Question

Between 1950 and 2020, the U.S. population more than doubled, from 152 million people to 331 million. Because per capita food consumption has also risen, total food consumption in the US rose by about 150% over those 70 years. Yet despite this long-term growth in food consumption, prices for farm commodities have risen less than economy-wide prices. Specifically, while prices across the US economy rose at an average annual rate of 3.11% per year from 1950 through 2020, prices for farm commodities rose at average annual rate of 1.65%--in short, real (inflation-adjusted) farm commodity prices fell over this period. In short, food demand has increased, and farm input prices have increased. Why would real farm prices decline?

Answer 1

Some articles for your reading

https://www.farmprogress.com/outlook/falling-prices-crop-productivity-driving-farm-income-outlook

https://en.wikipedia.org/wiki/Farm_crisis

https://fas.org/sgp/crs/misc/R45117.pdf

Between the years 1950 and 2020 the US has been through the farm crisis according to which very high production resulted in falling or declining commodity prices. Factor contributing to this farm crisis is better technology which has made more production possible.