Question

Why the United Statesproducing more food than the population requires? And how we can fix this problem?

Evidence + sources

Answer 1

Agriculturalists are producing too much corn & wheat, slowing down economic growth & pushing some agriculturalists out of business.

Agriculture has few unique challenges. Start-up & expansion expenses are huge, investments take long to mature & the country’s vast network of agriculturalists is rather disjointed to cooperate on production cutbacks. This can lead to an economic enigma- increasing output amidst declining prices.

This is known as the irreversible supply curve. You get a phase of higher prices wherein there is a feeling amongst agriculturalists that it is a new era, & they are willing to undertake huge investments. Its the huge fixed expenses once you’ve invested in (new land / equipment), & you cannot undo it.

The heavy initial price agriculturalists pay to get the plot into production / to grow production explains, partially, the excess. Timing is an issue as well. By the time an agriculturalist reacts to augmenting demand & augmenting price levels, so have his competitors. Levels of supply creep up & levels of prices sag.

Food production should be balanced with demand to lessen the issue of food wastage. We need to cut back on the utilization of natural resources in production of food.

The second plan should be to develop effectual technologies & production arrangements which better storage, reaping , processing & distribution practises. Redistribution can be the initial scheme for supplying / distributing additional food to where there’s requirement & lessening supply where food is in a surplus. Harvesting, storing & processing should be improved by NGOs & governments by availing subsidies & training on superior production methods, specially in developing nations.