Government subsidies have been a recurring issue for overproduction. Not only do they incentivizes the farmers to produce more then they can sell and creates, it also leads to product dumping on the fragile markets of the developing world making it impossible for their indigenous agriculture to compete. The latter has been of hot debate in the WTO negotiations over the past decade. Reducing subsidies and/or focusing them on products that truly need the assistance would help the reduce overproduction.
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