Demand for food is generally inelastic, implying quantity variations should trigger large fluctuations in prices. The big question is whether or not future technological improvements can keep pace with global food demands. Harold Barnett compared ratios of agricultural prices to general wholesale prices for 53 countries, and found only 15 countries in which agricultural prices were rising faster than general wholesale prices. Total food self-sufficiency is generally not an economically wise policy objective for these countries.
Food is undervalued in many countries because of market distortions.
Government-run marketing boards in LDC's hold food prices down to benefit urban consumers and maintain government popularity in urban areas. But food price controls hurt rural economies, discourage domestic food production, and ultimately increase dependence on food imports. Taxes on cash-crop exports reduce farmer incomes, export volume and foreign exchange receipts. Food stamp programs targeted specifically to poor people are more efficient. Most localized famines in the world today are the direct result of political conflicts, not true shortages.