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1

What are the disadvantages of running a farm as an Agribusiness?

Agribusinesses • These changes have all meant that farming

is no longer run as a small-scale family business.

• Many modern farms are very large and are owned by a commercial company or group of investors who invest money in the farm as a business in order to make profits.

• These types of farms are called agribusinesses. They are run by a farm manager who does not own the farm.

RURAL GEOGRAPHY

1. Mechanisation• Machinery has replaced

manual labour. More hi-tech, larger, more common, less labor and horse power required.

• Although costly to buy machines save time and money in the long run.

• Heavy machines increase soil compaction and in turn can lead to soil erosion, unemployment, rural de-population.

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2. Increased farm size• Small farms have joined together.• Larger farms are more efficient and are more likely

to afford the costly equipment needed to increase yields and bring greater profits.

• Large scale farming like this is called AGRIBUSINESS.

• Economies of scale – larger farms more profitable. • Smaller farms bought over family farms lost.

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3. Increased field size

• Hedgerows, fences, walls removed. The increased use and size of machines has brought about a need for larger fields.

• Easier to manoeuvre machinery. Less land wasted as field boundaries.

• Removal of hedgerows resulting in loss of habitats for birds and other small creatures.

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4. Increased use of chemicals• Increasing reliance on chemical

fertilizers and pesticides.• Improved quality and quantity of

produce.• Concerns over effect of chemicals

on the food itself and on the environment e.g. – pesticides (e.g. DDT) accumulation in

food chain (no pollination).– run off into rivers causing algae

blooms, water becomes de-oxygenated, killing aquatic life.

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5. Organic farming• Customer concern over pesticide use and impact on

human health & wildlife. Used as marketing tool. • Less damage to the environment as fewer chemicals are

released into soil or find their way into rivers. • Prices are higher and yields are lower than for

traditional farming.

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6. Diversification• Farmers are encouraged to develop businesses other than

farming e.g. rural leisure activities, holiday accommodation, recreational facilities.

• Increased stability in farm income. Less affected by unpredictable market changes.

• Productive land lost to other uses.

RURAL GEOGRAPHYHow has it changed? Benefits of change & problems?

1. Mechanisation Increased. More hi-tech, larger, more common, less labor and horse power required.

More efficient. Cheaper in the long run expensive to buy but decreased labor/horse costs. Heavy machinery compacts soil. Unemployment, rural de-population.

2. Farm size Increased. Small farms can’t afford machinery. Farms have merged and become more specialised. AGRIBUSINESS.

Economies of scale – larger farms more profitable.Smaller farms bought over family farms lost.

3. Field size Increased. Hedgerows, fences, walls removed. Easier to manouver machinery.

More efficient to have one large field tended by machine. More space available for big machines. Monoculture. Loss of habitat for wildlife.

4. Use of chemicals

Increased.Fertiliser & pesticide used to increase yield.

Higher quality & yield bigger profit.Wildlife affected by pesticides (e.g. DDT) accumulation in food chain (no pollination).Fertiliser run-off affects streams/river algal blooms kill wildlife.

5. Organic farming without artificial chemicals.

Increased. Customer concern over pesticide use and impact on human health & wildlife. Used as marketing tool.

Better for the environment. Lower yield BUT product worth more.Farm income can be more variable.

6. Diversification Increased. Used to focus on food production, now farms use a range of activities to improve income stability (farm shop, quad bikes, campsite, etc.)

Increased stability in farm income. Less affected by unpredictable market changes.Productive land lost to other uses.

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Changes in farming in EMDCs Summary

Like all businesses, farming has changed greatly over the last 80 years. These changes have affected methods, organisation, farm output, labour, farming landscapes and the overall status of farming. We need to know about the changes that have occurred and their

effects on the rural landscape. • Farms are larger• Field sizes are larger• Hedgerows have been removed• More machines and tractors• Less people work on farms• More artificial pesticides and fertilisers used• Different use of land = diversification• Not all animals are free range• More farm buildings to house machinery