Factors of Production – Land

Factors of Production – Land

Land: Dr. Alfred Marshall defined land is meant no merely land in the strict sense of the word, but whole of the materials and forces which nature gives freely for man’s aid in land, water, in air and light and heat.

Land stands for all nature, living and lifeless. It includes all natural resources that human being get free from air, water and land. In short, the terms ‘land’ refers all that nature has created on the earth, above the earth and below the earth’s surface.

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-

1. 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.
2. 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.
3. 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.
4. Land lacks mobility: Land can not move bodily from one place to another. It lacks geographical mobility.
5. 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.

1. 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.
2. 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.
3. 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.