A cash crop is a plant or animal product that is cultivated primarily for sale to the market. The term is used to differentiate from subsistence farming whereby a crop is primarily consumed by the producer's family. The following are common types of cash crop.
Traded CommoditiesCommodities that are traded on a liquid global market. For example, rice, corn, wheat, cotton and coffee. Such crops have a market price that is set at the global level. Traded commodities are commonly exported.
Local CommoditiesCommodities that are typically consumed in the nation or region where they are grown. This can be due to local tastes or perishability that makes global trade expensive.
Specialty FoodsFoods that have relatively low supply and demand such as truffles.Food that is produced at unusually high quality by a particular farmer. For example, a farm that produces a unique variety of strawberry that is like no other.
Organic & SustainableCrops that are produced by methods that are viewed as more healthy and/or sustainable. This can command a premium value on the market.
ProductsFarms that are further up the value chain that process their crops before selling. For example, a vineyard that produces wine or grape juice.
NotesThe price set for a global commodity is typically used as a reference price as the good is actually sold at different prices based on factors such as location and quality.
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