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Agricultural Markets Without Government Intervention Essay

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The Agricultural Market could be A-maize-ing without Government intervention. The ever expanding gap between the developed and developing world, constantly emphasises the need for intervention, in promoting the positive upliftment of third world society. With 13.1%, of the world’s population suffering from malnourishment, there is continuous pressure on the agricultural market to provide increased amounts of produces to cater for the needs of the yearning populationi. To accommodate the ever increasing demand, governments are often required to intervene. Unfortunately not all governmental intervention has the desired effect, creating distortions that do more harm than benefit. This essay thus explores the damaging effects governmental intervention can have on the agriculture market, with a specific focus on the maize market. Government intervention will attempt to reshape the economy by applying policy measures such as; subsidies and price ceilings to the agricultural market. Governments intervene in the price-setting devices in a variety of ways for various reasons. ii These price distortions do not however benefit the maize industry but in fact hinder it, and will show the harsh consequences of intervening in a highly important food staple. Maize is a vital produce in the agriculture marketiii. It is not only used as a food crop but is al...

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