Reasons for Government Intervention in Agriculture

1
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.

2
Agriculture and Farm Problem

• The farm problem consists of two quite distinct
  problems
• Production problems and
• Income problems.

3
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.