A cash crop is an agricultural crop which is grown for sale for profit. It is typically purchased by parties separate from a farm. The term cash crop is applied exclusively to the agricultural production of plants; animal agriculture is not a part of the terminology. The term is used to differentiate marketed crops from subsistence crops, which are those fed to the producer's own livestock or grown as food for the producer's family. In earlier times cash crops were usually only a small (but vital) part of a farm's total yield, while today, especially in the developed countries, almost all crops are mainly grown for revenue. In least developed countries, cash crops are usually crops which attract demand in more developed nations, and hence have some export value.
Prices for major cash crops are set in commodity markets with global scope, with some local variation (termed as "basis") based on freight costs and local supply and demand balance. A consequence of this is that a nation, region, or individual producer relying on such a crop may suffer low prices should a bumper crop elsewhere lead to excess supply on the global markets. This system has been criticized by traditional farmers. Coffee is an example of a product that has been susceptible to significant commodity futures price variations.
Read more about Cash Crop: Globalization, Global Cash Crops, Black Market Cash Crops
Famous quotes containing the words cash and/or crop:
“Lora May: I’ve been a good wife. The best wife your money could buy.
Porter: Strictly cash and carry.”
—Joseph L. Mankiewicz (1909–1993)
“The mode of clearing and planting is to fell the trees, and burn once what will burn, then cut them up into suitable lengths, roll into heaps, and burn again; then, with a hoe, plant potatoes where you can come at the ground between the stumps and charred logs; for a first crop the ashes suffice for manure, and no hoeing being necessary the first year. In the fall, cut, roll, and burn again, and so on, till the land is cleared; and soon it is ready for grain, and to be laid down.”
—Henry David Thoreau (1817–1862)