Post
Topic
Board Economics
Re: Wheat War I is going to be World War III
by
pooya87
on 01/07/2022, 09:51:06 UTC
I live in a place which is an agricultural land. But due to inflation the farmers are very very upset on what is going on. The prices of fertilizers and urea are at the fire.
My brother who is farmer too was crying the other - how is he going to take care of the next crops. I don't know where is the world heading too.
I wish you also included where you live so that we could have a better understanding of how things are going in different countries.

In any case I've seen this issue mainly in countries that are plagued with a disease called capitalism. The "capitalist" would for example buy the farm and farmer and their products in long term contracts. There are cases where the farmers have to work their assess off for 10 years and hand over their products to the "salve master" at the same fixed price for 10 years regardless of inflation. That crushes the farmer.
The government can not get involved in it either because if they did the whole system falls apart. But this threatens food security.

In other places without capitalism (or little of it) things are different. The government can get involved and help guarantee food security, not to mention that farmers are mostly also owners of their own land and products.
For example in Iran farmers receive a lot of help at times like this, for example they could receive fertilizers at very cheap prices so that their final product doesn't need to go up in price. Sometimes they have a guarantee of purchase at a high price (even higher than market price). This is why food prices (like bread) haven't technically gone up except in some cases (like rice) they only had a small rise.