What is Commercial Farming? Features, forms and advantages | Tractorgyan

22 Nov, 2022

Commercial farming involves farming a single crop over the entire piece of land for the commercial purpose for say imports and exports of the crops.

Growing a wide range of crops and raising animals for food, raw materials, or export are all part of commercial farming. This is done for financial gain. To take advantage of the economy of scale, commercial farming must be extremely effective and carried out on a huge scale. There are a few different kinds of commercial farming that focus on different areas of agriculture.

Gujarat, Haryana, Tamil Nadu, and Maharashtra are the states that practice commercial farming the most. 

Wheat, maize, tea, coffee, sugarcane, cashew, rubber, corn, bananas, and cotton are the principal commercial crops harvested in India. Modern technology is used extensively in commercial farming, including heavy equipment, irrigation techniques, chemical fertilizers, and pesticides. Crops with a high demand fall under commercial farming, which refers to crops that must be exported to other nations or utilized as raw material in businesses.

 

Different Types of Commercial farming:

Commercial farming is practised mainly for monetary purposes, and it also boosts the economy because of the large-scale production it carries out.

There are different types of commercial farming namely:

1. Dairy farming 

 

Dairy Farming is a type of commercial farming and as the name suggests it is mainly involved in the production of mild and milk products altogether. In Dairy farming, the primary purpose is to rear the cattle which gives out milk and other dairy products in return.

 

2. Grain Farming

 

Grain farming is a sort of industrial farming where grains are cultivated for human consumption and export, including corn, barley, and wheat. It is crucial to note that grain farming is highly mechanized and necessitates enough land, equipment, farmers, and equipment kinds. The planting and harvesting seasons are the busiest for farmers engaged in this form of seasonal, outdoor commercial farming.

 

3. Livestock farming

 

Livestock farming is a type of farming wherein meat-giving or producing animals are reared to obtain meat. Cattle and sheep are the most frequent species raised in livestock farming, although on some farms you may also find pigs and poultry raised in huge numbers.

 

4. Plantation Farming 

 

Plantation Farming is very similar to commercial farming under plantation farming large piece of land is used for the process of cultivation of cash crops like sugar, tea, coffee, bananas, coconut, etc., and sell them out in the global market for receiving excessive revenues.

 

5. Mixed farming 

 

A single crop or animal is raised in mixed farming. However, in this type of commercial farming, both crops and cattle are raised on the same plot of land. 

Consequently, crops can be grown to feed the animals, and the animals themselves can be sold to generate revenue. Additionally, crop cultivation can make use of animal waste. The two coexist and are grown together all year round.

 

Examples of commercial farming:

Some of the primary examples of commercial farming are as follows: 

1. Cotton farming

 

Cotton farming is an example of commercial farming it is mainly grown in black and alluvial soil which requires a low level of rainfall with bright sunshine.

 

2. Wheat farming 

 

Wheat farming is an example of commercial farming. Wheat is the staple food of the entire country, and it is mainly grown in the northern part of India It needs sufficient sunlight for harvesting and decent rain during planting. As a result, it thrives in northern India's winter climate.

 

3. Rice Farming

 

Everywhere in the world, rice is a staple food. High heat, humidity, and rainfall are necessary. West Bengal and other northeastern regions of India is its strongholds.

 

Features of Commercial Farming:

Commercial farming has many features or says some distinct character that makes it different from other types of farming which is practised across the nation.

 

1. Commercial farming is mainly practised with the heavy use of high-yielding varieties of seeds.

One of the specific features or characteristics of commercial farming is that it uses high-yielding varieties of seeds, chemical fertilizers, pesticides, insecticides, and many other things to gain high results or cultivate a crop with great productivity.

 

2. Commercial farming is mainly practised for sale purposes or to generate revenue demand.

Commercial farming differs from other types of agriculture in that its products are produced for sale rather than only for personal consumption. This is one of its key distinguishing features. Thousands of acres are used in commercial agriculture to produce goods like cocoa, bananas, rice, sugarcane, tea, and a variety of other things. These goods are produced and primarily exported to other nations.

 

3. Commercial farming involves heavy use of farming machinery and human labour force.

It should be noted that considerable amounts of both skilled and unskilled labour are necessary for commercial farming. Professionals provide skilled labour for the commercial sector, whereas those providing unskilled labour are living in abject poverty. Heavy equipment such as diggers, trailed sprayers, ploughs, planters, and harvesters is also necessary for commercial agriculture. These tools are utilized to meet the deadlines and objectives as well as the production system's talents.

 

4. Commercial farming is practised throughout the 12 months.

Commercial farmers have year-round irrigation systems. Like other farmers, they don't rely on rain or other natural resources to keep their crops or animals alive throughout the year. Instead, they use contemporary tools, technology, and artificial growth promoters.

 

5. Commercial farming leads to the creation of capital. 

Commercial farming is a type of farming that is not only beneficial for the agricultural sector but also for industries or investors as it leads to the creation of capital. 

Some agricultural supplies, like seeds, fertilizer, and insecticides, are purchased with the funds. It necessitates a large cash outlay. The farmer must harrow and plough the land, buy seedlings or seeds, use pesticides, and fertilize the crops. This would require a huge financial commitment because it would be carried out on such a large piece of land.

 

6. Commercial farming encourages employment. 

People who live in the area can find work through commercial farming. The workers will be paid a wage that would allow them to feed their families. Commercial farming thus encourages the expansion of the regional economy.

 

7. Commercial farming leads to a decrease in the cost of products.

Due to the sufficient supply of crops on the market, commercial farming helps to lower the price of agricultural products. Therefore, the forces of supply and demand work to drive down the cost of such commodities.

 

Advantages of Commercial Farming

1. Commercial farming boosts the power supply to areas in the suburbs of farmed land since it uses machinery and electricity. It contributes to the improvement of local infrastructure. Roads are paved to facilitate the transit of goods and equipment quickly and comfortably.

 

2. One of the benefits of commercial farming is that it helps in the establishment and/or improvement of the area's infrastructure. Electricity is provided to the community by commercial farms that rely on it. Farmers build roadways to facilitate the transportation of commodities and equipment. Governments in developing countries construct roads and trains, as well as extend water to areas where it is not yet available.

 

3. Provides the lowest cost of production: Commercial farmers also contribute to lower agricultural product costs. This is because more crops are produced, resulting in reduced commodity prices because of supply and demand pressures.

 

4. Create employment opportunities for people around: Commercial farming provides a lot of work for people in the surrounding region and even further away from where the specific knowledge required isn't readily available. The money obtained from working on the farm is used to provide food for the inhabitants. To put it another way, commercial farming can help to boost the local economy.

 

5. Boosts the economy of the country: As commercial farming is mainly practised for profit earning it helps in foreign exchange policies. Cocoa, coffee, and other non-traditional agricultural export commodities in West Africa generate foreign exchange for their countries.

 

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