Answer to Question #290599 in Economics for lisa

Question

Discuss why governments find it necessary to intervene in their economies through formulation and implementation of agricultural policies

Answer 1

The main reasons for government intervention in the agrarian sector through formulation and implementation of agricultural policies are identified in the following fields:

1) Efficiency increase of agricultural production;

2) Protection of farmers' income;

3) National food safety and security and

4) External effects and public goods in agriculture.