Land Factor Of Production

Land

Land is the economic resource encompassing natural resources found within a nation’s economy. This resource includes timber, land, fisheries, farms and other similar natural resources. Land is usually a limited resource for many economies. Although some natural resources, such as timber, food and animals, are renewable, the physical land is usually a fixed resource. Nations must carefully use their land resource by creating a mix of natural and industrial uses. Using land for industrial purposes allows nations to improve the production processes for turning natural resources into consumer goods.

Importance of Land: 

Land a factor of production is of immense importance. Land is the original sources of all material wealth. The economic prosperity of a country is closely linked with the richness of her natural resources. The quality and quantity of agricultural wealth a country depends on nature of soil, climate, rainfall. The agril products are the form the basis of trade and industry. Industry also depends upon availability of coal-mines or waterfall for electricity production. Thus all aspects of economic life i.e. agriculture, trade and industry are generally influenced by natural resources which is called as “Land” in economics. The importance of land is therefore too much as it is influencing finally the standard of living of the people.

Peculiarities of Land: 

Land as a factor of production is quite peculiar, it possess some importance feature, they are-

Land is free gift of nature: 

Land is not produced or man-made resource (agent). Therefore, that we have to accept is as it is. It is after all free gift of nature.

Land is limited in area: 

Land surface of the world is remaining unchanged. In Holland, some land has been reclaimed from the sea. But these efforts have produced a negligible result as compared with the total area already in existence.

Land is permanent: 

Land as factor of production is not easy to destroy. The other factors are destructible but land can not be completely destroyed.

Land lacks mobility: 

Land can not move bodily from one place to another. It lacks geographical mobility.

Land is of infinite variety: 

Land is not man-made. Land is of infinite variety. For example, soil may be of different types, climate elements like temperature, rains received in different part is always varying.

Factors affecting productivity of land: 

Different pieces of land differ in quality or productivity. The productivity depends upon following factors.

Natural factors:

 The factors like soil, climate, rainfall, topography influence the productivity. The sandy soil with low rainfall always yield less but it is not so in cause of black cotton soil. It always yields more.

Human factor: 

Man is always trying his best how maximum output can be obtained from land. So many deficiencies are always tacked good yields. This human effort is very important to increase the productivity.

Situation factor: 

The location of the land many a times determines the productivity. The fertile land in remote corner of the country perhaps may not be cultivated but the land having less fertility but located nearby marked can give a good yield

Characteristics of Land

Land possesses the following characterises:

No-Cost Complement from nature - Man has to make hard work in order to get other factors of production. But to obtain land no human efforts are essential. Land is not the product of human toil. Rather it existed even long before the evolution of man.

Fixed Quantity - 

The total quantity of land does not undergo any variation. It is restricted and cannot be amplified or shrinked with human labour. No amendments can be made in the surface area of land.

Land is permanent - 

All that man makes are non durable and may even go without existence. But land is everlasting. Thus it cannot go out of existence and are not destructible.

Land is a Primary Factor of Production - 

In any type of the process of production, we have to begin with the land. For instance, factories help to provide raw materials and in agriculture crops are produced on land.

Land is a passive factor of production - 

This is for the reason that it cannot produce anything for itself. For instance rice cannot grow on a piece of land by itself. To grow it, man has to cultivate land. Labour is active aspect whereas land is a passive factor of production.

Land is Immovable - 

Land is immovable in the sense that it cannot be transported from one place to another. For instance, no portion of India’s surface can be transported to some other nation.

Land has same Original Indestructible Powers - 

Land possess by nature; indestructible powers which a human being cannot tend to destroy it. The fertility may undoubtedly vary but cannot be abolished as a whole.

Land differs in Fertility - 

Fertility of land differs on different pieces of land. One piece of land may produce more and other less.

Supply of land is inelastic - 

The demand with respect to article may raise or subside with the supply of the article whereas the supply of land does not raise or subside with the demand.

Land has many uses - 

The utilisation and usage of land is very vast such as agriculture, factories and industries can be set up, can build houses, can construct roads and rails etc.

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