Should Farmers in Developing Nations Be Shielded from Volitile Food Prices?

The Takeaway

Volatile food prices are making the survival of the small farmer in developing countries nearly impossible. As the developed world weathers the storms of rising food prices through sophisticated commodities markets, smaller operations in Latin America, Asia and Africa are left to the mercy of massive price fluctuations. The World Bank and JP Morgan have come up with a plan to help those small farms in developing countries, by encouraging them to buy insurance in the derivatives market. Javier Blas, commodities editor for the Financial Times, says while some say getting these small farms involved in huge market systems might be risky, developed nations like the U.S. and France have been using similar systems for decades with great success.

Invest in independent global news

The World is an independent newsroom. We’re not funded by billionaires; instead, we rely on readers and listeners like you. As a listener, you’re a crucial part of our team and our global community. Your support is vital to running our nonprofit newsroom, and we can’t do this work without you. Will you support The World with a gift today? Donations made between now and Dec. 31 will be matched 1:1. Thanks for investing in our work!