Labor-limited agriculture

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Labor-limited agriculture describes agricultural systems where the most serious limitation is on available labor. Capital-limited, and land-limited agricultural systems develop along very different lines.

The overall agricultural efficiency or productivity of a farming system can only be calculated with respect to it's limitations. In other words, for a given crop one farming system may produce a higher yield per farmer, another may excel in yield per acre and still another lead the pack in yield per dollar invested; these three systems each could be considered the "most efficient" in labor limited, land-limited and capital-limited agricultures respectively.

Labor-limited with plentiful land and capital

Labor-limited agriculture in places such as the United States, where a wealthy, developed country is supported by a vast amounts of arable land, tends to result in very low consumer prices for agricultural goods. In turn this encourages an agricultural system based on economies of scale with large farms operating with large capital investments relative to the amount of labor. This results in a highly mechanized agriculture, producing moderate yields of low value staple food crops on vast areas. These systems tend to return the highest calorie/labor density of any agricultural system. Americans are accustomed to thinking that their agriculture is "the most efficient" globally - however, other, more intensive systems produce higher yields per acre and per dollar. (find external links)

Labor-limited with plentiful land and limited capital

Labor-limited agriculture in rural, low population density places such as Mongolia, parts of Africa such as the Miombo forest and the Sahel where a small population in a under-developed rural countryside is supported by large amounts of often marginal land tends to be marked by a very extensive pattern of agriculture such. Nomadic herdsman tend to travel vast areas with their herds and farmers rotate fields in slash and burn type systems rather than invest in improvements in soil fertility. These systems tend to be the most energy efficient.