Reasons for Government Intervention in Agriculture To ensure adequate food supplies; To protect / preserve small-scale farming; To maintain economic viability.

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Presentation transcript:

Reasons for Government Intervention in Agriculture To ensure adequate food supplies; To protect / preserve small-scale farming; To maintain economic viability of rural businesses and communities; To minimize dependence on imports; To expand agricultural exports; and To respond to a food problem or a farm problem.

Agriculture and Farm Problem The farm problem consists of two quite distinct problems: Production problems; and Income problems.

Agriculture and Farm Problem Production problems stem from the cyclical nature of production caused primarily by physical and biological factors. Income problems stem from (1) a long- run tendency for farm incomes to fall below urban incomes and (2) fluctuations in agricultural prices causing variability in farm incomes.