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
Global food and agriculture »Global food and agriculture
Food prices »Food prices
Food price volatility »Food price volatility
Consequences of increased volatility »Consequences of increased volatility
Higher prices may encourage farmers to increase investment
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