Question

US farmers can sell the farm products at abnormally low prices because:
1. production cost is very low in US
2. They recieve massive sums of money from the US government
3. They use machines for all works of cultivation
4. They are very rich and they dont want any pfofits​

Answer 1

US farmers can sell the farm products at abnormally low prices because:

3. They use machines for all works of cultivation

Explanation:

• USA had the vast land and their per capita land about 250 hectares which is compared to India, we only had 1.5 hectares.
• Commercial grain farming and mixed farming practiced in USA, due to vast land mechanisation which makes it easy to implement and it reduces the gestation period of the farming.
• USA farmers were very rich that they lead their life like businessman.
• They used technology like computer linked satellite, frequent soil test and grow the crops based on demand and need. So they sell their products at low cost.

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Answer 2

The correct option is option B.) They receive massive sum of money from the US government.

EXPLANATION:

• The system of agriculture is very different in America as compared to many other countries of the world.
• The first difference is the size of the farms. The farms are very large and that's why extensive agriculture is practiced there.
• The second difference is that commercial production of crops like wheat and maize are done, which means that one crop of wheat may be planted over hectares of land.
• Because of these two reasons the government of the US provides massive amount of subsidies to the farmers for implementing machinery and fertilizers, etc.
• The amount of subsidies received by them is so large and the productivity is so high that even if they sell their products in very low price they will still get the profits.
• But, them selling the products on low costs affects the overall costing of products in international markets, and the farmers from other small nations are forced to sell their products at low costs also.