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: Subsidies for farmers who follow more environmentally friendly methods. Tariffs on imports. This increases the domestic price of agricultural produce, but leads to lower trade. Problems of government intervention in agriculture
Cost of subsidising agriculture in the developed world It is estimated support to agricultural producers in advanced countries was $245 billion in 2000, five times total development assistance. In the members of OECD as a whole, a third of farm income came from government mandated support in 2000. ( Martin Wolf, Financial Times, 21 November 2001) ( problems of Agriculture)
Subsidies have often been given to farmers with large amounts of land and with little incentive to follow more environmentally friendly procedures. Minimum prices have led to over-supply
Tariffs on agriculture have led to lower income for food exporters in the developing world and have been a big stumbling block to trade. Related
Problems of Common Agricultural Policy
Government intervention in agricultural markets
Photo: A field in the Cotswolds by Tejvan