A natural resource is any material or substance that occurs in nature and is useful to humanity, existing independently of human effort. These resources include familiar items like water, air, minerals, and forests, which sustain human life and economic activity. Farmland presents a unique case because it has undergone significant human alteration, yet it is consistently categorized alongside these raw materials. This classification exists because the land’s fundamental capacity to produce food and provide environmental services stems from its inherent natural components, which are subject to the same finite limits as other resources.
The Fundamental Component: Soil as a Finite Natural Material
The core reason farmland is considered a natural resource is the soil itself, which is a complex, slowly renewable material. Soil formation is a geological and biological process influenced by five factors: parent material, climate, organisms, topography, and time. The process of creating fertile topsoil is extremely slow, often taking up to 1,000 years to form a mere centimeter of soil under natural conditions.
This slow rate of creation means that on a human timescale, soil is effectively a non-renewable resource. Modern agricultural practices often accelerate soil degradation, with erosion rates on conventionally farmed land estimated to be 10 to 40 times faster than the natural rate of soil renewal. When soil is lost faster than it can regenerate, its finite nature threatens the long-term viability of the land for food production.
The soil’s inherent properties—its mineral content, complex structure, and organic matter—cannot be instantly replicated by human technology. Healthy soil is a living ecosystem, containing a vast diversity of microbial life, fungi, and invertebrates that drive nutrient cycling and maintain fertility. This biological infrastructure supports plant growth and differentiates the land as a natural resource from the human activity of farming that occurs on top of it. The land itself provides the foundational medium for agriculture and must be managed sustainably to persist.
Ecosystem Contributions Beyond Agricultural Output
Farmland’s status as a resource extends beyond producing food, fiber, and fuel, encompassing essential ecological functions known as ecosystem services. These services benefit the wider environment and society, independent of the harvested crops. The soil acts as a significant carbon sink, performing carbon sequestration by storing atmospheric carbon dioxide within the organic matter.
This process helps to mitigate climate change, and carbon storage potential increases with responsible land management practices. Farmland also plays a powerful role in regulating the water cycle. Soil absorbs and filters water, which helps to recharge groundwater supplies, reduce surface runoff, and filter out pollutants before they reach larger bodies of water.
The agricultural landscape also supports biodiversity, providing habitat for various organisms, including native pollinators and insects. These organisms contribute to natural pest control and crop pollination, services that directly benefit farming and the surrounding ecosystems. The provision of these non-market services solidifies farmland’s classification as a resource that provides public goods, not just private commodities.
Farmland’s Valuation in Economics and Policy
Farmland is classified as a natural resource in economic and political systems due to scarcity and its unique role as a factor of production. Land is geographically fixed and finite, meaning the amount of arable land available for cultivation is limited and cannot be increased to meet demand. This scarcity makes farmland an inherently valuable asset and a foundational input for the agricultural sector.
The total value of farm real estate can be immense, reflecting its economic power and its role as a source of wealth and collateral for loans. Because the resource is finite and provides public benefits, it is subject to specific legal and political classifications designed for its preservation. Governments use land use planning, zoning regulations, and conservation programs to manage the land as an essential public asset, distinct from purely private property.
The valuation of farmland is increasingly moving beyond the market price of its agricultural output to include the monetary representation of its ecosystem services. This approach acknowledges the long-term utility of the resource, encouraging sustainable practices that maintain the soil’s health and environmental contributions for future generations. Policy mechanisms, such as subsidies and incentives, can be viewed as society’s willingness to pay for the environmental benefits the land provides.