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Cash crop
A cash crop, also called profit crop, is an agricultural crop which is grown to sell for profit. It is typically purchased by parties separate from a farm. The term is used to differentiate a marketed crop from a staple crop ("subsistence crop") in subsistence agriculture, which is one fed to the producer's own livestock or grown as food for the producer's family.
In earlier times, cash crops were usually only a small (but vital) part of a farm's total yield, while today, especially in developed countries and among smallholders almost all crops are mainly grown for revenue. In the least developed countries, cash crops are usually crops which attract demand in more developed nation, and hence have some export value.
Prices for major cash crops are set in international trade markets with global scope, with some local variation (termed as "basis") based on freight costs and local supply and demand balance. A consequence of this is that a nation, region, or individual producer relying on such a crop may suffer low prices should a bumper crop elsewhere lead to excess supply on the global markets. This system has been criticized by traditional farmers. Coffee is an example of a product that has been susceptible to significant commodity futures price variations.
Issues involving subsidies and trade barriers on such crops have become controversial in discussions of globalization. Many developing countries take the position that the current international trade system is unfair because it has caused tariffs to be lowered in industrial goods while allowing for low tariffs and agricultural subsidies for agricultural goods.[clarification needed] This makes it difficult for a developing nation to export its goods overseas, and forces developing nations to compete with imported goods which are exported from developed nations at artificially low prices. The practice of exporting at artificially low prices is known as dumping, and is illegal in most nations. Controversy over this issue led to the collapse of the Cancún trade talks in 2003, when the Group of 22 refused to consider agenda items proposed by the European Union unless the issue of agricultural subsidies was addressed.
The Arctic climate is generally not conducive for the cultivation of cash crops. However, one potential cash crop for the Arctic is Rhodiola rosea, a hardy plant used as a medicinal herb that grows in the Arctic. There is currently consumer demand for the plant, but the available supply is less than the demand (as of 2011).
Cash crops grown in regions with a temperate climate include many cereals (wheat, rye, corn, barley, oats), oil-yielding crops (e.g. grapeseed, mustard seeds), vegetables (e.g. potatoes), lumber yielding trees (e.g. Spruce, Pines, Firs), tree fruit or top fruit (e.g. apples, cherries) and soft fruit (e.g. strawberries, raspberries).
In regions with a subtropical climate, oil-yielding crops (e.g. soybeans), cotton, rice, tobacco, indigo, citrus, pomegranates, and some vegetables and herbs are the predominant cash crops.
In regions with a tropical climate, coffee, cocoa, sugar cane, bananas, oranges, cotton and jute are common cash crops. The oil palm is a tropical palm tree, and the fruit from it is used to make palm oil. The impact of climate change on the ranges of pests and diseases – especially those of coffee, cocoa, and banana – is commonly underestimated. Limiting temperature rise to 1.5 °C (2.7 °F) is vital to maintaining productivity in the tropics.
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Cash crop AI simulator
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Cash crop
A cash crop, also called profit crop, is an agricultural crop which is grown to sell for profit. It is typically purchased by parties separate from a farm. The term is used to differentiate a marketed crop from a staple crop ("subsistence crop") in subsistence agriculture, which is one fed to the producer's own livestock or grown as food for the producer's family.
In earlier times, cash crops were usually only a small (but vital) part of a farm's total yield, while today, especially in developed countries and among smallholders almost all crops are mainly grown for revenue. In the least developed countries, cash crops are usually crops which attract demand in more developed nation, and hence have some export value.
Prices for major cash crops are set in international trade markets with global scope, with some local variation (termed as "basis") based on freight costs and local supply and demand balance. A consequence of this is that a nation, region, or individual producer relying on such a crop may suffer low prices should a bumper crop elsewhere lead to excess supply on the global markets. This system has been criticized by traditional farmers. Coffee is an example of a product that has been susceptible to significant commodity futures price variations.
Issues involving subsidies and trade barriers on such crops have become controversial in discussions of globalization. Many developing countries take the position that the current international trade system is unfair because it has caused tariffs to be lowered in industrial goods while allowing for low tariffs and agricultural subsidies for agricultural goods.[clarification needed] This makes it difficult for a developing nation to export its goods overseas, and forces developing nations to compete with imported goods which are exported from developed nations at artificially low prices. The practice of exporting at artificially low prices is known as dumping, and is illegal in most nations. Controversy over this issue led to the collapse of the Cancún trade talks in 2003, when the Group of 22 refused to consider agenda items proposed by the European Union unless the issue of agricultural subsidies was addressed.
The Arctic climate is generally not conducive for the cultivation of cash crops. However, one potential cash crop for the Arctic is Rhodiola rosea, a hardy plant used as a medicinal herb that grows in the Arctic. There is currently consumer demand for the plant, but the available supply is less than the demand (as of 2011).
Cash crops grown in regions with a temperate climate include many cereals (wheat, rye, corn, barley, oats), oil-yielding crops (e.g. grapeseed, mustard seeds), vegetables (e.g. potatoes), lumber yielding trees (e.g. Spruce, Pines, Firs), tree fruit or top fruit (e.g. apples, cherries) and soft fruit (e.g. strawberries, raspberries).
In regions with a subtropical climate, oil-yielding crops (e.g. soybeans), cotton, rice, tobacco, indigo, citrus, pomegranates, and some vegetables and herbs are the predominant cash crops.
In regions with a tropical climate, coffee, cocoa, sugar cane, bananas, oranges, cotton and jute are common cash crops. The oil palm is a tropical palm tree, and the fruit from it is used to make palm oil. The impact of climate change on the ranges of pests and diseases – especially those of coffee, cocoa, and banana – is commonly underestimated. Limiting temperature rise to 1.5 °C (2.7 °F) is vital to maintaining productivity in the tropics.