Why do farmers make a loss in farming? how to avoid the loss?

Abstract: why does farming still lose money? What's the problem?

Judging from the current situation of agricultural production, farmers do not lose money every year, but the loss does occur occasionally, even in the extreme case of bad luck, there will be continuous planting losses during the year. Scientific agricultural development believes that, on the one hand, it comes from farmers' lack of understanding of the market and their own blind compliance; on the other hand, it comes from the increase of agricultural planting costs.

Farmers' blind obedience to planting

In recent years, the prices of many agricultural products often go up and down, and this phenomenon is especially prominent in cash crops. For example, garlic in recent years, two years ago, people jokingly called you ruthless, but now it has become garlic and you are miserable! Although two jokes, it really reflects the fluctuation of the market price.

According to the market situation this year, the planting of garlic will lose more than 1000 yuan per mu. And people also attribute the ups and downs of garlic prices to the garlic cycle, and if our country examines the root causes, in essence, there is still an oversupply of agricultural products in the market.

The high price of garlic in the past two years, coupled with the lack of information about farmers, has led to many farmers' lack of accurate information and understanding of market demand when planting. It is blindly following the trend when planting crops, so it is understandable that the price of garlic has fallen sharply this year.

And this is also a typical performance of many agricultural products. judging from the cultivation of food crops in recent years, pure grain crops basically will not suffer losses if there are no natural disasters because of their relatively stable prices. however, the low economic benefits of food crops also make many friends lack enthusiasm for growing food crops and turn to cash crops with higher economic benefits. On the other hand, the prices of cash crops are more volatile, and farmers are more likely to lose money.

Increase in the cost of agricultural planting

In recent years, the substantial increase in the cost of agricultural materials has greatly increased the planting costs of farmers, which has compressed the planting profits. Chemical fertilizers and pesticides are affected by environmental protection orders with an annual increase of nearly 10%. Due to the increase in the price of machinery oil, the planting cost of agricultural machinery has increased, and there have also been different increases in ploughing, harvesting, and labor, so how can farmers make more profits? For some crops that are already hovering above and below the planting cost line, they are more likely to lose money because of higher agricultural prices.

To sum up, there are still losses in farmers' planting, and if you want to reduce the risk, you can choose order agriculture or food crops to reduce the risk. Secondly, it is necessary to reduce the amount of chemical fertilizer appropriately, avoid blind use of chemical fertilizer and reduce planting cost.

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