Accompanying the rise of scientific farming and the widespread increase of yields of many crops and animals, prices for agricultural goods have remained fairly flat from the 1970's well into the 1990's. This has been a positive development for consumers, but the effect on farmers, especially small farmers, has been disastrous.This is one of the many economic uncertainties of farming as a business. There is a fine balancing act with prices, demand, and production, and world and local economic conditions. Increased production means increased supply and low prices for the farmer, while decreased production means higher prices for both farmer and consumer. Here are some common scenarios:
- A drought would mean lower production, higher prices, and potential diasaster for a farmer; crops might sell for higher prices, but demand might be significantly less than if the price were lower.
- An economic crisis in the US or Europe would mean that an Asian rice farmer might not be able to sell his or her harvest in those markets.
- A weakening yen would mean a higher price in Japan for imported for US apples, and Japanese consumers would stick to their cheaper, and more familiar domestic apples.
