Cash crop 323990 225666784 2008-07-14T20:27:42Z JMyrleFuller 2068487 In [[agriculture]], a '''cash crop''' is a crop which is grown for [[money]]. The term is used to differentiate from [[Subsistence agriculture|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 cash. In non-developed nations, cash crops are usually crops which attract demand in more developed nations, and hence have some export value. In many tropical and subtropical areas, [[jute]], [[coffee]], [[cocoa]], [[sugar cane]], [[banana]]s, [[Orange (fruit)|orange]]s and [[cotton]] are common cash crops. In cooler areas, [[cereal|grain]] crops, oil-yielding crops and some vegetables predominate; an example of this is the [[United States]], where [[corn]], [[wheat]] and [[soybean]]s are the predominant cash crops. Prices for major cash crops are set in [[commodity markets]] with global scope, with some local variation (called 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 is criticized by traditional farmers. [[Coffee]] is a major part of this. Issues involving subsidies and trade barriers on such crops have become controversial in discussions of [[globalization]]. Many developing nations take the position that the current international trade system is unfair because it has caused [[tariff]]s to be lowered in industrial goods while allowing for high tariffs and agricultural subsidies for agricultural goods. This makes it difficult for a developing nation to export its goods overseas, and forces developing nations to compete with imported goods which are exported from developed nations at artificially low prices. The practice of exporting at artificially low prices is known as [[dumping]], and is illegal in most nations. Controversy over this issue led to the collapse of the [[Cancún]] trade talks in 2003, when the [[Group of 22]] refused to consider agenda items proposed by the [[European Union]] unless the issue of agricultural subsidies were addressed. [[Agribusiness]], with its high-[[infrastructural capital|capital]]-investment and industrial-scale agricultural practices, very often skews production towards cash crops and away from anything that is consumed locally or which cannot be preserved, shipped and sold abroad. When used in conjunction with practices which seek to maximize [[crop yield]] and which favor [[monoculture]], increasing reliance on cash crops is seen by some to have adverse, long term environmental consequences. == See also == *[[Anti-globalization movement]] *[[Local purchasing]] *[[Monoculture]] *[[Sustainable agriculture]] *[[Vertical integration]] ==References== {{Reflist}} {{Unreferenced|date=January 2007}} [[Category:Agricultural terminology]] [[Category:Crops]] [[Category:International trade]] [[Category:International economics]] [[de:Cash Crops]] [[it:Cash crops]] [[kn:ವಾಣಿಜ್ಯ ಬೆಳೆ]] [[mr:नगदी पिके]] [[nl:Handelsgewas]] [[fi:Rahakasvi]]