Are we MAD? When dramatic reductions in food prices possible?

Question

By the reversal of common market agricultural policy which pays farmers NOT to grow crops, and consumes 40% of common market funds.The CAP compares unfavourably with Mugabes policies in Zimbabwe. Where is our civilisation,,,

Answer 1

Food prices are increasing through out the world.The main reason is increase in fertliser prices which depends on peroleum price.Large percentage of food grains is converted as biofuel.The area under cultivation in developing countries is decreasing due to increasing urbanisation and industrial production.Due to uneconomic prices people are switching over to cash crops.Unless the farmers get reasonable return from agricultural produce food production will not increase.If you compare the prices of manufactured goods with those of agricultural products you will find that prices of manufatured goods increase faster.This results in unfavourable terms of trade between agriculture and industry.Who cares to set right the structural imbalances in the economy?

Answer 2

The economics of barbarism will be the main study soon . So bone up and be ready .

Answer 3

Lost, I am afraid.

Answer 4

HA! Welcome to economics my friend! Yes we are indeed mad.....