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: Food has a low-income elasticity of demand. As incomes rise, people don’t spend more on food. Also, technological advances can lead to falling prices rather than rising incomes. Many developed economies feel it is necessary to subsidise farmers to protect their incomes. For a developing economy, their current comparative advantage may lie in producing primary products. 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.