Why do Farmers Face Economic Difficulty?

10.4

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.

UrbanizationUrbanization has reduced the available arable

land…especially in MDCs.

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

New Food SourcesIn the future, new sources for food could

come from…

Cultivating seaweed of the island of Zanzibar.

The Oceans

Higher protein cereals

Eating more foods that are rarely consumed by humans like

soybeans and krill.