Higher prices may encourage farmers to increase investment
Volatility is preferable when it leads to higher prices, as these encourage farmers to increase investment. If prices remain low, it will be impossible for them to take measures to address issues such as sustainability and environmental protection.
Immediately related elementsHow this works
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Agriculture, food and land use »Agriculture, food and land use
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Global food and agriculture »Global food and agriculture
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Food prices »Food prices
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Food price volatility »Food price volatility
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Consequences of increased volatility »Consequences of increased volatility
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Higher prices may encourage farmers to increase investment
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