Title: Factors Affecting Farming | GCSE Geography Revision Notes
Headings: Factors Affecting Farming
Factors Affecting Farming
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Top 3 Factors Affecting Farming
1. Economic Factors Affecting Farming
2. Climatic Factors Affecting Farming
3. Physical/Environmental Factors Affecting Farming
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Content: The modern federal agricultural policy assumes that mass production through farming keeps the prices of food low. As a result, it benefits the economy. Theoretically, the policy offers farmers an economic stability measure. It also ensures consumers have access to affordably-priced food products processed from the commodity crops. Farmers are also encouraged to make sure there is an oversupply of a few types of crops. Such crops are required to generate money for growing processed foods despite the prevailing conditions on the market. Commodity Prices – Weather, investor speculation and demand for non-food (such as biofuels) and food crops influence the price of main commodity crops such as soy and corn. Commodity crops earn farmers losses or profits based on the prevailing price of output that industrial buyers are willing to pay. Moreover, international economic factors such as the strength or weakness of the dollar also affect commodity prices. This happens because American farmers don’t just compete with other local farmers, but also growers spread across the world.