How could agricultural surpluses be phased out


What happens to marketable surpluses in a bad harvest?

Thus, in a period of bad harvest when prices used to go up, the marketable surpluses used to be low. Now this entire economics has become irrelevant (except where landlordism of the old times prevails). No general presumption in favour of the irresponsiveness of crop output to prices in poor economics can be upheld.

What is marketable surplus in agriculture?

Big farms yield high absolute surplus and over 70 per cent of the total agricultural output from the owners of big farms becomes ‘marketable surplus’. Medium farmers generally supply 45 per cent of their output as surplus. Not more than 20 per cent of the output of small farmers can be supplied as agricultural surplus.

How much does the EEC spend on storage of agricultural surpluses?

In 1985 it was estimated that the EEC/EU spends $ 1,000 million per year on storage of agricultural surpluses. In 1993 Europe had a 20 million tonne grain surplus.

What happens to the surpluses of developing countries?

Subsidized disposal of the surpluses (often as food aid) depresses markets for commodities such as rice and sugar, and undermines the economies of the developing countries that depend on them.


Why did the government want to decrease farm surpluses?

In an effort to increase prices, New Deal policymakers sought to reduce output by destroying surpluses and taking acreage out of production [4]. In the short run, farmers were paid to destroy crops and livestock, which led to depressing scenes of fields plowed under, corn burned as fuel and piglets slaughtered.

What is done to surplus agricultural production?

The part of the harvest which is kept for selling is called as surplus farm product and when it is taken to the market for selling it is called as Sale of surplus farm products. Once the farming process gets completed and the crops are harvested, the farmers segregate the obtained share into two parts.

What are agricultural surpluses?

there is an agricultural surplus-that is, more food production than the existing. population needs for its own subsistence. -but no opportunities for international. trade.

How did agricultural surpluses contribute to the industrial revolution?

The rise in productivity accelerated the decline of the agricultural share of the labor force, adding to the urban workforce on which industrialization depended. The Agricultural Revolution has therefore been cited as a cause of the Industrial Revolution.

What do farmers do with the surplus farm products How does it help them in future?

They retain a part of the wheat for the families consumption and sell the surplus wheat. (ii)Small farmers have little surplus wheat because their total production is small and from this a substantial share is kept for their own family needs. (iii)So, it is the medium and large farmers who supply wheat to the market.

What is done to surplus agriculture production in Palampur?

Surplus wheat grown in Palampur was sold in the market. The excess production of the farmer is sold on the market, and a profit is made. Surplus is the term for this profit. The surplus is used by the farmers as seed money for the next harvest.

Why is agricultural surplus important?

The important point to be recognized is that agricultural surpluses can be used to stimulate a sounder and more rapid economic development than is now taking place in the less advanced countries of the free world.

What was the impact of surplus agricultural production on the development of civilization?

The surplus food that agricultural systems could generate allowed for people to live in larger, more permanent villages. Villages were more productive not only agriculturally but creatively.

Why were industrial and agricultural surpluses a problem for the US economy?

Why were industrial and agricultural surpluses a problem for the US economy? The average American had limited funds to purchase these items. Smith favored buying farm surpluses, while Hoover believed in funding organizations that would help farmers with the surpluses.

What was the significance of surpluses to the early farmers and what resulted from them?

As these early farmers became better at cultivating food, they may have produced surplus seeds and crops that required storage. This would have both spurred population growth because of more consistent food availability and required a more settled way of life with the need to store seeds and tend crops.

How did agriculture affect the Industrial Revolution?

The Agricultural Revolution helped bring about the Industrial Revolution through innovations and inventions that altered how the farming process worked. These new processes in turn created a decline in both the intensity of the work and the number of agricultural laborers needed.

How did agriculture change during the Industrial Revolution?

The Agricultural Revolution of the 18th century paved the way for the Industrial Revolution in Britain. New farming techniques and improved livestock breeding led to amplified food production. This allowed a spike in population and increased health. The new farming techniques also led to an enclosure movement.

What increases producer surplus?

Producer surplus is likely to increase when a firm benefits from an increase in market demand. For example, farmers might be able to increase their prices when consumer demand rises – this is shown in the diagram.

What do you mean by surplus production?

Key Takeaways. Producer surplus is the total amount that a producer benefits from producing and selling a quantity of a good at the market price. The total revenue that a producer receives from selling their goods minus the total cost of production equals the producer surplus.

What is a surplus of food?

Simply put, food surplus occurs when the supply of food exceeds the demand for it. However, there are many ways and reasons this can happen. And it can happen at every stage from farm to fridge to fork involving farmers, manufacturers, retail outlets, hospitality providers and individual households.

How did crop surpluses contribute to the Great Depression?

The onset of the Great Depression after 1929 left many U.S. farmers in financial ruin as prices dropped and they were left with huge surpluses of stock; in California alone in 1932, farmers unable to shift their stock lost nearly 3 million watermelons and 22.4 million pounds of tomatoes to rot.

Why is the separation of crop and livestock important?

The separation between crop- and livestock production is an important driver of agricultural nutrient surpluses in many parts of the world. Nutrient surpluses can be symptomatic of poor resource use efficiency and contribute to environmental problems.

What are N and P surpluses?

There were often large agricultural N and P surpluses in areas with high livestock densities , for example in Denmark and parts of Poland, Russia and Belarus ( Fig. 2 ). In regions with high livestock density, a large proportion of feed is imported to the region (because agricultural land is needed to produce feed), and the resulting manure is often applied on nearby fields, leading to nutrient application in excess of crop demand. In this way, feed imports (together with fertilizer imports) lead to N and P surpluses and the accumulation of nutrients in regions that focused on livestock production. Indeed, we found that regions with high livestock density often imported a large proportion of the feed (out of total feed needed for livestock) ( Figs. 2 c and S2), which is consistent with previous literature related to the separation of crop and livestock production ( Le Noe et al., 2017; Nesme et al., 2015; Schipanski and Bennett, 2012; Swaney et al., 2018 ). At the same time, surpluses were often low (or negative) in regions focused on crop production, but the production in these regions relies to a greater extent on imported mineral fertilizer and high levels of soil P arising from previous management practices. For example, in NUTS2 region DE41 Brandenburg–Nordost, average livestock density was less than 0.5 LSU ha −1, average N in crop harvest greater than 85 kg ha −1, and P surplus was negative.

What are the imports of nitrogen and P?

Nitrogen and P are imported primarily as mineral fertilizer and feed , while the region is a net exporter of food products ( Fig. 5 ). Imported mineral fertilizers are used in crop production and over 65% of crops grown in the catchment are used to feed livestock, together with the imported feed ( Fig. 5 ). Livestock in the Baltic Sea catchment excrete 1.8 million tons of N and 0.37 million tons of P in manure annually, which is more than three times as much as in excreta from humans ( Hong et al., 2017 ). Decades of imports have led to the accumulation of nutrients, for example as buildup of soil P levels and losses to lakes and rivers. On agricultural land over the entire catchment, only about 60% of P and 50% of N in mineral fertilizer, manure, atmospheric N deposition, and biological N fixation are converted to harvested crops ( Fig. 5 ). Agricultural systems will never be perfectly efficient because of unavoidable nutrient losses, but in the Baltic Sea region, there is room for improvement. Scenario analysis suggests that redistributing manure nutrients within NUTS2-regions/oblasts and reducing over-fertilization could reduce annual fertilizer imports by 165–252 thousand tons N and 70–120 thousand tons P ( McCrackin et al., 2018 ).

What happens to soil P when fertilizer is applied?

When manure or P fertilizer is applied to agricultural land in excess of crop demand, much of the P accumulates in soils. If repeated over many years, the soil P level can rise well above the agronomic optimum, where there is a greater risk of P losses to the aquatic environment and further application does not increase yields ( Bai et al., 2013; Valkama et al., 2009 ). In other words, soil P levels in agricultural soils reflect the P fertilization history to a large extent and not necessarily current P surplus. Correspondingly, we found that the median soil P concentration in agricultural land (per NUTS 2 region) from Tóth et al. (2013) was not explained by the agricultural P surplus for 2008–2012 from Hong et al. (2017) (R 2 = 0.13, not shown). This finding suggests that there are some areas where existing soil P content is considered in fertilization, or that there are areas where current build-up of soil P is not as large as earlier. On soils with high P levels, it is desirable to use existing soil P as much as possible, i.e. to have negative P surpluses ( Rowe et al., 2016; Sattari et al., 2012 ). For example, in Finland about half of agricultural soils have such high soil P levels that P fertilization is unlikely to increase yields ( Ylivainio et al., 2014 ). Also, current manure P content in Finland would be enough to meet plant P requirements, with no need for mineral P fertilizer, if manure could be spread to areas with actual need for P ( Ylivainio et al., 2014 ).

Where is the most agricultural land in the Baltic Sea?

About 40% of the entire agricultural land in the Baltic Sea catchment is located in Poland alone . The proportion of total country area represented by agricultural land varies greatly around the sea. For example, about 7% of Sweden and Finland is agricultural area, while agriculture covers 40% of Poland and 60% of Denmark. The number of livestock in relation to agricultural area also varies, with Denmark having the highest livestock density compared to other countries ( Table 1 ).

Is over application of N and P necessary?

Over-application of N and P, especially with mineral fertilizer, is an unnecessary cost for the farmer and can be reduced by better-informed nutrient management. However, it is clearly more challenging to reduce nutrient surpluses in regions focused on livestock production, where feed import is large.

How does change affect agriculture?

For example, improvements in agricultural extension and seed systems might enable farmers to switch to a more productive hybrid seed, but lack of access to fertilizer (upon which the hybrid depends) could prevent productivity increases and leave the farmer unwilling to buy hybrid seed next time. As in any complex economic system, when so many elements are interrelated, any one of them can become a constraint and stall progress.

Which countries have doubled their agricultural output?

Recent examples include Brazil, China, and Vietnam, each of which at least doubled the value of its agriculture sector within 20 years of starting its transformation. Many other countries in Africa, Asia, and Latin America are earlier on the path of transformation.

How does a PMO help in agricultural transformation?

Our experience suggests that creating a project management office (PMO) can greatly increase the chances of carrying out a successful large-scale change program. A PMO can concentrate talent, monitor implementation, act as a source of truth, and, in general, help get things done. The office can apply accepted project management technologies to break the transformation into discrete initiatives, each with specific goals, timing, and responsibility. A PMO is also charged with engaging relevant stakeholders when problems arise.

What are the SDGs for agriculture?

In addition to traditional economic development and poverty reduction goals, governments are also focusing their agricultural transformation plans on Sustainable Development Goals (SDGs) by considering, for example, climate-smart strategies, women’s economic empowerment, and biodiversity.

What do farmers do in developing countries?

Farming households in developing countries balance a portfolio of crops, livestock, and nonfarm work. Because they feed their families with some of the farm output as well as sell into markets, they make decisions based on their potential profit, risk, and cash flow across family food consumption as well as sales.

Is high value farming a viable option?

In some cases, high-value crops or livestock will not be a viable opportunity for farmers, and promoting the intensification of row crops makes more sense. Even then, the focus should be profitability for the farmer, including attention to sustainability, quality, storage, and processing.

Has agricultural transformation stalled?

For some, agricultural transformation has not advanced as planned or has stalled. Navigating the complexity of a transformation is invariably tough for governments, even though they may prioritize agricultural investment and recognize how important it is to get right.

Who has to produce all of those surpluses?

Somebody has to produce all of those surpluses. That somebody are the U.S. farmers who have put their time and money into producing a certain number of products. All of the products that cannot be sold and have not been utilized represent a loss for the farmer.

What is considered surplus in industrial production?

Industrial surplus does not necessarily have to be just products that a company produces, surplus can also be created when a company orders too much inventory and does not sell a certain expected number so everything that is left is considered a surplus.

What are the major exports of the United States?

imports grew, but at a slower pace than in previous years. The leading U.S. exports are grains/feeds, soybeans, livestock products, and horticultural products. The largest U.S. imports are horticultural and tropical products. In 2019 it was reported that U.S. trade surplus has been the smallest since 2006.

Why are surpluses a problem?

Economy because they often go to waste as the U.S. cannot find a buyer for all the surpluses it produces. Let’s say you are a farmer and you are growing a certain crop and end up with a surplus for the year.

How much is the US trade surplus?

U.S. agricultural exports were valued at approximately $140 billion in 2018, whilst imports grew by 6 percent and reached $129 billion in 2018. This created a trade surplus of $10.9 billion in 2018, making it the smallest surplus since 2006.

What percentage of imports are horticultural products?

The chart shows that most of the U.S. agricultural imports in the span of 18 years have grown and almost 50 percent of all the imports are horticultural products like fruits and vegetables, wine, nursery stock, wine. Sugar and tropical products as coffee and cocoa have grown at a steady pace but still comprise around 18 percent of imports.

How is a trade deficit measured?

A trade deficit is measured by the sum of a country’s imports, or rather the products that one country buys from other countries, and by the sum of a country’s exports, or rather the products that one country sells to other countries.

How much of the agricultural output of a large farm is surplus?

Big farms yield high absolute surplus and over 70 per cent of the total agricultural output from the owners of big farms becomes ‘marketable surplus’. Medium farmers generally supply 45 per cent of their output as surplus. Not more than 20 per cent of the output of small farmers can be supplied as agricultural surplus.

What will increase marketable surpluses?

Higher marketable surpluses will be released. Better transport and warehousing facilities increase marketable surpluses but may reduce the marketed surplus in the immediate post- harvest period. The farmers can phase out their marketable surpluses to secure better terms of trade.

Why are high marketable surpluses important?

High marketable surpluses from agriculture are a necessary but not sufficient condition for economic take-off of a country.) In due course of time, higher marketable surpluses will promote healthy migration from the rural to urban areas. As marketable surpluses increase, the farmers have greater cash with them.

What happened in the year of bad harvest?

This was true in the days of zamindars and heartless landlords. In those days in the year of bad harvest the surplus left over rent declined. After the consumption reserves, the marketable surpluses used to be low. Thus, in a period of bad harvest when prices used to go up, the marketable surpluses used to be low.

What is marketable surplus?

Marketable surplus is naturally related to the entire economics of production. Entire gamut of measures and condition that increase agricultural output determine one aspect of marketable surplus. Other things which determine marketable surplus are consumption and stocks for future.

What happens when a country has a large population?

Countries with large populations will naturally leave smaller marketable surpluses, other things remaining the same. Under all circumstances, a country with a large population, high rate of growth of population, or high birth and death rates (which will give a lower growth rate of population yet will mean loss on account of consumption), high density of population per sq. km of land, high dependency burden (proportion of the young and/or old to the working population) will naturally leave a smaller marketable surplus.

What are the aspects of agricultural marketing?

There are three aspects of agricultural marketing. First relates to the determination of market price and this is largely a function of demand and supply plus government intervention. The second aspect relates to reorganisation of agricultural marketing. While the first one belongs to the pure theory of agricultural economics, the second aspect relates to agricultural administration.


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