which of the following arguements for farm subsidies course hero

What types of farmers receive the most subsidies?

Which of the following arguments is not generally made to justify farm subsidies from ECON 302 at University of Sharjah

What is the purpose of farm subsidies?

The artificial presumption is that subsidies are needed in order to regulate the income of farmers; without them, farmers will struggle to make profit. It was originally needed after World War I when agriculture was in major financial crisis. However, today subsidies are …

How will the government’s new subsidy regime affect the agriculture sector?

Jan 22, 2015 · Subsidies protect the farming industry from being taken over by large-scale supermarkets, argues Michael McCaw. But Matt Timms thinks they are a flawed method, and do not necessarily alleviate farmer poverty. Farmers are living vulnerably, teetering above the poverty line and operating at severe and consistent losses.

Do farm subsidies promote junk food?

Which of the following arguments is not generally made to justify farm subsidies? Agribusiness firms need subsidies to achieve economies of scale. Acreage allotment programs were designed to: reduce the supply of agricultural products. Because government price supports cause surplus production, government policies have been designed to: ...

What is farm subsidies?

Farm subsidies are government financial benefits paid to a specific industry— in this case, agribusiness. 1 These subsidies help reduce the risk farmers endure from the weather, commodities brokers, and disruptions in demand. But they have evolved to become very complex.

Why are subsidies important for farmers?

Farms are susceptible to pathogens, diseases, and weather. Subsidies help farmers weather commodities’ price changes. Farmers rely on loans, making their business a bit of a gamble. Cons. U.S. farms are in one of the world’s most favorable regions. They have the tech advantages of a modern business.

What crops are subsidized by the government?

Out of all the crops that farmers grow, the government subsidizes only five of them. 2 They are corn, soybeans, wheat, cotton, and rice. Grains provide 80% of the world’s caloric needs. Grains can also be stored and affordably shipped.

Which state produces the most food?

California produces the most food by value. Most of it is almonds, wine, dairy, walnuts, and pistachios. These aren’t subsidized. There are 2.1 million U.S. farms, of which 97% are family owned. 5 There is a competitive advantage in understanding local soil conditions and weather patterns.

Why is food production important?

The government has a role in ensuring food production during wars, recessions, and other economic crises. Food production is more important to the nation’s welfare than other business products. Farms are susceptible to commodity price dips. Commodities traders determine the prices on an open exchange.

Who is Kimberly Amadeo?

Kimberly Amadeo is an expert on U.S. and world economies and investing, with over 20 years of experience in economic analysis and business strategy. She is the President of the economic website World Money Watch.

What is farm subsidies?

Farm subsidies, also known as agricultural subsidies, are payments and other kinds of support extended by the U.S. federal government to certain farmers and agribusinesses. While some people consider this aide vital to the U.S. economy, others consider the subsidies to be a form of corporate welfare.

How much does the government pay farmers?

Yearly Farm Subsidy Payments. The U.S. government presently pays about $25 billion in cash annually to farmers and owners of farmland. Congress typically legislates the number of farm subsidies through five-year farm bills. The Agricultural Act of 2014 (the Act), also known as the 2014 Farm Bill, was signed by President Obama on February 7, 2014.

When was the 2014 Farm Bill signed?

The Agricultural Act of 2014 (the Act), also known as the 2014 Farm Bill, was signed by President Obama on February 7, 2014. Like its predecessors, the 2014 farm bill was derided as bloated pork-barrel politics by a plethora of Congress members, both liberals, and conservatives, who hail from non-farming communities and states.

Who is Deborah White?

Deborah White is a political journalist specializing in progressive political issues and perspectives. She is a three-time delegate to the California Democratic Party and a former federal elections official. our editorial process.