Some plants are grown to sell.
Farmers grow them for money. They sell them to other people. This helps the farm. It is a big job. Do you like fruit?
Some plants are grown to sell.
These are called cash crops. Farmers grow them to make money. They sell them to others.
Many people grow crops like coffee. Some grow cocoa or sugar. In some lands, people grow fruit.
They grow things like potatoes too. This helps the farmers earn a living. It is a very big job around the world.
A cash crop is a plant grown to sell for profit.
Farmers grow these crops to make money. They sell them to other people. This is different from a staple crop. A staple crop is food for a family or their animals.
Many different plants are cash crops. In warm places, people grow coffee and cocoa.
In other areas, they grow cotton or sugar cane.
Some plants are used for fuel. One plant is called Jatropha curcas.
In the United States, many farms grow fruit. California, Florida, and Washington grow a lot of it.
Selling crops can be hard. Prices change in global markets. If too many people grow the same crop, the price might go down. This can hurt farmers who need the money. Small farmers often struggle to get help. They may not have enough money to grow more. Many people work hard to make these markets fairer for everyone.
A cash crop is a plant grown specifically to sell for profit.
These crops are different from staple crops. A staple crop is grown to feed a family or their animals. In contrast, a cash crop is usually sold to someone else. This creates a way for farmers to earn money from their work. Many small farmers in developing countries rely on these crops to live.
They often sell these products to people in much wealthier nations.
Different climates allow for different types of cash crops. In tropical areas, you might find coffee, cocoa, or sugar cane.
Subtropical regions often grow cotton, rice, or citrus fruits. Temperate areas are good for cereals like wheat and corn. Even the cold Arctic has one special medicinal plant called Rhodiola rosea.
Some plants are even grown to make biofuel, which is fuel for engines. One example is a plant called Jatropha curcas.
History shows how cash crops have changed over time. In the United States, people grew tobacco and cotton on large plantations long ago.
This history included the use of enslaved labor. Later, the sharecropping system continued on many large farms. After World War II, fruit farming became very important in the U.S. Today, most American farms are still owned by families. In 2010, California, Florida, and Washington grew the most fruit.
Selling crops on a global scale can be very tricky. Prices are set in international markets that cover the whole world. If there is a "bumper crop," or a huge harvest, prices might drop. This happens when there is too much of one thing available. In 2010, Australia produced about 143,000 tons of lentils for export.
In Italy, growing too many tomatoes and citrus fruits caused prices to fall. This shows how much a farmer's income depends on global supply.
Many smallholder farmers face hard jobs in this global system. About 80% of the world's farms are very small, measuring 2 hectares or less.
These farmers often lack the money or tools to grow more. Some countries also use subsidies to help their own farmers. This can make it hard for farmers in poorer nations to compete. Now, leaders are working on new ways to make markets fairer. They want to help farmers invest in their businesses for a better future.
A cash crop, also known as a profit crop, is an agricultural crop grown specifically to be sold for money.
These crops are typically purchased by parties who are separate from the farm itself. This concept is used to distinguish them from staple crops, or subsistence crops. Staple crops are grown to feed the producer's own livestock or their family. While cash crops used to be a small part of a farm's total yield, they now make up almost all crops in many developed nations. In less developed countries, cash crops are often plants that attract demand from wealthier nations and have export value.
The way cash crop prices work involves complex international trade markets. These markets have a global scope, though there is sometimes local variation called "basis." This variation is based on local supply and demand or the cost of freight. Because prices are set globally, a producer can face sudden financial trouble. If a "bumper crop" occurs elsewhere, it creates an excess supply on the global market. This excess supply can drive prices down for everyone. This system can be very difficult for individual producers or entire regions that rely on a single crop.
Different climate zones determine which cash crops can grow successfully. In temperate climates, farmers grow cereals like wheat, rye, corn, and barley. They also grow oil-yielding crops, vegetables like potatoes, and various fruits.
Subtropical regions are ideal for crops like soybeans, cotton, rice, tobacco, and citrus fruits. Tropical climates support the growth of coffee, cocoa, sugar cane, and bananas.
Even the cold Arctic has a potential cash crop. The hardy plant Rhodiola rosea grows there and is used as a medicinal herb. As of 2011, the consumer demand for this plant was higher than the available supply.
History shows how cash cropping has shaped different nations. In the United States, cash cropping dates back to the colonial period. Large plantations in the South grew crops like tobacco, indigo, and cotton. This system was primarily fueled by black slave labor. After slavery ended, the sharecropping system continued in some form. Following World War II and the baby boomer generation, fruit production rose in prominence. Today, 90% of U.S. farms are still family-owned. In 2010, California, Florida, and Washington were the states with the highest fruit production.
In Africa, the agricultural sector employs about 60 percent of the workforce. Many farmers there are subsistence farmers, but large corporations operate massive farms. These large farms grow crops like coffee, tea, cotton, cocoa, fruit, and rubber.
In Burkina Faso, 85% of residents rely on cotton for their income. However, many African nations face challenges with international trade. Some developed countries, including the U.S., Japan, and the European Union, protect their own farmers. They use high import tariffs and subsidies. This can lead to overproduction of goods like cotton and grain. This practice can lower global prices so much that African farmers cannot compete.
Global trade issues also involve the concept of "dumping." This is the practice of exporting goods at artificially low prices, which is illegal in most nations. Such controversies led to the collapse of the Cancún trade talks in 2003. During those talks, the Group of 22 refused to move forward until agricultural subsidies were addressed. Another concern is the use of land for non-food crops. In Africa, some land is used for biofuel plantations, such as Jatropha curcas.
Some critics argue that growing non-food plants for export is problematic when there are food shortages.
Sustainability is a major concern for the millions of smallholder farmers worldwide. About 70% of the world's food is produced by 500 million smallholder farmers. Most of these farms are very small, measuring 2 hectares or less.
These farmers often lack access to finance, agricultural inputs, or business knowledge. Because they have little bargaining power, they struggle to invest in their businesses. To help, new methods like the SCOPE methodology are being used. This tool helps financial organizations understand the risks of lending to producer organizations. The goal is to create more sustainable market transformations.
Some crops are even grown in the "black market." In the United States, cannabis has been called a cash crop. A 2006 study by researcher Jon Gettman suggested cannabis was highly valuable. The study estimated its production value at US$35.8 billion. This was higher than the combined value of corn and wheat in the U.S. at that time. Other significant black market cash crops include coca and opium poppies.
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