Agricultural economics is the study of how farmers allocate, distribute, and use the resources they use and the goods they produce. A constant level of farm surplus is one of the sources of technological and commercial development, so agricultural economics plays a role in development economics. When a significant portion of a nation's population depends on agriculture for its livelihood, average incomes tend to be low. That doesn't imply that a nation is poor in light of the fact that the greater part of its populace is taken part in horticulture; It is closer to the truth to say that most people in a poor country must rely on agriculture for their livelihood.