English for Agriculture - Beginners and Intermediate

Capital

Farm capital is the value of the land and all the equipment that is necessary to make the land productive. It is one of the three most important things in agriculture. The other two are land and labor. There are different types of capitals. Inseparable capital (fixed capital), such as: buildings, roads, drains. Separable capital (movable capital), such as: animals, feeds, crops, machinery, tools and other things that are needed to make the land productive. Another is working capital. It is the money that farmers need for the production cycle. The money (working capital) can be used to pay labor, rent, living expenses, fuel for machinery, to feed animals and other expenses. In a farm, which is used for raising and keeping animals for milk (Dairy Farm), working capital cost is not too much.  On the other hand, in an all-cereals farm, where the crop is stored until the spring, working capital cost can be a lot more.

Last modified: Monday, 7 December 2015, 6:53 PM
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