Meaning of Production
Production can be defined as the transformation of raw materials into finished goods. It is concerned with all legal activities which are directed towards the satisfaction of human wants.
Human wants are many, but they can be divided into material wants and non-material wants. The material wants are referred to as goods while the non material wants are called services.
Production involves the conversion of raw materials and semi finished goods into tangible goods that can satisfy the needs of the people. Examples of tangible goods are: yam, rice, clothes, cars, radio etc.
Factors of Production can be defined as the basic resources or agents used for producing goods and services. Factors of production make it possible for goods to be produced in the required quantity and quality.
The factors of production are land, labor, capital and entrepreneur.
LAND: The land is a free gift of nature; it refers to the resources provided by nature to aid the production of goods and services. Examples of land are rivers, farmlands, seas, the fishes in them, forestry minerals such as coal, crude oil, iron etc. Others are the climatic conditions like rain, sunshine, animals etc.
Features of Land
The following points below are the features/ characteristics of land
- Land is geographically immobile i.e the location of land cannot be changed, it is fixed.
- Land can appreciate or depreciate in value. The value of land varies from one location to another.
- It is a free gift of nature
- It is abundant in some areas and scarce in some areas
- It is heterogeneous in quality, differing from one lace to another in topography, soil texture and structure, soil fertility
- The supply of land is limited and is also subject to diminishing returns
- Availability of land is subject to Land Use Act/Law
- Its suitability influences output
- It can be used as a collateral for loan
- The reward for labor is RENT
Uses of Land
- Production of Food crops – Land is used for the production of food crops such as Yam, Rice, Beans, Cocoa yam, as well as production of cash crops such as Cocoa, Cotton, Rubber, Groundnut etc
- Livestock Production – Land is also used for natural grazing of livestock like cattle, sheep, and goats.
- Forestry – Land is used for forestry which involves the management of the forest and its resources for man’s use.
- Wild Life Conservation
- Fishery – For production of fish
Non Agricultural Uses of Lands
- Residential purpose – Construction of houses and buildings
- Transportation – Construction of Roads, Bridges, Rail ways etc
- Mining – Coal, petroleum and other mineral resources are found on land
Assessment
- Mention 4 unique characteristics of land
- List 3 Agricultural uses of land