The agricultural and farming side of the world’s industry is vital to supply the basic necessity of human survival– food. Farming is a large portion of the economy, and is extremely vital. As a means of supporting farmers and those in the field of agriculture, farm subsidies were made available. Farm subsidies are incentives and payments given to farmers by the government, from tax money. Why do they do this? Should they?
The 3 Pros for Farm Subsidies
This is the list of things that make farm subsidies advantageous to farmers and those who can receive it.
1. It can create a Stable Farming System
If a farmer is receiving subsidies, they will provide enough and even more than enough supply of harvested products. That is because they have the monetary support they need. Also, the farming system will be more stable with the use of the latest and efficient farming equipment they have.
2. It Enables Farmers to Compete in the Market
Local farmers are getting the most benefit from the subsidies. Since they are given monetary support, it is easier to focus on the production side. This will lead soon to enabling farmers to compete in the market with their low-priced goods.
3. Farm Subsidies Prevent the Possibility of Price Spikes and Other Negative Effects
Without the assistance that farm subsidies can provide, it will be easier for price spikes to happen. It can be caused by a lot of things like bad harvest. When it does, the cost of agricultural products will go up, which will make the cost of eating rise.
The 3 Cons for Farm Subsidies
Here are the disadvantages that critics have seen in farm subsidies.
1. Farm Subsidies Leave Farmers with No Enough Space for Change
The subsidy was enabled as a support for farmers. However, it is not all benefit for the farmers. In some places in the U.S., the subsidy even hinders them from innovating, diversifying the use of their land, cutting costs and prospering.
2. It May Lead to Putting the Economy of the Farmer’s Place at Risk
It is found out that agriculture is 50% to 80% of the economy of those developing countries. In the United States, it is only about 1.5% of its entire economy. Considering that, if the U.S. subsidies are putting the farmer’s countries out of business, it will surely affect half of its economy.
3. It can also be bad for the Environment
It becomes bad for the environment in case small farms are put out of business. When that happens, products coming from the United States are required to be shipped from another country, which involves usage of more energy.
The Farm Subsidies Pros and Cons – When It Can Be a Benefit
As a law, this can be beneficial if it is properly followed and done. Its potential to help and support farmers is huge. Until then, the same issue will be faced.