Identify an Agricultural Problem/Issue and Discuss your solution:

Make sure that you clearly describe the problem and the associated market failure(positive/negative externalities, lack of public goods, imperfect information, market control, environmental concerns). Remember that a market failure occurs when the price in the market does not factor in all costs and benefits to provide and consume a good. A market will fail if the amount produced in the market is different from the socially optimal amount of the good. This can lead to the over-or under-consumption of the good. You need to clearly link the problem to a specific market failure and discuss how this results in over-or under-consumption of the good.

In your solution, be sure that you are specific. Does your solution require government intervention? What type of legislation might be required? Are taxes/subsidies involved? If so, how? Are tradable permits required? Extension of property rights? Advertising? International cooperation? Who will implement your solution? Can you identify an entity that will administer your solution? Is there a group of politicians that may be interested in participating?