The Price Elasticity of Demand is an equation that economists use to calculate demand. The Price Elasticity of Demand for farming is 0.25. This means that for every two-percent change in price, a 0.5 percent change in demand would take place. This is what is called inelastic demand. Unfortunately, price inelastic products tend to rise and fall with the economy.
Farmers are at the mercy of the general economy for a fair price.
From the information above, it is easy to realize that the farm market is very volatile. With such a market one can see why farmers need to devote so much energy to farming. If either the weather or the general economy doesn't hurt the farm a particular year, then competition will rise and hurt it the next. It is a never winning battle. If the farmer were to not work as much, someone else will.