Presentation on theme: "Why Do Farmers Face Economic Difficulties?"— Presentation transcript:
1 Why Do Farmers Face Economic Difficulties? C10K4
2 Objectives Challenges for Commercial Farmers Challenges for Subsistence FarmersStrategies to Increase Food Supply
3 Challenges for Commercial Farmers Victims of their own successWhat’s important? access to markets – distance influences what crops to plantEconomic Model: Von Thunen model: crop/ animal choice with proximity to market2Factors: cost of land versus cost of transportation
5 Overproduction in Commercial Farming : 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 donatesGood for consumer. Bad for farmer
6 Sustainable Agriculture - an agricultural practice that preserves and enhances environmental quality. (organic farming – less than 1% of farms)Lower profits but lower costCharacteristics 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 tillagePros: lower costs & better conservationCons: 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 animalsC) Management of extreme weather conditions: droughts, fires, etcD) 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 methods2) 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 AsiaSouth America: cocoa from Colombia, Peru, and Bolivia for North AmericaMarijuana: est. 140 million world-wide users.