Question

Prolonged agricultural surpluses can arise if governments ________. A. Invest in advanced farming technologies.

B. Provide subsidies to farmers.
C. Implement effective storage and distribution systems.
D. Limit agricultural production to meet local dem

Answer 1

Governments do not simply give away excess agricultural products to people in poverty as it can disrupt local markets, harm local farmers, and create dependency on aid. There are also logistical challenges to consider.

Step-by-step explanation:

Agricultural price supports often lead to governments having large inventories of agricultural products. One might wonder why these products cannot simply be distributed to people experiencing poverty. There are a few reasons for this. Firstly, such distribution could disrupt local markets. If governments give away food in low-income countries, it could undermine local farmers who cannot compete with free goods, potentially driving them out of business. Another reason is the longer-term impact on the food supply chain, as it can create a dependency on aid instead of encouraging sustainable development. Additionally, there are logistical challenges involved in distributing these commodities to those in need.