The agriculture is heavily influenced by several economic and several physical factors, which contribute to its development or downfall.
Explanation:
The physical factors that influence the agriculture are:
- type of soil
- irrigation water supply
- climate conditions
- elevation
- angle of slopes
The physical factors are the ones that provide the conditions for the agriculture to develop. They determine what plants can be grow, in which manner, what quality and quantity can be expected. Not all places on the planet provide suitable conditions for agriculture, such as the polar and desert regions, or the places with steep slopes and high elevation.
The economic factors that influence the agriculture are:
- supply
- demand
- transportation of goods
- type of economy/availability of markets
- price
Even if the physical factors are excellent, and large scale agriculture can be performed, it doesn't mean that there will be prospering. The reason for that are the economic factors. Whether a product will be sold depends on the demand on the market. If there isn't enough demand, then the products will be produced for nothing, and the farmers will have loses. If there is high demand, the products will be sold with ease. The transportation also is very important, as it needs to be as easy as possible, so that it can also be as cheap as possible.
The type of economy though may put all other factors in shade. If the economy type is command economy, than the producer can not export, can not decide what to produce, how much to produce, and which manner to produce, nor is able to negotiate about the price. If the economy type is market economy, than the producer is able to sell the products abroad, where there is demand, and gradually produce more and more and expand.
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