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According to an article in the Wall Street Journal in 2019, Farm incomes have slid despite record productivity on American farms. Source: Jesse Newman and
According to an article in the Wall Street Journal in 2019, "Farm incomes have slid despite record productivity on American farms." Source: Jesse Newman and Jacob Bunge, "'This One Here Is Gonna Kick My Butt'long dashFarm Belt Bankruptcies Are Soaring," Wall Street Journal, February 6, 2019. Shouldn't the ability of farmers to grow more crops per acre of land, as indicated by rising farm productivity, increase the income of farmers rather than lower it? How can you resolve this apparent paradox? Farm incomes decrease when the total revenue that the farms receive from selling their crops decreases. Increasing farm productivity shifts the supply curve for crops to the
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