrender their land, livestock and head stock to the society. The collectives cannot refuse to admit other members of required qualification.
- The members work together under a management committee elected by themselves. The committee directs farm management in matter of allocation of work, distribution of income and marketing surpluses and put all members into labour to see that the work is done efficiently.
- The payment to the workers is in terms of “work day units”.
(2) Peasant Farming:
- Peasant farming is concerned with peasant relation to land. The Zamindari Abolition Act of government has given the right of ownership to practically all the peasant-operators in the country.
- Peasant farming has given them opportunities to organize and operate their farms in their own way and get due reward for their labour and capital.
- Besides, peasant farming encourages them to maintain and develop the fertility in the occupation of land with social prestige attached to the ownership.
(3) State farming:
- Under this system of farming, the farms are managed by government. The agricultural
- labourers are paid wages on weekly or monthly basis in accordance with the wages fixed under Minimum Wages Act.
(4) Capitalistic farming:
- The capitalistic farming is based on the capital provided by the owner of the farm in carrying out of farm operations.
- Such type of farming is practiced where land lordism exists as in England or the U.S.A. In India, this type of farming is seen in sugarcane area where factory owners have their own farms.
- On these farms, five factors of productions namely, land, labour, capital, management and entrepreneurship are in evidence.
Key Features of the Farming System
- Integration: Combines various enterprises like crops, livestock, poultry, and aquaculture for efficient resource utilization.
- Sustainability: Aims for long-term productivity while preserving resources like soil, water, and biodiversity.
- Resource Optimization: Maximizes the use of available resources such as land, labor, and capital.
- Diversity: Encourages diversification to minimize risk and improve resilience.
- Environmental Impact: Focuses on reducing pollution and promoting eco-friendly practices.
- Socioeconomic Relevance: Supports the livelihoods of farmers and ensures food security.
Types of Farming Systems
- Subsistence Farming: Producing food primarily for the farmer’s family consumption.
- Commercial Farming: Producing crops and livestock for market sales.
- Intensive Farming: High input and high output per unit area, often using advanced technologies.
- Extensive Farming: Low input and output per unit area, common in large farms.
- Organic Farming: Avoids synthetic chemicals, focusing on natural inputs.
- Integrated Farming System (IFS): Aims to combine crops, livestock, and other activities to enhance farm profitability and resource use efficiency.
Economics of Farming Systems
Definition; The economics of farming systems involves analyzing the cost-benefit relationship of different farming practices, ensuring profitability and economic viability while maintaining sustainability.
Components of Farming System Economics
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Cost Analysis:
- Fixed Costs: Land, machinery, and permanent infrastructure.
- Variable Costs: Seeds, fertilizers, labor, water, and energy.
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Revenue Analysis:
- Gross Revenue: Total income from all farm enterprises.
- Net Revenue: Gross revenue minus total costs.
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Productivity Assessment:
- Yield per hectare for crops or per animal for livestock.
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Profitability Measures:
- Gross Margin: Revenue minus variable costs.
- Net Farm Income: Revenue minus total costs (fixed + variable).
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Resource Use Efficiency:
- Efficiency of land, labor, capital, and other inputs in generating output.
Factors Influencing Farming System Economics
- Resource Availability: Land, water, labor, and capital.
- Market Dynamics: Prices of inputs and outputs, demand, and market access.
- Government Policies: Subsidies, minimum support price (MSP), and credit facilities.
- Technological Advancements: Adoption of modern tools, machinery, and scientific methods.
- Climatic Conditions: Weather patterns and their impact on crop and livestock productivity.
