The type of organization of farms in which products are created for the purpose of its further realization is called a commodity economy.

This type of inherent such basic features:

1) The commodity economy is an open system of organizational and economic agreements. The people working 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 duties. Its further development directly depends on the depth of specialization (isolation) of workers and enterprises in the production of any particular types of products or parts for more complex products. This phenomenon has received the name - technical progress. Commodity and natural production differ precisely in 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 the producer and the consumer is indirect, mediated. The goods produced by the commodity economy come first to the market, where it is exchanged for other products or for money, and then it goes into the consumer sphere. It is the market that confirms or does not confirm the meaning of manufacturing this product for its further implementation.

Consequently, commodity economy is a system of organizational and economic relations, which can provide a variety of economic progress. Further division of labor necessitates the use of ever more advanced types of equipment. And such machines were created, which caused an unprecedented increase in the production of products, and also its species diversity significantly increased.

The structure of commodity economy includes organizational links that can serve a variety of socio-economic systems of life in the country. But this was not always the case - throughout history it changed its structure more than once.

One of the reasons for its appearance lies in the emergence of the social division of labor: when the livestock and agriculture have separated, and when the craft has separated from agriculture. There was a simple commodity production and the law on the division of labor began to gather strength, from which it follows that the progress of the economy is due to the increasing, qualitative differentiation of labor leading to the isolation of its various types and their co-existence 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 relations organically supplement the division of labor, because a person, choosing the type of work, begins to engage in independent activity. But by the same token, it simultaneously becomes increasingly dependent on other commodity owners, it becomes necessary to exchange a variety of products through the establishment of links through the market.

The economic isolation of individual people is associated with various forms of ownership (private, rent, etc.) on the means of production. The most complete form is private property, a smaller isolation is observed when leasing - temporary possession and use. But private property alone can not generate commodity economy and market relations. This is particularly noticeable in the example of the slave system and the feudal system, when the means of production were in complete private ownership, but mostly subsistence farming was conducted .

Forms of ownership also generate different types of production:

1) The simple commodity production of peasants or artisans, who mainly use manual labor.

2) Developed commodity production, in which various technical means are used.

The commodity economy is of great importance for the development of society, so you need to do everything to preserve this type of farm organization.