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International Journal of Mechanical Engineering and Technology (IJMET)
Volume 10, Issue 02, February 2019, pp.1515–1521, Article ID: IJMET_10_02_157
Available online at http://iaeme.com/Home/issue/IJMET?Volume=10&Issue=2
ISSN Print: 0976-6340 and ISSN Online: 0976-6359
© IAEME Publication Scopus Indexed
LAND AS A FACTOR OF PRODUCTION IN
AGRICULTURE AND FEATURES OF
AGRICULTURAL PRACTICES
A.N. Semin
Ural State Mining University, Yekaterinburg, Russia
L. E. Namyatova
Ural Federal University named after the first President of Russia B.N. Yeltsin, Yekaterinburg,
Russia.
ABSTRACT
The urgency of the study of the theory and practice of the past results not only from
the interest in analyzing the situation of the past, but also by the latest social and
economic problems in Russia. The article considers the existing characteristics of the
specific features of land as a factor of production and agricultural production as a whole,
presented in the educational and scientific literature by domestic and foreign scientists.
Based on its analysis, upgrades to the existing interpretations of the specific features of
land as a factor of production and also agricultural production as the basis of the
economic life of society have been proposed. In the theoretical aspect these upgrades will
expand the understanding of land as a unique factor of production and, practically, will
make it possible to have a clearer description of the specific features of agricultural
production. Besides that, attention is drawn to two circumstances that to a certain extent
curb the fuller use of the market mechanism in agriculture, namely, the periodic
overproduction of agricultural products in a number of developed countries and the
presence of so-called “price scissors”. It is noted that the features of agricultural
production affect the specifics of agrarian relations, manifested primarily in various
forms of ownership and management. The purpose of the article is to clarify the
classification of the specific features of land as the main factor of production and
agricultural production. The methodological basis of the study is a systematic approach
based on the dialectical method of studying interacting objects, which allows classifying
and analyzing processes and their results at the macro and micro levels. The
incompleteness of the features of land as a factor of production and agricultural
production in educational and scientific literature is revealed and their specified
classification is proposed. The materials of the work can be used in the training and
additional training of specialists in Economics at universities. In theoretical terms, the
http://iaeme.com/Home/journal/IJMET 1515 editor@iaeme.com
A.N. Semin and L. E. Namyatova
Characteristics of land features as a factor of production and agricultural production are
complemented. The findings of the study can be used in the development of economic
science.
Keywords: land, production factor, agricultural production, natural and climatic
conditions, water resources, governmental support, agrarian relations.
Cite this Article: A.N. Semin and L. E. Namyatova, Land as a Factor of Production in
Agriculture and Features of Agricultural Practices, International Journal of Mechanical
Engineering and Technology, 10(02), 2019, pp. 1515–1521
http://iaeme.com/Home/issue/IJMET?Volume=10&Issue=2
1. INTRODUCTION
World experience followed by many countries shows that agriculture is the basis of economic
life, economic independence and well-being. It is attributed to strategically prior industries. The
scientific problem to which the article is devoted consists in the development of better theoretical
understanding of the specifics of land as the main and indispensable factor of production and the
peculiarities of agricultural production.
Object of study is a natural resource – land, serving as a direct means of production in agriculture.
Subject of research is substantiation of the specific features of land as a factor of production and
agricultural production in general. Purpose of the study is development of the theoretical basics
of specific features of land as a factor of production and production in agriculture, whose function
is to ensure the country’s needs for food and agricultural raw materials.
Objectives of the study are as follows:
– Analysis and clarification of land features as a factor of production in agriculture.
– Substantiation of agricultural production features.
Research originality and scientific novelty is in the fact that a unique and irreplaceable factor
of production is explored, namely, land. Theoretically, the refined features of land as a factor of
production and agricultural production are proposed. Research methods are as follows: a
systematic approach is used based on the dialectical method of studying objects. Economic and
statistical research methods are applied. Theoretical and practical significance of land features as
a factor of production and agricultural production are substantiated. The findings of the study can
be used in the development of modern economics. The work content can be applied at universities
in training and additional training of specialists in Economics.
2. LITERATURE REVIEW
When writing the article, the results of research of both domestic and foreign scientists were used.
Among the Russian scientists who worked out this problem are: A.I. Altukhov, V.I. Buzdalov,
G. S. Vechkanov, G. R. Vechkanova, T. Vlasova, S. Volkov, V. Ya. Iokhin, N. Ya. Kovalenko,
V. D. Mingalev, L. E. Namyatova, R. M. Nureyev, A. I. Popov, N. Sviridov, A. N. Semin, A.
Suzdaleva, V. Ya. Uzun, I. G. Ushachev and foreign scientists, such as K. Marx, C. R.
McConnell, S. L. Brue, S. M. Flynn, P. Samuelson, W. Nordhaus, etc.
3. RESULTS
In the economic theory all natural resources are referred to as “land” – all the “gifts of nature”
used in the production process. This broad category includes such resources as arable land,
forests, mineral deposits and oil, water resources [1]. In this study, Land as a factor of production
in agriculture and features of agricultural practices
“Land” is understood only as the surface of the soil and only agricultural demand is considered,
because, along with it, there is non-agricultural demand for land. The primary basis is always
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Land as a Factor of Production in Agriculture and Features of Agricultural Practices
land, nature. Singling out land as a special factor of production is the scientific merit of
physiocrats. Now, as in the past, the words of the famous English economist William Petty are
still topical: work is the father of wealth; the earth is its mother. Describing the role of agriculture,
K. Marx emphasized that “the production of foodstuffs is the very first condition for the life of
direct producers and of all production in general...” [2]. As, Academician of the Russian Academy
of Sciences [3] notes, the country’s agrarian sphere, including a wide range of national economic
functions, is the core sphere of the economy, designed to provide economic and especially food
independence, and in essence the Russian state sovereignty. According to [4], land, as a factor of
production, in agriculture has the following specific features:
- Unlimited service life, unlike other factors of production;
- It is a natural factor, and not a product of human labor;
- It is immovable as compared to capital;
- In case of rational exploitation, land does not wear out, but even improves its productivity.
[5] Identifies such features of land as:
- It is a free gift of nature, which indicates the irrational aspect of its value; nevertheless, land
is the object of sale and purchase, and land relations are connected with it;
- Plots of land are divided into the best, medium and worst, depending on the climatic
conditions and their location, i.e. the basis of this division is the natural soil fertility;
- The supply of land is strictly fixed, which makes its offer completely rigid;
- Absolute rigidity of the supply of land indicates that the demand for it is the key factor in
the formation of rent.
Describing the socio-economic transformation of the agrarian sector, [6] notes that in
agriculture land is the main, indispensable means of production, the economic processes of
reproduction are intertwined with natural ones, economic laws – with biological ones. In addition,
land is the only means of production, not affected by the ravages of time. On this occasion, Marx
pointed out that time does not spare anything and worsens all means of production (except for
land) [7].
Researchers [8] focus their attention on the following features, characterizing land as a unique
production factor:
- Its immovability;
- Its fixedness in terms of the total amount;
- Completely rigid supply;
- It is used in any kind of economic activity.
- The lifespan of land is endless, it is an eternal factor.
[9] Note that the land supply curve is completely inelastic, since the land supply is fixed. The
land value is determined by the product value, and not vice versa.
Features for a range of indicators, similar to those mentioned above, are presented in the
works by [10], [11], [12] and other scientists.
Thus, based on a comprehensive analysis of the listed points of view regarding the specific
features of land as a factor of production, in our opinion, the existing interpretations can be
supplemented with the following provisions:
- The uniqueness of land is manifested in its non-reproducibility;
- The limited nature of land as an economic resource is a manifestation of the law of rarity.
The Table presents the specific features of agricultural production, as set out in researchers’
works [5; 11; 12–15].
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A.N. Semin and L. E. Namyatova
Let us consider some of the specific features of agriculture proposed by scientists in more
detail. An example is vast areas of agricultural land. As V. Uzun and other scientists note [16],
about 2% of the world’s population lives in Russia, and its share in agricultural land of the planet
is 4.5%. Taking the fourth place in the total area of farmland (after China, the USA and Brazil),
Russia is the undisputed leader in terms of the farmland area per capita.
Table 1 Specific features of agricultural production
No List of agricultural production features Authors
Direct dependence on natural and climatic conditions, which makes V. Iokhin, R. Nureyev,
1
agriculture instable A. Popov, V. Mingalev
Direct dependence on the natural biological cycle of plants and A. Popov, N. Kovalenko,
2
animals; interweaving of economic processes with biological ones V. Mingalev
Differences in reproduction phases (in agriculture – production,
3 A. Popov
harvesting, storage, processing, sale, consumption)
N. Kovalenko, V.
4 No coincidence of the working period with the production period
Mingalev
V. Iokhin, A. Popov, N.
5 Seasonality of the economic activity scope
Kovalenko, V. Mingalev
N. Kovalenko, V.
6 Territorial dispersion and vast areas
Mingalev
The complex nature of land demand (narrow specialization is not
7 R. Nureyev
common)
N. Kovalenko, V.
8 Produce is involved in the further production process
Mingalev
9 Low elasticity of demand for most products V. Iokhin, R. Nureyev,
10 The gradual decrease of the food share in the consumer budget R. Nureyev
11 Low concentration and relative dispersion of many products V. Iokhin
Significant impact of the diversity of climatic conditions by zones
12 N. Kovalenko
in the country on the production indicators
13 The special role of water resources V. Mingalev
The great need for technology and energy, caused by the demand to N. Kovalenko, V.
14
move the instruments of labor Mingalev
Features of the socialization of labor and production, which are
15 A. Popov
determined by the forms of land tenure and land use
Features of production and labor organization conditions, based on
16 the diversity of forms of ownership and the economy multi A. Popov
structural
17 Particular lifestyle of those employed in agriculture V. Iokhin, V. Mingalev
V. Iokhin, V. Mingalev,
I. Buzdalov, v. Uzun, A.
18 State support for agricultural producers
Semin, I. Ushachev
Another feature attracts attention, namely, the special significance of water resources for
agriculture. Researchers from different countries of the world are concerned with issues related
to the population growth on the planet and the increase in water consumption throughout the
world, while simultaneously creating a water deficit. It is therefore necessary, they believe, to
provide a scientifically based and environmentally oriented development of water resource
logistics, capable of eliminating many regional water consumption crises, to prevent world crisis
in this field [17–20]. The global agricultural sector consumes 69% of the total water use [21].
Other scientists [22] emphasize that the yield on irrigated lands is 2–4 times higher than at bogar.
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