The type of farm organization in which products are created for the purpose of their further sale is called a commodity farm.
This type has the following basic features:
1) Commodity management - an open system of organizational and economic agreements. The people who work here create a product for sale, not for personal consumption. The whole volume of new things leaves the limits of the production unit and goes to the market.
2) Commodity production is based on the division of labor. Its further development directly depends on the depth of specialization (separation) of workers and enterprises in the production of any particular types of products or parts for more complex products. This phenomenon is called technical progress. Commodity and subsistence production are distinguished precisely by the presence in the first division of labor and the progress of technical means.
3) It develops on the principle of production, exchange and consumption, therefore, the relationship between producer and consumer is indirect, indirect. The products produced by the commodity economy first enter the market, where it is exchanged for other products or for money, and then it enters the consumer sphere. It is the market that confirms or does not confirm the meaning of the manufacture of this product for its further sale.
Consequently, the commodity economy is a system of organizational and economic relations, which can ensure versatile economic progress. A further division of labor necessitates the use of increasingly advanced types of technology. And such machines were created, which caused an unprecedented increase in production, as well as its species diversity significantly increased.
The structure of the commodity economy includes organizational ties that can serve a variety of systems of the socio-economic sphere of life in the country. But this was not always the case - over the course of history it has repeatedly changed its structure significantly.
One of the reasons for its appearance lies in the emergence of a social division of labor: when livestock and agriculture were isolated, and when the craft was isolated from agriculture . Simple commodity production appeared and the law on the division of labor began to gain strength, from which it follows that the progress of the economy is due to increasing, qualitative differentiation of labor, leading to the isolation of its various types and their coexistence depending on each other.
Another reason is the economic isolation of groups of people engaged in the manufacture of a particular type of product. These organizational relationships organically complement the division of labor, because a person, choosing the type of work, begins to engage in independent activities. But by doing so, he simultaneously becomes more and more dependent on other owners of the product; he needs to exchange a variety of products through establishing links through the market.
The economic isolation of individuals is associated with various forms of ownership (private, rent, and so on) for the means of production. The most complete form is private property, less detachment is observed when renting - temporary possession and use. But private property alone is not capable of generating commodity economy and market relations. This is especially evident in the example of the slave system and the feudal system, when the means of production were in full private ownership, but mainly subsistence farming was carried out.
Forms of ownership also give rise to different types of production:
1) Simple commodity production of peasants or artisans, using mainly manual labor.
2) Developed commodity production in which various technical means are used.
Commodity management is of great importance for the development of society, therefore, everything must be done to maintain this type of organization of households.