Farm Subsidies

1200 Words3 Pages

Agricultural subsidies is a very complex and controversial economic topic today. It will continue to be a hot topic as government continues it. It is largely debated in the United States as well as in other countries. The reason it is so largely debated is because it literally have an effect on the entire world market. Not to mention that the farm has been booming the last 5 to 10 years. This topic also tends to draw strong opinions in our area in particular due to the large agricultural community in our region. However, even within different states there are many supporters as well as opponents to these government subsidies.

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...

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...heir policy. Whether you believe this subsidizing is good or bad may depend on if you are a producer or consumer. No matter what this policy has a large effect on the food market as well as spending of taxpayer dollars. Either way most people in the U.S. maintain an opinion on one side or the other.

Works Cited

Mish, F. C. (2003). Subsidy. Retrieved from

Vogel, S. (2001, February 14). Farm income and costs: farms receiving government payments. Retrieved from:

Farm bill resources. (2008, August 20). Retrieved from

Steinhauer, Jennifer. (2011, May 7). Farm subsidies become target amid spending cuts. New York Times, p. 1.

Riedl, M. (2011, March 30). Farm subsidies ripe for reform. Washington Times, p. 1.

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