Agricultural income problems stem from forces operating in the national economy which affect both the supply of and demand for farm products, Since consumer demand for farm products is relatively unresponsive to changes in income, a rise in national and per capita income does not result in a similar increase in returns to the agricultural sector. The per capita demand for agricultural products decreases relative to other goods and services. Industries producing products the demand for which is relatively responsive to income changes bid up the prices of inputs used .in agriculture. Hence, farmers n costs rise relative to product prices, creating the "cost-price" squeeze.