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  1. Initial investment costs: A farmer must consider the amount needed to purchase equipment, seeds, and land for different types of agriculture. Higher initial costs can impact the decision on what to pursue.
  2. Operational costs: ongoing expenses like labor, water, and fertilizers need to be factored in when choosing a type of agriculture. Different types of agriculture have varying operational costs.

Distance to market influences land use by affecting transportation costs and market accessibility. Farmers closer to markets may choose higher-value crops since transportation costs are lower, while those further away may opt for bulk crops that are easier to transport. This proximity impact can guide land use decisions for optimal profitability.

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1y ago

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