ABSTRACT
This chapter (1) identifies factors that influence the agricultural systems found in a country at a point in time, (2) explores the differences in farming systems found in various parts of the world, and (3) presents economic concepts that help explain input and output choices in farming systems. Farming systems in the world exhibit considerable variability. Technical and human factors determine the types of farming systems. Technical factors include physical and biological factors. Institutional and human factors are characterized by externally and internally controlled forces. The major farming systems of the world can be grouped into three classes: shifting cultivation, pastoral nomadism, and settled agriculture. Settled agriculture includes many agricultural systems, such as mixed farming systems, intensive annual crops, intensive and extensive livestock systems, and perennial crops. Input and output combinations in farming systems are heavily influenced by technologies, resource bases, and relative prices. Farmers allocate resources to maximize their families’ well-being in light of expected costs and revenues. Economic profitability is just one factor considered in their decision-making, but usually an important one.
