Bill to improve farmers

[SRVy]

I have an idea of proposal to strengthen farmers but how to do it. Well i know policies that should be enacted.

Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Proposal


1. The bill will take measures to empower farmers for engaging with processors, wholesalers, aggregators, wholesalers, large retailers, exporters etc., on a level playing field.

2. The farmers will have assured price of their produce even before sowing, thereby transferring the market risk from the farmer to the buyer, both state and private.

3. If the market price becomes more than the contact price, farmers will be entitled to the market price.

4. The buyer will have to directly pick up the produce from the farms, which will enable private investment in farming sector, and will link the farms with global markets.

[Imperium Anglorum]

A set price for produce, if binding, would require establishing an agricultural marketing board. They are really bad ideas, especially if you set them up this way. The point of a farming board, in the "good" version, is to stabilise volatile agricultural prices. What actually happens with these boards is that they are used as means to extract rents from farmers by requiring them to sell to the government and then the government pockets the difference by setting up monopolies or by arbitrage. But in your framework, insofar as losses are always absorbed and profits always distributed to the farmers ("If the market price becomes more than the contact price, farmers will be entitled to the market price"), your proposed board is always going to lose money and will always collapse. Otherwise they just become subsidy machines (at least if the strike price is binding).

What you probably want is something more like a futures market, where farmers can sell the future interest in their produce for some set price. Important there is that those futures contracts can be resold, promoting liquidity in that market. While there is normally delivery of futures contracts at some point, the liquidity of the market promotes price discovery and reduces fluctuations to a degree. Breaking those futures contracts by encouraging (or even requiring) strategic default on the farmer's side would destabilise the spot market and make it difficult for anyone to buy agricultural produce forward.

[Tinhampton]

33 minutes ago: The Sultanate of SRVy submitted a proposal to the General Assembly Environmental Board entitled "Farmers Empowerment and Protection".

Not only have you not responded to IA's feedback, but each and every single one of your seven articles - as well as the first line of your proposal - appear to have been plagiarised from The farm acts: All you need to know. NOT a good look.