Farm production is subject to many factors outside
producer control, such as the weather and attacks by insects. Crops are grown and
then thrown on the market for whatever price they will bring. If there is a bumper
crop, this increase in supply drives farm product prices down. Because quantity
demanded does not increase proportionately, given the inelastic demand, total revenue
to the producers decreases. This is the essence of the “farm problem” that has
confronted U.S. policy makers for many years