Why farmers Cannot fix price?

You cannot simply determine the price of a product without taking supply and demand into consideration. And since most of the agricultural products are perishable goods and cannot be stored, the farmers are forced to sell them at whatever price the wholesale buyers are providing.

How does a farmer decide what to produce?

Every year, farmers must decide what to plant. Farmers make planting decisions based on many factors. Chief among these are how do net returns compare from one crop to the next. The comparison depends on what yield you expect, what price you expect, and what the variable costs are.

What are the factors affecting price of agricultural products?

Factors leading to rise of prices of agricultural products mainly include tension of supply-demand relationship, promotion of production cost and circulation cost, and speculation of Refugee Capital (Hot Money).

Why is overproduction bad for farmers?

Overproduction leads to underpriced commodities, which allows the grain, meat and retail giants to buy on the cheap and turn a large profit, firming up their monopoly power—no matter the real cost to farmers, taxpayers (who subsidize grain production) or the environment.

What are two factors that influence what farmers decide to produce?

Environmental factors that influence the extent of crop agriculture are terrain, climate, soil properties, and soil water.

Why must societies decide what to produce?

Each society must decide what to produce in order to satisfy the needs and wants of its people. Because resources are limited, each decision that a society makes about what to produce comes at an opportunity cost. How should goods and services be produced?

Who affect price of the product?

The most important factor affecting the price of a product is its cost. ADVERTISEMENTS: Product cost refers to the total of fixed costs, variable costs and semi variable costs incurred during the production, distribution and selling of the product.

Why prices of agricultural products fluctuate?

In the first place, variations in prices and incomes are the result of shifts in supply and demand. As food demand and supply have a low price elasticity in the short run, meaning that they are not very responsive to price changes, fluctuations in agricultural prices tend to be especially strong.

Why was industrialization bad for farmers?

However, industrialization also has resulted in an agriculture that degrades natural resources, depletes human resources, and destroys economic opportunities. An industrial agriculture is inherently incapable of maintaining its productivity and usefulness to society.

Why is overproduction an issue?

Overproduction is a serious issue that everyone needs to pay attention to. Between pollution and deforestation, we are doing a lot of harm to our planet without even realizing it. Overproduction is causing more waste and that waste is filling our air and water. This is causing pollution that can easily be stopped.

Why is it important for a farmer to consider his capital and land resources before selecting a crop?

Not enough natural resources: A reliable set of crops to both eat and sell is essential for the success of farmers. This will entangle roots and cause a shortage of resources, as one plant will often receive more water or nutrients than its nearby neighbor.

Why don’t more people buy from small farms?

Of course, the fact that small farmers grow so many heirloom varieties can be a benefit, but it’s also confusing to many consumers. So much so that farmers create recipes and instructions on what to do with the CSA box contents. So, reason number four is that small farms sell unfamiliar products.

Why are vegetable farmers not getting a fair price?

These figures indicate that farmers are producing more without good returns. Why are vegetable farmers not getting a fair price? Season after season, farmers face price uncertainties mainly owing to fluctuations in demand and supply caused by bumper or poor production, speculation and hoarding by traders.

Why do vegetable prices fluctuate?

The fluctuation in vegetable prices has become a perennial problem and is usually associated with the economics of demand and supply. Farmers, mainly marginal and small landholders, depend on intermediaries to sell their produce.

Why do farmers struggle to grow food?

So the farm is out in the country. Often, it’s far out in the country. In my case we were two hours and 15 minutes (without traffic) to Atlanta. So farmers often struggle because they’re far away from a good size market—one with a population of at least 50,000, and that’s bare minimum.