This happens when you subsidize food production in a market economy. If the market weren’t subsidized, then the food supply would simply shrink until demand outstripped supply and maximum per-unit profit margin could occur.
Obviously this is only talking about food production on a macro level, not any individual farmer in any specific region.
Afaik they don’t even “grow less”. They destroy the “excess”. :(
This happens when you subsidize food production in a market economy. If the market weren’t subsidized, then the food supply would simply shrink until demand outstripped supply and maximum per-unit profit margin could occur.
Obviously this is only talking about food production on a macro level, not any individual farmer in any specific region.
https://www.economicshelp.org/blog/3201/economics/profit-maximisation/