Agricultural Subsidies Affect Overall Economy

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Although agricultural subsidies do have positive effects on the farming industry, they cause many negative impacts on the overall economy and also many health related issues. From the economical aspect, not only the free-market system is interfered (with the suffering cost is on the taxpayers) by the governmental and corporate’s influence on the prices, but these subsidies also make it hard for the newcomers, small farmers and unsubsidized companies to stay in the industry. Moreover, it can affect the global trade system due to the unavoidable reduction in market prices. Additionally, from health related aspects, subsides are bad for the environment, less nutritious and healthy foods affordable for the consumers. Subsidies always contain the risk of altering free market conditions, and agricultural subsidies is not an exception. Since it was a form of government action to limit competition, the prices change as a result and thus directly affect the consumers and also the farmers. The original intention of the agricultural subsidies was to save the farmers from poverty when a certain heavy price drops. However, the scene changes as these subsidies have the tendency to “transfer the earnings of taxpayers to a small group of fairly well-off farm businesses and landowners” [4] and benefit the large farm corporations rather than family-owned farmers. Some even consider agricultural subsidies as “corporate welfare program.” According to Department of Agriculture, the average income of farm households, that is located in a rural area with a low cost of living, “was $86,223 (28 percent higher than the $67,609 average of national households)” in 2007 and “has a net worth of $838,875 (more than eight times the national average).” [4] This ... ... middle of paper ... ...Taxpayers, Consumers, and Farmers, Too”. Heritage.org. June 20, 2007. Mar 27, 2014. 5. Power, Lauren. “Food and Farm Subsidies in the Global Food System”. Futuredirections.org. Oct 3, 2013. Mar 28, 2014. 6. Claassen, Roger. “Farm program changes could affect environmental compliance incentives”. Ers.usda.gov. June 05, 2012. Apr 1, 2014. 7. Max Borders, Sterling Burnett. “Farm Subsidies: Devastating the World's Poor and the Environment”. National Center for Policy Analysis on Web. March 24, 2006. Mar 29, 2014.
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