Conventional Factors of Production

Conventional Factors of Production are the factors which have continued to be essential for farmer to produce crops. The most important of those factors is the land on which the crops are grown. It is their dependence on the land which leads them to produce crops to sustain themselves and also earn money to fulfill their needs.

[br]

In olden days farmers used to treat their land as a part and parcel of their lives. Land symbolized honor, prestige and dignity for the farmers. Therefore buying or receiving land as a gift was considered to be of importance because it was a matter of pride for them. However, land is such a factor of production which is not a constant one. It might get reduced but never increases.

Agriculture is one of the oldest professions and man indulged in it since time immemorial. Previously, man depended upon the fertility of the soil for good production but times have changed now and man can make use of fertilizers to reap a huge harvest. There are two terms related with land, ‘scarce’ and ‘abundant’. But man has contributed to both the factors in certain ways. Overuse of land has led to its infertility.

[br]

Labor as a Factor

In places with dense population there is an abundant and cheap supply of labour. The reverse is the case for areas having scarce labor resources.

Capital as a Factor

Capital formation is yet another important factor in agricultural growth. With the introduction of various land reform measures, the need for capital is growing day by day. It is needed for implementing modern technologies in production, for the purchase of different inputs like seeds, fertilisers etc.