The Role of Farm Economics in Socio-Economic Development.

Fisheries, whose main purpose is to produce goods, means of production are owned or used by an independent entity, production is carried out on a large enough scale of land and production factors are concentrated with progressive management organization and high technical level, operating autonomously and always linked to the market ". 3

This is the complete concept of farm economics.

4. The role of farm economy in socio-economic development.

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Any form of production affects the general socio-economic life. As an economic entity, the formation and development of farms have made significant contributions to both economic growth and social development, changing the face of agriculture and rural areas.

4.1. Farm economic development is an inevitable part of the process of agricultural and rural production development .

All manufacturing industries tend to accumulate capital and other production factors: materials, labor, experience, management skills... The same is true in agriculture. In the late 17th century, in countries that began to industrialize, there was a main policy to promote the process of land concentration and the construction of large-scale capitalist agricultural enterprises with the hope that this model would create more concentrated agricultural products at cheaper prices than dispersed family production. At first, Marx also believed that this was inevitable in the process of industrialization of capitalist agriculture, but in his last work

2 Resolution No. 03/NQ-CP dated February 22, 2000 of the Government on farm economy.

3 Current situation and solutions for farm economic development in the period of industrialization and modernization in Vietnam - National Publishing House - 2000.

He wrote: " Even in industrially developed England, the most profitable form of production is not large-scale agricultural enterprises but family farms that do not employ hired labour ." 4 This is because production

Agricultural production has a different characteristic from industry in that it must affect living things (plants, animals), so it is not suitable for large-scale centralized production organization.

Vietnam's economic and agricultural reform began nearly two decades ago. The market mechanism not only strongly impacted the activities of the agricultural and service sectors but also fundamentally changed the purpose and therefore the production method in agriculture. The development of commodity exchange required that products must be goods with reasonable prices and more guaranteed quality. Not only large farms, but also small production units such as households clearly understood the purpose of their production: Products are for sale, not for consumption.

When agriculture has made a significant change, many farming households have become rich, their awareness and understanding of science and technology have become deeper, their experience and ability to manage and organize production have been increasingly improved, and their accumulated capital has reached a certain level, then it is time for agricultural businessmen to think of a new form of agricultural production organization, with a larger scale and higher profit margin. So they invest capital, set up farms, hire workers and operate as real businessmen.

Recognizing the important role of farm economy in economic development in general and agricultural and rural development in particular, the Government has issued many important documents on the following issues: Land for farms, production capital, etc.

4 Kma rx. Complete works, volume 25, part 2

Farm production, support for input and output supply... It can be said that never before has farm economics received as much attention as in recent years.

However, our country's economy is in the process of transitioning from a self-sufficient economy to a commodity economy operating according to the market mechanism. The transition of the economy determines its diversity, in terms of the level of development of the productive forces, in terms of ownership of means of production... The unevenness of the production level, on the one hand, leads to different forms of production organization, on the other hand, leads to the lack of unity of each form of production organization. Therefore, our country's farms cannot be homogeneous while the economy is still in the transition period. That is also a law of development like the law of development of other production models.

Thus, farm economy is an objective entity, appearing as a result of the accumulation of capital, experience, and capacity of the producer, due to the impact of the market mechanism, in which the family farm (with some specific advantages that will be considered in the following section) is the number 1 chosen model.

4.2. Impact of farm economy on the development of agricultural production.

4.2.1. Developing farm economy promotes production specialization and agricultural-rural restructuring and commodity economy development.

As mentioned, the characteristics of farm economy are the high concentration of land and long-term accumulation of capital, which have gradually created a scale that is superior to household production. For each farm, in the early stages, due to lack of capital and production capacity as well as management experience, they often combine the production of many different types of agricultural products, but later, due to the accumulation of capital, land, and production experience, the farms will follow

some types of products, so the scale of this type of product also grows. Due to the influence of scale advantages, we will see that farms in the same area with similar natural conditions will grow or raise the same type of plants and animals, build intensive and specialized farming models, approach modern farming methods, from which specialized farming areas and specialized areas are formed, becoming large areas supplying raw materials for processing facilities.

When large-scale production is required, scientific and technological advances are applied to production to produce products with low cost, high quality and uniformity. Because the purpose of farm economics is the market: What to produce, how much, what level of quality... must all keep up with market signals. Therefore, farms also change, the scientific and technological content in agricultural products even increases. In general, farm economics will increase the rate of livestock farming, reduce the rate of crop cultivation, some sub-sectors such as high-end food production, ornamental flowers... will increasingly develop, bringing in large revenues.

4.2.2. Developing farm economy will increase the value of agricultural production.

The advantage of farm scale (land scale, labor scale...) helps farms produce a large volume of products. Farms have favorable conditions in both reducing the cost of input factors and in managing and consuming products, especially easier when applying scientific and technical advances, using modern machinery and equipment in production activities. For households, the cost of these equipment accounts for a very large proportion compared to income and the value of products made, so they usually have to rent, the profit margin is therefore also low, causing the value of the entire agricultural sector to decrease.

Thanks to the large scale, high specialization, and the nature of commodity production, the farm's products are high-value products. Normally, farmers understand that their production purpose is to supply the market, so they only choose to trade in plants and animals that are economically efficient and meet the requirements of the market. Moreover, the products are often competitively priced, of consistent quality, and can be supplied in large quantities, so they are often easily accepted by processing facilities and consumers. High product value not only brings income to the farm owner, but in the entire industry, it will be a significant contribution to increasing the value of agricultural production.

4.2.3. Developing farm economy accelerates the process of industrialization and modernization of agriculture and rural areas.

Agricultural production is an important input for industries, especially the processing industry. Obviously, the volume, quality, and price of agricultural products supplied to a food processing factory will determine the competitiveness of the factory's products. Not only that, farm products will contribute to promoting mechanical and energy industries in backward linkages with these industries. To produce products, farms need to use machinery, consume energy, and be provided with seeds, fertilizers, pesticides, etc. Not to mention the general business farms that also process and process on the spot. This requirement requires the help of the biotechnology and food technology industries, etc. This interrelationship shows that: The development of one industry is the driving force for the development of the other.

On the other hand, when the farm economy develops, it will bring income to a part of farmers, the consumption of the agricultural - rural area will increase, leading to the prosperity of the service industry according to the laws of the market economy.

Thus, the farm economy is not only the leading force in the field of agricultural commodity production, but also the leading force in the application of agricultural science and technology, and is therefore a fundamental factor for the process of industrialization and modernization of agriculture and rural areas in our country. The weakness of rural industrialization and modernization is the backward, fragmented and dispersed nature of agricultural production in our country in general, of Thai Nguyen province and of Dai Tu district in particular (although Dai Tu district is still a district with a high level of intensive farming compared to other districts in Thai Nguyen province), which has limited the ability to change production methods from manual labor to modern machine labor. The large scale of land and capital of farms will overcome this weakness.

In general, in the conditions of a market economy, with the requirements of industrialization and modernization of the country, especially when Vietnam has become an official member of the World Trade Organization (WTO), the farm economic model is a promising direction for Vietnamese agriculture. Certainly in the future, the development of Dai Tu district agriculture must include the development of the farm economic model.

4.3. Farm economic development solves social and environmental problems.

4.3.1. Developing farm economy will solve employment for rural labor force.

According to statistics in 2006, in Dai Tu district, more than 70% of the labor force is still in rural areas. (5) The seasonal nature of agricultural production activities along with the gradual expansion of the scope of application of modern machinery has increased the rate of disguised unemployment. According to estimates, labor in rural areas only uses about 3/4 of agricultural labor time, thus wasting a large amount of rural labor. Among them, many people are even completely unemployed. Part of that surplus labor will be resolved when farms are formed because farms not only solve jobs for the farm owners themselves as well as their families but also attract a significant force of hired labor. In 2007, farms in Dai Tu district attracted and used 394 rural laborers.

* Developing farm economy contributes to strengthening the relationship between productive forces and production relations.

The impact of farm economy on the development of productive forces is considered in three aspects:

Firstly , thanks to more efficient ways of doing business, the farm economy brings higher income to workers involved in production and in fact, many farmers have become rich through this way. Not only that, hired workers also enjoy a higher income than before, thanks to which their lives are improved both materially and spiritually.

Second: Based on the advantages of farm economy in applying scientific and technological advances, the technical level, intensive farming level, and industrial specialization of the district in general have been significantly improved. In this era, machinery is an extremely important part of the agricultural production force.

and the development of machinery (in both quantity and quality) is the development of productive forces.

Third: The development of farm economy leads to the development of relationships between farmers in cooperation, production support, labor hiring, and at the same time further strengthens the relationship between the production - processing - consumption stages of the goods production process. Next is the relationship between farm owners and suppliers, which is also enhanced through various types of services and technology transfer.

4.3.2. Farm economic development promotes rural infrastructure development.

Obviously, to meet the requirements of their commodity production, farms need to be ensured by a complete and modern infrastructure system. In order to improve efficiency and competitiveness, farms can cooperate with localities and other enterprises to solve these common problems (transportation, electricity, water, irrigation, product consumption system...), traffic works, warehouses, yards, means of transport are expanded and newly built to serve the commodity production of farms. And because not all farms are capable of building this system themselves, they need the help of the State.

Along with the development of the infrastructure system serving production is the system of facilities serving people's lives, the system of schools, clinics, markets, cultural and sports facilities... Some towns have been formed along with the development of farm economy.

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