Relationship of Agricultural Economics with Other Sciences

As stated in the previous post that agricultural economics is basically the application of economic principles in solving problems in agriculture. As a social science that studies human behavior, then economics cannot be learned without understanding other social sciences such as sociology, political science, psychology, and anthropology.

Economics conducts an investigation of various human behaviors, including:

  1. how do people earn income;
  2. how people produce goods and services;
  3. how do people exchange goods and services;
  4. how people achieve prosperity.
Every type of human behavior will be influenced by other types of behavior. Economic behavior is influenced by political behavior. Energy distribution, political decisions will have big economic consequences. Community habits such as food preferences greatly influence economic decisions in farming.

Agricultural students study agricultural economics in order to know that economics cannot be applied in agriculture separately from other sciences. The effectiveness of the use of certain scientific knowledge depends on the ability of users to integrate the knowledge with other knowledge that has been obtained. For example, the benefits of effective marketing will be lost due to the ineffectiveness of feeding methods in livestock business.

Definition of Agricultural Economics

According to Mubyarto (1979), agricultural economics can be defined as part of general economics that studies the phenomena associated with agriculture both micro and macro. Analysis of microeconomics in agriculture includes economic analysis of the (technical) process of production and social relations in the process of agricultural production, the relationship between factors of production, the relationship between production and production output, and the relationship between several production results in a production process. Analysis of macroeconomics in agriculture includes the ability of students studying agricultural economics to analyze, interpret, and relate macroeconomic issues such as issues of national income, consumption, investment, employment opportunities and economic development with regard to agriculture.

In accordance with its development in Indonesia, agricultural economics can be viewed from two points of view. First, economics as a branch of agricultural science, is studied by students of the Faculty of Agriculture. The socio-economic aspects of farmers are the center of attention of agricultural students. Other related fields include economics, physics, mathematics, biology, and other sciences. Second, agricultural economics as a branch of economics, is studied by students of the Faculty of Economics. In this case, agricultural economics is an economics that is applied to agriculture. On the basis of microeconomic theory and macroeconomic theory and other sciences such as accounting, statistics, mathematics and econometrics, students study the application of economic theory to problems in agriculture and its implications for the national economy.

Schema of Agricultural Economic Relations with Other Sciences

Simply put, the relationship of agricultural economics with other sciences is presented in the form of a scheme in the following figure.
Image of the Economic Relations of Agriculture with Other Sciences
Image of the Economic Relations of Agriculture with Other Sciences

Conclusion of Agricultural Economics 

  • Agricultural economics is an important social science in terms of its usefulness, its area of discipline and its relationship with other disciplines.
  • The main problem of agricultural economy comes from the unlimited human needs for agricultural products, while agricultural resources (production factors) used to produce agricultural products are limited (rare).
  • The scope of agricultural economics is very broad, which can be broadly classified into activities of production, consumption, marketing and the factors that influence it.
  • Agricultural economics as a social science cannot stand alone but requires other sciences as a tool to analyze, interpret and connect issues in agriculture both micro and macro. Other sciences in question can be sourced in the field of agricultural science and economics.