6 - The quantity and quality of the resource base

Summary

The resource base available to agriculture includes factors of production such as land, labour and machinery. It also includes the farmer's knowledge, the production potential of crop varieties, climatic factors such as sunlight and water, and the methods used to increase yields and control weeds, disease and insects.

The size and quality of the resource base available to agriculture can be increased by investment or reduced by neglect – nearly all aspects of the resource base can be altered. Increased land production, for example, could be achieved by levelling which allows easier access by machinery, better water control and reduced erosion. Additionally, organic residue from either plants or animals can be added to aerate the soil, add nutrients and consequently increase yields. On the other hand, land can also become less productive owing to erosion, salinization, waterlogging or nutrient deficiency – all of which are caused by poor farming practices.

Government policies subsidizing or taxing certain factors of production also affect the resource base. For example, subsidizing irrigation systems can lead to excess use of water which in turn contributes to problems such as salinization, waterlogging and fertilizer run-off into streams and lakes, as well as reducing the water available for other agricultural and non-agricultural uses.

A concern raised in recent years is whether or not the production potential of agriculture is deteriorating because of changes in the quality of the resource base, particularly cropland. As the resource base can adjust to economic incentives, its production potential is difficult to measure. Nevertheless, it is important to attempt to measure it as accurately as possible.