Base on this statement: We need more farmers, not economists, how can we face the problem of the rising of global food price?
What can we do other than producing more supply of food?

As in this case what i know is the demand for the food globally is rising and that is most probably why the price is rising.
So one way to do is to increase the supply of the food. But what else? (also please correct me if i wrong)

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This is my microeconomies term paper and it is annoyingly hard for me as I m just newbie to economy.

I think of other solutions like setting ceiling price or apply technology in production of food but these methods are not related the the statement "We Need More Farmer, Not Economist" !

This post has been edited by LionheartTwb: Mar 26 2011, 11:02 AM

Tell I.T. fella about farming is barking at the wrong tree, though people can choose to divert to farming but its a dirty job that parents of the previous generation who brought up their children not to inherit.
For that reason, we import a lot of foreign cheap labor in plantations and many farmlands are now concrete community. This is called development and we haven't reach a stage where imported food are too expensive and increased the value of local farm products, soon it will happen when jobs are scarce or it become a lucrative business.

How does this related to the question? Sorry a bit confused
Really noob in this field

more farmers , economists down~ means farmer replace economists, so they can produce mass production of food for the global?...my answer is "no" ppl only care thier own benifit, other ppl starving who care? economists r much importance & look high, repect in this country, (global), compare to farmer.

simple concept~ when u gain something, u may lose something too at the same time.

heavy industry make country advance, ppl got job to do, living style improve..etc. but behind this, our environment polluted.
same concept go for this issue. Look at malaysia..Puchong example...i live puchong, dulu got air terjun, hunt for babi huntan..now...all gone. 400K super class condo (hill view), 450K semi D (lake view) near the water fall. hill & lake replace by this luxury home...here the temperature increase alot, food supply not enough, tracfic jam....

So, how can we face the problem of rising of globa food...vietnam & thai now more concern about their eco build instead of export crop stuff. so think about it. PPl said globa warming, we should not do this & this... but ppl still drove car, build high class condo...& etc.

what can we do other than producing more supply of food.~ first, producing more supply food already a problem that the whole globa face now. So, "other than producing"~ means genetic modification in tern of food or human?

Conclusion. PPl only care about their benefits, belum jumpa hantu, tak takut gelap. our leader now only concern in election, "other than that" we need to bear of it. belum hit the wall kao kao, tak takut sakit de. wait until one days the whole food running low, that time baru take action lo...

Edit: farmer hard to survive in this world today, pay less, some even cannot survive if the salary. second, many ground use to build building & commercial area instead of farming. Some farmer in (indonesia), burn the jungle to produce the crop. genetic modification in food (meat & vege), so it can produce huge number of food for the country, but some ppl protest against it. (unsave to eat)


Good luck.

This post has been edited by peace230: Mar 29 2011, 11:36 AM

Yes, the increase in number of farmers (given that it is directly proportional to the food production) will reduce the food price.
However, there are many other determinants to the food price.

Other than producing more, i think we can localize food production (not only geographically, but also in term of management). This will reduce the need for expensive logistics and management. This might requires an overhaul to the usual way a business is run. Perhaps looking up 'Holonic Management' will help, but it is still highly theoretical and practical proof are yet to be shown. There is one african company that greatly emulates holonic management.

Determine if this is movement along or a shift in the supply curve.

We do have Biotechnology to help increase crop yields
Some say we have enough food for everyone, just that its not properly distributed, maybe due to greed and selfishness?
Anyway, there's always the misconception of farmer = low class/pay? From the way I see it, I might just end up being a farmer one day, and loving it

More farmers, not economists. Whos going to become the farmer? u? people r getting education these days. everyone want get high pay jobs. At the moment, ppl would prefer to become an economist rather than a farmer. The plantation boss might earn big bucks, not the farmers. wait till when food supply is in demand or farmer earns more than economist.

There are many factors in determining the prices of foods. The increment of costs imposed in chain supplies, the return yield per cost ratio, the economic climates in the particular countries;all of this contribute to the overall prices.

Like in zimbabwe, the average cost of products doubled every thirteen hour; creating a massive hyperinflation; the root cause of it was because the government forced the white farmers to give their land to the black farmers, triggering an almost halt of foods production.

ASIMOs may do the job for us

The misconception that agriculture is still the olde farmer tending the fields must end.

Mass production of food by means of GM and robotics is the future. Solution to food shortage is with science and manufacturing.

Well, fyi, more than 300 years ago, economists such as Smith and Malthus already figured that out. Higher demand in the short run will cause the market price to increase. In the long term, higher price will attract supplier to enter the market and price should be stabilized.

The problem with rising food price is not only caused by higher demand results from increasing world population. The other reason is speculation in the tradable agriculture commodities market. Food prices nowadays are not directly determined by demand and supply in the goods market but demand and supply in the capital market (derivative market).

Price control will never help as it will only create problems such as shortage and surplus. By applying price ceiling, technically, we are artificially lower the price of agricultural productions and in the long run, it will discourage new farmers from entering to primary sector or limit the size of production for current farmers. Supply and quantity supplied, in that case, will not grow to curb the problem of rising food price.

Technology most certainly can help increase the output in the primary sector. However, the main problem of technology is that it is painful slow in development. That's why economists assume that technology is fixed in the short run. Dynamics in economy (constant change of demand and supply) completely outpace advancement in technology making it hard in solving the rising food price problem.

To solve this problem, we must first understand the problem and economists are most likely the one that really understand the problem. So yes, I agree, we do need more farmers. However, we will have more farmers if food price continue to rise. That doesn't necessary mean food price will be stabilized as in capital market, speculating activity may still push food prices to increase further. The same scenario happened in the precious metal markets as well.

Hope that helps

According to the Principles of Economics, the bigger the factory, the lower the cost.

Should we build a colossal farm, raise animals and become part of a big economic cycle?

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This post has been edited by liuxue: Sep 22 2014, 02:43 PM