agricultural policy

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Fig. 6 Agricultural policy. (a) The short-term shifts in supply (S) and their effects on price (P) and quantity (Q).

(b) Long-term shifts caused by the influence of productivity improvement on supply.

agricultural policy

a policy concerned both with protecting the economic interests of the agricultural community by subsidizing farm prices and incomes, and with promoting greater efficiency by encouraging farm consolidation and mechanization.

The rationale for supporting agriculture partly reflects the ‘special case’ nature of the industry itself: agriculture, unlike manufacturing industry, is especially vulnerable to events outside its immediate control. Supply tends to fluctuate erratically from year to year, depending upon such vagaries as the weather and the incidence of pestilence and disease, S1, S2 and S3 in Fig. 6 (a), causing wide changes in farm prices and farm incomes. Over the long term, while the demand for many basic foodstuffs and animal produce has grown only slowly, from DD to D1D1 in Fig. 6 (b), significant PRODUCTIVITY improvements associated with farm mechanization, chemical fertilizers and pesticides, etc., have tended to increase supply at a faster rate than demand, from SS to S1 S1 in Fig. 6 (b), causing farm prices and incomes to fall (see MARKET FAILURE).

Farming can thus be very much a hit-and-miss affair, and governments concerned with the impact of changes in food supplies and prices (on, for example, the level of farm incomes, the balance of payments and inflation rates) may well feel some imperative to regulate the situation. But there are also social and political factors at work; for example, the desire to preserve rural communities and the fact that, even in some advanced industrial countries (for example, the European Union), the agricultural sector often commands a political vote out of all proportion to its economic weight. See ENGEL'S LAW, COBWEB THEOREM, PRICE SUPPORT, INCOME SUPPORT, COMMON AGRICULTURAL POLICY, FOOD AND AGRICULTURAL ORGANIZATION.

References in periodicals archive ?
Summary: Bhubaneswar (Odisha) [India], Aug 10 (ANI): Odisha government on Friday released draft state Agriculture Policy 2019 aimed at the continuation of Krushak Assistance for Livelihood and Income Augmentation (KALIA) scheme for the next five years and steps for increasing income of farmers.
He said that the government had destroyed the agriculture sector, adding that Pakistan was an agricultural country, but the government had failed to devise an agriculture policy for the country.
The opposition leaders belonging to the Pakistan Muslim League-Nawaz (PML-N) and the Pakistan Peoples Party (PPP) wondered how a convicted person could announce the agriculture policy of the government.
He said convicted disqualified deputy PM is addressing the nation on agriculture policy while falsely accused not convicted former president's interview censored.
The agriculture policy aims at tapping these opportunities.
The 25-year Oyo State Government Agriculture Policy Framework presented is a good thing.
KARACHI -- Activists here on Wednesday cited Sindh Agriculture Policy 2018-2030 to be least peasants friendly with little consideration towards protection of the rights of farmers in the province.
He explained that the ministry was currently reviewing the 1991 Agriculture Policy and also developing the National Agriculture Investment Plan, which would guide the development of agriculture sector including urban agriculture in the country, thereafter, guidelines on urban agriculture would be developed.
Interestingly, the latest policy had been completed on Nov 29, one of the writers claim, and that is why it is still called the 'Punjab Agriculture Policy 2018', but the government took another three months to announce it.
He said the agriculture sector has been devastated as the government does not have any agriculture policy. He said teachers in government schools are recruited on political basis and many of them are not able to teach students.
She sought the formation of an agriculture policy on the basis of seasonal changes.
Addressing an award ceremony of Rice Exporters Association in Karachi, he said that agricultural production could be improved through mechanized farming and better agriculture policy. The president suggested establishing Seed Bank' to provide quality seeds to the growers for better crop.

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