Suppose the price elasticity of demand for farm products is inelastic.?

Question

If the federal government wants to follow a policy of increasing income for farmers, what type of programs will the government enact?

Answer 1

From the point of view of the farmer or from the point of view of the general public?

From the point of view of the farmer, the government need do nothing. If demand is inelastic, then farmers can raise prices without experiencing a drop in demand for their products.
However, this would mean less disposable income from the general public (as you now spend more on food than you used to), so it could have an adverse effect on the general economy.
Another way would be to reduce or eliminate sales taxes on farm products. Since farm products are inelastic, farmers will be able to charge the price plus the sales tax, but pocket the sales tax.

Answer 2

The farmers produce goods, that goods in the market are inelastic, so they can put a higher price to get a higher income.