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Agricultural subsidy
Farm subsidies economic issue
Impact of agricultural subsidies
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Recommended: Agricultural subsidy
Agricultural Subsidies: Their Original Purpose and Impact Today
Contents
Introduction: What are Farm Subsidies? 3
Government Intervention in Agribusiness 7
The Reality 9
Works Cited 12
Introduction: What are Farm Subsidies?
The Agriculture sector has changed monumentally over the past century in response to vast economic change and technological advancements. Farm subsidies are various forms of payments from the federal government put in place in an effort to stabilize prices, keep farmers in business, and ensure quality of crops. The federal government currently pays $20 billion in cash each year to US farmers and spent an estimated $250 billion between 1995-2005. Presently, a new farm bill is passed every five years with the most recent being in 2013 .
Although there are small changes with each preceding Farm Bill the permanent pieces of legislation requiring US Department of Agriculture to control pricing and regulate supplies date back to the 19th century.
The Commodity Credit Corporation (CCC) finances subsidies and buys surplus food to regulate and steady farm income. There are presently eights various subsidies: Direct Payments, Countercyclical Payments, Export Subsidies, Conservation Subsidies, Marketing Loans, Agricultural Research and Assistance, Disaster Aid, and Insurance.
1) Direct Payments: 5 billion annually
The federal government pays cash subsidies to landowners who produce: wheat, corn, sorghum, barley, oats, cotton, rice, soybean, minor oil seeds and peanuts. This combination of crops are considered to be the top ten crucial commodities. A direct payment is equal to the product of the payment rate for the specific crop, the historical payment acres, and the historical payment yield fo...
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Nathaniel, Jeroime. "Farm Bill 2013: An Inside Look At the Most Important Bill You've Never Heard Of." PolicyMic. Oct. 2013. 13 Apr. 2014 .
Peterson, E. Wesley F. A billion dollars a day: The economics and politics of agricultural subsidies. Malden, MA: Wiley-Blackwell, 2009.
"U.S. Department of Agriculture." U.S. Department of Agriculture. 11 Apr. 2014 .
"U.S. Farmers During the Great Depression." Farm Collector. 13 Apr. 2014 .
White, Deborah. "What Are U.S. Farm Subsidies?" About.com US Liberal Politics. 11 Apr. 2014 .
Corn subsides began around the time of the Great Depression, which was intended to save the American farmer. Now the subsidies are destroying the very thing they set out to protect. Corn subsidies have grown into an over-burdensome crutch that enables affluent growers and financial institutions to thrive at the expense of taxpayers and local farmers. The subsidies allow farmers to overproduce corn in an effort to artificially maintain low prices.
In the New York Times article “When a Crop Becomes a King”, author Michael Pollan argues there is an overproduction of corn that does more harm than it does good. He writes this in response to a farm bill signed by then President Bush to increase the budget for corn production which caused much controversy. Pollan uses an infuriated and frustrated tone in order to convince American consumers that corn has taken over their environment and economy. Michael Pollan uses rhetorical strategies to challenge conventional views of corn and to argue against additional corn production.
this notion of stable supply and demand affected prices of farm commodities. “Low prices on
The Web. 16 Mar. 2014. The 'Standard' of the 'Standard'. http://www.harp.gov/About>. Agricultural Adjustment Administration (AAA). "
"Top 10 Reasons Food Stamps Need To Be Reformed." FreedomWorks. N.p., n.d. Web. 1 Apr. 2014.
...ed access to federal subsidies that were given to all farmers. These federal programs were administered locally by a small class that controlled the counties. If they said that their county didn’t have the need for these checks they were returned, or in some cases pocketed by the landowners themselves instead of giving them to the sharecroppers. (Kreisler internet)
Sugar growers continue to benefit from favorable economic conditions provided by the U.S. government. Yet empirical data reveal a decrease in the aggregate support for sugar legislation in recent years. In 1978, there were 9,187 full or part owners of sugar cane and sugar beet farms, compared to 7,799 farms in 1987. The level of sugar subsidy allocated to the farmers, however, has increased and even favored certain sugar growers disproportionately over others. Such empirical findings suggests that politics, as much as economics, affect the level of sugar subsidy. This paper examines why an increasingly smaller number of sugar farmers receive a steadily larger government subsidy.
The Affordable Care Act is projected to have a net cost of $1.2 trillion over the next ten years, even though we were told it would save money once implemented. The Agricultural Act of 2014, a/k/a the “Farm Bill,” was originally estimated to cost $956 billion over the next ten years [$756 billion dedicated to the Supplemental Nutrition Assistance Program (formerly known as Food Stamps), which has nothing to do with farming], however, several news sources are already stating the Congressional Budget Office projections are too low. The list of programs continues to expand, both in size and scope, as we get further and further away from our founding principles. Our nation is becoming more and more liberal. Our government, more and more secular. The removal of our founding principles and Judeo-Christian values have permeated not just the government but most industries, especially entertainment and academia, and thereby have the ability to affect most public policy decisions. There are those who believe:
A. “Farm Policy.” CQ Researcher 10 Aug. 2012: 693-716. Web. The Web. The Web.
"The People's America: Farm Security Administration Photographs." The People's America: Farm Security Administration Photographs. Web. 12 Feb. 2014.
As you walk to the other end of the stage and look out into the sea of blue and gold corduroy, you realize this it! This is the moment you’ve worked toward for the last four years. You’ve stayed long hours after school working on you record book, spent grueling hours memorizing speeches, experienced the joy of winning first place at a state CDE contest, and best of all you met so many amazing people and doors were opened to opportunities you never imagined. Finally, after all of your hard work, you’re receiving your State FFA Degree! All of this from making one simple decision your freshman year of high school, signing up for the FFA. What you didn’t realize at the time was that this wonderful organization would help you build leadership skills and teach life skills that you are going to need in the coming years.
Health habits formed in childhood are incredibly hard to break as they grow into adults, and an unhealthy child population equals an unhealthy adult population before too long. The farm bill’s specific catering to such a small number of crops cuts down on what readily available products there are to feed to the population, especially as the farm bill “…offers little, if any, support to the California farmers who produce nearly half of our nation’s fruits, nuts, and vegetables, despite the U.S. Department of Agriculture’s nutritional guidelines calling for a diet rich in all three” (Farm Bill Should Focus on Healthful Foods, 31). I agree that by ignoring these extremely important farms in the face of making money we are only hurting ourselves in the long run. Most of our population is not a wealthy one, and to remove healthy choices from our reach and yet still expect us to be a healthy, thriving class of people is not only impossible but also
Farming income increased greatly with the AAA in charge, though. In three years, cotton, wheat, and corn prices doubled. Farmers greatly approved of this program, as they could make more money with smaller inputs into their crops. This program was great for farmers who owned their own land. However, tenant farmers and sharecroppers didn’t do so well. They didn’t receive the government aid, and it instead went to the landlord. In return, the landowners often bought better equipment with the government aid, which reduced the need for farm labor. This almost brought a complete end to the practice of sharecropping in the United States (The Farming Problem).
To really begin to understand this complex topic a person really needs to understand the basics of agricultural subsidizing. A subsidy is defined as a grant by a government to a private person or company to assist an enterprise deemed advantageous to the public (Mish, 2003). More specifically, in the agricultural industry the government provides financial assistance to producers in the farm industry in order to prevent decline in production. The government does this by providing financial assistance to farmers and by managing the cost and supply of certain commodities. There a few reasons for this. One reason is to provide assistance to family sized farm owners who have trouble competing with commercial farms. This is supposed to maintain an efficient market balance. Another reason is to control the prices of commodities and keep the global food prices low. There are two main ways that payments are made. The payments may be made directly based on historical cropping patterns on a fixed number of acres. Or they can also be made depending on current market prices. Farmer’s may be guaranteed...
Agriculture is quite possibly the most important advancement and discovery that humanity has made. It produces the one thing that we need the most: food. It has been around since 9500 BC, and can be the oldest sign of mankind’s acumen and the development and evolving of our minds and creations. Agriculture has been mastered throughout hundreds of years and is one of our most important resources on Earth, along with water and fossil fuels. Although the older farming methods from ancient times seem somewhat mediocre and barbaric, they were very ingenious and advanced for that time period. Over thousands of years, we have improved the way agriculture is used, how land is cultivated, the various techniques of farming and irrigation, and the tools and mechanics used. Numerous things that we see as aboriginal today, such as using a hand plow, were extremely contemporary in ancient times, and played key roles in the development of man and society, since quick labor was not abundant before this time. We are now extremely advanced in agriculture and irrigation and the tools used to farm and grow and harvest crops. We have learned from our past and ancestors how to grow and evolve in our methods and have advanced forward greatly.