Commercial farming in India: Meaning, Types, Characteristics & Benefits

In the development era of worlds when humans were shifting their food survival from hunting and gathering to agricultural practices around 9,500 BCE, Commercial farming was first introduced. This happens because due to higher human populations, the demand for a stable and reliable food supply was also increased.

When humans reach the development level of surplus crop cultivation then surplus enables them to trade excess crops for other goods, fostering early economic systems and market exchanges. Commercial farming plays an important role there.

Understand the meaning of commercial farming

Commercial farming refers to the commercial method of agriculture on a large scale that focuses on producing crops and fodders or livestock primarily for sale in the market instead of personal sustainable use. This approach represents a shift from traditional subsistence farming, where the primary aim is to meet the needs of the farmer's family.

Commercial farming is not similar to subsistence farming as it mainly focuses on producing surplus agricultural products that can be sold in the market or used for exports.

Also Read: Polyhouse Farming in India - Cost, Benefits & Key Components

Characteristics of commercial farming

There are some features or characteristics of commercial that differentiate it from other types of farming, here are some of them. 

1. Large-scale production

Commercial farming requires an extensive area for large-scale crop production and livestock farmers use large extensive areas to meet the growing demand for crops in the Indian or internal market at the domestic and global levels. Large-scale production allows farmers to benefit from economies of scale, where the cost per unit decreases as production increases.

2. Capital-intensive investment

Commercial farming is characterized by large capital-intensive investments to meet all the necessities of performing farming on a large scale such as large land area, machine equipment, labor cost, irrigation system, and risk management backups. Here are the aspects:

• Land acquisition: Purchasing or leasing large tracts of land suitable for agricultural production, and commercial farming. 
• Machinery: Investing in machinery and equipment such as harvesters, tractors, superseeders, fertilizers, and many more to enhance cultivation and productivity.
• Operational expenses: investing money on labor costs whether educated or uneducated for field work purposes such as sowing seeds, irrigations, weed removing equipment, or poor harvesting the crops and optimizing technology for field-level management regarding crop farming.

3. Using high-quality yield

• High-yielding varieties of crops are specially developed agricultural crops designed to produce significantly higher yields compared to traditional varieties. These are significantly used to produce greater amounts of grain or produce per unit area, which is essential for meeting the food demands of growing populations.
• It is considered a super quality trait such as better taste, texture, and nutritional value, making them more desirable in the market also it gets mature earlier as compared to other varieties helping farmers to harvest sooner and potentially grow multiple crops in a single season.

Also Read: Types of Irrigation Systems in India - Traditional and Modern Methods

4. Market Orientation

• When agricultural production is primarily dependent on market demand rather than personal sustainability or household needs, this approach is called market orientation. The main objective of market-oriented farming is to increase the profit rate by operating the farms into businesses focusing on producing goods that have a high market demand.
• Farmers often use different strategies to stand in the market for their crop sales, this can be done by obtaining organic certifications, implementing sustainable farming practices, or developing unique product attributes that connect with specific consumer segments. 

5. Employment of skilled laborers

• For successful cultivation, there must be a need for skilled laborers who have disaster-driving skills for crops and enhance productivity, efficiency, and overall farm management.
• Commercial farms grow in size and diversify their production which requires skilled laborers to understand complex agricultural processes on the field. This includes the implementation of advanced technologies, and optimizing production processes.

Main types of commercial farming

Commercial farming is practiced on various methods to fulfill different demands of people and markets, although each type of farming has its own unique characteristic that is responsible for global food production and economic demand. Understanding these varieties helps in recognizing the diverse landscape of modern agriculture.

1. Dairy farming

• It is a special method of commercial farming for the production of milk and its driven products such as cheese, ghee, curd, and paneer, it is practiced for the long-term demand of dairy products in global and domestic markets.
• In late European countries dairy farming was practiced on small farms but due to the advancement of technology, it led to large-scale operations with innovations such as rotary parlors and automatic milking systems.
• There are many countries such as India, New Zealand, and the United States that contribute to significant milk production; about 827 million tonnes of milk were produced worldwide.

Also Read: Poultry Farming in India - Types, Benefits, and Profitability Guide

2. Livestock ranching

• This farming is also known as poultry farming which consists of raising animals, and birds to produce meat, eggs, and milk for the higher sales in the market.
• This method of animal husbandry is characterized by the management of large herds on expansive tracts of land, often referred to as ranches. It involves breeding and raising different animals such as cattle, sheep, goats, and other animals.

3. Graining farming

• The main objective of cultivating grain crops like wheat, rice, and millet in grain commercial farming is to sell the staple food for human consumption at the global level. Grain farming is a cornerstone of many economies, providing food security and employment.
• The industry faces challenges such as climate change, fluctuating commodity prices, and pest outbreaks, which can impact yields and profitability. Grain farming is a complex yet essential agricultural practice that requires careful planning, modern technology, and sustainable methods to ensure successful crop production while addressing global food demands.

4. Mixed farming

• This type of farming approaches toward raising livestock and cultivating different crops on the same farm. It typically involves a variety of crops alongside raising different types of animals.
• There are different types of mixed farming practices in India such as farm mixing which involves exchanging resources between different farms, such as using manure from livestock farms to fertilize crop fields.

Advantages of commercial farming

1. Foreign exchange and earning: Commercial farming allows global trading which helps in the supply and demand of different farming products that promote earning and healthy economic growth.
2. Diverse Product Availability: a large number of cultivation of diverse crops allows people for several different varieties of food options thus it also removes the diverse product availability in the market.
3. Food Security: By producing food on a larger scale, commercial farming contributes significantly to national and global food security.
4. Job creation: There are numerous job opportunities provided in commercial farming such as roles in crop cultivation, livestock management, and farm maintenance.