Agrarian Structure takes into account every conducive factor that is responsible for the sustained growth in the agricultural sector. Agrarian structure involves the social, economic and technical elements that affect production in the agricultural sector. These factors are used to measure the productivity level of farmers, the distribution of their income and the social position of the rural population. The Agrarian structure also includes the process of land management and land tenure system.
Land Tenure System
The land tenure system, which gives the legal right to individuals to hold land, are of two types:
- System of labor organization
- System of land ownership
Labor Organization System
This system governs the relationship between the labors and the landowners. The landowners pay wages to the labors against their works. The rate of wage is determined by the landowner himself. There could be different types of labour organisations. There could be family labor organization, hired labor organization or collective labor organisation.
The Land Management System
The land management system covers the factors on which the cultivation of land is possible. The main factors on which the cultivation of a land depends are land, labor and capital. The land is the most important factor since without land one cannot grow crops, followed by labor. Capital is another important factor without which it is not possible for the farmers to buy the necessary inputs. Now it depends on the farmer how well he can regulate all these aspects to acquire a good harvest.
Institutions that Help the Agrarian Production
There are institutions that extend a helping hand to the farmers to improve their production of crops. This is a phenomenon that developed during the modern times. In order to cultivate the land, produce crops and then sell them in the market a farmer needs to have sufficient information about the system of the market. Many institutions have come to the aid of these farmers which help them to obtain profits and assure good harvest. These institutions create the incentive within the farmers to optimize the available opportunities and receive a rich harvest along with a heavy profit margin.
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