ABSTRACT
This chapter argues that the developing countries government intervention in the agriculture sector has become far-reaching, operating through a whole range of policy instruments, the requirements of stability and flexibility have not generally been attained. Government intervention often hinders the necessary change and adjustment in the agricultural sector required for economic development. Policies have unduly emphasised price intervention, service provision and externally derived change in the units of organisation. The chapter reviews the wide scope of interventionist policies in agriculture. Similarly in the European economic community (EEC) the main elements of the present common agricultural policy were the result of intense political discussion at the end of 1961 and into 1962. Agricultural development depends primarily on the initiatives and responses of individual farmers and of other supporting agents to changes in factor and product prices. State regulation in some form is necessary in respect of the use of ownership of agricultural land.
