Low food prices lead to peasant poverty, a phenomenon that is widespread in rural areas. However, to equate the increase in food prices with the prosperity of farmers is an oversimplification of the complex problems of the agricultural economy.
Although raising food prices can increase farmers' incomes, the pricing of food prices is not determined solely by market supply and demand. Intervention in food and market regulation policies is also an important reason for food price fluctuations. Therefore, even if food prices are high, there are policy uncertainties and market risks, and it is difficult for farmers to fully benefit.
With the price of food**, the input costs of agricultural production have increased accordingly. Farmers need to buy more agricultural materials, fertilizers, pesticides, agricultural tools, etc., as well as expenses for irrigation, transportation, etc. The increase in these costs has further weakened the peasants' profit margins, and behind the high grain prices, the peasants' burdens are also increasing.
High food prices often mean increased competition in the market. In the face of soaring grain prices, farmers are faced with competition from agricultural products from other regions, which reduces their profit margins. At the same time, because the selling prices of agricultural products are greatly affected by market factors and fluctuate greatly, peasants' incomes are also unstable.
In order to achieve peasant prosperity, it is not enough to raise grain prices. Agricultural modernization and the improvement of technological level are an important guarantee for the prosperity of peasants. With the help of efficient agricultural technology, improve the level and efficiency of agricultural production, reduce resource consumption and environmental pollution, farmers can be invincible in the highly competitive market.
Farmers need to provide effective support policies and guarantee systems to make them prosperous. Supporting farmers in terms of agricultural inputs, financial support, land conservation, information services, etc., can increase their output and returns. At the same time, the establishment of a sound social security system to provide education, medical care, pension and other guarantees will also help improve the quality of life of farmers.
Raising grain prices is not the fundamental reason for the prosperity of peasants. The way for farmers to get rich is to pay attention to agricultural modernization, technological progress and improvement of output efficiency with the help of first-class policy support and market environment, and at the same time provide comprehensive social security, so as to ensure that farmers can truly enjoy the benefits of high grain prices. Only in this way can rural economic development become a sustainable virtuous circle.