Encyclopedia of Finance and Economics: Why do farmers often expand their planting blindly?

category:Finance
 Encyclopedia of Finance and Economics: Why do farmers often expand their planting blindly?


This happens from time to time, so even if farmers do not understand economics, they can also perceive this market law. But it is doubtful that, after learning the lessons, when they face the high market prices, why do they follow the expansion of planting?

This is not because farmers are really blindly pursuing profits. They are naturally very familiar with these phenomena, which have long depended on the agricultural market for survival. Although they know this rule, it is difficult to predict how long the phenomenon of high and low prices will last. In other words, even if they know that the high price at this stage will inevitably lead to the low price stage, they can only follow the planting, and if they move fast enough, they may catch up with a wave of dividends. If it is a low-cost product at the present stage, few people dare to risk planting, because fruits and vegetables are at high risk of unsalability. If it fails to meet the high-price stage after planting, the loss will be obvious. As a result, a large number of agricultural products are unsalable due to the expansion of planting. This kind of farmers blindness is more helpless. Source: Netease Financial Responsibility Editor: Han Yukun_NBJ11142

This is not because farmers are really blindly pursuing profits. They are naturally very familiar with these phenomena, which have long depended on the agricultural market for survival.

Although they know this rule, it is difficult to predict how long the phenomenon of high and low prices will last.

In other words, even if they know that the high price at this stage will inevitably lead to the low price stage, they can only follow the planting, and if they move fast enough, they may catch up with a wave of dividends.

If it is a low-cost product at the present stage, few people dare to risk planting, because fruits and vegetables are at high risk of unsalability. If it fails to meet the high-price stage after planting, the loss will be obvious.

As a result, a large number of agricultural products are unsalable due to the expansion of planting. This kind of farmers blindness is more helpless.