Not in the US. Farmers are individual businessmen, so they get to choose from which company they will purchase next year's seed. There is no direct connection between the purchaser of this year's crop and next year's seed supplier.
to improve the situation of farmers, the govt. bought crops at regular prices to help the farmers and sold them low, to help out the consumers.
The advantage of cash crop is that the farmers get cash price of their products sold to a middleman or MNCs engaging them. The cash price received by the farmers can be used for repayment of loan, for buying seeds, fertilizers etc.This enthuse the farmers to cultivate multiple crops in a year for monetary benefits.
:Reduce because even though the farmers will have more crops to sell, most everyone else will as well which will make prices comptetive. With the production of so many crops comes the complementive price of growing these crops. With this in mind, because price is inelastic and suppliers would receive the same price for the product in demand whether or not there was a surplus, they would benefit if their were not that many crops in the market to compete with (hence lowering their income.)
A surplus in crops
market price
Surplus crops
Because of how healthy the crops were compared to other unhealthy alternatives
Farmers from the south west and the south began an association for growing crops. They bought, sold & grew crops for each other at a lower price.
Farmers overproduced crops.
Some of the hardships that farmers had to face were railroads charging excessive prices for farmers in the West to ship/store crops than those in the East, the price of crops was decreasing, and farmers had to mortgage their land to buy more property, which the banks would foreclose. Does this help?
to improve the situation of farmers, the govt. bought crops at regular prices to help the farmers and sold them low, to help out the consumers.
The Southern Farmers Alliance was an organization which founded with the basis of fighting for the rights of the farmers. The top leader of this alliance was Dr. Charles W. Macune.
Farm price supports
There is an excellent article on what the Stock Market fall in 1929/1930 did to wheat prices, but it wasn't the price of wheat in the 1920's that caused farmers a problem. It was the great drought and dust bowl conditions that would not let the farmers get any crops planted and harvested. See the related link for further information. Go to TABLE 2, and read above it about surplus's and prices of agricultural products.
The advantage of cash crop is that the farmers get cash price of their products sold to a middleman or MNCs engaging them. The cash price received by the farmers can be used for repayment of loan, for buying seeds, fertilizers etc.This enthuse the farmers to cultivate multiple crops in a year for monetary benefits.
Farmers spent more than they made. The cost of production was too high and the price of the crops was too low. Just like today.
Grain is trucked to a elevator. They determine price based on weight, bushel's, or moisture content. Tomatoes are sent to a local cannery and sold by weight. Some produce is sold at "farmers markets". The bulk is sold to distributors who process it and in most cases can it.