Why do Farmers Face Economic Difficulty? 10.4
Dec 25, 2015
Issues for Commercial FarmersTwo economic factors influence the choice
of crops by commercial farmers:
Access to markets
Overproduction…the U.S. gov’t. spends $10
billion/year on farm subsidies.
Von Thünen’s ModelThis model assumes that a commercial
farmer considers which crop to cultivate and which animals to raise based on market
location.
Production of perishable goods
needs to be located close to the market
Production of products with a longer shelf life can be located farther away from the market
Von Thunen’s Model
• Two major considerations– Cost of land– Transportation costs
– Model assumes all things equal– Did not consider site or situation– Did not consider politics
Agricultural Areas Farther from Markets
• extensive agriculture (large farms/low labor/low output)
• have lower-valued land than locations near markets
• produce fewer perishable goods
• have less access to markets due to distance
• is at a location where farmers can maximize profits
Agricultural Areas Closer to Markets
• intensive agriculture (smaller farms/high labor/high output)
• have higher-valued land than locations far from markets
• produce perishable goods that need to be consumed ASAP
• have greater access to markets
• is at a location where farmers can maximize profits
Agricultural Land-Use Patterns TodayAgricultural land use patterns differ today
when compared with von Thünen’s time (1826) because of…• refrigeration and food preservation
• improved transportation• regional and global markets• corporation decision making
• government policies• agricultural products used for purposes other than food
• forests no longer occupy a zone close to markets
US Policies
• 1) encourage fallow or rest crops when a crop is over supplied
• 2) Pays farmers when crop prices are low (commodities)
• 3) Buys excess and sells/donates it
Sustainable AgricultureAgricultural practices that preserve and
enhance the environment. Two characteristics of sustainable agriculture
are…
• more sensitive land management
• better integration of crops and livestock
Ridge TillageA system of planting crops on ridge tops to
help lower production costs and achieve greater soil conservation.
Boserup’s TheoryAccording to Boserup, subsistence farmers
can increase food supplies for larger populations through intensification of
production. She identified 5 basic stages of intensification of farmland…
Forest Fallow: Fields are used for 2 years & left fallow for more than 20 years (the forest
grows back)
Bush Fallow: Fields are cleared and used for 8 years and left fallow for 10 years (small
trees/bushes grow back)
Short Fallow: Fields are cleared and used for approximately 2 years and left fallow for
2 years (wild grasses grow back)
Annual Cropping: Fields are used yearly and left fallow by planting legumes & root
crops.
Boserupt’s theory also states that subsistance farmers can increase
production by adopting new farming methods
Multicropping: Fields are used several times/year and never left fallow
Boserup’s Theory basically says that populations will
adjust or modify agriculture to meet their needs…even in
LDCs
Ester Boserup
Drug CropsThe export crops chosen by some LDCs, especially in Latin America and Asia, are those that can be converted into drugs.
Coca plants are grown in
Columbia, Peru, and Bolivia and are used in the manufacture of
Cocaine.
Most opium originates in Asia,
especially Afghanistan,
Myanmar, and Laos.
Marijuana grown in Mexico is shipped
across the border
illegally.
Subsistence Farming and International Trade
Many LDCs generate funds by selling MDCs fruits & vegetables that are out of season or can’t be grown in their area. Some of this money is used to buy agricultural supplies
Strategies to Increase Food Supply
Four strategies can increase food supplies:
•Expand the land area used for agriculture
•Increase the productivity of the land
•Identify new food sources
•Increase exports from other countries
DesertificationLoss of agricultural lands due to human actions (over planting, overgrazing, or tree cutting) that transform
semi-arid regions into deserts.The UN estimates over 100,000 sq. miles of arable land is lost to desertification
annually.
Excessive WateringWaterlogged and/or excessive salinity in soil also
takes place when areas are irrigated too much and have poor drainage.
The Green RevolutionThe invention and rapid diffusion of more productive
agricultural techniques to LDCs between 1945 – 1985. This included creating new strains of higher yield seeds and changing agricultural practices so that more crops were
grown commercially.
Dr. Norman Borlaug received the Nobel Prize for his work
creating a “miracle” rice seed.
The IRRI’s scientists
introduced a hybrid of
Indonesian rice & Taiwan dwarf
rice that was hardier and increased
yields.
Dr. Borlaug with his
students in Mexico, 1964.
Fertilizers & MechanizationIn order to take advantage of miracle seeds, farmers must
use more fertilizer and machinery…these are too expensive for many farmers in LDCs.
Using artificial fertilizers, insecticides, and
herbicides help increase production.
Using tractors and other machinery
makes work easier and more efficient.
Irrigation systems insure that crops get
enough water.
Where was the Green Revolution most successful?
The Green Revolution was most successful in places where…
• there was a market economy
• transportation infrastructure was in place
• there was political stability
• farmers had the knowledge and education to use new technologies
• there was credit or “seed” money available
• people were willing to adopt new farming techniques and methods
Asia and the Green RevolutionAsia was the place where green revolution technologies
and practices had the greatest impacts…especially in the production of rice.
SOUTH ASIA
India
SOUTHEAST ASIA
Vietnam
SOUTHEAST ASIA
Indonesia
SOUTHEAST ASIA
Philippines
EAST ASIA
China
Africa’s Food-Supply CrisisThe Green Revolution had little effect in
Africa because…• artificial fertilizers, herbicides, and pesticides are too expensive for poor
• drought or low water tables in many areas
• climatic factors (desertification)
• limited amount of arable land
• limited funds to purchase necessary equipment, seeds, etc.
• difficult for women to obtain credit
• water pollution