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Why Do Farmers Face Economic Difficulties?

Why Do Farmers Face Economic Difficulties?. C10K4. Objectives . Challenges for Commercial Farmers Challenges for Subsistence Farmers Strategies to Increase Food Supply. Challenges for Commercial Farmers. Victims of their own success

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Why Do Farmers Face Economic Difficulties?

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  1. Why Do Farmers Face Economic Difficulties? C10K4

  2. Objectives • Challenges for Commercial Farmers • Challenges for Subsistence Farmers • Strategies to Increase Food Supply

  3. Challenges for Commercial Farmers • Victims of their own success • What’s important? access to markets – distance influences what crops to plant • Economic Model: Von Thunen model: crop/ animal choice with proximity to market • 2Factors: cost of land versus cost of transportation

  4. Von Thunen Model

  5. Overproduction in Commercial Farming • 1980 -2008: 10.8 to 9.3 million cows, but milk production + 128B to 190B. (demand stays the same) • Farmer Welfare? 1) Farmers avoid producing crops in excess supply 2) gov pays farmers when certain prices are low 3) gov buys surplus and donates

  6. Sustainable Agriculture • - an agricultural practice that preserves and enhances environmental quality. (organic farming – less than 1% of farms) • Lower profits but lower cost • Characteristics of Sustainability:1) sensitive land management 2) limited use of chemicals 3) better integration

  7. 1) Sensitive Land Management? • Farming method: protects soil through ridge tillage • Pros: lower costs & better conservation • Cons: more labor intensive

  8. 2) Limited Use of Chemicals • Commercial farms use genetically modified seeds to resist chemicals for killing bugs and weeds. (i.e. DEET, Roundup) *Organic farms minimize chemical use.

  9. 3) Integrated Crop and Livestock • “Grow crops that animals use… and use animals for fertilizers” – Four things to consider… • A) number of livestock:conducive to the environment and climate? (use of farm space to balance both) • B)How should animals be confined?: moral and ethical treatment of animals • C) Management of extreme weather conditions: droughts, fires, etc • D) Flexible feeding & marketing: finding alternatives in reducing costs (producing or purchasing feed for farm animals.)

  10. Challenges for Subsistence Farmers • LDC vs MDC: Efficient and productive farming need to meet population growth. • 20th century and modern medicine – demand for higher yields has greatly increased. How to meet needs? • 1) new farming methods • 2) land left fallow for shorter periods

  11. Subsistence Farming and International Trade • Double Edge Sword for LDC farmers and global demand? • LDC focus on producing crops that are out of season or impossible to grow in MDCs. Use revenue to adopt better farming methods and technology. • Dilemma: more land devoted for exports the less land for domestic.

  12. Drug Crops • Heavy Demand = Big Business • Asia: opium from Afghanistan and Burma for Central Asia • South America: cocoa from Colombia, Peru, and Bolivia for North America • Marijuana: est. 140 million world-wide users.

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