Agrarian Economy
Agrarian economy is the oldest form of economy and depends on the industry related to agriculture. In broad terms, livestock farming and production of crops. The performance of the agrarian economy depends on lot of factors, some of which are uncontrollable like the temperature, the amount of rainfall, the timing of rainfall, wind conditions, etc.
This economy has witnessed tremendous changes. New ideas and technology are utilised to increase the productivity per area. Constant research work are undertaken to improve in this parameters. For examples, seeds are genetically modified to increase the productivity, reduce the harvest time, etc. Processes like cross breeding, cloning and artificial insemination are adopted to improve the quality of the livestock.
Challenges to this Economy
But this economy has also faced a lot of challenges. People have slowly shifted from agrarian economy to the industrial economy. Area under production has also reduced as land is being used for setting up industries and also for constructing buildings, both for residential and commercial purposes. The threats of soil conditions, parasites, climate changes are also present. Maintaining livestock also requires a lot of care, one has to vaccinate them often.
It must be noted that the produce of the agrarian economy restricts the food price within the country and also gives a bargaining power internationally.
Agriculture is something like a backbone to a nation.However, the economies based solely on agriculture may not function that well but these Agrarian economies have proved to be quite stable as there are a little fluctuations in this kind.Article explained it neatly.
Agriculture and farming is one of the essentials to a healthy GDP. In places where Agrarian economy is not possible, GDP can be high via things like mining and industry.
The only setback to an agrarian economy is natural disaster, like flood or drought or disease. It can so long for the land to recover from these ordeals that the GDP suffers as a result. People prefer to invest in industrial economies for this reason - but Agrarian economies are the ones who produce our food! There will always be a need for food.