Currently, another large emergency aid package seems imminent. Summary Many farmers in North Dakota are under severe financial stress because of several years of poor crop and livestock prices and increased costs of production per unit of wheat and barley. It is also important to recognize the underlying reasons behind the powerful downward trend in farm numbers that has existed for over 60 years. Technology has enabled fewer people to produce more food. In a free market economy, prices gravitate to the lowest cost of production in a highly competitive business.
Free trade heightens competition.
As in other industries, economies of size have provided cost advantages and has fueled concentration in agriculture. This trend will continue unless society believes the negative consequences of concentration, mainly the depopulation of rural areas and the concern over market power, outweigh the benefits.