Question

1. Explain why it might be important for you as a farmer to understand whether there is any seasonality in the prices of the commodities you sell. What is the importance of any cyclicality? 2. Is the cost of food marketing too high? Are marketing firms' profits too high or too low?

Answer 1

Farmers are required to know the weather and know their crop cycle because increasing the storage of appropriate types of seeds in every crop cycle and using them at the right time helps in increasing the productivity of the farmers, thereby enriching the farmers. At the same time, what kind of crop to be planted in which season, what kind of seeds to use, it also affects the income and crop yield of the farmer. If the yield of the farmers is spoiled, then the seeds will also be spoiled, so he will have to buy good seed for the new crop, which will increase his cost, so the farmer should keep proper storage of seeds so that he can increase the yield of his crop. If due to the proper seeds, he is producing more crop due to the technique of the farmer, then the farmer can also sell it at a lower price because it will benefit him.

Yes, the cost of food marketing is more than its yield because marketing technique costs more money, while the cost of food grown by a farmer and laborer is less. The profitability of marketing firm is high which is mainly because the marketing firm provides the final product to the customers whereas the farmers have raw material whose price is lower than the final product so the firm's profit is higher.