Title: Problems of Agriculture - Market Failure - Economics Help
Headings: Problems of Agriculture – Market Failure
Problems of Agriculture – Market Failure
Types of market failure in agriculture
Volatile Prices in Agriculture
2. Low income for farmers
3. Environmental costs of intensive farming
4. Positive externalities of farming
5. Monopsony
Government intervention in agriculture
Problems of government intervention in agriculture
Related

Content: However, these may have a low-income elasticity of demand. With global growth, the demand for agricultural products doesn’t increase as much as manufacturing. Therefore, relying on agriculture can lead to lower rates of economic growth. 3. Environmental costs of intensive farming
Modern technology has enabled increased crop yields. However, this often requires chemical fertilizers which cause pollution. As farming becomes more competitive, there is a greater pressure to produce more leading to increased use of chemicals. However, artificial fertilizers have diminishing returns, so it becomes more expensive and greater environmental cost for little benefit. Many farming methods have led to deforestation and cutting down trees. This can upset the eco-balance making regions more susceptible to flooding.