Respuesta :
Answer:
to stabilize prices
Explanation:
Most farmers would think that producing as much crops as they can would improve their overall income. But, if the market receiving oversupply of products, the consumers would not be able to purchase all of them and this will be resulted in a massive loss for the farmers because the price tends to fall when supply exceeds the demands.
In order to stabilize prices, government create restrictions to ensure that the supply and demand stay relatively at an equal level.
The US government has restrictions on how much could be grown on land owned by a farmer to control the market. This will also help the US government to stabilize the price.
EXPLANATION
To improve overall income, most farmers in the US will most likely to produce as many crops as they can. On one side, this may look exciting as consumers can get more variety of farm productions. But, on the other hand, it means there will be an oversupply of products. If this happens, chances are consumers will not be able to purchase all of them. When supply exceeds the demands, the price will tend to fall, resulting in a loss for the farmers instead of gaining profits.
As s preventive strategy, the US government decided to implement restrictions on how much could be grown on land owned by farmers. This regulation also helps to ensure that the supply and demand stay at an equal level.
It’s not owned by farmers
What’s interesting is that many agricultural lands in the US are not owned by actual farmers. According to the data from the US Department of Agriculture (USDA) 2015, foreign owners own 26.7 million acres of privately held farmland in the US. This number has been steadily increasing over the past 30 years. Each state in the US has different regulations about this farmland ownership. Some states apply strict rules regarding foreign land ownership, while others don’t have a limit on how much land can be owned.
Learn More
If you’re interested in learning more about this topic, we recommend you to also take a look at the following questions:
- Agricultural method that is most reliant upon technology and automation - https://brainly.com/question/1101351
- Statements about agricultural societies - https://brainly.com/question/1408571
Keywords
Agriculture, farmer, US government.
Subject: Social Studies
Class: High School
Subchapter: Agriculture
