The Problems with Farm Subsidies

The issue of farm subsidies is payments, economic concessions, or privileges that the government gives to businesses and consumers. In the 1930s, subsidies were designed to promote agriculture. John Steinbeck expressed his dislike to the American agricultural subsidy system in his book "The Grapes of Wrath". In that book, the government donated money to the farm, allowing them to cultivate and sell a certain amount of crops. Therefore, Steinbeck believes that many people are hungry for unnecessary death.

Members should first determine the subsidies to be realized before digging down the details of agricultural policies. When President Franklin Roosevelt introduced the agricultural subsidy in the 1930's, the Minister of Agriculture Henry Wallace called them "a temporary solution to an emergency situation." The emergency situation is a decrease in agricultural income affecting 25% of agricultural income. Today, farmers occupy only 1% of the population, farmers' income far exceeds the national average, but the original reason is irrelevant. Does today's farm plan solve modern market failure and social problems? Advocate advocate suggests five flawed reasons

High Taxes As the agricultural economy booms, Congress is expanding agricultural subsidies. Since the adoption of the 2002 agricultural bill (the most expensive agricultural bill in the history of the United States) after less than an average of $ 14 billion annually in the 1990s, annual agricultural subsidies have exceeded $ 25 billion in the past decade. All federal expenditures must finally be financed by taxes. Therefore, in addition to a food price rise of $ 104, these subsidies also cost an average household of $ 216 annual tax. No increase in rural economic growth. Research by the Federal Reserve Bank of Kansas City concluded that agricultural subsidies do not promote rural economic growth. Between 1992 and 2002, the majority of 783 "dependent on farms" counties experienced employment growth below the national average. Indeed, more people in these counties have higher unemployment rates than those experienced employment growth over the national average.