Although rated a sub-500 level question, it can be a deceptively good one. Here's why:
(A) Plant varieties used as food by some are used as ornamentals by others.I can't think as to why this option can be inferred to be correct. Maybe it tries to tap into the pre-thinking that ornamental dwarf plants like bonsai can be grown by plant breeders. Not worth spending additional brain cells on though.
(B) The wholesale prices of a given crop decrease as the supply of it increases.Ah, this. One reason as to why this could pose a problem is that for many plant species, the taller they grow, the more yield they can provide per area of land, hence the supply of those particular species would increase leading to decreased wholesale prices. However that does not eliminate the existing competition by existing plant breeders growing taller variants and at this point we seem to have deliberated out of the scope of the argument.
(C) Crops once produced exclusively for human consumption are often now used for animal feed.One way of feeding animals is by grazing. I can think of a few reasons why dwarf plant species can be used for this:
1) As mentioned above, taller species provide more yield which could lead to overgrazing that is an active problem with farm animals.
2) Presence of taller shoots of plant leads to a decreased field of vision of farm animals which increases chances of attack by prey.
However, this is out of scope too.
(D) Short plants are less vulnerable to strong wind and heavy rains.This produces a more straightforward need for plant breeders to grow dwarf plants.
(E) Nations with large industrial sectors tend to consume more processed grains.Huh?
Hence, (D) is the answer.
Only reason behind this reply was to give an example of how even easier questions, especially those that can be a slam dunk for a person with a major unrelated to the topic mentioned in the question stem, can be trickier for people who have majored in that respective field. As it involves indulging into the theory already known to them.