ABSTRACT
Agricultural products are examples of commodities. Traumatized by the severe food shortages during and immediately after World War II, the first large agricultural support program was introduced in Europe in 1962. European Union farmers are also protected against competitors from low-cost countries. The US is also known for its support and protective measures to its agricultural sector. On average, however, farmers in Europe and in the US are in much better shape than their counterparts in the emerging markets. For governments in the developed economies, food independence or food security is of strategic importance. The value of total agricultural support in Organization for Economic Co-operation and Development (OECD) countries is more than five times higher than total spending on overseas development assistance, and twice the value of all agricultural exports from developing countries. The chapter shows how a failing system happens when different negative reinforcing loops are resonating together.
