1. Asymmetric market information leads to oversupply.
Yes, this is actually the most important reason. At present, many areas do not have a good judgment on the demand for agricultural products. Everyone obtains the sales and prices of agricultural products through some limited channels, which will inevitably lead to blind production of some agricultural products with high prices and good sales. As a result, there is a lot of surplus in the market. Once the market is saturated, the price naturally cannot reach the expected high price, and it is also reasonable to be unsalable. Asymmetric market information is a very important reason;
2. Small production and big market can't form effective docking.
Yes, farmers still have great blindness in producing agricultural products. In terms of overall data, agricultural products information will be released according to the distribution of resources. But for farmers, it is more to judge what to plant according to their own planting experience. This will inevitably lead to a period of time, the price of agricultural products fluctuated. It is inevitable that there will be very big fluctuations.
3. The overall market downturn, import and export market impact
As an external factor, the export of agricultural products actually has a great impact on agriculture. When the domestic market is in a state of saturation, it is also a very effective means and way to increase farmers' income if the external market can be opened through export. However, when foreign markets are depressed, many products can only be digested at home. This will inevitably lead to the situation that some agricultural products are unsalable and no one buys them at low prices.
Therefore, how to solve the information asymmetry, reasonably control the output of agricultural products and open the external market are very key factors. Don't blindly follow the trend of planting. It is not a good phenomenon that "the grain is cheap and hurts the farmers". After all, China is still a big agricultural country, and agriculture is very important to us.