Characteristics of Corporate Farming

Characteristics of Corporate Farming

Characteristics of corporate farming have been briefly explained below. These characteristics include production of various corps, capital investment, use of premium quality fertilizer, profit maximization etc.

1.   Range of Corps

First characteristic of corporate farming is cultivation of range of products. In corporate farming a range of crops are produced. These corps includes the staple corps (wheat, rice etc) and cash corps (Vegetable, Tobacco etc).

2.   Capital Investment

Second characteristic of corporate farming is huge investment in the business of farming. Advanced machinery is used in corporate farming to improve productivity & efficiency.

3.   Premium Fertilizers & biological techniques.

One of the important characteristics of corporate farming is use of premium quality fertilizer and biological techniques in farming. This type of farming heavily rely on the improved seeds.

4.   Economies of Scale

Third important characteristic of corporate farming is Economies of scale. Large output result in economies of scale. This is one of the fundamental characteristic of corporate farming.

5.   Big Farms

One of the important characteristic of corporate farming is use of big farms for the cultivation to attain economies of scale. It is to be noted that large farms can only be acquired by a corporate entity.

6.   Organized Business

Corporate Farming is managed as organized business. Professional manager and agriculture expert is part of management team. All decisions are made by the professional in professional manner. Organized management is a key characteristic of corporate farming.

7.   High profitability

Reasonable profit or high profit from the farming is another important characteristic of corporate farming. Profitability is one of the important characteristic of corporate farming.

8.   Products are properly marketed

In corporate farming marketing of product is an important aspect, because marketing has direct linkage with profitability. Products are sold at right place and at right price. Product marketing is another important characteristic of corporate farming.