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Reasons for Government Intervention in Agriculture

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

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Reasons for Government Intervention in Agriculture

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  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. 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. Agriculture and Farm Problem

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