Why Do Farmers Face Economic Difficulties?
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Transcript of Why Do Farmers Face Economic Difficulties?
Why Do Farmers Face Economic Difficulties?
C10K4
Objectives
• Challenges for Commercial Farmers• Challenges for Subsistence Farmers• Strategies to Increase Food Supply
Challenges for Commercial Farmers• Victims of their own success• What’s important? access to
markets – distance influences what crops to plant
• Economic Model: Von Thunen model: crop/ animal choice with proximity to market
• 2Factors2consider: cost of land versus cost of transportation
Von Thunen Model
Overproduction in Commercial Farming
• 1980 -2008: 10.8 to 9.3 million cows, but milk production + 128B to 190B. (demand stays the same)
• Farmer Welfare? 1) Farmers avoid producing crops in excess supply 2) gov pays farmers when certain prices are low 3) gov buys surplus and donates
Sustainable Agriculture
• - an agricultural practice that preserves and enhances environmental quality. (organic farming – less than 1% of farms)
• Lower profits but lower cost• Characteristics of
Sustainability: 1) sensitive land management 2) limited use of chemicals 3) better integration
1) Sensitive Land Management?
• Farming method: protects soil through ridge tillage
• Pros: lower costs & better conservation
• Cons: more labor intensive
2) Limited Use of Chemicals
• Commercial farms use genetically modified seeds to resist chemicals for killing bugs and weeds. (i.e. DEET, Roundup) *Organic farms minimize chemical use.
3) Integrated Crop and Livestock• “Grow crops that animals use… and
use animals for fertilizers” – Four things to consider…
• A) number of livestock: conducive to the environment and climate? (use farm space to balance both)
• B) How should animals be confined?: moral and ethical treatment of animals
• C) Management of extreme weather conditions: droughts, fires, etc
• D) Flexible feeding & marketing: finding alternatives in reducing costs (producing or purchasing feed for farm animals.)
Challenges for Subsistence Farmers
• LDC vs MDC: Efficient and productive farming need to meet population growth.
• 20th century and modern medicine – demand for higher yields has greatly increased. How to meet needs?
• 1) new farming methods• 2) land left fallow for
shorter periods
Fields left fallow
• Forest Fallow – 2/20• Bush Fallow – 8/10• Short Fallow – 2/2• Annual Cropping – 1/1• Multicropping – never
fallow
Subsistence Farming and International Trade
• Double Edge Sword for LDC farmers and global demand?
• Pressure for LDC to produce crops that are out of season or impossible to grow in MDCs. Use revenue to adopt better farming methods and technology.
• Dilemma: more land devoted for exports the less land for domestic.
Drug Crops• Heavy Demand = Big
Business• Asia: opium from
Afghanistan and Burma for Central Asia
• South America: cocoa from Colombia, Peru, and Bolivia for North America
• Marijuana: est. 140 million world-wide users.