The determinants of a cropping pattern are the factors that influence farmers’ decisions on what to plant in their fields. There are lots of determinants that can be used to explain the changing cropping pattern. In this explanation, we use the economic theory of supply and demand, risk and return, and product life cycle.
The economic theory of supply and demand:
The economic theory of supply and demand helps us understand how the price of a good affects the quantity that people produce and consume. When the price of something goes up, people will produce and consume less of it, and vice-versa.
Risk and return:
Risk and return are related to profit or loss from an investment. It is important to farmers when they make investment decisions on agricultural inputs (seeds, fertilizer, pesticide, etc.). If they earn higher returns without having a higher risk of loss through investment, they will invest more in order to earn more returns. And if they have higher risk with lower return, they will invest less in order to have a lower loss. In this way, their resources will be used more efficiently.
Product life cycle:
The product life cycle can be explained as below: A product’s sales generally follow a specific cycle that starts small, grows large, peaks quickly, then declines sharply – all before another smaller cycle begins again. In general, it is an ‘S’ curve. It is called Product Life Cycle Curve. Each product has its own life cycle curve. The length of each phase largely depends upon the type of product being sold. A product typically passes through five distinct phases during its life cycle: introduction–development–growth–maturity–decline.post 2022-10-08 07:16:55