UNCTAD
Agricultural Outreach and Development
Differences in economic development, population density and culture mean that the farmers of the world operate under very different conditions. For example, a US cotton farmer may receive $230 in government subsidies per acre planted, while farmers in Mali and other third-world countries do not. When prices decline, the heavily subsidized US farmer is not forced to reduce his output, making it difficult for cotton prices to rebound, but his Mali counterpart may go broke in the meantime. Farmers in developing countries are also at a disadvantage because subsidized farming allows for cheaper products.
Farm subsidies in rich countries depress market prices for farm products and induce poor countries in Africa and elsewhere to import food that local farmers could otherwise produce more efficiently. These countries must exercise their right to stop the flow of subsidized products in order to ensure a fair universal market strategy. More regulation of agriculture in third world countries is needed to help these small farmers.
Many small farmers in third world countries are not only overwhelmed by big businesses, but also often have to deal with radical climate changes, and unstable governments. This makes it even harder for them to compete with major corporations. Occasionally, these farmers get into such deep financial trouble that they are forced into growing illegal drugs, such as opium. It is clear that the root of many of these problems lie within the government. The United Nations must find ways to support these small farmers and their families and stop any more backlashes before they start.