Farm Subsidies
The economics of farm subsidies
A subsidy is a form of financial assistance paid to some sort of business that otherwise might not be able to survive on its own. Although they may be good for the producer, they can distort markets and even impose large economic costs. Our topic is to find out how the economics behind farm subsidies really work and if they are the most efficient solution. For example, who benefits or is harmed by them and what would happen if subsidies were removed?
One of the best reasons to have agricultural subsidies is because farming is not a consistent business. Crop supply and prices can change drastically depending on many variables such as weather, demand for the crops, politics etc. Without the subsidies, there is potential for causing farmers to go out of business. On the other hand, subsidies do not tell farmers anything about their product’s worth since the subsidies function as a sort of false profit. These are some factors that contribute to the economics of farm subsidies and may help us determine if they are the best solution to help farmers.
The Farmer's perspective
The Consumer's perspective
Government's perspective
World perspective
