Agriculture as a Business Activity

Agriculture has played a key role in the development of human civilization. Until the Industrial Revolution, the vast majority of the human population labored in agriculture. Development of agricultural techniques has steadily increased agricultural productivity, and the widespread diffusion of these techniques during a time period is often called an agricultural revolution. A remarkable shift in agricultural practices has occurred over the past century in response to new technologies. In particular, the Haber-Bosch method for synthesizing ammonium nitrate made the traditional practice of recycling nutrients with crop rotation and animal manure less necessary.
Synthetic nitrogen, along with mined rock phosphate, pesticides and mechanization, have greatly increased crop yields in the early 20th century. Increased supply of grains has led to cheaper livestock as well. Further, global yield increases were experienced later in the 20th century when high-yield varieties of common staple grains such as rice, wheat, and corn (maize) were introduced as a part of the Green Revolution. The Green Revolution exported the technologies (including pesticides and synthetic nitrogen) of the developed world to the developing world. Thomas Malthus famously predicted that the Earth would not be able to support its growing population, but technologies such as the Green Revolution have allowed the world to produce a surplus of food.
Many governments have subsidized agriculture to ensure an adequate food supply. These agricultural subsidies are often linked to the production of certain commodities such as wheat, corn (maize), rice, soybeans, and milk. These subsidies, especially when instituted by developed countries have been noted as protectionist, inefficient, and environmentally damaging.
In the past century agriculture has been characterized by enhanced productivity, the use of synthetic fertilizers and pesticides, selective breeding, mechanization, water contamination and farm subsidies. Proponents of organic farming such as Sir Albert Howard argued in the early 20th century that the overuse of pesticides and synthetic fertilizers damages the long-term fertility of the soil. While this feeling lay dormant for decades, as environmental awareness has increased in the 21st century there has been a movement towards sustainable agriculture by some farmers, consumers, and policymakers.
In recent years there has been a backlash against perceived external environmental effects of mainstream agriculture, particularly regarding water pollution, resulting in the organic movement. One of the major forces behind this movement has been the European Union, which first certified organic food in 1991 and began reform of its Common Agricultural Policy (CAP) in 2005 to phase out commodity-linked farm subsidies, also known as decoupling. The growth of organic farming has renewed research in alternative technologies such as integrated pest management and selective breeding. Recent mainstream technological developments include genetically modified food.
In late 2007, several factors pushed up the price of grains consumed by humans as well as used to feed poultry and dairy cows and other cattle, causing higher prices of wheat (up 58%), soybean (up 32%), and maize (up 11%) over the year. Food riots took place in several countries across the world. Contributing factors included drought in Australia and elsewhere, increasing demand for grain-fed animal products from the growing middle classes of countries such as China and India, diversion of foodgrain to biofuel production and trade restrictions imposed by several countries.
An epidemic of stem rust on wheat caused by race Ug99 is currently spreading across Africa and into Asia and is causing major concern. Approximately 40% of the world's agricultural land is seriously degraded. In Africa, if current trends of soil degradation continue the continent might be able to feed just 25% of its population by 2025, according to UNU's Ghana-based Institute for Natural Resources in Africa.