Explain Understanding the response of farmers?

Understanding the response of the farmers by the government also influences the food production. Government policy influences the location of the supply curve directly through investments that lower marginal costs of agricultural production and indirectly by influencing the decision of the farmer, as price policies alter the incentives to use more intensive techniques of farming to produce more output. Though Government can bring changes in the policy, it is important to know how the farmers may react to the situation. This issue can be addressed only by careful attention to exactly which question is being asked, coupled with specific statistical analysis of country or regional data. Describing the agricultural sector in statistical terms is complicated by agriculture's unique characteristics.

Annual production statistics by crop for the entire country can be obtained but this doesn't reflect the decisions taken by the individual farmers. Moreover each farm setting is unique in its own sense. A model, which may be successful in one area, may not work in another area. This necessitates collecting data (e.g. village-level surveys etc.) from a variety of ecological settings (i.e. different types of agricultural lands). To serve this put-pose, the arable land is divided into Agro climatic zones, where similar ecological zones are grouped together. Data is collected from selected areas of each zone.